An “Election Insight 2012” report was issued shortly following the elections on November 7, 2012 by SNR Denton, and provides interesting insights into what political issues will take the forefront in the next four years. The report highlights winners and losers both at the federal and local levels as well as provides a short list of who could take over several key appointed positions. It also gives a top level discussion of what key issues will be addressed during the upcoming lame duck session, as well as over the next four years.
- The 112th Congress returns for a lame duck session beginning next week and the major topic of discussion will be the combination of expiring tax provisions and across-the-board spending cuts (sequestration) including discussion of retroactive extension of expired provisions including research and development tax credit, the production tax credit for wind energy, and other “tax extenders”.
- Several major policy areas that will be on the agenda for the next Congress: debate on the future of American energy; and job creation and economic growth. The issues above are forecast to become part of the broader debate over the economy.
- The energy sector also will draw attention in the context of tax reform, with debate continuing on tax policy affecting both oil and gas companies and renewable generators.
- President Obama’s corporate tax reform plan calls for a lowering of the corporate tax rate from 35%to 28%, and reducing the manufacturing income rate to 25%. To pay for these proposals, the president would eliminate several business tax breaks, most notably subsidies for oil companies.
- Obama’s plan would make the Research and Development (R&D) tax credit permanent and the tax credit for renewable electricity production permanent.
- Obama’s plan would require companies to pay minimum tax on overseas profits and remove tax deductions for moving production overseas, while giving a 20% income tax credit for the expenses of moving back to the U.S.
- The next terms will bring continued debate on the future development of American energy resources, Continue reading