With the 2012 election behind us, we wanted to provide you with a brief overview of the likely changes immediately ahead of us and its implications for taxpayers from both a federal and California perspective. The election, which ultimately turned out to be a status-quo election with the same parties that controlled the White House, the Senate and the House of Representatives in 2012 end up being in control starting in 2013, will non-the-less have a long lasting impact on taxpayers, with certain provisions having an effective date retroactive to January 1, 2012.
Of immediate concern is the plight of the tax provisions enacted in 2001 and 2003, which are set to expire by the end of this year. In addition, several other provisions which were enacted at the end of 2010 are also about to expire by the end of 2012. The tax discussions in Washington are part of a gargantuan debate which includes automatic budget sequestration culminating in a perfect storm famously referred to as the “fiscal cliff”. We are now witnessing the opening arguments for what promises to be a long and arduous set of negotiations.
View the PDF to read more about the election results.