No Deficit of Talk – At least there no longer is a deficit of discussion when it comes to our fiscal situation. House Speaker John Boehner (R-OH) gave a major address Monday night to the Economic Club of New York where he said that increasing the statutory debt limit should be accompanied by spending cuts greater than the amount of the debt limit increase.
What Will Bloom This Month? – In April we were showered with fiscal policy developments: namely, a last-minute FY 2011 budget deal; a deluge of budget plans from across the political spectrum (see here, here, here and here ); House passage of a FY 2012 budget resolution; a major fiscal policy speech from President Obama along with a new fiscal framework; and a steady stream of budget process ideas.
An op-ed in today's New York Times by Harvard economics professor Martin Feldstein says that while reducing our debt will require more revenue, that doesn't necessarily mean higher tax rates. Feldstein proposes the idea of capping the amount that tax expenditures as a whole can save an individual taxpayer to a maximum percentage of their income.
Bumping Up on the Debt Ceiling – On Monday, Treasury Secretary Tim Geithner sent a letter to congressional leaders saying that his department this week would begin the “extraordinary measures” necessary to stave off a U.S. default absent an increase in the statutory debt limit, which will be breached around May 16.
Happy Tax Day – Today is about the consequences of procrastination for the great many waiting until the last minute to file their federal income tax returns. It is also the time when the most consideration is given to the costs and benefits of the federal government.
In the spirit of Tax Day today the Bottom Line presents its own special “10/40” (don’t worry; we aren’t filing this with the IRS).
Congressman Ryan has come under attack, recently, for the tax reform framework in the House Republican budget proposal.
Just in time for Tax Day on Monday, the White House website has launched a taxpayer receipt. By entering what one has paid in federal taxes, the new tool allows users to view where their tax dollars go, with results broken down by category.
With Tax Day rapidly approaching and our nation’s fiscal problems being fiercely debated, the timing of today’s events couldn’t be more perfect. We’re talking about this morning’s event – Tax Reform Now: Cutting Rates and Deficits – and the publication of two new papers, each of which present a unique approach to tax reform.
Deal on FY 2011 Spending Reached – A government shutdown was averted on Friday by an 11th hour agreement on federal spending for the rest of the fiscal year. The deal will cap 2011 appropriations at just under $1.050 trillion, reducing spending by about $38 billion from current levels. Congress passed a one week extension shortly after the deal was announced to allow time for the agreement to be drafted into legislation and enacted. The House is scheduled vote on the legislation enacting the budget agreement on Wednesday, with the Senate likely voting afterwards.