Strategies for Uncertain Tax Rates


With the tax breaks about to expire and automatic spending cuts set to kick in, the House of Representatives is ending its session without preventing either from occuring. Late last week, House Majority Leader Eric Cantor announced, “We no longer anticipate votes in the House during the week of Oct. 1. This is a change from the original House calendar.” It is probable that the Senate will also break without passing related legislation.

This leaves the issue of avoiding the so-called fiscal cliff up to the post-election session of Congress, where some members will be lame ducks. Though the focus of the November elections is the presidential race, many House and Senate seats are also being contested. Several combinations could potentially result from the elections, making it completely unclear what will actually happen.

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