CCH has issued a new Tax Briefing on President Obama’s new deficit reduction plan, with its $1.5 trillion in tax increases.

The Tax Briefing looks at the plan and its potential impact on individuals and businesses. The tax provisions play a key role in the plan, including a call for comprehensive tax reform for individuals and corporations, lower tax rates, the removal of unfair tax breaks and reform of an overly complex Tax Code.

Obama’s plan calls for households earning $1 million or more per year to pay a higher tax rate. The Bush tax cuts would expire for married couple earning over $250,000 and singles earning over $200,000. The plan also takes aim at tax loopholes and tax breaks that largely benefit high-income earners and large corporations. Plan proposals also include changes to Medicare and Medicaid.

“We could see significant changes to the Tax Code depending on which provisions lawmakers can agree upon,” said CCH principal federal tax analyst Mark Luscombe. “Short-term results could include ending Bush-era tax cuts for higher-income earners but preserving them for lower- and middle-income taxpayers after 2012, but removal of all tax loopholes and wholesale reform of the Code will take time for congressional debate and implementation by the IRS, should changes occur.”

The Tax Briefing can be found here.

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