Reuters is reporting that the White House is willing to compromise with Republicans on extending the Bush tax cuts. As expected, the fate of the soon to sunset 2001 and 2003 tax cuts passed under the Bush administration is proving to be the center of focus for the post election, lame duck session of Congress.
By the laws currently on the books, taxes across the board will go up at the end of the year. Prior to the election the Obama administration indicated it wished to preserve the current income tax rates for all income brackets below $250,000. Republican voices in both houses of Congress instead pushed for all tax rates to be continued.
What the tax landscape of 2011 will look like is still very much up in the air. President Obama has invited leaders of both parties to a White House dinner later this month, with tax policy slated to be the main topic of discussion, and White House spokesman Robert Gibbs has indicated the President is open to discussion and compromise. Whether the Republican leaders, fresh from gaining nearly sixty seats in Congress only a few days ago, will share in the President’s mood of compromise remains to be seen.
For more information on tax planning, tax law, or other legal issues, contact the Chicago tax law firm of Horowitz & Weinstein.