Prospects for Tax Reform in a Changing Legislative Environment
Risks and opportunities for the commercial real estate industry
As the 112th Congress convenes, the nation continues to feel the impact of seismic changes that shook our political and economic landscape over the past decade. For the real estate industry, these changes took the form of a decrease in transaction volume and limited access to financing options. Commercial real estate in particular felt the impact of this economic turmoil including looming debt with nearly $1.5 trillion in commercial mortgage loans scheduled to mature by 2014, reduced consumer spending, and weakened credit.
Now at the beginning of this decade, there are some signs of hope on the economic front, but we still face chronic budget deficits and a tax system that in some ways has become a rickety tower of temporary extensions that provides little long-term certainty for taxpayers. The combination of fiscal urgency plus a growing sense that the current tax code has become unworkable has prompted renewed calls for fundamental tax reform.
This publication looks at the fiscal realities driving tax reform, the problems inherent in our existing system, options for fundamental tax reform, and possible alternative or additional tax systems. It then considers what type of action is possible in the current political environment.
Read the attachment to learn more about the prospects of tax reform and the possible course of action U.S. Congress may take.