Posted on: 19th Dec, 2012 11:33 pm
The tax hike deal, also known as the “Fiscal cliff†seems to be taking shape and coming together. After the latest offer made by Speaker John Boehner, many experts have opined that they can see an agreement taking shape. As per the new offer made by Boehner, tax rates may rise for income over $1 million. However, The White House wanted to let tax rates rise for income over $250,000. Thus, it is expected that there will be a compromise in between.
Apart from this, it has also been offered that more revenue will come from limiting deductions. The total revenue raised by the two policies will be somewhere around $1 trillion. It has been said that Congress will get instructions to use this baseline in order to formulate on tax reforms from the next year.
As an incentive, the unemployment insurance will be extended along with the refundable tax credits. The payroll tax cut will be allowed to lapse. This may be a big blow to the economy.
What do you think about the whole deal? Do share your opinion with us!!
Apart from this, it has also been offered that more revenue will come from limiting deductions. The total revenue raised by the two policies will be somewhere around $1 trillion. It has been said that Congress will get instructions to use this baseline in order to formulate on tax reforms from the next year.
As an incentive, the unemployment insurance will be extended along with the refundable tax credits. The payroll tax cut will be allowed to lapse. This may be a big blow to the economy.
What do you think about the whole deal? Do share your opinion with us!!
Thanks for sharing this in the forums, Jerry!! :)
Apart from what you have mentioned, there are chances that the cuts on Social Security benefits will also be accepted. The negotiators may also agree to targets for spending cuts. But I believe, there will be certain things which will left for the Congress to decide such as cuts from Medicare or Medicaid, raising the Medicare age, etc.
However, it should also be noted here that the negotiations could fall apart, or the deal could change. But as of now, the participants sound upbeat. It is surprising to note how quickly the process has moved from evident disaster to near-agreement.
Apart from what you have mentioned, there are chances that the cuts on Social Security benefits will also be accepted. The negotiators may also agree to targets for spending cuts. But I believe, there will be certain things which will left for the Congress to decide such as cuts from Medicare or Medicaid, raising the Medicare age, etc.
However, it should also be noted here that the negotiations could fall apart, or the deal could change. But as of now, the participants sound upbeat. It is surprising to note how quickly the process has moved from evident disaster to near-agreement.
The US economy is now at the crossroads. Debt problems have battered the economy very badly. Unprecedented amount of Treasury Bonds have been issued to finance its expenses. Despite these fiscal doldrums, the Democrats have been relected. Now, its time for serious tax reforms. Though there are some disagreement on tax reforms, but some rate hikes are on the cards.
Now, it's indeed time for some tax reforms so as to bolster the ailing finances. Fiscal cliff seems to be in the right direction. It preaches hikes in the tax rates. This will help the country to augment its revenue. Though there are some disagreements over tax rate hikes, but it is indeed a good step.
Legal professionals in Washington say they are working to find some sort of answer to the financial issues that will soon impact the country. The tax professionals and some politicians predict that the confusion currently felt by many Americans, will extend into the tax season as well and fear that 2013 will be a year of "chaos" when it comes to filing returns.