At the end of 2010, the president sign into law an extension of the Bush tax cuts from 2011 & 2003. Readers will recall that the '01 & '03 Acts were sent to expire on 12/31/10 if there was no extension or Congress did not act to make the tax cuts permanent.
That same scenario is soon to play out again come 12/31/12. The bill signed by the president in 2010 was to extend the tax cuts to 12/31/12. If nothing is done by Congress, the law expires and the tax code will reverts back to the pre-Bush era rates.
The prospect of any action by Congress before the end of the year is quite dim considering we are in the midst of an election year. And, if the president's opponent wins in November, the likelihood of any action done through the transactional period of a new administration is, in the opinion of this writer, even less likely.
LFC will be posting on this very important topic during the weeks and months ahead.
