Taxmageddon: What To Expect...And When?
What to expect
The President and members of Congress are fully aware of the current tax situation. Leaders of both parties do not want a total taxmageddon. The problem is that they can not come to an agreement on what to do.
Most of our country's leaders agree that we are in need of total tax reform. A flatter tax with limited deductions seems to be in our future. This is easier said than done. What deductions would be eliminated?
Employer provided health benefits?
Tax benefits for the wealthy?
One thing is for certain. You can expect things to change.
When will this happen?
When will things happen? In all reality, this is an election year. The chances of anything happening until after the election are slim. However, when reports of job losses or slowing economy surface, both parties seem to favor some sort of a short term extension of the present tax cuts. Don't count on any quick decisions.
Realistically, the issues of future taxation will be dealt with after the election when the President and a lame-duck Congress do whatever they can to prevent taxmageddon. Depending on the results of the election, a solution could even be delayed until the beginning of 2013.
Tax reform? It's not likely to happen in the short term, but it's definitely in the cards.