The tax “chatter” is picking up in Washington.
President Obama is still on record for a 20% capital gains tax rate next year. That compares to the current 15% rate, a 33% increase.
And the President favors letting the “Bush tax cuts” expire for those with “household income” over $250,000. That would raise the top two brackets from 33% to 36% and 35% to 39.6%.
Treasury Secretary Geithner echoed the President’s sentiments in comments late last week and on the weekend news shows.
On the other hand, Federal Reserve Chairman Ben Bernanke favors keeping the Bush tax cuts to help a faltering economy. Bernanke made the comments last week in his appearance before the House Financial Services Committee.
It’s not clear when Congress might take up the matter with election year politics in the mix. The August recess starts August 9, and the House isn’t scheduled to return until Monday, September 13.
The “target adjournment” date is October 8. That doesn’t leave many working days left to get things done before the November election.
So we may see a ”lame duck” session after the election. That happens in even numbered years when Congress has “unfinished legislation” after the normal adjournment.
That includes a tax bill.
It’s unlikely Congress will pass a tax bill by the end of next week.
That leaves a short session before the November election or a lame duck session after the election.
Stay tuned.
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