"Here We Go Again"Accounting Today
Marc Gerson discusses the possibility of tax reform legislation, saying "There are a lot of different proposals, but it's too early to talk about winners and losers.” Gerson, former majority tax counsel to the House Ways and Means Committee, says, "You can start with the idea that there will be a reduction in rates, and a removal of deductions and credits, but it is a difficult exercise to say what industries gain or lose. On a more granular level, it's even harder to say which taxpayers would come out ahead, because we just don't know what shape the tax reform model would take."
Gerson advised talking to clients about their tax situation in terms of the various reform proposals. "We're asking our clients to do a review of their tax profile," he said. "What are the main drivers of their tax return, and where do they most benefit from certain provisions? That depends on what industries they are in, and how much of their business is domestic and how much is international."
Gerson also commented on the results of the 2011 Miller & Chevalier Tax Policy Forecast Survey. "Expectations for significant tax legislation are low for the coming year," said Gerson. "The business community sees the split in congressional control, coupled with increased concern regarding the deficit and the anticipated focus on longer-term fundamental tax reform, as likely putting a significant damper on the tax legislative agenda for 2011."