On April 10, 2013, President Obama released his 2014 fiscal year budget. The proposed budget includes many tax related items as the president tries to cut the deficit while still providing middle-class tax relief and reforming the tax code. The proposal affects all types of businesses and individuals — some examples of the proposed changes include:
- Permanent Extension of the Research and Development Tax Credit
- Repeal the last-in, first-out (LIFO) accounting method
- Tax certain “carried interests” at ordinary tax rates instead of capital gains rates
- Create a “fair share tax” that would require millionaires to pay no less than 30% of income (after charitable contributions) in taxes
You can view a summary of the tax provisions in President Obama’s proposed budget here. While these are proposed provisions and it is unlikely that many will pass, we want to make sure our clients are aware of these proposals that could have a significant impact on you and your business. If you have any questions on how the proposed changes could affect you or your business, please call your Warren Averett advisor.