Tax Break

Essential reading: Senate Democrats propose new taxes, and more

March 13, 2013

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

* Democrats’ budget mixes tax increases, spending cuts. Kristina Peterson – The Wall Street Journal. Senate Democrats will propose on Wednesday raising $975 billion in new taxes over the next decade in the budget they will release this week, setting up a sharp contrast with a House Republican plan to balance the budget over 10 years without new tax increases. Link 

* Ryan sets stage for a budget duel, targets healthcare law. Lori Montgomery – The Washington Post. The Obama administration official acknowledged that the dueling budget blueprints illustrate the immense challenge of trying to forge a compromise between a president and Republicans, who refuse to consider any additional revenue beyond the relatively modest tax increase adopted Jan. 1. Link    

* Guide: Why the budget process matters. John McKinnon – The Wall Street Journal. It’s worth remembering that it’s highly unlikely the House and Senate will reach agreement on a budget this year, given how far apart they are on spending and tax issues. Link    

* It’s time to cap tax deductions. Martin Feldstein – The Washington Post opinion. Tax breaks may promote desirable actions, but given the current budget situation, the country cannot afford to subsidize them. Anyone opposed to government spending should favor removing these subsidies from the tax code. Link 

* Blessing of low taxes remains unproved. Eduardo Porter – The New York Times opinion. There’s no clear evidence that lower tax burdens have helped the United States grow faster than other advanced industrial nations with higher tax rates and much heavier tax burdens. Link    

*  The people versus the party. Andrew Rosenthal – The New York Times opinion. The Paul Ryan budget, which will become the official GOP. budget just as soon as the Republican majority in the House gets a chance to vote on it, gives nice big tax breaks to the wealthy. Link    

* Soda taxes lose, even in blue states. Bob Achermann – The Orange County Register opinion. Voters have rejected soda taxes, illustrating the latest in a tidal wave of opposition to government intrusion over what to drink and how much. Link

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