What ever happened to tax reform?
August 2nd, 2011
03:14 PM ET
3 years ago

What ever happened to tax reform?

NEW YORK (CNNMoney) - Legislators finally agreed on an eleventh-hour plan to raise the debt ceiling on Sunday, but one part of the debate was left out of the final draft - tax reform.

Deficit reduction of up to $2.4 trillion was the centerpiece of the deal to raise the nation's borrowing limit, which passed Congress this week after months of debate. But the deal accomplishes that only through spending cuts, not an increases in tax revenue, as Democrats had pushed for.

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Filed under: CNNMoney.com • Congress • Debt • Deficit
soundoff (21 Responses)
  1. Edward

    Do you even know the details of the bill? Do you know that Medicare, Medicaid an ss benefits cannot be cut and that the Medicare trigger only effects provider payments? It looks as though democrats gave republicans a way to fold without alarming their base. Another thing, there aren't enough dollars in cuts when you exclude Medicaid Medicare and ss benefits to make up for the 1.7 billion needed to prevent the trigger so what do you think democrats will propose to make up for it? Closing loopholes. If republicans want to say no to that then fine, the trigger is set in motion and 50% of defense spending and Medicare PROVIDER payments are cut. Both thing democrats want, do you see how republicans lost now? The only difference is that the president isn't on tv bragging about it.

    August 2, 2011 03:18 pm at 3:18 pm |
  2. gt

    thats the key to this mess .. reform and everyone pays something.. were all in it together...flat tax ..no deductions...

    August 2, 2011 03:21 pm at 3:21 pm |
  3. WTF?

    This is why Pres. Obama is loosing The American People. Pres.Obama gives speeches, town hall and press conferences all about "Shared Sacrifices" and what does he sign in to law. A bill that puts the burden of the deficit reduction on the backs of poor and the middle class. Pres. Obama words don't match his action. Pres. Obama let the Republicans make him a one-timer.

    August 2, 2011 03:24 pm at 3:24 pm |
  4. The Greedy Old Pigs have declared class war on US!

    The GOBPbaggers provided a great service to their corrupt corporatist cult leaders and will be rewarded accordingly with piles of untraceable CItizens United cash. The teatards job was to take care of the greedy and not the needy. MISSION ACCOMPLISHED!

    August 2, 2011 03:24 pm at 3:24 pm |
  5. WiredwierdinSF

    Either all democrat liberals are lying phonies and hypocrites or CNN is lying. According to their poll Democrats came out the best on this latest theft of money from hard working taxpayers. They have made sure their constiuents have more drug money and high top sneakers for free.

    August 2, 2011 03:27 pm at 3:27 pm |
  6. ConservaFASCISTS/Dutch, Bad Newz, VA

    Tax reform in the eyes of republicans means tax hikes. We don't need tax reform. We just need to go back to the Clinton rates when everything was nice and peachy.

    August 2, 2011 03:28 pm at 3:28 pm |
  7. Rick McDaniel

    Tax reform is a different issue, than what the "welfare party" wanted. The real problem with revenues, is that 55% of the citizens of this country, are tax deadbeats. What has to be done, is to stop allowing 55% of the citizens, to escape paying ANY income taxes!

    That's much different than the "popular" issue of taxing the rich.......which would take in a very limited amount of money. Just do the demographics, people. It ain't rocket science.

    The Dems (aka the "welfare party", is simply taking you down the primrose path, and you are following them blissfully, unaware they are lying to you, because they know that's what you WANT to hear. That it is someone else's problem......and not yours. Sorry, it IS your problem. Because in truth many people are escaping taxes for a multitude of reasons, and some of those, are likely to be your neighbors. The lion's share of real money, in taxes to be collected, reside with that 55% of all Americans who are NOT paying ANY taxes! No American should be allowed to escape paying ANY income tax, save the poorest 10%.

    It is obvious that there are too many loopholes, and tax breaks, for far too many people.

    August 2, 2011 03:35 pm at 3:35 pm |
  8. Bessy

    Okay, so that game is over with and the repugs got what they wanted. No new taxes.
    As for me, I will probably NEVER vote for another Republican, EVER, in my life. As for Dems, I plan to vote against anyone now in office. They will only get my vote if another Dem is not running againt them. Someone running against them and they will have my vote. These guys have to be shown that we are not going to be keeping them in office unless they do the job they are put in there to do.

    August 2, 2011 03:47 pm at 3:47 pm |
  9. Name king

    When will the dems stand up and stop allowing the repugs to quit distroying this country, first with the healthcare plan when the dems were pushing for the single payer system, they aowed the repugs to high jack them and push the control to the insurance companies now we are get jacked up them. Next they held the country by forcing Obama to send thirty thousand more troops to Afghanistan costing this country billions every month, then they held us hostage on the bush tax cuts which is blowing up our budget, then they scream on how Obama is spending too much, now Theyved high jacked us once again with this debt crilling, taking trillions from our consumer pockets then act surprised when consumers are not spending to keep our afloat. Why do abama's keep letting these lunatics get their way when nothing they do seems ro go right.

    August 2, 2011 03:49 pm at 3:49 pm |
  10. A real American

    The 50% who "pay no taxes' pay a much larger share of their income in taxes when you factor in all other taxes and fees besides federal income tax. That's why they're living hand-to-mouth. But just keep telling yourself that they're buying flatscreen TVs and drugs if it makes you feel better.

    August 2, 2011 03:52 pm at 3:52 pm |
  11. A real American

    Tax capital gains the same as income.

    August 2, 2011 03:54 pm at 3:54 pm |
  12. Positive

    I don't blame the President for not getting tax reform. Sadly, there is a part of the Republican party that was perfectly willing to destroy our economy if they didn't get their way and they sadly have just enough power to have done it. I appreciate the President doing eveything he could in the face of this unconscionable threat.

    But I do blame the American voters. Those who voted for Tea Party members who will do everything they can to push the burden of the debt onto to the poor and middle class while protecting the wealthy and corporations from a contributing a penny to fix it and everyone else who didn't go to the polls to vote against them.

    Let's do better in 2012.

    Out with ALL Tea Party & GOP members in 2012!

    Democrats 2012! Obama 2012!

    August 2, 2011 03:58 pm at 3:58 pm |
  13. Positive

    For those who are complaining that the Democrats can't get what needs done, – remember, it's your vote that puts these people in office. Give them a large enough majority to get around the filibuster in the Senate and control of the House and then we can get things done. 59 in the Senate won't do it as the Republicans used the filibuster a record number of times 09-10.

    Vote Democrat in 2012!

    August 2, 2011 04:02 pm at 4:02 pm |
  14. Bessy

    @ Positive---You make a lot of sense and everything you say is true.
    The problem is that we, in this country, have short memories and by the time of the next election, and after a lot of BS is being pushed by the Repubs a lot of people will forget that the Republican Party does not give a " hoot " about the poor and middle class. All they care is about themselves and their rich buddies .

    August 2, 2011 04:08 pm at 4:08 pm |
  15. Len

    Yes Rick you are correct, it is not rocket science.

    The Bush tax cuts created over a trillion dollars of loss tax revenue for the country. Two wars started and not paid for (trillion of dollars or more), Medicare D (drug prescriptions) not paid for, deregulation so businesses could create jobs (they did, overseas...cheap labor). I could go on but most people understand.

    Millionaires and billionaires used every tax loophole possible. Example: Hedge fund managers pay 15% income tax because of loopholes.

    Unfortunately, we are be controlled by 25% of the population (due to the fact many people did not vote in 2010)....It is a democracy so we all suffer. Just look at the states that elected GOP governors: cut spending on education, cut spending on medical services, destroyed middle class jobs, and of course would not raise taxes on the most fortunate.

    Many of you talk of religion, the bible, but no place in the bible states we should not take care of our poor. We as a society must help those who cannot help themselves. I believe that is what Jesus wanted.

    August 2, 2011 04:08 pm at 4:08 pm |
  16. ConservaFASCISTS/Dutch, Bad Newz, VA

    Tax everyone! Especially the rich. Let me tell you why I say that. I work for a millionaire. When the recession first began, he layed off 6 employees and gve us a huge speech abuot tightening our belts. But you know what he did the week after? He bought a Mercedes Benz SEL 500, a Yukon Denali & a Wentworth Bentley.

    August 2, 2011 04:15 pm at 4:15 pm |
  17. The Day of Financial Reckoning is HERE - The Great Democrat Welfare Society Ends

    Yes, we need tax reform BADLY. We need EVERYBODY paying SOMETHING to the government. We need to STOP the federal government from using the tax code as a welfare/wealth redistribution system. Companies should have a minimum rate they pay, no matter what (no more freeloading GE's). INCENTIVISE SUCCESS!!! DO NOT PUNISH OR TAX IT!!!

    The old saying was "As GM goes, so goes the nation." Well, GM went belly up and so is the country!! This country must value, protect and help its businesses in the day of global competition, just as other countries do.

    And GET RID of socialists/"progressives" that want to do NOTHING but attack success and wealth. They are LEECHES on us all!!

    August 2, 2011 04:19 pm at 4:19 pm |
  18. SuperD

    Congrats to the Tea Party, without them, business as usual, TAX and SPEND Dems. Do keep in mind, the Dems never offered a deficit plan, much less a budget for the past 2 years. If you support the Dems, you're being duped. A "useful idiot" is the Term

    TEA PARTY 1 PROGESSIVE LIBERALS 0

    August 2, 2011 04:30 pm at 4:30 pm |
  19. MTATL67

    Whatever happened to tax reform? – Kind of a silly nonsense headline since we all know. Either a deal or default – tax reform tabled along with other issues. Congress had better take care of those issue after we give those Extremists the boot. I hope to God Ohio and Virginia wise up and through Boehner (most ineffective speaker I’ve seen in the past 25 years) and Cantor (created more of a mess by walking out on every meeting) out.

    August 2, 2011 04:32 pm at 4:32 pm |
  20. Ed Texas

    My suggestion flat tax around 15% gross earnings, no deductions or loopholes.

    August 2, 2011 04:33 pm at 4:33 pm |
  21. GI Joe

    @Day

    you keep attacking – always attacking. You even think social security is a free giveaway.

    I'm here to tell you (you whippersnapper) WE worked and paid the high taxes and put away money in IRAs and Social Security and Medicare, AND we made roads, cars, buildings, air, food, on and on, safer and better so that the likes of you could sit back and whine and cry and say "I want what's mine mine mine mine". If we had that attitude 20, 30, or 40 years ago, you wouldn't be sitting there whining 24/7. YOU would be washing dishes or out cleaning up some horse poop.

    Just shut up!!

    August 2, 2011 04:49 pm at 4:49 pm |