Where tax policy meets politics — legislation, elections, and the debates in Washington that decide how (and how much) you’re taxed.
For the second time in so many months (remember the debt ceiling deadline debacle?), Congress has thrown up its hands and walked away. After failing to reach a workable compromise on the payroll tax cut extension, members of the House left town for the holidays. The payroll tax cuts are set to expire before the…
The payroll tax cut extensions are going nowhere fast… A vote last night by Republicans on the House rules committee will prevent a direct vote today on the Senate plan to extend the cuts by a ridiculous two months. So if you were looking for an update, go about your business today, there’s nothing to…
I was hoping to report that the Senate had taken up the payroll tax cut extension issue today and tossed out the ridiculous plan hatched last week for a two month extension. But, no. Sen. Majority Leader Harry Reid (D-NV) has indicated that the Senate will not take up the matter until the House passes…
It’s not often that you’ll see me lauding House Speaker John Boehner (R-OH) as the voice of reason but here it is: the man is one of just a handful in Congress making some sense with respect to these payroll tax cuts. Speaker Boehner is pushing for a full year extension on the cuts, saying:…
So months and months of debate on the payroll tax cut has resulted in this: a two month extension. No, you didn’t read that wrong. Two months. Democrats and Republicans in the Senate couldn’t figure out how to pay for the whole thing so they decided on a ridiculous fix. Two months. “But it’s paid…
Nothing is written in ink (yet) but all indications are that Congress has reached an agreement that would avoid a government shutdown. While the details are sketchy, it would appear that the final budget would include a payroll tax cut extensions, jobless benefits, and a continuation of Medicare payments for physicians. All of these items…
The “naughty” list is getting longer… No, I’m not talking about Amy pinching her brother this morning while getting ready for school. I’m talking about those in Congress who are squabbling over the payroll tax cut extension all while the deadline for keeping the lights on in D.C. creeps closer. The Senate has yet to…
The House of Representatives has passed a version of a plan that would extend the payroll tax cuts enacted for 2011. The plan also includes the acceleration of approval of the Keystone XL oil pipeline. The bill, H.R. 3630, was originally known as the Welfare Integrity and Data Improvement Act (yup, not a word about…
In recent days, both front-runner Newt Gingrich and Texas Governor Rick Perry have touted their respective “optional flat tax” plans as an easy solution to a complicated tax system. Under both plans, taxpayers would have the option of filing under the existing Tax Code or filing with a flat tax rate (Perry has suggested 20%…
With the clock ticking away on the deadline for the one year payroll tax cut (this one, as it turns out, is a real deadline), Democrats and Republicans in the Senate are fighting to see who can outmaneuver each other. Both offered proposals to extend the cut today – and both proposals failed. The Democrats…