Tax News
Tax Reform Talk
January 05, 2011
Today there was a good piece on Tax Notes on the topic of tax reform.  This particular topic is near and dear to my heart.  The piece was titled "Republicans Expect to See Tax Reform in Obama's 2012 Budget" and could be found at www.taxanalysts.com. In essence the short article points out that Republicans expect to see some form of tax reform proposal in Obama's fiscal year 2012 budget. The article goes on to quote Congressman Steny H. Hoyer (MD-5) saying that "[t]he tax code is inefficient, cumbersome, complicated, costly for Americans and American business."  This is surely one way to describe the tax code.  The other side of the argument of course is that the Code is so complicated and cumbersome because it aims at capturing most conceivable avenues for tax avoidance.  For what is worth, the article is one in a series of news sources and reports about an impending tax reform. As Drew Pierson from Tax Notes points out "[t]ax reform has been a popular topic in Washington since the National Commission on Fiscal Responsibility and Reform released the final draft of its proposal in early December."  To many, the talk of tax reform is in the domain of the phantasmagorical.  On the other hand, I think that while it is anybody's guess whether this reform talk would lead to any meaningful change, considering the precarious economic times the country is going through and the fact that no major overhaul of the Code has taken place since 1986, it is not ludicrous to expect some form of a meaningful tax reform.  It is too early to speculate what effect such reform would have on the tax exposure of private equity, venture capital and hedge funds but surely fund-taxation.com will keep the readers posted.  Obama’s 2012 budget proposal is expected in the week of February 14.
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Tags: tax reform