Fiscal cliff talk

The country may be careening toward a fiscal cliff, but U.S. Rep. Bill Huizenga, R-Zeeland, expressed confidence Monday that a compromise will be reached before we fall off the edge.
Marie Havenga
Dec 11, 2012

 

“I believe there will be a solution,” Huizenga said to a handful of local business leaders in the conference room of the JSJ Corp. in Grand Haven. “What I don't know is what the parameters are going to look like.”

The Chamber of Commerce Grand Haven-Spring Lake-Ferrysburg organized the roundtable discussion to address ramifications if Congress fails to extend current tax law by the end of the year.

Tax policies that were enacted 12 years ago during the Bush administration are set to expire at the end of the month. Left unchecked, the expiration will lead to higher income tax brackets, increased capital gains tax rates, and a slew of other individual and corporate cash consequences.

Huizenga said tax increases are likely, including loophole closures and the repeal of tax credits, no matter how this plays out.

The congressman for Michigan's 2nd District said he favors a flat tax, but that is not likely to happen in the next couple of weeks.

“The clock is running out,” Huizenga said. “We can't do a complete tax reform in the next 21 days.”

The Washington, D.C.-based Tax Policy Center estimates 90 percent of Americans would experience a tax hike in 2013 if Congress doesn't act by the end of the month. The hike would be an average of nearly $3,500 per household, totaling more than $500 billion.

According to the nonpartisan Joint Committee on Taxation, the child tax credit would be cut in half, from $1,000 to $500 per child, costing 31 million families an average of $1,028 in higher taxes.

The 10 percent tax bracket would be eliminated, raising the lowest tax rate to 15 percent. All other tax brackets would also increase.

The Joint Committee estimates a family of four earning $50,000 per year would be hit with $2,200 more in taxes if the policies expire. A single parent earning $36,000 would face $1,100 in higher taxes.

To read more of this story, see today’s print or e-edition of the Grand Haven Tribune.

Comments

Vladtheimp

I admire Rep. Huizenga for many reasons, but of late he has disappointed.

He has failed to stand by his alleged fellow conservatives who have been purged by Boehner, like Justin Amash. He has seemingly become a member of the republican establishment who believe not in destroying the socialist welfare state, but in believing that it can be more effectively managed by main stream republicans.

I will bet if the republicans cave on higher taxes for the rich, the result will be higher tax rates, not closures of loopholes and credits, and will not include a huge real cut in government outlays (spending), Huizenga will be voting for the ill advised deal.

Lanivan

More far-right Tea Party talking points. Huizenga may be disappointing to you, but I think he figures he better listen to his constituents, who, along with the vast majority of Americans (according to tons of polls), want to see the expiration of the temporary Bush tax cuts on the top 1% wealthiest Americans. After all, in 2009, 93% of all new income created went to the top 1%, while the bottom 99% of people got the remaining 7%. Let me put it in another context - the Bush tax cuts added $2.6 Trillion to the public debt in the years 2001-2010. The vast majority of Americans want to see an end to huge corporate entities amassing the greatest profits in recorded history while paying taxes with a lower tax rate than they do - or no taxes at all. Those main stream Republicans you disparage - like Eisenhower, Nixon, Reagan, and Bush Sr - actually raised taxes when necessary to raise revenue to keep the economy going. They knew the value and benefit of compromise. "Socialist welfare state"?? That is so pre-election. Time to find another "talking point". After all, even Warren Buffett and Haley Barbour want to see tax rates on the rich raised.

Vladtheimp

Just more leftist talking points taken directly from the discredited Economic Policy Institute. Here's who they are and why they have zero credibility: http://activistcash.com/organiza...

"The Economic Policy Institute was founded in 1986 by Jeff Faux, who was previously the co-director of the National Center for Economic Alternatives (NCEA). As its name suggests, the NCEA specialized in offering "alternatives"—alternatives characterized as "radical" in The New York Times—to mainstream U.S. domestic policy."

 

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