The Tax Ticker: Dark clouds on the horizon

President Obama’s budget outline is casting a long shadow over tax planning. Although the proposed tax changes generally would not take effect until 2011, upper-income individuals and businesses would shoulder the brunt of the burden.

Some of the key proposals reinstate the two top individual tax rates of 36% and 39.6% for individuals, hike the maximum capital gains rate from 15% to 20% and reinstate strict phaseouts of itemized deductions and personal exemptions. A revenue-raiser in the business sector would eliminate the LIFO accounting method in 2012.

Some consolation: There’s a long way to go before these proposals become law.

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