Tax Policy Debate: Raising Rates Versus Limiting Deductions

Tax Policy Debate: Raising Rates Versus Limiting Deductions

Raising rates versus limiting deductions and loopholes: tax policy debate in Washington and efforts to raise tax revenues by $1.6 trillion over the next decade.

January 1st, 2013, is just six weeks away and that’s the day tax rates are scheduled to jump and federal spending slashed, a prospect so dire it’s called the “fiscal cliff.” The biggest immediate obstacle to a deal to avoid that fate is the debate over taxes: President Obama vows to raise tax rates for the wealthy. Congressional Republicans oppose higher rates but say they could agree to curbing deductions and closing loopholes. Negotiations between now and year end are likely the opening skirmishes in much longer and larger efforts to overhaul the tax code. Please join us to talk about tax rates, tax deductions and the policy debate ahead.


David Wessel

economics editor for The Wall Street Journal and author of "Red Ink: Inside the High-Stakes Politics of the Federal Budget."

Roberton Williams

principal research associate at the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution.

Rachel Smolkin

White House editor for Politico.

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