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With budget deal done, leaders eye tax reform

After Democrats and Republicans hammered out a 2-year deal that drew criticism from right-wing groups, they warily turned their eyes toward tax policies.

By Money Staff Dec 16, 2013 2:19PM

This post comes from David Francis at partner site The Fiscal Times.

 

The Fiscal Times on MSN MoneyRep. Paul Ryan (R-Wisc.) carefully defended the narrow, two-year bipartisan budget deal he negotiated with Sen. Patty Murray (D-Wash.). The bill, which passed the House Thursday by a 332-94 margin, was blasted by conservative groups like FreedomWorks and the Club for Growth.

 

Other possible 2016 candidates, like Senator Marco Rubio (R-FL), have also distanced themselves from the deal.

 

Dollar bills floating over U.S. Capitol © Corbis

House Speaker John Boehner publicly lashed out at those groups Thursday, saying they had "lost all credibility." Those comments, and the tone they were delivered in, highlighted the fragmented state of the Republican Party, or what many have referred to as a civil war within the GOP.

 

"I think John just kind of got his Irish up," Ryan said on NBC when asked about Boehner’s comments. "He was frustrated that these groups came out in opposition to our budget agreement before we’d reached a budget agreement."

 

Ryan admitted he "was frustrated too," but struck a much more conciliatory tone than Boehner had regarding those conservative groups.  "I think these are very important elements of our conservative family," Ryan said, adding that he wished to "keep those conversations within the family."

 

Having found room to compromise on the budget, Ryan and Murray suggested that a deal on tax reform could come next.

 

"Watch the Ways and Means Committee in the first quarter of next year," he said. "We’re going to be advancing tax reform legislation because we think that’s a key ingredient to getting people back to work, to increasing take-home pay, to … grow this economy."

 

Ryan's pragmatism drew praise from a fellow Wisconsinite and another rumored 2016 Republican candidate. Gov. Scott Walker, who has already taken steps to distance himself from Tea Party conservatives, said that Ryan was taking a moderate approach that had worked in the states.

 

"Paul is one of those rare people in Washington who’s acting more like a governor than just a member of Congress," Walker said on "Meet the Press."

 

Gingrich vs. Reich: Which party causes poverty?
Elsewhere on Sunday, former House Speaker and 2012 Republican presidential candidate Newt Gingrich lashed out at Democrats, accusing them of instituting policies that have caused a spike in poverty.

 

The charge came during a heated debate with former Secretary of Labor Robert Reich on ABC's "This Week With George Stephanopoulos." Reich said that Republican policies have made life more difficult for the poor in recent years. 

 

"The war on poverty was successful for a time, but what has happened, however, over the last 20 yards was much of the ardor, much of the concern, much of what propelled that war on poverty has dissipated," Reich said. "I think it has something to do, perhaps, with the intransigence of the speaker’s party. Every time there was a jobs bill, every time there was an effort to expand low income housing, every time there was an effort to provide better opportunities for young people --"

 

"This is baloney," Gingrich said, interrupting Reich. "Every major city which is a center of poverty is run by Democrats. Their policies have failed, and the fact is it’s the poor who have suffered."

 

More from The Fiscal Times:

VIDEO ON MSN MONEY

28Comments
Dec 16, 2013 3:02PM
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ANOTHER ""WIMPY"" HAMBURGER DEAL

I WILL GLADLY PAY YOU IN 2023  FOR A HAMBURGER TODAY

D.C. CANNOT DEAL WITH THE DEBT OR DEFICIT,THEY ARE AFRAID WHAT THE CITIZENS WILL DO TO THEIR POLITICAL ASPIRATIONS  

I HOPE THE FUTURE GENERATIONS HAVE BROAD SHOULDERS  
Dec 16, 2013 4:48PM
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We have both a Revenue Problem and a Spending Problem. Having ONE year of Return to Record Federal Receipts doesn't change that. As the National Debt quickly approaches $20Trillion, it will sooner than later become crystal CLEAR that Taxes eventually will be going Up, not Down. As the Social Security and Medicare Funds have been Stolen, sooner than later, it will be crystal clear that Taxes will be going up, not down.



Dec 16, 2013 3:57PM
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This "budget" deal is pretty much a joke!  My hopes for Rep. Paul Ryan were pretty much dashed when he announced that the bipartisan deal included "meaningful" deficit reduction of $23 billion.  He forgot to say that was projected to be over the next 10 years.  That works out to only $2.3 B per year.

Let's compare that number to the annual Federal deficits for the last five fiscal years, starting in 2009:  $1,400 B, $1,300 B, $1,300 B, $1,100 B and $680 B.   So the "meaningful" reduction of this latest proposed budget is only 0.3% of last fiscal year's deficit.

To put that in perspective, if you ordered a burger, fires and drink at McDonald's for, say, $5.00 with such a "meaningful" price reduction, you would be saving less than 2 pennies.
Dec 16, 2013 5:19PM
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Everyone wants the rich ($250,000 is not rich) to pay a higher percentage of their income in taxes because they don’t think the rich pay enough. Well, how much is enough? If someone is paying hundreds of thousands if not millions of dollars in taxes already, why should they pay more? So what if it’s only 10, 12, or even 5 percent of their income. Why should someone who works harder and sacrifices more, pay more? It’s wrong, it’s unfair. Those paying millions are supporting those paying only a few hundred dollars. If that’s 20% of your income, maybe you just need to work harder? The rest of us are tired of supporting you. Would you rather have 10% of $100,000 or 5% of $250,000?

Dec 16, 2013 4:26PM
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BRENT WROTE

Young people buying consumer goods would hate it.

JUST LIKE OBAMACARE     LOL                    MORON
Dec 16, 2013 5:15PM
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Taxes on wages (in any form – flat or progressive) are the greatest evil of our American Republic. When government is free to steal from you, there are no limits to waste and abuse in government. If a person chooses to work extra hours or two jobs in order to better provide for themselves or their family, they should not be penalized, but that is what happens. The more you make by working harder and longer, the more money is stolen from you, and given to those who spend their lives living off the hard work of others.

The revenue the government needs to provide legitimate constitutional services should be obtained primarily from a national sales tax instead of a tax on wages. All would pay based on consumption, the more you spend the more you pay. The more luxury you surround yourself with, the more you pay. Your choice. A national sales tax system would capture money spent by criminals and by illegal aliens who currently pay near zero in taxes. There would of course need to be exemptions: Cars (already have a federal excise tax) Primary Residence/Rental Properties (vacation homes would be subject to tax/rental profit would be taxed) Fresh Food (Preprocessed foods and prepared meals would be taxed – only fresh/fresh frozen/canned goods would be exempt) Insurance Premiums, Health Care & Certified Education.

Adding another layer of tax to a business would not be fair. Businesses would need to be compensated by keeping a portion of the tax to cover the expense of collection and reporting. A percentage of .20 to .05 would be fair.

Dec 16, 2013 3:59PM
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Tax Reform: Everyone pays the same rate. No exceptions. How much do you want to bet it never gets that clear or simple? 
Dec 16, 2013 8:55PM
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DAVE 

DID I FORGET TO MENTION THAT WHEN OBAMA RAN FOR POTUS THE FIRST TIME HE DID 

PROMISE TO HAVE US OUT OF THE IRAQ /AFGAN QUAGMIRE  ASAP, ALONG WITH  GITMO 

OH  WELL,,,,,,,GUESS WE WILL HAV E TO LIVE IN DISAPPOINTMENT               AGAIN         LOL


Dec 16, 2013 7:49PM
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DAVE              NEWSFLASH       NEWSFLASH      NEWSFLASH

      BUSH IS NO LONGER THE POTUS                 BUSH IS NO LONGER THE POTUS
Dec 16, 2013 5:39PM
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LOST                                                                                                                                                                                                                         IN 2014 WE WILL NEED TO INVEST IN HYDRAULIC JACKS

THE DEMONCATS WILL BE TOSSING EACH OTHER UNDER THE BUS IN MASS

I THOUGHT YOU WERE BUSY SAVING THE PLANET  ???????
Dec 16, 2013 4:16PM
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Everybodies tax plan is for the other guy to pay all the taxes.There`s no fair way to come

up with a tax plan.The rich would love a flat tax.A national sales tax would be great for old

people that are too cheap to buy anything.Young people buying consumer goods would hate it.

Dec 16, 2013 7:04PM
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There is this Huge Misconception of Whom does what in this country. There is also a Huge Misconception about Taxes being spread by the Usually Suspects. Nobody really trusts anyone but themselves with Money so it's hardly a Newsflash that 100% of Folks would rather keep it all to themselves.

But that's just not Reality. We did decide to engage in Two Unfunded Wars, mostly pushed by the 1% Crowd that's complaining most about TAXES. Well maybe if their lame backsides fought in those Wars, more Folks would have a different take on things. But they didn't, they sent Pawns to do their Dirty Work. Well guess what, that has a Price. Keeping this Country running has a price.

The other part of this equation is how the Wage Gap has moved from 40 to 1 to well over 400 to 1 as effective Tax Rates have actually come down, not up over time. So when some Corporate Barking Dog has a Salary going from $1Mil to $10Mil, guess what the effect of Taxes is on that person compared to the Real Workers that have seen Wages go from say $50,000 to less than $30,000. That's $9Mil more to spend as opposed to the Real Workers that have seen just the Opposite. The Barking Dog has already seen a Major Adjustment in Salary to account for any Taxes and in effect is actually making FAR More plus lower effective RATES. ON the opposite end, the Real Workers are seeing a Massive Decline in Wages and Benefits while Real Taxes and Inflation across the Board have done the Opposite.

So when you Read these never ending posts defending the Already Wealthy, keep in mind of who has Financial Engineered the Great Wealth Divide that's only getting Bigger. So  when you Read these never ending posts, keep in Mind that the vast Majority of Folks will take being Played for only so long. Keep in mind that being Greedy is what cost the some Kings and Queens their Heads. So go ahead, keep being Greedy, it will end, one way or the other. And no, it won't be what they want, it will however might be what they really need, a huge Reality Check, plus.

Dec 17, 2013 12:35AM
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And let's not forget this classic:


Christian American Patriots Militia Openly Calls For Obamas Assassination On Facebook


Everest Wilhelmsen:



“We now have authority to shoot Obama, i.e., to kill him.”

”His willful violations and alienation of our Constitution, constant disregard for our peaceful protests and corruption of all the three branches of government, (i.e., rogue and illegitiimate government), reveal the dictator that he is."

"Obama and his co-conspirators disrespect our Constitution (constitutional rule of law) and abuse the American people."

“The authority to kill Obama comes from the 2nd Amendment of our Constitution: He is levying war on the United States and aiding and comforting our foreign enemies -– the 2nd Amendment gives us the right and duty (authority) to engage an enemy of the United States that does so with the design to reduce us under absolute Despotism. I would be very surprised, if Obama does not leave Washington DC today (Nov. 19th) … never to return, if he is not dead within the month.”



Just another demented Teabagger!
Dec 17, 2013 10:09AM
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LOST            HERE IS THE EXACT QUOTE     NOT YOUR  EDITED VERSION



    http://freedomoutpost.com/2013/11/militia-leader-everest-wilhelmsen-publicly-threatens-president-now-authority-shoot-obama/



Dec 16, 2013 4:38PM
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The Top 1% can always adjust the amount they steal from the Corporate Coffers to adjust for any tax Changes. The Top 1% can always move money offshore to avoid most Tax Changes. Everyone else doesn't have that Luxury. A Flat TAX is a Huge giveaway to the Top 1%. It's a bad idea, Period.
Dec 16, 2013 4:43PM
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Obama and Democrats had a chance to nail the Republican's backsides to the wall but they didn't. When the Bush Tax Cuts for the Wealthy Expired, Obama and Democrats gave up a Golden Opportunity to push their specific Agenda. The Moment Obama signed away the best Poker Hand in the History of Politics, all was lost concerning anything he wanted to accomplish. Regardless of if you are for or against Taxes, a politician has to realize when they have a Royal Flush and how to use it. Obama and Democrats failed on all accounts.
Dec 16, 2013 5:24PM
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Watching Repukelicans eat their own is a blast!

Repukelican Buffets are the new trend.

Invest in Repukelican Buffets and become rich!

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