Analysis – At cliff’s edge, old ideas to cap U.S. tax breaks are new again
By Kim Dixon and Kevin Drawbaugh
(Reuters) – Imposing overall caps on how much high-income people in the United States can claim on their tax returns in deductions, exemptions and other tax breaks is an idea whose time may have come – again.
In the whirl of “fiscal cliff” talks, bipartisan backing has grown for imposing, or in some cases reinstating, caps on tax breaks for top earners.
Analysis: At cliff’s edge, old ideas to cap tax breaks are new again
By Kim Dixon and Kevin Drawbaugh
(Reuters) – Imposing overall caps on how much high-income people in the United States can claim on their tax returns in deductions, exemptions and other tax breaks is an idea whose time may have come – again.
In the whirl of “fiscal cliff” talks, bipartisan backing has grown for imposing, or in some cases reinstating, caps on tax breaks for top earners.
At cliff’s edge, old ideas to cap US tax breaks are new again
Dec 31 (Reuters) – Imposing overall caps on how much
high-income people in the United States can claim on their tax
returns in deductions, exemptions and other tax breaks is an
idea whose time may have come – again.
In the whirl of “fiscal cliff” talks, bipartisan backing has
grown for imposing, or in some cases reinstating, caps on tax
breaks for top earners.
Factbox: U.S. “fiscal cliff,” tax impact of no deal
WASHINGTON (Reuters) – Higher federal taxes for millions of businesses and individuals will become law on Tuesday unless Congress acts to stop them. These taxes, worth $500 billion, comprise the bulk of what is known as the “fiscal cliff” problem.
The following shows the probable impact on taxpayers if Congress does not act on Monday, or does not come back later and undo these tax increases, based on data from the nonpartisan Tax Policy Center.
U.S. ‘fiscal cliff,’ tax impact of no deal
WASHINGTON, Dec 31 (Reuters) – Higher federal taxes for
millions of businesses and individuals will become law on
Tuesday unless Congress acts to stop them. These taxes, worth
$500 billion, comprise the bulk of what is known as the “fiscal
cliff” problem.
The following shows the probable impact on taxpayers if
Congress does not act on Monday, or does not come back later and
undo these tax increases, based on data from the nonpartisan Tax
Policy Center.
Essential reading: Fiscal cliff talks down to the wire
Welcome to the top tax and accounting headlines from Reuters and other sources.
* Obama summons congressional leaders for ‘fiscal cliff’ talks. Lori Montgomery and Rosalind Helderman – The Washington Post. President Obama summoned congressional leaders to a Friday summit at the White House in a last-ditch effort to protect taxpayers, unemployed workers and the fragile U.S. recovery from severe austerity measures set to hit in just four days. Also Thursday, House of Representatives Speaker John Boehner announced he would call the House back into session this weekend. And in perhaps the most significant development, Senate Minority Leader Mitch McConnell was engaged directly in talks with the White House. He signaled an interest in cutting a deal. Link
* Summoned back to work, senators chafe at inaction. Jennifer Steinhauer – The New York Times. Senators bid hasty goodbyes to families, donned ties and pantsuits in lieu of sweat pants and Christmas sweaters and one by one returned to the Capitol on Thursday to begin the business of doing nothing in particular. But for once, those lawmakers were fully united, if only around their sadness and frustration at being stuck in Washington in a holiday week, peering over the edge of the fiscal abyss. Link
Factbox: Key players in scramble to avoid U.S. “fiscal cliff”
WASHINGTON (Reuters) – The outcome of the “fiscal cliff” debate will be decided in four days, with just a handful of powerful leaders in Washington calling the shots, for better or for worse.
Here are some of the politicians and administration figures who are involved in trying to head off the tax increases and federal spending cuts that will take hold in January unless Congress acts, possibly pushing the economy into recession.
Timeline: America’s long stumble toward the “fiscal cliff”
WASHINGTON (Reuters) – The long, bumpy road to America’s “fiscal cliff” on December 31 has been traveled over many years by Congress and a series of U.S. presidents, including Democrat Barack Obama.
Some of the steps taken along the way had good intentions; some had no intention other than to put off hard decisions, while ideological divisions on fiscal policy steadily hardened.
America’s long stumble toward the ‘fiscal cliff’
WASHINGTON, Dec 27 (Reuters) – The long, bumpy road to
America’s “fiscal cliff” on Dec. 31 has been traveled over many
years by Congress and a series of U.S. presidents, including
Democrat Barack Obama.
Some of the steps taken along the way had good intentions;
some had no intention other than to put off hard decisions,
while ideological divisions on fiscal policy steadily hardened.
Factbox: “Fiscal cliff” tax, budget provisions in detail
WASHINGTON (Reuters) – The “fiscal cliff” is only days away and efforts to avert it are making little progress, with some U.S. lawmakers predicting the tax increases and federal spending cuts involved will start taking hold in January, unless a deal comes together very quickly.
If these jolts to the economy are allowed to occur, a recession could follow, economists have forecast.
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