When the morons in Washington sit down to solve problems you never know the specific details of the outcome except that we will be screwed over. Spending needs to be cut and taxes need to be raised and they all know it, but wont say it because of all the moronic pledges they have signed. But that will be the outcome.
Pelosi says "we will not close the deficit problem on the backs of senior citizens and the poor" but then last night she said "any cuts in Social Security or Medicare would only be agreeable if the money goes directly into the trust fund to make those programs more viable." Most people just dont understand that that statement makes no sense since the way our govt keeps book it is all just one pot, we either need to borrow a pile or not. You can "say" it goes into the trust fund, but from the standpoint of having to borrow a certain amount it makes no difference.
Regarding MLPs, I dont think these are the egregious sort of loopholes they are after. This structure was created to get gas and oil moving around the country and it has been very effective at accomplishing that. And these are not really oil companies, they are pipeline companies. I think they will go after the oils directly to try to remove subsidies and other loopholes. They need something superficial to crow about to the newspaper. They need to be able to say "We are making Exxon Mobile pay their fair share", or "We are removing subsidies for corporate jets", even though those subsidies are negligible.
My guess is that there will be no budget cuts of substance near term or tax increases near term because of the fragile state of the economy, but they will "feather in" changes starting in 2013, like raising the age for full benefits under Social Security and Medicare, and bring the meataxe to the budgets for all depts starting in 2013. I also think they will "find a way" to get comfortable with removal of the irrational Bush tax cuts starting in 2013. I say irrational because Bush said he was giving us back the surplus, but there was no surplus in the operating funds, he just gave us back the Social Security surplus (and now we wonder where it is). Morons.
Social security, medicare, medicaid, etc. are simply government ponzie schemes. Just like Greece, the politcos bought votes with all these promises that never can be fulfilled. There is a sucker born every minute as Mr. Ringling aptly described the populus, and many bought into the cradle to grave thesis. Mr. Ponzie himself could not have designed a better scam. The undoing of this carnage is likely to be very ugly on the streets of our disintegrating cities.
How? The MLP status is not under discussion. The only place EPD or MLPs could get hurt is via a change in depreciation schedules. This would put more $$ for unitholders on line #1 of our K-1s.
Holders are likely to pay high rates ob investment income (already in place) and higher LTCG rates (already in place). This issue is entitlements. SSI, unemployment welfare etc. eat up most $$ spent by govt. Cuts coming there IMO. SSI cola a definate change if the grapevineis right.