Will you receive a Tax Cut from Obama?

Newly elected President Barack Obama will have his hands full this year handling the United States looming debt.  Obama will have to restrain as he will have to juggle the task at paying off the national debt while funding new and existing projects.  Barack's plan is to cut programs and add new revenue aka taxes.  The first major spending initiatives Obama plans to administer are: a $3,000 tax credit for each employee hired in 2009 and 2010, allowing small businesses to expense as much as $250,000 until the end of 2009, and Capital gains tax cuts on small-business investments.  He is trying to stress the importance of small business and rebuild the industry in America.  Obama is also a big fan of infrastructure projects such as roads, bridges, schools, and such.  Since FDR was in charge not much has been done to improve the infrastructure of our country and it is slowly deteriorating.  These projects would also stimulate work in an economy that is dieing for jobs.  For investors the play is to invest in construction and project-management companies such as Fluor (FLR) and KBR (KBR).  Obama other major spending plans are his $25 billion "Jobs and Growth Fund", 90-day moratorium on foreclosures, and $25 billion stimulus package for state government to give them less reason to raise property taxes.  To free up cash for such spending projects Obama has suggested reducing troop size in Iraq, raising taxes on high-income filers, and corporate loop-holes.  So industry plays which will thrive during the Obama administration are companies related to infrastructure and alternative energy.  Companies such as First Solar (FSLR) and SunPower (SPWRA) will beneift from government funding on alternative resaerch.  Now to Obama's tax plan which has caused much critisism from rebuplicans and caused quite a confusion among the average investor.  According to Obama's plan he will provide tax cuts to single taxpayers earning $200,000 or less and couples earning $250,000 or less.  Additional tax cuts will be added for seniors, homeowners, taxpayers without health insurance, and taxpayers sending children to college.  The largest tax which will raise and one i disagree with most is the increase of Capital Gains taxes.  Raising Capital Gains taxes affects the middle class who are fully invested in the Markets just as much as it effects the Hedge Fund Owners.  The shear fact is the rich have the ability to move their money out of the country to avoid Capital Gains taxes something the middle class is unable to do.  So ultimately Mr. Obama would be increasing the taxes on the middle class while bringing in very little income due to the loss of revenue provided from the wealthy.  The main things to consider with the new tax plan is one consider taking Capital Gains now as the maximum you will pay is 15% compared to maybe 20% next year or the year after.  Another aspect to watch is your taxable income.  Many taxpayers, especially retirees who have access to IRA and 401(K) distributions, can control their income.  With higher taxes coming you may want to accelerate income into this year and going forward monitor income closely to get the benefits and avoid tax hikes.  Most investors are worried about what effect Obama will have on your portfolio yet your bigger worry should be the economy's weakness.