A Different Kind of Trend
For about all of history, a large part of tax management has been in deferring recognition of income. Everything being equal, its better to pay taxes further in the future, given the lower present value of deferred taxes.
This year is different. As I talk to many other folks who run their own business, many are using every accounting trick in the book to pull income forward, into this year. Why? The reasoning is here. Many folks are betting that their marginal tax rate will be going way up next year. I know I will be drawing down every reserve and deferring every expense I can find to pull income into this year from next.
