Sausage Making Time | National Catholic Reporter by MSW. MGB: On taxes on the wealthy, the big deal is on dividend and corporate gains tax rates. Movement on this will get us down the road to eventual reform, including replacing the income tax collection for most families with consumption taxes. Getting a job or continued unemployment is much more important than a payroll tax holiday. It would have been better to instead raise and make permanent (and universally refundable) the Child Tax Credit paid against employer tax obligations. On infrastructure, they should just raise taxes on gas.
As for the markets tanking on the debt deal, they did for about a day - however when the credit rating went down, so did the interest rate because nervous investors had nowhere else to go. The GOP has likely learned their lesson on being blamed for the debt ceiling and will comply - because they know that the constitutional option is valid under the 14th Amendment.
If there is a deal on taxes, the sequester needs to be eliminated - however a temporary deal means a temporary repeal of the sequester. The likelihood of a deal is high because the very wealthy have a lot to lose, while the middle class does not. This is because they both pay a lot and were given a lot in the tax cuts. There are those who are willing to simply let the fiscal cliff come (while repealing the sequester). That might be the best option for the poor.
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