As Congress battles over fiscal solutions and tax reform to the ailing economy, one thing is clear: the U.S. government charges a higher tax burden on its corporations than governments in the big emerging markets.
FORBES: In US, Corp Tax Rate Higher Than Big Emerging Mkts, But CEO Pay Even Higher
The result: A year where one short-term political crisis follows the next, and one in which big fiscal issues such as tax and Medicare reform are put off for another day.
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We congratulate President Obama and the new members of the 113th Congress and respectfully urge them to create bipartisan solutions to address long-term fundamental fiscal reform, including comprehensive tax reform, reforming entitlement programs and reducing the unsustainable debt.
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And at least some members of the Republican caucus who are not part of the tea party wing of the party recognize that the possibility and prospect of compromise on fiscal issues could improve the economy and resolve outstanding issues like tax reform, the debt ceiling, and entitlement reform, and this in turn can yield political dividends.
FORBES: Why Democrats and Republicans Must Guard Against Unnecessary Regulation
Individual income tax rates were extremely high in the 1970s close to 70 percent and President Reagan needed to significantly reduce tax rates as part of his economic and fiscal reform package.
The economic and fiscal squeeze has narrowed their scope for tax reform too.
Since both candidates score badly on reform and fiscal prudence, the tax debate is really about distribution within the current tax structure: and here there genuinely are big differences.
Ryan, unfortunately, is holding a one-way conversation on entitlement reform, fiscal responsibility and reforming a tax code to incentivize, not punish, entrepreneurship and economic prosperity.
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The President has said since his State of the Union address that he looks forward to engaging in a conversation, an adult conversation, about the challenges that face us and our fiscal future: entitlement reform, defense spending, tax reform -- the issues that really affect our long-term deficit and debt.
Addressing the fiscal cliff, the debt ceiling, and the deficit, along with tax and healthcare reform, will require bipartisan support.
But Obama went further today, saying he also wanted to adopt a broader tax reform, as suggested by his bipartisan National Commssion on Fiscal Responsibility and Reform.
FORBES: Obama Calls For Automatic Tax Increases If Deficit Isn't Curbed
His government of technocrats, which took office in November 2011, is also trying to force labour-market reform on the trade unions and fiscal compliance on Italy's legendarily tax-shy self-employed.
It is nowhere near what it should have been: a compromise between Democrats and Republicans that would have been a mix of spending cuts, tax increases and entitlement reform to keep us from falling over the fiscal cliff.
Everyone around the table - and everyone in political Washington - knows the kind of deal that would avert the fiscal cliff: some tax rises, some tax reform, some spending cuts, and some reform to the giant social programmes to trim future spending.
BBC: Fiscal cliff: Simpson and Bowles gloomy on deal chances
While Senate GOP leader Mitch McConnell gleefully brags that his goal for the next two years is to defeat the president, Obama can say his is to reform a broken tax system and put America back on a sound fiscal and economic foundation, setting the stage for a new era of growth.
FORBES: Obama Should Send His Fiscal Commission's Budget Plan to Congress
The trillion dollar tax and spend deal comes within days of the report by the National Commission on Fiscal Responsibility and Reform (established by President Obama) calling on all citizens to make sacrifices to help reduce the national debt.
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