Speaker of the House proposes tax hike for millionaires
In a recent proposition made by the Speaker of the House, John Boehner, an increase in federal income tax for the wealthiest Americans could be made, but only in exchange for an agreement by President Obama to make a major cut to entitlements.
This proposition would mark the first time that Speaker Boehner has offered a rise in marginal federal income tax rates since the talks regarding the fiscal cliff have begun. The offer proposed suggested a hike in Bush-era federal income tax rates for those who have an annual income of one million dollars or more.
As a part of the proposition Speaker Boehner also is looking to implement a new method, “Chained CPI”, for calculating the benefits of entitlement programs. By using this method the growth of federal health programs, such as Medicare, would slow down, saving billions of dollars over the next ten years.
Although the proposition did make strides in terms of federal income tax increases, there was nothing included to extend the federal unemployment benefits and no mention was made about how sequestration would be addressed.
A deal is not close to be made, but a phone conversation, after a recent face to face session, between President Obama and Speaker Boehner suggested that both parties are making progress in their negotiations.
The offer on federal income tax by Speaker Boehner was a significant move towards the position held by President Obama. Unfortunately the overall proposal still is unacceptable to the Democrats considering the level of revenue, the hit beneficiaries would take from the changes to entitlement programs, and the lack of extension to the federal unemployment benefits.
Categories: Federal Tax, Income Tax, Tax Law Tags: buffet rule, federal income tax, federal tax, fiscal cliff, fiscall cliff, take hike, tax code, tax cuts, tax law, tax pledge, tax reform, tax the rich
Obama : Congress should make “fiscal cliff” deal
In an attempt to avoid the quickly approaching fiscal cliff at year’s end, President Obama curbed his legislative aspirations, and implored Congress to take stopgap measures in order to continue benefits to unemployed workers and prevent a rise in federal income taxes for those individuals making less than $250,000 per year.
By implementing the plan, groundwork should be laid for actions in the upcoming year to encourage economic growth and bring the national debt under control, according to President Obama at a White House news conference. Unfortunately with federal income taxes set to increase for every American in a matter of days, President Obama admitted that time is just too limited to put into place far-reaching legislation.
Only a day previous to this statement, House Republicans declined an alternative federal income tax advanced by Speaker of the House John Boehner which would have prevented any increase to federal income taxes for those making less than one million dollars a year. It was shot down by conservative who hesitated at the prospect that federal income taxes would rise for approximately 400,00 households.
If a bill were to pass with a threshold of $250,000, federal income taxes would go up for about 3 million American families. Although a compromise between President Obama and Speaker Boehner is most critical for moving talks forward, Senate Democrats said theywould be willing to take on a bigger role in the talks.
Democrats also said they would seek to postpone the spending cuts which would affect the federal agency budgets in the coming month. Both the Democrats and Republicans also want to avoid the alternative minimum federal income tax which would affect millions of new taxpayers this April.
Categories: Federal Tax, Income Tax, Tax Law Tags: federal income tax, federal tax, fiscal cliff, income tax
GOP seeks to cut Social Security for the poor and middle class
Do Nothing Congress Home Base – Republicans are at it again as today they demanded that any tax hikes on the wealthy must be coupled with a cut in spending on the poor by trimming cost of living increases for Social Security recipients.
Democrats, of course rejected this ludicrous proposal for the Republicans to further gut those most in need. The negotiations on the fiscal cliff continues to no avail. Lawmakers convened in a rare Sunday session that amounted to basically nothing more than a relief society session of nothingness.
Mitch McCconnell in a desperate temper tantrum telephoned the Vice President Joe Biden in hopes that he would come in and facilitate a compromise.
“I’m willing to get this done, but I need a dance partner,” McConnell. “The consequences of this are too high.”
Oddly enough the give and take between parties has been going on for almost a year. In amazement both parties are insistent that they are working alone to save the world…when in reality only one side seems to consider the poor and helpless as individuals worth saving. Needless to say the Democrats consider this move by the Republicans as a step in the wrong direction.
“When Leader Reid received this recent offer he was taken aback and disappointed,” said a Senate Democratic aide granted anonymity to discuss the private talks. “We feel we are further apart than we were 24 hours ago.”
Republicans are already seeking to redefine what is considered wealthy in this country as an individual making over $500,000. They also claim that inheritance taxes must be taken away from the table and that the poor and middle class must sacrifice more to get this deal done.
President Obama offered adjusting the cost of living for social security earlier this month to Republicans as a negotiating chip but unfortunately but not surprisingly talks between the Republicans and the president on this issue fell apart soon after.
Both Democrats and Republicans have been at work *cough cough bullshit* all day trying to come up with a compromise on this issue but no avail. Only time will tell if the Democrats come back with a counteroffer.
The president had initially proposed raising tax rates on the wealthiest 2% of Americans but then later compromised with Republicans to move that bar up to $400,000. Needless to say this compromise wasn’t enough to satisfy the Republican counterparts. Alas the president needed to negotiate once more.
Democrats have been willing to entertain the higher $500,000 income tax threshold Republicans want, but have resisted coupling that with a 35% rate on inheritance taxes for estates valued at more than $5 million. Obama wants the estate tax to rise to 45% on estates above $3.5 million.
With hours left to come to a resolution on the fiscal cliff Obama may just instruct his Democrats to just force the hand of the Republicans and see how this shake out in the House and the Senate along with the American People. Although it seems as if the American people have already voiced their opinions on this matter it may take a fit of outrage for something to get done in this Do Nothing Congress.
Categories: Federal Tax, Income Tax, Tax Law Tags: federal income tax, federal tax, fiscal cliff, mitt romney, republican, Republican Tax, tax increase, tax pledge, tax reform