I’m joining-in as Fluther’s resident tax CPA.
During the past decade, a number of pro-taxpayer changes were enacted. Among them—FICA tax cuts for employees, certain tax breaks for businesses, shifts in the alternative minimum tax, more lenient retirement/deferred compensation provisions, significantly higher thresholds for estate and gift tax, and overall rate cuts. Many of these changes were scheduled, at the time of their enactment, to sunset after 12/31/12. Thus, the term “Fiscal Cliff” meant that unless the changes were extended or made permanent, they’d automatically revert to previous law on 01/01/13.
The impending doom wasn’t anything new or unexpected. For many years, it was no mystery that the tax revisions would expire, at the end of 2012, without Congressional action. But, instead of being responsible, Congress used the Fiscal Cliff as a political football to kick around. Taxpayers were left in limbo while Congress waited until the eleventh hour to adopt a sloppy, thrown-together package.
This is no way to run a country.