Friday, December 10, 2010

Obama directed his staff to analyze options for the U.S. Review Tax system

President Barack Obama has turned to his economic team to begin discussing options for revising the tax code U.S. as part of an effort to cut the deficit in the long term, a government official said.

No decisions have been made on the options to continue or a deadline for the submission of a plan to lawmakers, said the official, who spoke on condition of anonymity because no official decision has been taken. The changes will probably take years to implement.

Obama said this week that modernize the national tax system need to be considered to deal with budget deficits and the tax code more "fair" and "efficient."

"The idea is to simplify the system, is expected to cut rates, base broadening," Obama said in an interview with NPR News. "What I think is, is that we have to start that conversation next year."

The administration focuses on the issue as Congress debates measures to extend tax cuts to expire at the end of the year and the president considers a report of its committee on reducing the federal deficit, which included recommendations for changing the tax laws.

The New York Times reported that the review of options on its website Tuesday night.

The report of the committee of interest in fiscal policy, which has been part of the broader agenda of the president, White House spokeswoman Jen Psaki said.

Priority Management

"The president has long said that reforming the tax system is a priority and the recent tax bipartisan commission made recommendations that are considered part of the budget process," Psaki said in a statement. "But he is not considering specific policy proposals and no decisions have been made about whether it is a priority boost in the near future."

Obama commission proposed $ 1 billion shortfall in tax increases for 2020 by reducing or eliminating hundreds of deductions, exclusions or credits, as homeowners can pay off the interest payments on your mortgage. Also cut rates on individual income and corporate tax.

The panel proposed Social Security benefits are cut, the gas tax increases by 15 cents, discretionary spending fell by $ 1.6 trillion and Medicare compared to $ 400 billion.

Appeal options

The plan, which did not get enough votes in the committee of 18 members to be presented to legislators, which reduced the annual deficit of about $ 400 million in 2015, $ 1.3 billion in fiscal 2010, and begin cutting the debt, according to the report.

Austan Goolsbee, chairman of the Presidential Council of Economic Advisers, said the panel's proposal to broaden the tax base and reduce corporate rates "has great appeal."

Obama has said that the exploration of a review of the tax code should be considered once the economic recovery accelerates. Gross domestic product expanded at a rate of 2.5 percent in the third quarter, half the pace in the last three months of 2009. The national unemployment rate in November was 9.8 percent.

White House press secretary Robert Gibbs told reporters today the government is interested in a look "broad-based in our tax system, and that any reform will take years to complete.

"This will take some time," he said.

Tax debate

At this time, the administration is mounting a campaign to gain support from congressional Democrats for Obama struck an agreement with Republicans to extend the tax cuts passed under the administration of President George W. s Bush in exchange for a 13 - month extension of unemployment benefits in the long-term unemployment, a reduction of one year in payroll taxes and tax benefits for small businesses that were part of his economic package.

Democrats are registering objections to tax cuts for the maintenance of the richest Americans with a tax provision of goods to establish the maximum rate of 35 percent after a grant of 5 million U.S. dollars per person tax free .

House Democrats voted yesterday to block a floor debate of Obama's tax deal with the Republicans. The nonbinding resolution that seeks to force changes in the proposal to extend the Bush tax cuts-was for all income levels.

Obama has defended the commitment imposed as necessary to protect middle class families face a tax increase when the cuts expire at the end of the year.

He said that on 8 December that future changes to the tax code should have a similar approach, which looks after the interests "of the middle class.

"I do not think anyone thinks the current tax law is neither fair nor efficient," he told reporters the next day. "We must ensure not only paper on these issues."

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