Wednesday, October 31, 2012
Two tax experts attempted to predict the post-election outcome of tax policy at a panel discussion on Monday at Accounting Today's Growth & Profitability Summit. Brett Ferguson, one of the two exprets believes it is unlikely that Republicans will lose control of the House, but the Senate is not so predictable. He also noted that if Romney is elected, despite his attempts to push his tax policy goals, it is not likely that Democrats in the Senate will cave in.
The other expert, Mark Luscombe talked about tax extenders legislation. In early August, the Senate passed a bipartisan tax extenders bill that extended dozens of expiring and already expired tax provisions. The bill leaves out some provisions, so the IRS is still trying to decide what to do and the congressional committees are not sure what they should tell the IRS about extenders.
Luscombe is skeptical that either administration would actually be able to accomplish a comprehensive tax reform like the kind that occurred in 1986. The atmosphere is not right for such an overhaul because it is too polarized now.
With the uncertainty surrounding the estate tax, it is difficult to advise clients how to plan their estates. The best prediction that Luscombe delivered on this matter is that he doubts the IRS would do a clawback once there is more certainty in the law.
See Michael Cohn, Tax Planning Depends on Election Outcome, AccountingToday, Oct. 30, 2012.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.