US House tax writer vows tax reforms
Obama has urged major tax code changes, as well, and has offered a plan to end a number of corporate tax breaks and lower the corporate tax rate.
Camp also has a corporate tax plan . But the two political parties r emain deeply divided on the urgent question of what to do about individual income tax rates, which will rise sharply at the end of the year unless Congress reaches an agreement on dealing with the fiscal cliff.
If mishandled, th e tangle of tax increases and deep federal spending cuts threatens to push the economy back into recession. A key component is what to do about income tax cuts pushed through a decade ago under Republican President George W. Bush.
Obama wants these low tax rates to be extended for 98 percent of Americans, but allowed to expire for the wealthiest 2 percent. Republicans want to extend the low rates for all.
Both sides agree more government revenue is needed to lower the budget deficit, but Republican leaders have said their party will not consider tax rate increases to accomplish that. Instead, they favor tax reform and tax cuts, saying these steps would spur the economy and boost government tax revenues.
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