‘Bama is going to be trying to kick an economic stimulus package through as quick as he can… and tax cuts will be a HUGE part of it. Some say this puppy could reach $1 trillion. There is no doubt in my mind that Congress has that in the bank ;).

Here are three proposed tax cuts you might see:

1. There might be a new tax credit on up to $500 of payroll taxes paid (which could equal $1,000 per couple if both work). It won’t be a refund check this time, or so they say, so they may just work it through the withholding tables and give you more in your paycheck each pay period. People who make a lot of money may not even get it… because you are bad… very bad.

2. Low income taxpayers might be able to claim the child tax credit ($1,000 per kid). You have to OWE tax to receive the credit, typically. So I’m assuming that if you don’t OWE tax in the new proposal, you may still be able to take the credit in some warped form or other. Still TBD.

3. The bonus depreciation (writing off 50% of business assets through depreciation) expired at the end of 2008. ‘Bama may want to institute that again for 2009, and possibly through 2010.

There are others, but everything is still so up in the air, I’m not sure which ones are worth reporting on. Frankly, it’s tax season around here, I haven’t showered for days…

Thanks, Jason M. Blumer

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