With only hours to spare before a potential crisis, today President Obama signed the debt ceiling compromise bill that passed both the House and Senate following prolonged and heated debate among lawmakers. The new deal raises the nationâs $14.3 trillion debt ceiling, takes a two-step approach in cutting about $2.5 trillion in government spending over ten years, but does not include tax increases or new tax revenues. CCH has issued its latest Tax Briefing, offering in-depth analysis of the final agreement. CCH, a Wolters Kluwer business is the leading global provider of tax, accounting and audit information, software and services.
The agreement also calls for a new joint congressional committee to recommend measures for an expanded deficit reduction package before the end of the year. Some of those changes could involve heavy spending cuts and tax increases.
âWhat this new committee recommends could substantially change the Tax Code,â said CCH Principal Tax Analyst Mark Luscombe, JD, LLM, CPA. âA lot of attention has focused on raising taxes for high earners and there will no doubt be much debate over tax rate changes, deductions and whether the Bush-era tax cuts will be phased out at the end of 2012 as scheduled.â