ADMINISTRATION’S 2012 REVENUE PROPOSALS
On Valentine’s day, the “General Explanations of the Administration’s Fiscal Year 2012 Revenue Proposals,” better known as the Greenbook was released. In part, the Administration wants to do the following:
- Expand the child and dependent care tax credit
- Make the American Opportunity Credit permanent
- Provide an income exclusion for certain student loan forgiveness
- Tax qualified dividends and long-term capital gains at a 20% rate for upper income tax payers
- Make permanent the portability of unused estate tax exemptions between spouses
- Cap the value of otherwise allowable deductions to 28% for high income taxpayers
- Expand the research and experimentation credit and make it permanent
- Make the $125,000 annual limit on the Section 179 deduction permanent
- Repeal the LIFO and lower of cost or market inventory methods