Tax Cuts

By Jan C. Ting The "fiscal cliff" is a confluence of three legal changes taking effect Jan. 1: the expiration of a payroll-tax cut, the expiration of the Bush-era tax cuts, and the advent of mandatory spending cuts known as "sequestration. " Many commentators have expressed concern that unless Congress intervenes by the new year, the economy will suffer significantly. But I don't think going "off the cliff" is the worst thing that could happen. First, the payroll-tax cut is going to expire in any event.

WASHINGTON - In case anyone missed it, President Obama and his allies had a reminder for lawmakers returning to work Monday: the fiscal cliff is coming, and it will take a massive bite out of the middle class unless a deal is reached by Dec. 31. The message was delivered anew by a White House report showing that looming tax hikes could cost middle-income families $2,200 and take a $200 billion chunk out of consumer spending, slowing economic growth....

MY HUSBAND AND I tithe to our church, meaning we give 10 percent of our income. We also donate money to various charities. Our giving results in a tax break because we itemize on our tax return. Would we give less if we didn't have the tax deduction? I'm confident we wouldn't. We give because we believe it's the right thing to do for folks who are fortunate enough to have money to give. Having the tax deduction is a bonus, but one that has never driven us to give more or less. I'm actually a bit turned off when a charity tries to persuade us to give by overly emphasizing with the standard phrase, "Your donation is tax-deductible.

By Jonathan Zimmerman Taxes won't reduce consumption. They violate Americans' "right to choose. " And they put a disproportionate burden on racial minorities. Those were the claims deployed by the beverage industry to defeat proposed soda taxes in Philadelphia in 2010 and 2011. They also surfaced during the past election season in California, where two cities rejected taxes on sugary soft drinks. But the forefather of these arguments is the cigarette industry, which used almost exactly the same rhetoric for a half-century to resist taxation and regulation.

NEW YORK - If Washington allows tax cuts to expire at the end of the year, taxes on dividends will nearly triple for the highest-paid Americans. That's led some experts to warn of a looming collapse for popular dividend-paying stocks. When Uncle Sam charges a higher tax on something, they reason, it drives people away. But judging by the country's previous experience taxing dividends, that may not be how things play out. "Historically, big changes in taxes just have no effect on dividend stocks," says James Morrow, a fund manager at Fidelity Investments.

WASHINGTON - Mayor Nutter, standing outside the White House on Thursday evening, delivered a message that echoed the one from his ally inside: Ensure middle-class tax cuts stay in place, before the country heads over the fiscal cliff. "Taxpayers making less than $250,000 should not see their taxes go up," Nutter said after he and 13 other mayors met with Vice President Biden. "If you have one thing that everyone agrees on, there's no reason not to do that one thing now. " Nutter's comments as he stood outside the West Wing highlighted his ongoing role as one of Obama's most visible allies, having served as one of the president's top surrogates during the election.

WASHINGTON - Mayor Nutter, standing outside the White House Thursday evening, delivered a message that echoed the one coming from his ally inside: Ensure middle-class tax cuts stay in place, before the country heads over the fiscal cliff. "Taxpayers making less than $250,000 should not see their taxes go up," Nutter said after he and 13 other mayors met with Vice President Biden. "If you have one thing that everyone agrees on, there's no reason not to do that one thing now. " Nutter's comments as he stood outside the West Wing highlighted his ongoing role as one of Obama's most visible allies, having served as one of the president's top surrogates during the election.

WASHINGTON - With a new start, optimism reigns. Lawmakers returned Tuesday with a looming deadline to head off massive federal budget cuts and tax increases, but for the first time in months there was a widespread feeling that compromises are within reach to untangle long-standing legislative knots. "I think the American people have both an expectation that we'll work together," U.S. Sen. Bob Casey (D., Pa.) said, "but also an expectation that it's going to take a few weeks to get to an agreement.

LINCROFT, N.J. - Sandy's effect on state revenue has left Gov. Christie unsure whether he will pursue a tax cut that was the centerpiece of his economic strategy, he said at a news conference Monday. Revenue collection may pick up as New Jersey residents purchase supplies to rebuild, Christie said in this Monmouth County town. He said he would decide whether to push for lower taxes after seeing the latest revenue figures. "In the short term, these past two weeks, I'm sure we've experienced the diminution of revenue," he said.