Dakota Beacon

The Expiring Tax Cuts

For months we have told you about the pending expiration of the so-called Bush tax cuts and have collected e-petition signatures calling on our federal delegation to extend those tax cuts that are set to expire at the end of the year. 

Today comes word that Senator Conrad may have gotten the message.

"If I were able to make the decision, I would go for changing the tax system fundamentally and I would have an extension until that is accomplished," [Conrad] added.

As we have seen in the past on other issues, Senator Conrad is prone to change his mind radically and rapidly.  We certainly must keep up the pressure on him. 

The Debt Commission

This afternoon, the two co-chairmen (Former Senator Alan Simpson and Former Chief of Staff under Bill Clinton Erskine Bowles) of the President's debt and deficit reform commission released their ideas.  (North Dakota's Senator Conrad is a member of this commission which will consider these ideas.)

On Social Security the Commission says:

The co-chairmen of the panel appointed by President Barack Obama suggested reducing Social Security spending by raising the retirement age to 68 in about 2050 and 69 in about 2075. The plan also would slow the rate at which benefits grow. The savings would come between 2012 and 2020. (Source: Business Week)

On income taxes the Commission says:

The proposal would attempt to slow health-care costs by paying doctors participating in Medicare less, and it calls for "comprehensive" legislation to reduce medical malpractice costs.

Discretionary spending cuts in the plan include reducing congressional and White House budgets by 15 percent, freezing federal salaries and cutting the federal workforce by 10 percent. The discretionary reductions of $1.4 trillion would be split equally between defense and domestic programs, Bowles said. (Source: Business Week)

On the spending side the Commission says:

Bowles said income-tax rates would be reduced to three levels: 8 percent, 14 percent and 23 percent [...] Wiping out all tax breaks, including the home mortgage deduction, while lowering rates would save $100 billion a year, Bowles said. Members of the panel could decide to keep some tax breaks by offering offsetting cuts, he said. (Source: Business Week)

These certainly are unusually bold ideas, sure to make lots of people scared, and not likely to get much traction in Congress.  Reducing the top federal income tax rate to 23% with the elimination of most write-off would be a vast improvement over the complicated tax code we currently have.

- Dustin Gawrylow, Executive Director

North Dakota Taxpayers' Association

Office: (701) 751-2530