Tax News & Views - November 5, 2012
Vol. 13, No. 39
Tax Policy Group, Deloitte Tax LLP
- Tax rate outlook for high-income individuals remains uncertain as elections, lame duck session approach – Voters across the nation head to the polls tomorrow to elect a president for the next four years and determine the make-up of Congress for the next two. Once the votes are counted, the current Congress and the current president will have to resolve the future of the Bush-era tax cuts and a host of other tax and nontax issues by the end of 2012. Although the White House and members of Congress in both parties generally agree that the tax relief enacted in 2001 and 2003 should be extended in some form for another year, they remain at loggerheads over which taxpayers should continue to benefit from the current-law lower income tax rates.
The outcome of tomorrow’s elections will influence, in perhaps unexpected and unpredictable ways, the fate of the Bush tax cuts and that of other items on the legislative agenda for the rest of this year. But because the election results are just one factor that will be in play during the post-election lame duck session, the ultimate shape of any agreement on individual income tax rates remains difficult to predict with any degree of certainty.
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