Thursday, November 15, 2012
GIT 'ER DONE!
It is almost December. When dealing with the potential “fiscal cliff”, now is not the time to consider long-term issues.
The first, and most important, thing to do ASAP is to extend the AMT patch through the end of 2012 (or, more better, through the end of 2013) so that the processing of 2012 tax returns and refunds are not delayed, and middle class taxpayers are not hit with possible tax increases of between $3,000 and $4,000.
The second thing to do is to extend all of the various tax benefits that will expire on December 31, 2012, for one more year (through the end of 2013), and perhaps also the various popular “extenders” that expired on 12/31/11 along with the AMT patch (except for the 2% Social Security reduction). The reason for doing this is so that we do not begin 2013 with uncertainty concerning proper withholding.
The time for considering serious long-term tax reform is January 2013, when the new Congress (which is really not that new) convenes. This is when legislators should be considering whether to do away with or limit various tax loopholes and expenditures, and whether to raise or lower tax rates – while there is almost a full year before any tax legislation must be passed (not that they should wait until the last minute, as has become the custom).
Congress has wasted away 2012, and must be made aware that their actions, or rather inactions, have consequences. They must put aside ridiculous partisan battling and consider the American people for a change.