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February 4, 2008
HP-803
Treasury Releases FY 2009 Bluebook
Washington, DC--The U.S. Treasury Department today released its General Explanations of the Administration's Fiscal Year (FY) 2009 Revenue Proposals, often referred to as the Bluebook.
The Administration's FY 2009 Budget includes measures to permanently extend the President's tax relief enacted in 2001 and 2003, promote savings and investment and improve compliance with the
- Provide a new standard deduction for health insurance
- Encourage entrepreneurship and investment
- Provide alternative minimum tax (AMT) relief
- Strengthen home ownership
- Provide incentives for charitable giving
- Extend various expiring tax provisions
Extend Permanently the President's 2001 and 2003 tax relief
The President's tax relief enacted in 2001 and 2003 helped make the tax code fairer, simpler, and more pro-growth. The FY 2009 Budget proposals include making the 2001 and 2003 tax relief permanent, which is essential for promoting economic growth and higher living standards in the future. The FY 2009 Budget also includes proposals to promote savings for all Americans and encourage investment by entrepreneurs.
AMT Relief
The Administration is concerned that the individual AMT may impose substantial burdens upon taxpayers who were not the originally intended targets of the individual AMT. The President's FY 2009 Budget proposes to extend for one year through 2008 provisions that address the rapid rise in the number of taxpayers affected by the AMT. The Administration believes the longer term solution to the problems associated with the individual AMT is best addressed within the context of other reforms to the tax system.
The proposal would increase the AMT exemption levels for 2008 to $46,250 for single and head of household filers, $70,050 for married taxpayers filing joint returns, and $35,025 for married taxpayers filing separate returns. In addition, the proposal would allow an individual to reduce 2008 tax liability by the full amount of nonrefundable personal credits.
Improving Tax Compliance
In September 2006, the Treasury Department released a comprehensive strategy to improve tax compliance. The strategy builds upon the demonstrated experience and current efforts of the Treasury Department and the Internal Revenue Service (IRS) to improve compliance with a commitment to taxpayer service. In August 2007, the IRS issued a report: Reducing the Federal Tax Gap: A Report on Improving Voluntary Compliance, setting forth the steps the IRS is taking to implement the 2006 Treasury strategy.
The Treasury Department has put forward 16 proposals in the FY 2009 Budget to help improve compliance, with an emphasis on improving information reporting without creating excessive burdens on compliant taxpayers. The Treasury Department also asked for $489 million for the IRS to increase compliance efforts.
Click here for more information on the IRS' August 2007 report on improving voluntary compliance.
Click here for more information on Treasury's September 2006 strategy to improve tax compliance.
Click here to view the FY 2009 Blue Book.
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