Tax Law Blog | IRS Tax Attorneys

The first thing on ,new president elect, Obama’s plate will be jump-starting the ailing U.S. economy, economists and tax experts say. “Most bets are out the window until we get the economy and the financial markets straightened out,” said William Gale, an economist.

Though a ballooning deficit has some expecting the government to increase revenues by hiking taxes soon, many economists say stimulating the economy, even if it means a record-level deficit, is more important now, for the short-term, than balancing the budget.

If Obama’s administration and Congress follow that line of thinking, then tax hikes may well wait. But spending probably won’t. The economic crisis likely means another fiscal stimulus package, many economists said. But unlike the fiscal stimulus earlier this year, a new bill probably won’t include direct rebates to a broad swath of taxpayers.
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