OUR THOUGHTS ON:

Tired of the Olympics? Congress Provides Plenty of Political Theatre This Summer

Tax

By Martin DiGiovine

In another empty political gesture, On Wednesday, August 1, the U.S. House of Representatives passed legislation on a 256 to 171 vote that would extend the 2001 and 2003 Bush tax cuts on income, capital gains and dividends through 2013. What is notable in this vote is that twenty Democrats joined the Republican controlled House in passing the measure. However, the measure is likely destined to end up on the trash heap of history.

The tax measure was passed minutes after the Democrat-controlled Senate measure extending most of the Bush tax cuts was voted down in the House. A nearly identical scene played out last week in the Senate as the Democrat endorsed tax plan was passed along party lines minutes after the House plan was voted down by the same margin. Normally, the issue would now go before a conference committee, comprised of select House and Senate Members, to forge a compromise bill. In this case, however, both parties plan to wait until after the Presidential elections to take any real action on the issue.

So, not only is Congress putting on a boring, predictable show for the American public, now they’re showing re-runs. However, as most members of Congress will attest, the show will become much more exciting after the November elections, as we approach the dreaded “fiscal cliff” of scheduled tax increases and mandated spending cuts. Stay tuned.

© 2012 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

comments