PHG CPAs

South Jordan UT Accountant

POST-ELECTION CONGRESS

Winning the White House does not necessarily create a mandate for the President
to push through his full agenda. Nevertheless, President Obama’s power to veto
legislation for four more years will clearly shape upcoming negotiations.
Moreover, the 113th Congress retains its familiar profile of a Republican
majority in the House and Democratic majority in the Senate (but, as before,
without the 60 vote margin to prevent filibuster). Membership on the
Congressional tax writing committees for the most part also remains the same
after the elections as before. Compromise on issues that have been debated
throughout this past year—over both what is fair and what a still-fragile
economy can withstand— may be necessary on both sides of the aisle and in the
White House before any tax legislation can move forward.

Comment

In summer 2012, the GOP-controlled House and the Democratic-controlled Senate
approved competing bills to extend some of the Bush-era tax cuts. The House
also approved a fiscal year (FY) 2013 budget resolution, which would
consolidate the current six individual income tax rates to two (10 and 25
percent), repeal the alternative minimum tax (AMT) and reduce the corporate tax
rate to 25 percent. Neither the House nor Senate has approved any legislation
to extend the 2012 employee-side payroll tax holiday for one more year.

Areas of Service: South Jordan UT Accountant.