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How Obama's Budget Plan Could Affect You

Stocks in this article: XOMCOP

WASHINGTON ( TheStreet) -- Tax experts will tell you it's never too early to plan for future taxes.

But Americans looking to get a head start on 2010's pending tax changes may need a crystal ball to interpret the muddy direction of Congress when it comes to fiscal policy.

The scenarios the Obama administration presented in its $3.8 billion budget proposal on Feb. 1 offer clues as to how big the tax man's bite will be. The full impact may still be a year away.

"As he did last year, the president has fashioned a budget that allows Congress to avoid taking immediate action on the largest and more controversial proposed business and industry tax hikes," Deloitte's tax policy group wrote in a review of the budget. "He continues to call for business tax increases that would primarily be effective in 2011. For its part, Congress may be less enthusiastic about voting to raise taxes before the November election and choose to kick difficult tax increase decisions down the road and into next year."

Here are some of the ways the administration's proposed tax policies could impact certain groups:

Top earners

The proposed budget plans to do away with many of the Bush administration's tax cuts for those earning more than $250,000 a year. The two individual income tax rates, 33% and 35%, would be restored to pre-2001 levels, 36% and 39.6%, beginning in 2011.

Those in the top tax brackets could see reduced deductions for mortgage interest payments and charitable donations.

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