Daily Tax Update - November 25, 2008

OBAMA TAX INCREASES ON HOLD; CURRENT FOCUS ON ECONOMIC STIMULUS: President-elect Barack Obama announced yesterday that he may delay legislation that would raise the income taxes of high income individuals. At yesterday’s press conference to introduce members of his economic team, Obama said of the tax increases, “If we're going to help pay for some of these expenditures that are absolutely necessary to get our economy back on track, that those who are in a position to pay a little bit more do so. Whether that's done through repeal, or whether that's done because the Bush tax cuts are not renewed, is something that my economic team will be providing me a recommendation on.” Obama economic advisor William Daley suggested that the President-elect would let the 2001 and 2003 tax breaks expire at the end of 2010.

• Also at yesterday’s press conference, Obama discussed his plans for a broad economic stimulus package. Describing the stimulus package, Obama said, “We have to make sure that the stimulus is significant enough that it really gives a jolt to the economy, that it is putting people back to work, that it is making investments, that it is restoring some confidence in the business community that, in fact, their products and services are going to have customers.” Obama declined to estimate the size of the plan.
• Yesterday, Senate Majority Leader Harry Reid estimated that the economic stimulus package will be about $500 billion. 
• On Friday, House Speaker Nancy Pelosi confirmed that the economic stimulus package will include tax cuts for middle-income families.

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