How Obama's Tax Plan Could Affect You

The President-elect will likely demand quick action on a new round for stimulus checks, tax reflief for the jobless, and easier access to retirement plans for emergency cash.

Even before President-elect Barack Obama is sworn in as the 44th president of the United States in January, his transition team and congressional leaders will be working on ways to stimulate the economy and provide taxpayers with some relief to cope with the most challenging economy in more than 80 years.

With Democrats controlling both houses of Congress, lawmakers are likely to approve a new round of economic-stimulus checks during an expected lame-duck session, says Clint Stretch, director of tax policy for Deloitte Tax. But more-comprehensive changes , such as boosting income-tax and capital-gains rates on the wealthiest Americans, may have to wait until the economy strengthens, Stretch predicts. Growing federal budget deficits will make it difficult to fulfill many expensive campaign promises. And Congress will have significant influence over whatever proposals are ultimately enacted into law.

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Mary Beth Franklin
Former Senior Editor, Kiplinger's Personal Finance