September/October 2012
We‘re talking about taxes these days, whether we want to or not. After the November election, Congress will be faced with far-reaching fiscal decisions: whether to extend the so-called “Bush tax cuts” and how to bring the federal debt and deficit under control. These decisions have a deadline: December 31.
Most economists agree that the mountain of debt that the U.S. has built up during the past decade has reached an unhealthy level. Revenues have not kept pace with spending. The system is out of balance.
How did we get here, and how do we get out? Are we spending too much, or too little? Are our taxes too low to meet our common needs and invest in recovery, or too high to allow the economy to grow?
This newsletter will help you consider these questions and how to talk with your members of Congress about them.
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Even as the nation has turned its focus to a ballooning debt, the public debate has largely focused on how to drive down spending -- but that's only one piece of a balanced approach to balancing the budget. Taxes are an important part of deficit reduction.
While it's important to make cuts the the wasteful, bloated Pentagon budget in order to protect domestic human needs programs, cutting spending isn't enough to bring the country back to a responsible budget. Tax increases need to be a part of a balanced approach to cutting deficit spending.
Our country needs a raise. Along with fiscal discipline -- cutting the Pentagon budget and parts of the domestic budget -- the nation needs more revenue to meet its needs.
Not too much, actually. Of U.S. trading partners, only Chile and Mexico have lower taxes -- and taxes on median U.S. families are far lower than they have been for most of the last 50 years.
The government needs to have consistent and adequate sources of revenue to be able to provide functioning schools, health care, research capacities, transportation and communication systems. Taxes are the cost of the common good.
Tax cuts passed more than a decade ago are scheduled to expire on December 31, 2012. When Congress reconvenes after the November election, what to do with these tax cuts will be at the top of its agenda.
What's a marriage penalty? What does it mean to have a tax credit? Why is taxable income different from income? Get the basics on taxes.
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