The Commercial-News, Danville, IL

Local News

November 7, 2012

'Fiscal cliff' clock starts as election fades to background

(Continued)

WASHINGTON —

Absent a compromise on taxes, many Democrats, notably Sen. Patty Murray, Wash., have said they would be willing to let the tax breaks expire and challenge Republicans to reject new legislation to cut rates for 98 percent of Americans. But going over the cliff has the potential for chaos, disrupting the 2012 tax filing season and exposing Democrats to criticism that they were willing to jeopardize the economy for political gain.

During the campaign, Romney said that if elected he would seek a year-long extension of current tax policy, including low rates adopted during the George W. Bush administration, to give his administration time to develop a plan to overhaul the tax code.

Obama has vowed to veto legislation that extends the Bush tax breaks for the wealthy, but administration officials declined to say whether that threat would stand in the face of a Romney victory. Politically, it would be a risky move for Democrats to tell Romney that he cannot have a year to negotiate a budget deal — especially headed into the 2014 election, when 20 Democrats from moderate to conservative states are up for reelection.

Extending those policies is likely to avert a recession, but it would put the nation on track for a fifth straight year of budget deficits hovering in the range of $1 trillion and invite another downgrade of the nation's credit rating. In this scenario, Romney would be forced to act quickly on a broader deficit-reduction plan.

"We'll be on our way to doing tax reform and entitlement reform and an overall budget deal in 2013. And it's got to be done by the August recess," said Ken Kies, a top Republican tax lobbyist. "For a new president, the magic window of opportunity doesn't stay open forever."

During the campaign, Romney pledged to balance the budget within eight years by dramatically slashing most government spending, including Medicaid and other safety-net programs for the poor. He also pledged to increase military budgets and to overhaul the tax code without raising additional revenue.

Instead, Romney's tax plan calls for a 20 percent reduction in rates for all taxpayers, financed by the elimination of tax breaks primarily for the wealthy — a proposal that independent budget analysts have called mathematically impossible. Romney has nonetheless insisted that his tax plan is essential to reviving the economy and creating jobs, the central mission of his first term.

Text Only
Local News
  • Police Report Incidents reported to police include:DanvilleTuesdayCriminal damage to state-supported property at the Public Safety Building, 2 E. South St. on the third floor.WednesdayResidential burglary in the 800 block of Bryan Street.Residential burglary in th

    August 2, 2014

  • Fire Calls Firefighters responded to the following calls:Thursday, 1:06-1:31 p.m. – Car smoking (electrical) at Fairchild and Martin streets.Thursday, 2:10-2:18 p.m. – Medical call in the unit block of Tennessee Street.Thursday, 3:38-3:51 p.m. – Transformer smo

    August 2, 2014

  • churches1.jpg United Church of Christ has new part-time pastor DANVILLE – A church that has been undergoing some challenges and transitions has a new part-time pastor.The Danville United Church of Christ at Main and Buchanan streets has hired Rev. Brock Neal as a part-time minister.Neal and his wife, Angie, move

    August 2, 2014 1 Photo

  • Group to talk medical cannabis DANVILLE — Where the 60 medical cannabis dispensaries and up to 22 cultivation centers will be located throughout the state remains to be seen. Danville zoning officials, like their counterparts in other communities, are discussing the possibility of

    August 2, 2014

  • Mural.jpg 'Out of respect' Artist Mike Harper squints his eyes to monitor his paintbrush’s precision.He drapes a towel atop steel scaffolding to shield his face from the sun, and uses his fingers to blend blue Novacolor paint into a sketch of an honor guard. Harper is painting

    August 2, 2014 1 Photo

  • Council considers salt purchase DANVILLE — The city won’t be without road salt this winter; but the city also will pay almost double what it did last year.City council members will consider an emergency purchase of road salt at Tuesday’s meeting, and a budget amendment to pay for t

    August 2, 2014

  • Fair talent contest set

    August 1, 2014

  • Race to help VFW

    August 1, 2014

  • Pottery class set

    August 1, 2014

  • jimmyjohns1.jpg Sub shop to open second city location DANVILLE — Ask Jimmy John’s owner/general manager Seth Hobbs how Jimmy John’s is doing in Danville and he’ll tell you “things are going really well.”In fact, he’s planning to build a new store to reach more customers in the southern part of the city.

    August 1, 2014 1 Photo

E-edition
Spring 2014 Photos


Buy these photos and more via Smugmug

AP Video
Renewed Violence Taking Toll on Gaza Residents 2 Americans Detained in North Korea Seek Help US Employers Add 209K Jobs, Rate 6.2 Pct House GOP Optimistic About New Border Bill Gaza Truce Unravels; Israel, Hamas Trade Blame Raw: Tunisia Closes Borders With Libya Four Rescued From Crashed Plane Couple Channel Grief Into Soldiers' Retreat WWI Aviation Still Alive at Aerodrome in NY Raw: Rescuers at Taiwan Explosion Scene Raw: Woman Who Faced Death Over Faith in N.H. Clinton Before 9-11: Could Have Killed Bin Laden Netanyahu Vows to Destroy Hamas Tunnels Obama Slams Republicans Over Lawsuit House Leaders Trade Blame for Inaction
NDN Video
Under Armour Launches Biggest Women's Campaign with Inspiring Ad NYPD chokehold death of Eric Garner was homicide: medical examiner Christina Aguilera Pulls a Demi Moore! Man with no arms throws first pitch Chapter Two: Composing for a film in retirement Is Justin Bieber Dating a Model? Guardians of the Galaxy (Trailer) 'Sharknado 2:' Hottest Memes Surfing The Net Snoop Dogg Narrating Animal Footage Is Perfect Raw: Obama Gets Hug From Special Olympian Recapping a Blockbuster MLB Trade Deadline Tigers Acquire David Price - @TheBuzzeronFOX Russell Brand Slams Sean Hannity Over Gaza Conflict Segment Woman's Dive Goes Terribly Wrong Brian Williams Reports on Daughter Allison Williams' 'Peter Pan' Casting News Did Jimmy Fallon Look Up Heidi Klum's Dress? What Drama? Miranda Kerr Poses Topless Plane crashes in San Diego Costco parking lot Justin Bieber Takes To Instagram To Diss Orlando Bloom You Won't Believe the Celeb Cameos in "Sharknado 2"
Must Read