As attempts to wrap up permanent tax-break extensions for corporations, college students and residents of states without income taxes were in progress. Obama stepped in and voiced his concern that these proposed tax extensions would not benefit low-income families at all and left out a permanent expansion of earned income and child tax credits for working families’. Result, the White House issued veto threat was issued before the plan was even officially released.
This veto threat happened on the same day that Charles Schumer, New York Senator’s speech saying that Democrats make a mistake by passing Obama’s health -care law in 2010 when they controlled both chambers of Congress, instead of focusing more directly on helping the middle class. Coincidence? We shall see in the near future.
Ways and Means Ranking Democrat Sander Levin also opposed the deal saying “It is fiscally irresponsible to use expiring tax provisions to make permanent changes to our tax code at a cost or more than $400 billion. The President’s veto message is very clear in the priorities it sets forth, and we should go back to the drawing board and create a package that benefits working families, strengthens our economy, and creates a realistic path for tax reform.”
Of course all of this is coming at the worse time possible with the impending tax season less than a month away, just when we thought there was a chance this could clear up without a causing a delay it seems to have taken a turn in the wrong direction.
Please check our blog weekly on Fridays for updates on this and all other tax news. It may not always be the best news, but we will bring it to you quickly and with confidence. You can rely on us to keep you in the know.