Wednesday, August 3, 2011

Bush-era tax cuts tick toward expiration

President Obama may have gotten rolled in the debt-ceiling negotiations with House Speaker John Boehner, but the president may still have his most powerful weapon at hand in future negotiations as the Bush-era tax cuts tick toward expiration at the end of 2012. Unless Congress acts and Obama signs another extension into law, tax rates for all Americans will automatically revert to 2001 and 2003 levels. Liberal Democrats say that’s fine with them, arguing that taxes, especially for the wealthiest Americans, are at historic—and unfair—lows, at a time when important federal programs are falling to the budget ax. - Patricia Murphy