The More Things Change, The More They Stay The Same

The More Things Change, The More They Stay The Same

On January 10th, PricewaterhouseCoopers hosted a webinar pertaining to potential tax legislation in 2012. The panelists concluded that, despite a number of tax provisions that will expire, a huge deficit, and a continuing clamor for significant tax reform, it is unlikely there will be major legislation during this election year. Rather, it is very likely that, in 2012, taxpayers will face the same planning uncertainty they did in 2010; namely, the next year looming with a $1 million gift and death tax exemption.

Thus, Congress will act (or not) sometime between Thanksgiving and New Years. In 2012, however, in contrast to 2010, there are additional pressures which do not bode well for the continuation of this year's $5 million gift and estate tax exemption, such as a lame duck Congress and a scheduled $450 billion cut in defense spending. There could also be a new President. Absent other cuts or tax increases, the tension between reduced spending or increasing taxes or both, will continue to dominate the debate.

Read more discussion of estate planning topics affecting Virginia residents and U.S. citizens at Dedon on Estate Planning.

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