Fiscal Cliff: Agreement on Taxes and Spending Possible by Year-End?

Fiscal Cliff overviewPresident Obama secured a second term in office November 6, 2012, in the end winning the Electoral College by a wide margin. The President’s re-election now sets in motion what will likely be difficult negotiations between Democrats and Republicans over the fate of the Bush-era tax cuts, nearly $100 billion in automatic spending cuts, and the more than 50 expiring tax extenders, which include the alternative minimum tax (AMT) patch for tens of millions of taxpayers. The President’s re-election has also significantly changed the dynamics for reaching an eventual agreement over long-term tax reform. Will lawmakers address the “Fiscal Cliff?”

Download our overview on the Fiscal Cliff, courtesy of CCH

Highlights:

  • Rate Increases For Higher Brackets On Horizon
  • Certain Itemized Deductions Likely To Be Curtailed
  • Fiscal Cliff To Force Congressional Action
  • Permanent AMT Solution May Be Found
  • Enhanced Business Expensing Up For Renewal
  • Education Tax Breaks Likely Preserved
  • Many Affordable Care Act Provisions Set To Go
  • Corporate Tax Reform To Become Priority