The following was first posted on the "Surviving the Estate Tax Fiscal Cliff" on November 13th, 2012:
It is now a full week from Election Day and we are starting to get a sense of where the players are lining up. We have also have one less week to take action and are left with 49 calendar days and 28 working days until the New Year.
You may have noticed that we had a number of posts pop into the News category this past weekend. I tend to follow the news on my cell phone and I can easily post news articles from there. I don't post all of the articles I read, just the ones that seem the most relevant, current, and either well written or provide something new. Think of it as your own personal selective aggregation site. You can follow these posts by subscribing to this site, or you can follow this site on Facebook at http://www.facebook.com/EstateTaxFiscalCliff or for now on my law firm's Twitter site - @JensenLaw - http://twitter.com/JensenLaw.
The articles from the weekend show that the momentum is favoring falling off of the fiscal cliff. Let's recap:
- Friday John Boehner & President Obama made statements on the Fiscal Cliff issue
- President Obama believes he has a mandate to raise taxes, while John Boehner indicated he doesn't want a showdown
- A number of commentators are arguing that President Obama should not make a deal; including Don't Make a Deal, elections have consequences, and the Case Against a Grand Bargain
- Additionally, an effort is being made to down play the significance of the Fiscal Cliff describing it as more of a slope and making the case that in order to get more of the policy positions that they want, the President should do nothing now and address the tax and spending issues with the new congress: Renaming the Fiscal Cliff, get a deal after going over the fiscal cliff, and What Liberals Want
I find this last argument compelling. When we faced a similar issue in 2010, I discussed on my tax blog that it could be politically beneficial for President Obama to let the Bush era tax cuts expire and then president his own tax cuts crafted to where he wanted them to be.
At this point I would say that the momentum is definitely moving away from a grand deal that will preserve our current estate and gift tax rates and exemptions.