A Question of When, Not Cliff
Published November 09, 2012
The Wall Street Journal reports that the post-U.S. election interplay between the stock market and politics will be fascinating to watch. But for investors with money on the line, it is merely frightening, according to “Heard on the Street” writer Justin LaHart.
In the story, Edward Karl, AICPA vice president of taxation, explained that from a planning perspective, the alternative (to Congressional passage of a package extending the Bush tax cuts and delaying spending cuts) of going off the cliff and then passing a short-term fix afterward is even worse. In that case, Karl told the Journal, the Internal Revenue Service would have to provide 2013 withholding tables based on current law, amend them for the fix and then potentially amend them again later in the year once a more concrete plan was worked out. Consumers would be left wondering how much they would actually end up paying in tax.