Tax Break

Essential reading: Chicago faces additional pension bill of $1.5 billion a year, and more

October 2, 2012

Welcome to the top tax and accounting headlines from Reuters and other sources.

* $1.5 billion a year cost to fix pensions? Hal Dardick – The Chicago Tribune. Absent significant pension system reforms, it would cost the city an extra $1.5 billion a year beginning in 2016 to start the process of restoring financial health to its pension funds, aldermen were warned Monday. If those costs kicked in, services would be cut, taxes would soar or both. Link

* U.S. can’t catch a tax break. David Reilly – The Wall Street Journal. Corporate tax receipts remain well below peak, precrisis levels. That is in part due to companies continuing to hoard cash and profits overseas. And as the government on Monday turned the page to a new fiscal calendar, corporate taxes looked likely to miss expectations for the second year in a row. Link

* End of payroll, Bush tax cuts top “fiscal cliff” fears: study. Reuters. If Congress does nothing and the United States plunges off the “fiscal cliff” in three months, taxes would rise for 90 percent of Americans due to automatic increases in income and payroll taxes and other financial shocks, said a report issued on Monday. In the latest forecast of trouble ahead if Capitol Hill cannot overcome its fiscal paralysis, the Tax Policy Center predicted taxes would rise by $500 billion in 2013, or an average of almost $3,500 per household. Link

 * The math on the Romney-Ryan tax plan. Catherine Rampell – The New York Times. On Fox News Sunday, Paul Ryan said that he didn’t have time to explain the math behind his tax proposal. Ryan and Mitt Romney have proposed a tax plan that would lower everyone’s tax rates by 20 percent. Link

* Paul Ryan’s tax evasion. David Firestone – The New York Times opinion. Paul Ryan made it sound easy to find junky tax breaks to eliminate, in order to pay for the 20 percent tax cut he and Mitt Romney have proposed. You’d think if the tax code were such a cornucopia of giveaways, Ryan might reach in and pull one out for public examination. But Ryan said he didn’t have time to provide the public with even a crumb of a detail. Link

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