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As the White House and Congress shift into campaign mode, the looming expiration of various tax cuts and credits has come to the forefront of legislative and political agendas. Notably, it is the expiration of the “Bush Tax Cuts” that have dominated political discussion, and by extension, the media and general public attention. These Acts were re‐authorized by Congress in 2010 via the “Job Creation Act,” and were specifically designed to “sunset” at the end of 2012. With the economic recovery teetering on perpetual shifts in both domestic and international fiscal policy, the impact of the upcoming decision—to continue these tax cuts in some manner or allow them to expire—cannot be understated. Not only are individual tax rates affected, other taxes such as the Alternative Minimum Tax, the Estate Tax, and investment taxes on capital gains and dividends are impacted as well. Descriptions of each, and explanations of potential changes, are provided in this document.
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