- tax hike loose ends left undone
Right now taxpayers across the Country are on pins and needles waiting to find out if their tax rates are going up or not. Unfortunately it looks like we’ll all have to wait even longer for the answer.
Congress is in recess August 9 to September 12 and then only have until October 8 (Senate TBD) to wrap up a mess of legislative business before they adjourn until the end of the year. Let’s not forget there is the distraction of critical midterm elections on November 2.
Some of the unfinished business includes (1) the tax extenders bill which would keep in place many of the Bush tax cuts from 2001 and 2003 including favorable marginal tax rates and capital gains tax rates, (2) legislation to address alternative minimum tax exemption levels, (3) legislation regarding the expiration of the 2010 repeal of estate tax, and (4) the controversy surrounding the S Corporation self-employment FICA tax bill.
All these issues are stalled at the moment due primarily to political wrangling and hesitation amidst the upcoming election, and may very well not be resolved until the next congressional session. This makes accurate tax planning and forecasting difficult, but still as important as ever for all individual, business and nonprofit taxpayers given the current economy and potential impact of sizeable future tax increases.
