Democrats and Republicans ready for tax battle (cbs)

(CBS)  In Washington, D.c. tax cut the battle is incoming within one week of criticism. Although many Democrats are against compromise speak of the President with the Republicans, White House predicts Sunday that the package will be ultimately.

Despite Democrats cut much tax implacable shocks, the projected White House Trust Agreement survive both houses of Congress with very few changes.

"I think that what will happen," said Senior Advisor to the President Obama David Axelrod on CBS "face the nation" News. He predicted that very few members ultimately want to vote against.

"I think that we get," Axelrod said. "I think that anyone who wants to be responsible for fees from January 1, because we couldn't find a solution."

Axelrod: Obama don't be a President a term

The CBS News reports corresponding Wyatt Andrews even if true, it ignores the wrath of many Democrats House which support the President has rolled by Republicans and gave away too many high income taxpayers.

"This is Oprah Winfrey and Santa Claus," said REP Robert Scott (D - va). "Everyone gets a tax cut".

Some House Democrats have promised a challenge. "We are going to change this and we'll hope that the President will save that we are trying to subscribe to the worst things that are" said Rep Anthony Weiner (D - NY) on "Meet the Press."

The worst thing for many is the agreement reached on the estate tax. As part of the agreement, estates below $ 5 million are inherited the franchise but above could be taxed at 35%. Democrats will begin to taxing 3.5 million legacy with a rate of 45 percent change of $ 4.5 billion. Some members of the House would argue that this change must be a number of changes.

"The grossest provision this agreement refers to the tax benefit of the estate." "It doesn't have to be a part of the overall agreement," said Chris van Hollen (D - MD)

Republicans say again that it is the initial agreement or anything.

The answer is no, we're not interested in the evolution of this agreement, "said Paul Ryan (R - Wis.) Rep." "" "We are interested in passing through.

The vote on the tax package is sure to political drama this week. The Senate has not changed the tax provisions of the estate were able to vote his Bill, as early as Tuesday. Despite claims of Democrats in the House it is not clear that they have the will or the voice of kill the agreement.

?MMX, CBS Interactive Inc.. All rights reserved.

Something Democrats and Republicans agree on: the hatred of the US Federal Reserve (Atlantic)

Daniel Indiviglio - Daniel Indiviglio is an editor at the Atlantic, where he wrote on the credit markets regulation, policy monetary & tax, taxes, banking, trade, markets and technology. Before joining the Atlantic, he wrote to Forbes. He has also worked as an investment banker and a consultant. Daniel Indiviglio is a publisher of blogger and partner for the Atlantic Business Channel, where he provides insight, analysis and advice on the intersection of business, finance, economy and politics. Among its specific interests of writing: markets, regulators, policy monetary & tax, tax, banks, markets and credit technology. Before joining the Atlantic, he wrote to Forbes. Front of journalism, Daniel has spent several years as an investment banker and consultant for financial services companies. Prior to this, he gets graduated from Cornell where he triple lags in economics, philosophy and physics. He resides in Washington, D.C. metro area. December 2010 9: 11: 13 AM ET

Nowadays, it is quite difficult for the Democrats and Republicans agree on almost anything. But a new survey of Bloomberg reveals that they see eye - to-eye on a single issue: their hatred of the Federal Reserve. While the broad public discontent with the u.s. Federal Reserve is not shocking news, the action should aggressively Americans think survey shows they want big changes.

Joshua Zumbrun provides figures:

Us across the political spectrum say the Fed should not retain its current structure of independence. Was asked if the Central Bank should be responsible to the Congress, independent of the left or removed altogether, 39 percent said that it should be held responsible for more than 16% should be abolished. Only 37% favor the status quo.

In other words, a majority of Americans want to change. This goes beyond mere dissatisfaction. And this is not really a political problem. According to the survey, 19% of independents, 16% of Republicans, 12% of Democrats and 21% of the tea party goers want the Central Bank was abolished. This last statistic isn't terribly surprising, since one of the favorite politicians party Tea, Rep Ron Paul (R - TX) is probably the main opponent of Fed in Washington.

However, the idea that the Federal Reserve should be abolished entirely is rather madness. A complex economy needs a Central Bank. Some calls for reform may be more legitimate, however.

It is therefore a few examples of changes that could be more reasonable? The audit authority Paul Republic claimed could allow additional Congressional oversight, but would not necessarily undermine capacity the Fed to conduct monetary policy. Fed independence are a good idea, because politics clouds often its economy. But this does not mean that the mandate of the Federal Reserve is indisputable. Could support the maintenance of a stable inflation rate should be a priority, and Congress should worry about unemployment.

Of course, it is has more varied opinions on the ways in which the Fed must change, depending on the political view type. If you're more far-left and like the idea of a planned economy, then explicit you probably like the idea that u.s. Federal Reserve can intervene to improve financial stability and to reduce unemployment without consent of Congress. But if you are more far to the right and would prefer a free market, then you can believe that the interference of the Federal Reserve does more harm than good.

And in both cases, you may be dissatisfied with the US Federal Reserve, thinking it was too little or too much during the past few years. This explains why there is so much dissatisfaction with the Central Bank. That macroeconomics is not a hard science with easily identifiable cause and effect, the debate in the US Federal Reserve is not likely to end at any time soon either. As long as people disagree on the basic economic principles, they will be disagreement on how Central Bank economists must take steps to promote a healthy economy.

Submitted by

After you comment, click on the post. If you have not logged in you will be asked to open or save. Powered by comments