Boehner suggested the talks would provide Obama with an opportunity to demonstrate leadership. “This framework can lead to common ground, and I hope the president will respond today in that same spirit,” he said. “As I said on Wednesday, this is an opportunity for the President to lead. This is his moment to engage the Congress and work towards a solution that can pass both chambers. Earlier this week, the President and I had a short conversation. It was cordial. I think we both understand that trying to find a way to avert the fiscal cliff is important for our country. And I’m hopeful that productive discussions can begin soon so that we can forge an agreement that can pass the Congress.”
Boehner also cited a newly released report from the Congressional Budget Office on the effects of going over the fiscal cliff, which highlights the contraction the U.S. economy would face in the wake of approximately $700 billion in expiring tax cuts and automatic spending reductions. According to the report, gross domestic product would drop 0.5 percent next year if the spending cuts and tax changes mandated by sequestration and the Budget Control Act were allowed to occur. The CBO also estimated that unemployment would increase to 9.1 percent from its current rate of 7.9 percent.
However, the report shows that if the fiscal cliff were eliminated without addressing current fiscal challenges, the economy would remain below its potential and unemployment would remain high. The CBO concluded that Congress should not eliminate the fiscal cliff without replacing it with a responsible, long-term deficit reduction plan.
For more information on the fiscal cliff and the expiring tax provisions, CCH is offering a new tax briefing on post-election tax policy.
6 Comments
Personally, reading this article made very clear to me that an "I" President is not going to do anything to encroach on the welfare of our country, only what "I" think is right, not the people of America. That approach is far too similar to that of the dinnerjacket Iranian and Hitler, the only difference is that the 47% on welfare or entitlemnt now think they are going to get free health insurance-do a poll and you will be surprised how many people believe this. Add the largest Tax increase in history and see what happens-rampant inflation. We are in for four years of pain and sufferring needlessly due to one person and a population of lazy people being handed whatever can be taken from anybody with a work ethic and a desire to succeed, since being a success is penalized, while being on the dole is cool. I'm just an old man trying to earn a living and am being told I cannot due to an obscure piece of a regulation never written by Congress, just put into place by one of the Czars. I have a college degree in 4 different subjects and cannot get a job or work at my chosen profession due the aforementioned regulations. My majors are Accounting, Math, Finance and Economics-no jobs for me? Did I choose the wrong course? Until this year I was succesful by any standard but that has all gone away with on "I" president who has never even had a job! Sorry for the rant, but this entire situation upsets me greatly.
Posted by: BRES | November 13, 2012 9:32 AM
Report this Comment
something needs to be done for the people on social security. they get a increase but it is taken away by the increase of medicare. so there is really not increase for these people to live on and with the cost of living going up. need to cut down on the earn income credit for most of these people only work up to making enougth to get the max.
Posted by: jean46 | November 13, 2012 9:15 AM
Report this Comment
What the government needs to do is eliminate all the loopholes and tax shelters for the wealthy so they can pay taxes according to their tax bracket; just like us middle class taxpayers who are caught in-between the rich and the poor. As for the poor, which is actually the lower middle class, eliminating the Earned Income Credit, will result in reducing fraudulent tax returns that account for millions of dollars lost every single year. Two ways to help us the working middle class is to make changes to tax law helping the wealthy and the lower middle class. Making 250,000 only allows a family to live comfortably. Less than 100,000; after all the deductions on a paycheck, its merely struggling with at least 40% going to insurance payments, such as health, life, home, vehicle, etc.
Posted by: Bertha | November 12, 2012 4:45 PM
Report this Comment
Divide and conquer, "raise taxes on those not paying their fair share" is the Obama mantra. First of all, it is a fact that there are not that many families making $250,000 or more. $250,000 is way to low an income level to absorb an extra tax burden. Raising taxes at that level in order to lower the rates for the majority is nothing more than government tax welfare. Perhaps millionaires like the Hollywood "stars" can stand more, but the rest of us are struggling.
Posted by: mcameron@ddccpa.com | November 12, 2012 3:39 PM
Report this Comment
The President and Congress is going to do what they always do because it is the easiest - tinker, massage and kick the can. As long as lenders continue to purchase treasuries and the Fed can monetize the rest of the deficit, there will be no substantive changes. least of all some "plan to reduce the deficit".
Posted by: colin@colincoopercpa.com | November 12, 2012 1:32 PM
Report this Comment
I contend that the Republican House will rowover and accept income tax increases in order to stop cuts on the defense budget. But I also, see the payroll tax decrease to disappear, which will affect all workers.
Posted by: altoneaston | November 12, 2012 10:23 AM
Report this Comment
Add Your Comments...
Already Registered?
If you have already registered to Accounting Today, please use the form below to login. When completed you will immeditely be directed to post a comment.
Not Registered?
You must be registered to post a comment.