What is going on with tax law and the related planning reminds me of the words to a David Bowie song written perhaps too long ago for most of you to remember. The title of the ditty is “Changes” and the lines that come to mind go like this;
“Ch-ch-ch-ch-Changes
Turn and face the strain
Ch-ch-Changes
Don’t want to be a richer man
Ch-ch-ch-ch-Changes
Turn and face the change
Ch-ch-Changes
Just gonna have to be a different man…”
The song comes to mind in light of the recent turmoil in Congress relative to the expiring Bush proposals you’ve undoubtedly read so much about.
Clearly if the Bush provisions are allowed to expire all of us will be less “rich” than we already are. Certainly the Obama Administration’s grab for more to pay for a failed $800 billion dollar “stimulus” package will further strain an already strained economy and in particular small business owners.
When I read the attached article from The Washington Post dated 9/13/10 “Tax proposals will dominate the work of the returning Congress” (see link below) I can’t help but feel the strain as a professional that has had a hand in directing many clients’ decisions regarding tax planning. Why? A month ago the Bush-era tax cuts were essentially set to expire and yet as of late it appears as though they could be extended at least to those with incomes of less than $250,000.
And talk about Ch-ch-ch-ch-Changes; the lead article of the Wall Street Journal dated 9/16/10, that’s right three days after the Post article entitled “Primaries Stoke Turmoil” in part, reads;
“In the House, 31 Democrats rebuffed their leadership on the expiring Bush-era tax cuts, signing a letter calling for temporary extension of all the breaks and signaling a possible impasse in Washington’s bid to deal with the thorny political problem.”
Ch-ch-ch-ch-Changes
Turn and face the strain
Ch-ch-Changes…
Unfortunately while I may not be able to guarantee outcome, my professional view is that all the Bush-era tax cuts will remain in play and we will all be better off as a result of it. This is not to imply that the country is better off or will ever be able to recover from the financial instability created by the existing administration but I do have faith that if we as small business owners are left to our own devices, with the least amount of governments intervention as possible, we can reverse the type of change the Obama administration has forced upon us.
Fate of tax cuts is key issue as Congress Returns
This article was written by Gary Field, CPA at Numerico, PC. Click here to view Numerico’s website.
