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NEWS
BYTES
Summer 1997
Editor:
Scott Gottlieb, CPA
Assistant editor: Susan A. Maffetone, CPA
Government
is trying to settle the budget deficit problems
Currently,
our Government is trying to settle the budget deficit problems.
Congress and President Clinton are in the process on writing a
budget which will wipe out the countries deficit by the year 2002.
Some of the proposals currently under consideration are:
A tax credit for children of up to $500 for children under thirteen.
The proposal will phase out the credit as adjusted gross income
exceeds $60,000.
A capital gains tax cut would in effect cut the capital gains
rate from the current high of 28% to a range of 14% to 19%. In
addition, the government has proposed a $500,000 capital gain
exclusion from the sale of the primary residence, currently, there
is no exclusion for capital gains on the sale of the primary residence,
except for taxpayers who are older than 55. These taxpayers are
currently allowed a one time exclusion of $125,000 from the profit
on the sale of the primary residence.
There is a proposal to increase the amount that can be contributed
to an IRA on behalf of a non-working spouse. The proposal would
increase the amount that can be contributed from $250 to $2000.
The President plans to cut some of the many corporate tax loopholes
to pay the cost of the tax credits.
Further
information relating to proposed tax cuts will be coming in the
next couple of months.
STAY TUNED
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