Monday, November 14, 2011

Super Committee report

The Joint Select Committee on Deficit Reduction, commonly known as the Super Committee, was created by the Budget Control Act of 2011.  The committee was charged with issuing recommendations for at least $1.5 trillion in deficit reduction steps to be undertaken over a ten-year period.  Their report is due next week (November 23).  Areas to be considered by the committee include raising taxes and tax reform including the simplication of the tax code and the elimination of tax breaks and loopholds.

Over the past few weeks a number of rumors have appeared, from sources allegedly close to the committee, as to changes in the tax laws that will be presented in the report.  I am sure you have read some of these rumors.  For example, one report has the estate tax exemption going back to the $1 million level starting next year.  Another has the exemption going back to $3.5 million effective the date the report is issued.  And so on and so on!

However, if you believe the reports that have recently been published in the New York Times, The Wall Street Journel, and the Washington Post, there will be no specific tax proposals coming in the report.  Instead, the committee will decide on the amount of revenue to be raised but will leave to the tax-writing committees of Congress to fill in the details next year.

Here we go again!  When the report is issued we will be back with further comments.

Bob Katz