FPA Headlines - Financial Planning Association - National Capital
FPA Headlines - Financial Planning Association - National Capital
FPA Headlines - Financial Planning Association - National Capital
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Continued from the previous page<br />
Rachael DeCosta-Martin, Sponsorships Co-Director<br />
Mitchell Berlin, CFP, Facility Requirements & Social Events Director<br />
Kathleen Sindell, PhD, Chapter Communications Director<br />
Helen Modly, CFP, PR/Media Relations Co-Director<br />
Tommie Monez, CFP, PR/Media Relations Co-Director<br />
Bryan Beatty, CFP, Membership Co-Director<br />
Cliff Cohen, Esq., Membership Co-Director<br />
Tacy Paul Roby, CFP, Pro Bono Director<br />
Howard Pressman, CFP, Government Relations Director<br />
RECENT TAX REFORM RECOMMENDATIONS FROM PERAB<br />
Howard Pressman, CFP<br />
In response to the unprecedented economic events of 2008, President Barack Obama established the Economic<br />
Recovery Advisory Board (PERAB). The 17 member board, which is made up of non-governmental experts is<br />
charged with offering independent advice to the President as he formulates and implements his plans for an<br />
economic recovery. On August 27, 2010, the Tax Reform subcommittee of PERAB submitted to the President<br />
its report on Tax Reform.<br />
While most concerned parties agree that the report offered little in the way of new ideas, there are some<br />
recommendations that are of particular interest to planners. Suggestions of note are:<br />
Consolidate or restructure current retirement plan offerings to facilitate enrollment by low- and<br />
middle-income taxpayers.<br />
Modify capital gains treatment to either (1) convert the separate rates on capital gains into a 50percent<br />
exclusion or (2) replace the zero rate with a 5-percent rate for taxpayers in the 10- and 15percent<br />
tax brackets.<br />
End or limit1031 like-kind exchanges, which allow the deferral of taxes on appreciated property. The<br />
limitations could include separate sub-categories, for example, creating one category for developed<br />
land and another for undeveloped land. Exchanges would not be allowed to cross over into other<br />
categories.<br />
Provide more stringent rules that partners, shareholders in S corporations, and members of limited<br />
liability corporations to pay self-employment tax.<br />
Suggestions were made to eliminate the AMT, however due to the costs associated with its repeal,<br />
the recommendation was to continue with annual patches.<br />
<strong>FPA</strong> <strong>National</strong> <strong>Capital</strong> Area Newsletter Page 4 October 2010