As of the time of writing, Congress has returned to Washington DC after a month-long recess. With the resumption of legislative matters, the bipartisan committee charged with recommending spending cuts amounting to $1.5 trillion over ten years will begin negotiations. The committee’s recommendation is due to Congress by November 23rd with projected approval by December 23rd.1 If
We are fast approaching November 23rd when the Super Committee presents its plan for cutting the deficit by $1.5 trillion over the next 10 years or face automatic cuts to discretionary and defense spending. Yes, that is the Wednesday before Thanksgiving. In our last Taxing Times we discussed the difficulties legislators face in crafting an agreement for these savings.
As of August 2nd, the U.S. has lifted its debt ceiling and averted a cash crunch that would have forced hard choices regarding its financial obligations. Next, we expect further discussion debating the scale of future spending growth on discretionary spending to dominate decision-makers’ agendas. Framework of the Agreement On the last day before a
As the deadline approaches to lift the U.S. debt ceiling, lawmakers debate competing proposals linking future tax policy and spending increases. Differing budget proposals range from $1-4 trillion in spending cuts over the next ten to twelve years in exchange for an agreement to lift the debt ceiling.1 Each alternative purports to narrow the large operating
Where we are today With the 2012 presidential election season heating up, political rhetoric regarding the US economy, fiscal discipline and the debt ceiling is in full swing. As declared candidates jostle for supremacy, they hobble realistic debate with sound bites and misleading tidbits. We clarify some of the misconceptions for our readers. Unanimity du
On May 16th, the US Treasury reached its debt limit of $14.3 Trillion dollars.1 While the Treasury has room to maneuver for a few months, the situation could become critical if Congress fails to authorize a higher borrowing capacity by this August. Sources currently estimate that the U.S. government could continue to function normally until
Introduction to the AMT If you are not yet familiar with the Alternative Minimum Tax (AMT) this tax season, you probably will be in the future due to this inexorable fact: When Congress created the minimum income tax of 1969, it failed to index to inflation the income level and exemptions set for the jurisdiction