Legislative Issues for 2012

Extending all the Bush-era tax cuts, which expire at the end of 2012, would tack roughly $3.9 trillion onto the budget deficit during the next 10 years. Tax reform will certainly be a hot-button topic heading into silly season.

"If (the tax cuts) expire, it will represent the largest increase on every single tax bracket," Lyons notes. "What will Congress do? Will they prevent it for certain income levels, or for everybody? Will we get into the millionaire surtax debate? It's fair to say neither Republicans nor Democrats will allow a tax increase on lower/middle income brackets.