What the State of the Union address means for you

Jan 26, 2012

This week’s State of the Union address had a local flavor, with President Obama introducing Ohio’s former Attorney General Richard Cordray as the new head of the Consumer Financial Protection Bureau. Cordray was appointed as part of the President’s call to create a financial crimes unit within the Justice Department.

Other highlights of the address relevant to Ohio CPAs include:

Payroll tax cuts: Obama called for expanded tax relief to small businesses and urged a quick extension of the payroll tax cuts for the rest of the year.

Outsourcing: Obama wants to eliminate tax breaks for companies that outsource overseas and add a minimum tax on overseas profits. On the flip side, he proposed a tax break for companies that manufacture in the U.S. – doubling the tax break for high-tech manufacturers.

Buffett Rule: Taking Warren Buffett’s advice, Obama proposed a minimum 30% federal income tax on households earning more than $1 million a year.

Read the full text of the speech from the Wall Street Journal.