Position Papers

The 2024 elections marked a decisive shift in the American political landscape. Republicans achieved a sweeping victory, reclaiming the White House, securing a Senate majority, and maintaining their hold in the House of Representatives. This outcome has set the stage for significant legislative and governmental functional changes in 2025, as the GOP aims to advance [...]

From a tax philosophy perspective, the 2024 election sets the course of the country’s taxation for the next decade. 2025 is a big year for tax reform.   At the end of the year, barring any tax reform legislation, The Tax Cuts and Jobs Act (TCJA) of 2017 will expire as if it never existed, except [...]

Janet Yellen suggested that the US could default as soon as June 1st, 2023, if Congress does not raise the debt ceiling by that date. The debt ceiling sets the limit on how much money the US Government may borrow. If Congress does not increase the debt ceiling, the US, unable to borrow, cannot pay interest on the national debt and risks going into default.

President Joe Biden is proposing to eliminate “stepped-up basis” on property transferred at death.  Under his plan, unrealized appreciation would be subject to capital gains tax at the time an asset is transferred by gift or bequest. This white paper considers the implications of a repeal of stepped-up basis, as well as other changes Congress might make to the gift and estate tax regime.  The paper also sets out potential planning strategies for investors to consider to blunt the effects of the new rules.

Congress has enacted three pieces of legislation aimed at helping individuals afflicted by the coronavirus and providing fiscal stimulus to restart an economy that has been devastated by the virus’s effects. The legislation has wide-ranging consequences for individuals, businesses, and the economy. This white paper summarizes the major provisions of the the legislation. It also summarizes the actions taken by the Federal Reserve to support the economy. Finally, the paper sets out some provisions that might be included in a forthcoming fourth piece of legislation.

A new potential contributor to market volatility is the recently announced House inquiry into whether there are grounds to bring articles of impeachment against President Trump. This white paper considers the paths the impeachment inquiry might take. It reviews the alleged facts, discusses how the House and Senate deliberations might proceed, and considers how the ancillary consequences of the inquiry, as well as the inquiry itself, could affect the markets.

Summer is a time to kick back and put the year’s bustle on hold. But summer inactivity doesn’t bode well in Washington when there are deadlines to meet and matters to address. As the summer commences, two percolating issues should hold investors’ attention. This white paper discusses those issues and their likely market effects.

Our last tax update, Tax Reform Aftermath: New Guidance for Investors, discussed in part the steps small business owners might take to claim and maximize the 20% deduction afforded by the Tax Cuts and Jobs Act.  Since we wrote that paper, the IRS has clarified the application of the provisions that govern these strategies. This white paper explains how owners of businesses organized as pass-through entities should take the new guidance into account in their tax planning.

Since Congress passed the sweeping Tax Cuts and Jobs Act at the end of 2017, the IRS has issued substantial guidance interpreting portions of the Act. Much of this guidance favors investors by softening limitations and disallowances that the Act imposes. This white paper, Tax Reform Aftermath: New Guidance for Investors, reviews this guidance and provides helpful strategies investors may consider in filing their 2018 returns in April and beginning their tax planning for 2019.

Since the election of President Trump and the Republican-controlled Congress in 2016, the legislature, the courts, and the administration have taken actions and issued guidance in an effort to curtail the scope of the Affordable Care Act (“ACA”). The actions and guidance have been sporadic, making it difficult to determine their interrelation and import. This white paper describes and explains the confusing array of incentives and payments that the ACA contemplates. It goes on to discuss the effect and interaction of government efforts to reduce these payments and to scale back the scope of the law.

Congress returns for its fall session with a number of items on its plate. First up is the usual fall wrangle, funding the government to avoid a shutdown. But other items are new and could have far-reaching effects for investors, including a bipartisan threat to “stretch IRAs”. This white paper considers the risk of a government shutdown, and goes on to review and provide a prognosis for the other items Congress is likely to consider this fall, including “Tax Reform 2.0”.

The different and constantly changing polls make it difficult at this point to reach a definitive conclusion regarding the midterm election results. Moreover, future events – particularly those occurring in late October and November – almost certainly will have an outsized influence on the outcome. But even now we can consult certain metrics to determine which party heads into the election with tailwinds, and which party is likely to have to overcome headwinds to win. This white paper examines these cross currents.

The new deduction rules of the Tax Cut and Jobs Act offer a significant, as yet uncharted opportunity for tax and financial planning. Some of these planning opportunities stand formerly conventional wisdom on its head by making it unwise for taxpayers to incur expenses that qualify as itemized deductions – even under the more restrictive rules of the Act. This white paper addresses the interplay of the Act’s new rules for tax deductions. We provide a framework to help taxpayers determine whether to incur deductible expenses and some planning opportunities to maximize the tax benefits these deductions can provide.

As 2017 drew to a close, Congress passed the Tax Cuts and Jobs Act, tax reform legislation that made sweeping changes to the Internal Revenue Code.  When Congress last reformed the tax code in 1986, the legislative process took over two years.  This time Congress accomplished the same feat in two months.  This white paper discusses the portions of the Tax Cuts and Jobs Act that are of particular importance to business owners, investors, and financial advisors.  We point out situations that are likely to fare better and those likely to fare worse under the legislation.  At the end, we present a chart of “winners and losers” that takes into account these individual situations.  The chart also shows business and economic sectors particularly likely to be affected by these tax changes, thereby potentially altering their equity valuations.

President Trump's initiatives promise to have far ranging effects on taxes, health care, sector regulation, government spending, and the country's fiscal situation. This paper lays out the initiatives we expect Trump to pursue during his first year in office. We consider the extent to which Trump can expect support from the Republican-led Congress and the impediments that nonetheless may stand in the way. And, finally, we discuss how the new administration's programs are likely to affect the economy, industry sectors, tax planning, investments, and the markets.

Destiny became reality in the midterm elections as the Republicans gained a majority of the Senate and widened their lead in the House to historic proportions. The Republicans now must decide the mix of confrontation and collaboration that will define their leadership. Due to variations in beliefs and campaigning strategies, the rank-and-file members of the two chambers might see this ideal mix differently. This update discusses the dynamics surrounding the election and enumerates the items Congress must address in the lame duck session taking place in December.

Burger King’s announcement that it intends to merge with Canadian company Tim Hortons -- and in the process move its headquarters to Canada -- is the latest in a recent string of corporate “inversions”, companies fleeing the tax jurisdiction of the United States. This paper explains why companies are inverting, whether Washington can stop them, and – perhaps most important - the consequences to shareholders and investors.

Congress has passed legislation permitting the federal government to continue to borrow funds through March 15, 2015. Coupled with the agreement reached last December to fund the government through September 30, 2015, this action eliminates the prospects of additional fiscal showdowns for at least the remainder of 2014. But these battles are likely to return next year.

Congressional negotiators have reached a modest agreement to fund the federal government for the next two years. The agreement does not, however, raise the nation’s borrowing limit, leaving an important issue unresolved for 2014. This paper describes the compromise and the fiscal issues remaining for Congressional action in 2014.

Congress has permitted the government spending cuts, known as the sequester, to begin on March 1. But Congress faces other deadlines that could affect the implementation of those cuts. This paper discusses the background of the sequester cuts, their implementation, and how Congress is likely to handle the other approaching deadlines.

This paper summarizes the elements of the fiscal cliff compromise reached on New Year’s Eve, and discusses how the compromise affects future income tax rates and wealth transfer.