Both Parties Want More Revenue

Both Parties Want More Revenue

Republicans in Congress are opposed to tax rate increases, but agree that the government needs to find more revenue.  This puts them in a tricky position ahead of the upcoming debt talks, the Associated Press reports.  It could mean that Americans will have to pay higher taxes, even if their tax rate remains the same.

Most Republicans are not commenting until they have more details.  But Senator Saxby Chambliss, a Republican from Georgia, warns that this increased tax collection could mean huge changes for many people.

“It can be done, but it’s going to require the elimination of almost all – if not all – tax deductions and tax credits,” Chambliss said.

Most economists say it is better to do away with tax breaks rather than to raise tax rates, adds Roberton Williams, senior fellow at the Tax Policy Center.  Williams says that raising tax rates can be a disincentive to financial achievement.

There are not many specifics out yet.  We will all have to wait for the lame duck session to see what compromise – if any – Congress works out.

For more, read the article at the Associated Press.

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