With the nations budget deficit increasing and negotiations over what to do about the debt ceiling still raging on, taxpayers should be looking out for changes in “relief providing” tax breaks in upcoming years. Currently the tax breaks that most tax payers rely on for tax relief could be at risk of being cut from the books. Laura Saunders of the Wall Street Journal explores the future of your tax breaks in her article Preparing For D-Day: When Congress Takes Your Deductions.
Tax breaks and tax deductions currently save taxpayers some serious money, help provide tax relief and keep people out of trouble with the IRS. However, these deductions also cost the government a lot of money in forgone tax revenues. “…the top 10 individual tax breaks will cost more than $3 trillion in forgone tax revenues between 2010 and 2014 [and] the top 10 corporate tax breaks will cost only $350 billion over the same period.”
Currently Congress sees these uncollected revenues as a chance to help with our current budget crisis and is proposing the creation a reformed budget that taps into these breaks. ” … Senate Finance Committee member Tom Coburn… released a budget plan he calls “Back in Black”. [A] $9 trillion, 10-year package of debt-reducing measures includes $1 trillion in reclaimed tax breaks.”
As the debate about our government debt crisis continues it is important to stay educated on the current and changing rules on taxes and deductions. Paying attention to the tax rules now can save you from a load of IRS tax problems in the future.
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