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Download 10Minutes on tax reform
Political and economic events are on a collision course with a tax system that, like Cinderella’s carriage, will disappear by midnight—in this case, midnight December 31, 2010. Nearly all individual income tax relief enacted in 2001 and 2003 will expire at that hour.
No one expects Congress and the next administration to wait until the clock strikes 12:00 to bring about reform of the tax code. But with changing political power and growing budget deficits, a simple extension of current law is unlikely.
While tax relief for individuals will drive tax reform, Congress also may consider business tax reforms to promote US investment and employment.
Yet with a tight government budget and a popular view against business tax relief, a key risk facing business is the potential for tax increases to more than outweigh any gains from tax reform.
Highlights
For more in-depth information on the issue of tax reform, we have developed a companion white paper, entitled What you need to know about the coming debate on tax reform: risks and opportunities for US business* .