The outcome of the Presidential Election is unlikely to resolve the Tax Code in 2013. As most people know, the Bush Tax Cuts of 2001 are set to expire on January 1, 2013. It has been long anticipated that there would be a one year extension of those tax cuts. The Republicans in the House of Representatives already have a bill pending to do just that. It is believed that Congress and the White House will “kick it down the road” by extending the Bush Tax Cuts for one year. The next White House and next Senate and House of Representative can do the tough work to resolve the Tax Code long term.
Statewise, the Tax code is likely to stay in place; however, there may be some change in the estate inheritance or estate tax in the future. The North Carolina governor’s seat is open and will be a hotly contested race also.
A change in the U.S. Senate and Presidential Office is likely to have a long term effect on the Tax Code, but probably not in 2013.
The election for governor in North Carolina is more likely to have modifications in the Tax Code. Both federal and state governments have huge deficits and continue to dig deeper into debt as time goes on.
In a simple version, the state and federal governments are like your household. It is a matter of your checkbook. More money has be deposited into your checkbook than is paid out. Money being paid out is what the government spends. Money going into the checkbook is what the government takes in taxes. There are different versions of taxes, but most all of them involve us in one form or fashion.
We’ll see where the elections lead us on the Tax Code changes, but we do not anticipate a major rewrite of the federal Tax Code that will take effect in 2013.
At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.