Tax Reform
Background
December 31, 2012 is the looming expiration deadline for major provisions of the U.S. tax code. In the absence of Congressional action before the year’s end, tax rates would increase on marginal rates, dividends, capital gains, estate taxes and AMT indexing. Additionally, business/other tax extenders, the payroll tax holiday and unemployment insurance benefits all face expiration.
Certain tax extenders of specific importance to the gaming industry, such as the Research and Development (R&D) Credit, Work Opportunity Tax Credit (WOTC) and depreciation, are in jeopardy.
Status (as of 10/16/12)
In late summer 2012, the U.S. House and Senate both passed different versions of tax reform legislation (H.R. 8, H.R. 6169, S. 3412, S. 3521), yet neither bill has received further consideration at this time. The upcoming lame duck session of the 112th U.S. Congress and/or the first session of the 113th Congress will have to address tax extenders and reform.
