President Obama's Tax Plan Compromise Could Create More Complexity in State Taxes, More Incentives to Decouple

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

President Obama Dec. 6 announced a compromise tax package that would extend for two years all federal personal income tax rates at their current levels, rather than allow the tax cuts enacted under the Bush administration to expire as scheduled at the end of 2010. The package also includes several provisions that could pose complications for states—a reinstatement of the federal estate tax with a significantly higher threshold and a provision allowing businesses to expense 100 percent of qualifying investments in 2011. In this article, BNA looks at the potential impact of these provisions—if enacted—on the states.