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The vast majority of President Obama's tax policy priorities are left unchanged in his fiscal year 2011 budget, but the handful of modifications reflect some of the hard decisions he has to confront with an expected $1.56 trillion budget deficit. The changes include abandoning his plan for the Making Work Pay tax credit to become permanent, instead opting for a simple one-year extension of the credit, and a modification to the Build America Bonds program. The president's fiscal year 2011 budget contains a broad-ranging package of international tax provisions that would raise $122 billion over 10 years, including a scaled-back version of last year's proposal to limit deferral and a new provision to stop the abusive transfer of intangibles out of the United States. Fossil fuel industries say they will work to defeat President Obama's latest attempt to eliminate almost $40 billion in tax preferences as part of the president's fiscal year 2011 budget. The administration's budget calls for providing what it describes as critical investments in retirement security and temporary health insurance subsidies “to reverse the decline in economic security that American families have experienced during the past decade.” The White House formally proposes creating a fiscal commission to find ways to bring down the federal budget deficit and “fast track” treatment of spending rescissions by Congress.
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