White House, Congress poised for battle over tax breaks in lame-duck session

The White House and a transformed Congress are bracing for a high-stakes battle later this month over a host of expiring tax breaks and benefits for the unemployed that will mark the first test of the new political dynamic in Washington.

If President Obama, his weakened Democratic allies and a resurgent Republican Party cannot find a way to work together, taxes will rise sharply in January for virtually every American taxpayer, and more than 3 million people will lose their unemployment checks – which together could suck more than $300 billion out of the pockets of consumers and business owners next year.

Economists across the political spectrum say such a blow would be devastating to the economy and has the potential to halt the fragile recovery in its tracks.

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Posted in * Economics, Politics, * International News & Commentary, America/U.S.A., Budget, Economy, House of Representatives, Office of the President, Politics in General, President Barack Obama, Senate, Taxes, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The U.S. Government

11 comments on “White House, Congress poised for battle over tax breaks in lame-duck session

  1. Ad Orientem says:

    Not one penny in tax cuts that are not fully paid for by spending cuts. Note ONE CENT!!! No more living on the national credit card. Cut spending or raise taxes or both. BUT NO MORE DEBT!

  2. Br. Michael says:

    Either the Bush tax levels should be made permanent or killed. Business and the people need to know where they stand one way or the other.

    And then I agree with 1. NO MORE DEBT.

  3. Paul PA says:

    Extend the tax cuts for one year – for everyone
    cut all earmarks that are approved but not spent
    cut unspent funds from the stimulous bill
    that will probably pay for one year – or at least make a dent

    now start working on next year – reduce spending to 2008 level (total $) – No spending on earmarks cut again and extend it for a year – should freeze all government salaries – won’t get there otherwise . keep going one year at a time till we get there.

    Raise the SSI retirement age – but write a new set of very clear rules that only apply to people over 65 to allow them to collect disability if they are unable to work. If someone is able to work they shouldn’t get SSI till they are older (72?)

    If I had my way people wouldn’t be allowed to collect government pensions till they are 65 – they could be vested but no more collection at 45 and getting another job

  4. Ad Orientem says:

    Paul
    I appreciate the idea, but I have seen this movie before and I know how it ends. Promises of fiscal discipline down the road in exchange for laxity now is standard Washington code for “I will gladly pay you Tuesday for a hamburger today.”

    I’m not buying it. No more, as in ZERO, NONE, NADDA, NIET, new spending or tax cuts that are not 100% paid for immediately. I don’t like taxes and I don’t like frivolous government spending. But this DEBT will kill us. It stops NOW!

  5. Capt. Father Warren says:

    I have posted this several times. If you take the 2011 budget proposal (there is no budget thanks to the Dems) and you cut out the things not delegated to the Federal Government by the Constitution, you have a vastly smaller budget. We could cut taxes substantially and still cover the required obligations. You would also find no need for a full-time legislature. Those folks could spend more time back with the unwashed electorate and really learn what those folks think of them.

    I agree #4, future promises of fiscal responsibilty are not worth the paper they are printed on.

  6. Branford says:

    What about mandated federal budget cuts of 5 or 6% across the board, no exceptions except military since that defense in mandated by the Constitution? That way all departments have to cut. It might not be much, but it’s something that could be done immediately while Congress takes the time to look at specific programs, etc., that might be eliminated.

  7. Capt. Father Warren says:

    Follow the Constitution. Everything else is politics.

  8. sophy0075 says:

    I agree with you, Capt Warren. Until the Democrats bloated the Federal Government with the New Deal (which, btw, didn’t pull the country out of the depression; war preparations did that), governmental power rested with the individual 50 states.

  9. deaconmark says:

    End all agricultural subsidies. Freeze the Social Security COLA (forever). Yes, raise the retirement age but also increase the amount of income that is taxed for Social Security. End Federal aid to education (that’s a state issue). Don’t extend unemployment; there is work their if people would take it. After all, 12 million undocumented workers seem to find jobs. How you like’en the tea party so far?

  10. MCPLAW says:

    #5 What would you cut out immediately?

  11. Capt. Father Warren says:

    Department of Energy, Department of Education, NEA, NPR, Fannie, Freddie, agricultural subsidies, student loan program returned to private market, moratorium on ObamaCare implementation, hiring freeze at IRS, all Czar positions unfunded until confirmed by Senate hearing. Those are the “off the top of my head” items.