Until someone wins the election, House and Senate are likely to stay stagnant regarding tax
San Francisco, CA -- (SBWIRE) -- 10/15/2012 -- The U.S. tax code has taken some of the spotlight during the current U.S. presidential campaign. Policymakers are bracing themselves for what could very easily be a large battle over the budget following the November 6 collection.
Senator Charles E. Schumer (N.Y.), the No. 3 democrat in the Senate, rejected a proposed cutting of the top tax rate. The concept was seen as embraced by both Republicans and Democrats as a way to avert major tax increases and spending cuts that are set to take a foothold in January.
A bipartisan group fathered at Mount Vernon outside Washington for a retreat that was set to find alternative debt-reduction in order to avoid what is being called a “fiscal cliff”.
How house and senate leaders choose to deal with the tax situation can have severely wide-sweeping effects on the common American. Without an agreement, there will be an increase on 90% of Americans in the next year. The concern is that this could usher in a second wave of recession.
Mitt Romney, who is running for President under the Republican ticket, wants to allow lawmakers to have more in order to make larger future changes. Such alterations would include lowering the top earners tax from 35% to 28%. President Obama offered up the concept of a debt-reduction framework, which would demand spending cuts and upping the top bracket’s tax percentage.
One major roadblock for solving the situation is that nobody can make a move until everyone is clear who will be in the White House.
Schumer spoke to the National Press Club of Romney’s lower tax rates, saying, “These promises of lower rates amount to little more than happy talk when the math behind them doesn’t add up,” he said. “It is an alluring prospect to cut taxes on the wealthiest people and somehow still reduce the deficit. But you can’t have your cake and eat it too.”
Democrats have begun to allow the concept of lowering the top rate from 35%, however, Schumer is not interested in following suit. He urged democrats to “scrap” the concept and stand strong for higher rates for the wealthy and investment income. He also urged revenue be raised through the closing of loopholes and deductions for lowering the deficit.
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