U.S. businesses and foreign multinationals with U.S. tax obligations should be on alert that the elements of a major U.S. tax reform legislative package are already in development within the U.S. Congress, the Obama Administration, and in interest groups and think tanks in Washington.
The make-up of this tax reform package – to be debated in Congress starting this year and into 2013 – will depend significantly upon the outcome of the November 2012 U.S. elections. There is little doubt, however, given growing bipartisan interest and fiscal pressure, that there will be a significant tax reform package moving in the next Congress.
Our tax policy analysts, including several veterans of the 1986 Tax Reform Act, are already watching and engaged closely in developments in this area. Areas of the tax code most likely to be targeted for change are identified in a recent client alert.