The Fight for Tax Reform Will Be Long and Arduous
Is it starting to feel like the process to simply put up a new stop sign in the Nation’s Capitol would take an act of Congress? These days nothing is simple in Washington and when it comes to tax reform the battle will be anything but easy.
When President Trump took office it was widely believed that tax reform would be fairly simple and would come with only minor headaches. With the Senate and Congress both controlled by republicans, tax reform was just a matter of when, not if. Well, not so fast.
If you thought the battle for healthcare reform was tough, the nation’s lawmakers are just getting started. The interesting thing is, the tax reform battle isn’t just a matter of party lines. Republicans are very divided on tax reform, including what changes to make and how to pay for them.
There are several overriding factors that could delay tax reform even further, not to mention that another election cycle is coming up. First off, Congress needs to pass a fiscal budget for 2018 before it can take on tax reform. Secondly, republicans are divided over whether they should seek a tax cut or complete tax reform.
The battle over many long-standing tax incentives and breaks is also a big sticking point. Additionally, Obamacare is still unfinished business and it is looming over the current administration. Some lawmakers, including the president, are still focused on resolving that matter first.
Therefore, those still hoping for, or expecting, tax reform this year better prepare to curb their enthusiasm. This looks like another long journey with many twists and turns.
“Madoff” or “Ponzi-Type” Tax Losses
“Madoff” or “Ponzi-Type” Tax Losses Update: 12/9/09 Wall Street Journal Article: http://online.wsj.com/article/SB124623441944466541.html In addition to other good information about the type and amount of refunds people are obtaining it says in the last paragraph: “On Monday, Sen. Charles Schumer (D., N.Y.) proposed a bill that seeks to further expand the carry-back period up to six…
Military Family Tax Relief Act of 2003
Military Family Tax Relief Act of 2003 On Nov. 11, 2003, President Bush signed into law the Military Family Tax Relief Act of 2003. Among its provisions are these tax breaks related to military personnel: Death benefits The death gratuity paid to survivors of deceased Armed Forces members rises to $12,000 and is not taxable…
Voluntary Compliance Program for Withholding Agents
Voluntary Compliance Program for Withholding Agents In a memo dated February 25, 2005, the IRS Large & Mid-size Business Division, announced that based on recently received Chief Counsel Advice, withholding agents participating in the Section 1441 Voluntary Compliance Program (VCP) would not be subject to interest charges under certain circumstances. Section 1441 requires withholding agents…
Are Casualty and Theft Losses Tax Deductible?
Are Casualty and Theft Losses Tax Deductible? If your property is destroyed, damaged, or stolen due to casualty or theft, you may be entitled to a tax deduction. A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, and unusual. A sudden event is one that…