Tags: Tax | Bill | Winners | Losers | obama | bush | cuts

Tax Bill Creates Many Winners, but a Few Losers Too

By    |   Friday, 17 Dec 2010 01:15 PM

It’s no surprise that the tax-cut bill saves a lot of people a lot of money, but a few taxpayers may suffer as well. The Wall Street Journal points out. Most individual taxpayers should make at well,  After all, the Bush-era tax cuts are being extended for two years, and payroll taxes are being reduced by 2 percentage points for a year.

But some bond investors may suffer. Moody’s Investors Service says that because the $858 billion package will expand the budget deficit, the tax deal increases the chance that Moody’s will adopt a negative outlook on the U.S. government's triple-A credit rating.

In addition, small-business owners lost their bid for "1099 relief" that would have loosened the requirement for them to provide tax forms to vendors receiving at least $600 in a year.

"It's easy to have lots of winners when you're giving up this much revenue," Michael Graetz, a former Treasury official who is now a professor at Columbia University Law School, tells the Journal. "But we can't finance the government by borrowing forever."

While many in Congress oppose individual elements of the tax compromise, they still see it as a crucial victory.

"This is just no time to be playing games with our economy," Republican Rep. Dave Camp, incoming Ways and Means Committee chairman, tells the Associated Press. "The failure to block these tax increases would be a direct hit to families and small businesses."

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It s no surprise that the tax-cut bill saves a lot of people a lot of money, but a few taxpayers may suffer as well. The Wall Street Journal points out. Most individual taxpayers should make at well, After all, the Bush-era tax cuts are being extended for two years, and...
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2010-15-17
Friday, 17 Dec 2010 01:15 PM
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