Essential reading: Raising tax rates ‘unacceptable’ to U.S. House Speaker Boehner, and more

Speaker John Boehner (R-OH) on Capitol Hill, June 28, 2012. REUTERS/Yuri Gripas

Welcome from About Cash Flow to the top tax headlines from Reuters and other sources.

* Raising tax rates ‘unacceptable’ Speaker Boehner. John Parkinson – ABC News. Raising tax rates is “unacceptable” to House Speaker John Boehner as he prepares to open negotiations on the looming “fiscal cliff” with the president and congressional Democrats, he told “World News” anchor Diane Sawyer today in an exclusive interview. Link

* GOP’s rejection of higher tax rates an obstacle to debt deal. Paul Kane and David Fahrenthold – The Washington Post. The new conciliatory tone among House Republican leaders this week will soon have to confront an old Washington reality: the GOP’s deep opposition to higher tax rates. As they begin bipartisan talks on a broad debt deal, White House and congressional leaders face a group of skeptical rank-and-file Republicans in the House who don’t view Tuesday’s Democratic victories as a reason to retreat on taxes. Link 

* Tax twist: At some firms, cutting corporate rates may cost billions. Michael Rapoport – The Wall Street Journal. President Barack Obama has said, most recently during last month’s presidential debates, that the 35% U.S. corporate tax rate should be cut. That would mean lower tax bills for many companies. But it also could prompt large write-downs by Citigroup, AIG, Ford and other companies that hold piles of “deferred tax assets,” or DTAs. Link

* Tax hike for wealthy won’t kill growth: CBO. David Lawder and Kim Dixon – Reuters. Allowing income tax rates to rise for wealthy Americans, and maintaining rates for the less affluent, would not hurt U.S. economic growth much in 2013, the Congressional Budget Office said on Thursday. The CBO said the tax hikes for the wealthy would reduce job growth by around 200,000 jobs. Link

* Schumer leads push to avert fiscal cliff. James Politi and Alan Beattie – The Financial Times. Two days after Barack Obama’s re-election Democrat Senator Chuck Schumer said he welcomed a signal from John Boehner, the Republican speaker of the House of Representatives, that his party was willing to compromise to avert the fiscal cliff. But he added that the Republican leader would need the “business community” to help bring “his conference to a good position on revenues.” Link

* Debt ceiling complicates a tax shift. Annie Lowrey – The New York Times. Come January, should Congress fail to act, the United States will face more than immense tax increases and spending cuts. It will also run out of room to finance its large running deficits. Link 

* Tax break on gifts soon to end. Paul Sullivan – The New York Times. The looming expiration of the gift tax to children has left many people of means scrambling to use what has been billed as a once-in-a-lifetime way to give tremendous amounts of money to heirs tax-free before death — as opposed to the alternative, after death via the estate tax exemption. Link 

* The president’s cliff walk. The Wall Street Journal editorial. The most important question now is how a re-elected President Obama is going to deal with this economic policy mess. Link

* Setting the table for tax negotiations. Victor Fleischer – The New York Times opinion. There are reasons to be optimistic. A tax overhaul is more likely to happen in a president’s second term, as he has more leeway to pressure his own party to compromise. Link

Via Reuters – Essential reading: Raising tax rates ‘unacceptable’ to U.S. House Speaker Boehner, and more

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