WASHINGTON, May 11, 2011 /PRNewswire-USNewswire/ -- As the Obama Administration, Senate Finance Committee, and House Ways and Means Committee undertake what is expected to be a multi-year policy debate on tax reform and deficit reduction, The Real Estate Roundtable and Deloitte recently released their joint report, "Prospects for Tax Reform in a Changing Legislative Environment: Risks and Opportunities for the Commercial Real Estate Industry."
"We look forward to working with both Congress and the Obama Administration on various tax reform proposals, especially in the midst of a bifurcated commercial real estate market where refinancing needs remain significant," said Roundtable President and CEO Jeffrey D. DeBoer. "The Roundtable's 2011 National Policy Agenda details principles and policy suggestions for overhauling aspects of the 70,000 page tax code that affect the health of the commercial real estate industry," DeBoer added.
According to Fred Witt, national director, real estate tax services, Deloitte Tax LLP, "With the country on a fiscal course that is unsustainable, taxpayers are frustrated, driving policymakers to undertake the long road toward fundamental tax reform. This joint report offers an introduction to the challenges and obstacles ahead."
Vowing to go beyond the Administration's call for corporate tax reform, Senate Finance Committee Chairman Max Baucus (D-MT) and House Ways and Means Committee Chairman Dave Camp (R-MI) have convened a series of hearings to examine the entire tax system and related reform proposals aimed at stimulating economic growth.
The Roundtable/Deloitte report addresses the broad choices faced by Washington lawmakers for reforming the tax code; details the fiscal realities driving the effort; and frames their potential economic consequences. The publication also focuses on the economic uncertainty created by the existing tax code; concerns about global competitiveness and the U.S. corporate tax; and alternative or additional tax systems.
Observations in the report include:
- The president's proposal to limit the rate at which itemized deductions reduce tax liability could have a significant impact on the mortgage interest deduction.
- Because of bipartisan support, it may be likely that FIRPTA reform will once again be on the table, although the details of the reform will have to be hammered out.
- Although the White House continues to propose changes to the tax treatment of carried interest income to help close the budget deficit, such proposals are unlikely to move in the current Congress.
- An overall reduction in the depreciation schedule could bring tax depreciation in line with economic reality, as well as spur sustained investment in commercial real estate
As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
About The Real Estate Roundtable
The Real Estate Roundtable brings together leaders of the nation's publicly-held and privately owned real estate ownership, development, lending and management firms with the leaders of national real estate trade associations to jointly address key national policy issues. The 2011 Policy Agenda is at www.rer.org.
SOURCE Real Estate Roundtable