2010's Perfect Storm for Tax Reform Shifted to 2012

In a recent Tax Analysts article by Meg Shreve, Shreve details how most believed 2010 would be a promising year for tax reform.  The large deficits combined with the expiring Bush tax cuts were largely believed to be guarantees that Congress would take up tax reform.  However, the article details the Obama Administration's focus on health care reform and disagreements within the Democratic party that ultimately failed to enact reform.  The two year extension passed in December left some hopeful that 2012 will be more promising.  However, mindful of Democrats failure to enact reform when they controlled the House, the Senate and the White House, skeptics do not anticipate reform in light of Democrat losses in the House in November's elections.

See "Year in Review: 2010 Defined by Temporary Extension of Bush Tax Cuts," 2011 TNT 1-9 (December 20, 2010).

Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.