Multiple sources confirm as a certainty what we suspected on Friday: Congress will not address the income tax cuts, as well as the estate tax mess, before the mid-term election. Hence, we will need to wait until the “lame duck session” after the election for a resolution. Even then it is not clear if they can pass a tax act. I now go back to my prior prediction that we stand a 50-50 chance of Congress doing nothing on income taxes as well as estate taxes. Hence, we may end up in 2011 with the same result we have seen in 2010: Congress doing nothing and so changes in the law happening (a $1,00,000 estate tax exemption for example) without anyone doing anything. What a mess!
By Kevin Staker