The “tax gap” was avoided
Democrat and Republican lawmakers from Washington have finally reached an agreement to avoid, at least temporarily, the “tax gap”, a series of austerity measures which have entered into force in the beggining of this year. If the “gap” was not avoided, the U.S. economy had entered a recession, dragging herself and the world economy, writes Reuters.
U.S. were on the way to the “tax gap” due to the impending expiry of tax incentives introduced during the Bush and Obama administrations. In addition, beginning of 2013 would have brought and government spending cut by 110 billion dollars, according to a bipartisan agreement in 2011. Agreement concluded as lawmakers quarreled over the U.S. debt limit, provide drastic spending cuts in order to determine the formation of a consensus on alternatives to reduce the budget deficit.
A victory for President Barack Obama, elected in November, is that Republicans have agreed, to raise taxes for wealthy Americans. The state budget will receive extra 620 billion dollars over the next ten years, from higher taxes for wealthy households and the removal of a part of deductible expenses. The package approved by Congress is increasing the taxes on incomes over $ 400,000 per year to 39.6% from 35% and those on profits from investments to 20% from 15%.
The plan presented by the Obama campaign established income threshold over which Americans would pay higher taxes to $ 200,000 per year, or 250,000 for couples.
At the same time, to protect poor households and those in the middle class tax exemptions introduced in 2001 by the administration of Republican President George W. Bush will be extended for another five years for families with incomes less than $ 400,000 per year.
Unemployment insurance came out “okay” in negotiations and two million people will benefit from another year for these funds.
All employees will pay 1,000 to $ 2,000 to the social insurance budget, after the reduction with 2% of contribution rate, introduced in 2010 and subsequently extended.