In Aesop's Fables we learn that at a crisis conference of neighborhood mice, it was suggested that the Cat be fitted with a bell. The story goes, "This proposal met with general applause, until an old mouse got up and said: That is very well, but who is to bell the Cat? The mice looked at one another and nobody spoke. Then the old mouse said, IT IS EASY TO PROPOSE IMPOSSIBLE REMEDIES."
Recently 63 members of Congress filed a bill entitled the "Tax Code Termination Act." The text of the bill is on our website.
The bill provides that the Internal Revenue Code of 1986 (presently in effect) will nd on December 31, 2012 and be replaced by a "simple and fair system that applies a low rate to all Americans; provides a tax relief for working Americans; protects the rights of taxpayers and reduces tax collection abuses; eliminates the bias against savings and investment; promote economic growth and job creation; and does not penalize marriage or families."
The next tax law has every virtue except paying for my breakfast at Larry's PX. It is a marvelous aspiration but an impossible remedy. The congressmen needed an old mouse to advise them.
There will be changes in the tax law. Some changes may be achieved, but massive changes will fall by the wayside, because too many vested interests will be imperiled. Companies and organizations spend millions of dollars on lobbying efforts in Washington.
Congress must act by December 31 or the estate tax will be repealed. There are proposals for changing the federal estate tax and gift tax system. Some of these proposals would continue the system as it is. Others would continue the present transfer tax system but ban the use of family limited partnerships and similar vehicles to achieve valuation discounts.
Often important tax legislation is deal with on an emergency basis. It is not unusual that the final touches are added to a tax bill in the middle of the night and vot8ing occurs only minutes or hours later. I hope that Congress acts on tax changes well before the end of the year, so that the changes that are proposed are sound and carefully thought out. We will keep you posted, here and on our website.
