Heads Up

I don’t believe it’s a case of “if,” it’s a question of “when” we will see a significant change in the tax code. A good example of what may be coming is reflected in the recently proposed “Bipartisan Tax Fairness and Simplification Act of 2011” sponsored by Senator Ron Wyden (D-Ore.) and Dan Coats (R-Ind). One item that deserves advisor attention is the proposal that would eliminate tax-exempt interest for new state and local debt, requiring those entities to issue tax-credit bonds, which would be taxable. Don’t know if that will ultimately pass but it’s been suggested by more than one Congressman. We continue to live in interesting times.

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