Not to run this expiring tax cuts situation into the ground, but this a tax blog.
So, from the be careful what you wish for file, Reuters reports that Republican victories in the midterm elections boost the odds that Congress will let the Bush-era tax cuts die at year's end. That possibility is, of course, just the opposite of what the GOP wants.
Polls indicate that Republicans will make substantial gains on Capitol Hill on Nov. 2. But those new members of Congress won't be seated until January 2011.
And action on the tax cuts is needed by Dec. 31.
In the two months that Democrats will still be in the majority, they aren't likely to be in a good mood as they get ready to hand over the keys to Congress to the opposition.
That would mean that any tax law changes and/or extensions would come in late January or early February 2011 at the soonest.
And there still will be a Democrat in the White House.
Obama has consistently argued for letting tax rates rise for wealthier Americans. The Administration points out that the hikes would affect only about 3 percent of taxpayers and that the U.S. Treasury needs the $700 billion in revenue the tax increases would generate.
But will Obama hold firm when more Republicans are in the House and Senate?
Stay tuned for the game of political chicken.
- Tax cuts, or hikes, for all
- No votes on tax cuts until November
- OMG! What will happen to my tax bill
if the Bush tax cuts expire!?!
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