I’ve written a lot about the fiscal consequences of tax increases over the past several years. This year is different. Our tax policy has gone through a major overhaul. While many of the tax changes are good, most of them will have a big impact on the deficit so I won’t make any predictions until the next tax filing.
On the other hand, the House Ways and Means tax bill is about to be released. This bill will propose trillions in new taxes to be paid by individuals and corporations. These taxes would come in the form of a new income tax and a new 2% excise tax on corporations that are worth over $500,000. The bill also proposes the elimination of many of the Obamacare tax credits, and it would impose a new 2.75% payroll tax for all federal employees.
This bill would be a big step toward the tax cuts that President Obama pledged in his first budget to reduce taxes on the rich and corporations. So we’re going to have to figure out what the best combination of fiscal policy actions would be to offset each other during this fiscal cliff.
There are a large number of people with whom we have to deal in a short amount of time. The average person who has a little more to lose is going to have to take a little harder. We have to find the right balance and be content with the numbers.
The President has already promised to negotiate a deal with Congress to avoid a tax hike, which means that the President has already decided what the right amount to cut is. So we have to figure out what that number would be now and what our options would be in this uncertain situation. The only sure thing is that President Obama is going to negotiate in good faith with Congress that the tax rate on the rich and corporations will stay the same, or less.
That’s right. We know that the President is going to negotiate in good faith with Congress, so we should expect the President to negotiate in good faith with Congress. He is, after all, the president.
In other news, our new site has just launched. The site and the company behind it, Fathom Commerce, are all in stealth mode. A lot of the content for our site has been created by the team at Fathom Commerce, so we expect our site to be very low-traffic. So if you’re a Fathom Commerce fan, we hope you’ll check it out and share our website with your friends.
In the meantime, all of our current content is available for free on our site.
We have also just launched our new game, “Fathom Commerce: Free For All”, which brings together the best of Fathom Commerce’s business strategy with the best of the free-play engine. In Fathom Commerce: Free For All, you can play as a business owner who wants to create a business but is unaware of the tax rules, or you can play as a businessman who wants to take advantage of the free-play engine’s tools.