James M. Delaplane, chief of government relations at The Vanguard Group Inc., on Monday gave his take on what is likely to happen in coming months regarding taxes, deductions and reform. It wasn't particularly pretty.
Speaking at the
InvestmentNews Retirement Income Summit, Mr. Delaplane said that no matter who wins in the elections in November, there likely will be no decision about extending the Bush tax cuts until the very end of the year. He added that no significant legislative actions will be taken on new regulations until that time. After that it's a tossup, he said.
As for the longer-term tax picture, the picture varies wildly — depending on who wins in November and whether the same party rules Congress and the White House.
(Watch INTV interview Mr. Delaplane for a deeper dive on taxes and retirement.)
During a question-and-answer session, advisers struggled, without success, to get some good news out of Mr. Delaplane on the future of retirement plans, the Bush tax cuts or the Holy Grail of long-term tax reform.
No matter who wins, taxes will likely go up, but the more branches of government that are controlled by the Democrat, the higher they will go, he said.
Mr. Delaplane gives President Obama the “slightest of advantages” of winning in November, while he believes the House will stay Republican and the Senate is too close to call. It is possible that things will improve even with a split government, though not likely, he said.
“It could be that grown-ups might prevail, as President Obama begins to think about his legacy,” and House Majority Leader John Boehner, R-Ohio, is able to corral more members of his party.
Just don't count on it, he said.
