Home  »  Economy  »  Politico ‘Inside’ Story: ‘There Is No Chance Taxes Are Not Going Up For People Making North Of $250,000′

Nov 29, 2012 Comments Off Pat Dollard

Excerpted from Politico: Behind the scenes, top officials who have been involved in the talks for many months say the contours of a deal — including the size of tax hikes and spending cuts it will most likely contain — are starting to take shape.

It’s clear to veterans of this budget fight a deal is there to be done. Here is the state of play that is sketched out by top officials in both parties:

The coming tax hike

There is no chance taxes are not going up for people making north of $250,000 — and virtually no chance that doesn’t include their tax rates, too.

Republicans publicly say they are opposed to rate hikes — but privately they know they are going up, if not all the way to the Clinton-era 39.6 percent, then darn close.

The reason is simple math. Take a look at this list, and you will see that any tax loopholes worth closing won’t get Obama or Republicans close to their targets.

To those involved in the talks, it’s not really a mystery how big the overall hike will be. Boehner was for $800 billion before the election, and Obama slapped down an opening bid of $1.6 trillion after. So it doesn’t take Ernst and Young to add those numbers, divide by two and know the president wants to end up close to $1.2 trillion.

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