WASHINGTON — In
case you thought there was no risk of your taxes going up again, think
again. Washington isn’t done with you yet.
Democrats, led by President Barack Obama, want lawmakers to consider a fresh set of tax increases in the next several weeks when they discuss whether to cut spending.
Republicans oppose raising tax rates, especially after they just raised some of them for the first time in two decades in the New Year’s deal that extended most – but not all – of the expiring Bush tax cuts.
But much of what Obama is talking about is raising tax revenue without actually raising tax rates. In Washington-speak, lawmakers will try to collect more tax money by closing tax loopholes, perhaps limiting popular tax deductions and to some degree changing the way citizens pay into the popular Medicare and Social Security programs.
The New Year’s deal raised income tax rates for individuals’ taxable income above $400,000 and family income above $450,000. That’s less than 1 percent of all U.S. taxpayers. The deal is projected to raise about $600 billion over 10 years, not enough to significantly chip away at deficits that still will total more than $6.8 trillion over the same period. Lawmakers on Capitol Hill will be looking to trim $2 trillion over 10 years from projected future deficits as part of any deal to raise the nation’s debt ceiling by the end of February and prevent $109 billion in deep spending cuts from occurring in March.
Democrats say Obama will continue to push for an equal split between revenues and cuts – $1 trillion in new tax revenues and $1 trillion in spending cuts.
“The president believes, as Republicans have said they believe, that we need to reform our tax code, and that there are loopholes that are crying out to be closed that no longer serve the country, if they ever did, and that there are ways of capping deductions and reforming our tax code that can produce more revenue in a fair way that, again, does not burden the middle class, but asks the wealthiest to pay more,” White House spokesman Jay Carney said.
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Democrats, led by President Barack Obama, want lawmakers to consider a fresh set of tax increases in the next several weeks when they discuss whether to cut spending.
Republicans oppose raising tax rates, especially after they just raised some of them for the first time in two decades in the New Year’s deal that extended most – but not all – of the expiring Bush tax cuts.
But much of what Obama is talking about is raising tax revenue without actually raising tax rates. In Washington-speak, lawmakers will try to collect more tax money by closing tax loopholes, perhaps limiting popular tax deductions and to some degree changing the way citizens pay into the popular Medicare and Social Security programs.
The New Year’s deal raised income tax rates for individuals’ taxable income above $400,000 and family income above $450,000. That’s less than 1 percent of all U.S. taxpayers. The deal is projected to raise about $600 billion over 10 years, not enough to significantly chip away at deficits that still will total more than $6.8 trillion over the same period. Lawmakers on Capitol Hill will be looking to trim $2 trillion over 10 years from projected future deficits as part of any deal to raise the nation’s debt ceiling by the end of February and prevent $109 billion in deep spending cuts from occurring in March.
Democrats say Obama will continue to push for an equal split between revenues and cuts – $1 trillion in new tax revenues and $1 trillion in spending cuts.
“The president believes, as Republicans have said they believe, that we need to reform our tax code, and that there are loopholes that are crying out to be closed that no longer serve the country, if they ever did, and that there are ways of capping deductions and reforming our tax code that can produce more revenue in a fair way that, again, does not burden the middle class, but asks the wealthiest to pay more,” White House spokesman Jay Carney said.
Read More