Tax News

CCH (cch.taxgroup.com) reports:

  President-elect Barack Obama said he expects to face a nearly $1-trillion federal budget deficit his first year in office and possibly "for years to come," regardless of whether Congress enacts an economic stimulus package in early February. Despite the bleak budget outlook, Obama on January 6 maintained that a massive economic recovery plan is necessary "to jump-start our economy, save or create three million new jobs, mostly in the private sector, and lay a solid foundation for future growth."

  The initial focus of the incoming administration is to pass an economic package with deficit-reduction measures to follow once the economic recovery takes hold. However, Obama indicated that there are a few measures that can be done immediately to rein in unnecessary federal spending.

  Following a meeting with his economic advisors, Obama proposed to ban all earmarks from the forthcoming economic recovery package. He also plans to establish an oversight board made up of key administration officials and independent advisors to ensure budget transparency.

  The new administration also intends to eliminate "outmoded" federal programs and improve those that work, he said. The incoming White House will put information on-line identifying how taxpayer money is being spent, Obama noted.

  By Paula Cruickshank, CCH News Staff