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Howard Gleckman, Urban Institute senior resident fellow, weighs in on the looming debt deadline and the many tax decisions facing lawmakers in D.C.
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Well just 32 days until -- laundry list of tax rates expire the next political showdown over taxes and government spending is heating up.
Will Republicans and Democrats come together before time runs out.
Joining me now tower Glickman senior resident fellow for the urban institute and editor of the tax block attacks box.
That the big question is after this -- some incredible failure of the super committee.
Is there the political will in DC -- -- and I think sanity for these guys to come together Howard.
But charges said there's 32 days left -- probably do it in 31.
And -- 31 days and 9/11 hours out an eleven hours some some some sometime around got a Christmas Eve.
Guy you know I think -- thing here is that there's a recognition that most of these tax breaks or many of these tax breaks need to be extended.
The payroll tax of course is the one is getting so much attention now but also the Alternative Minimum Tax would -- 25 million more people if they don't fix it.
So I think a lot of these issues they're gonna deal with them the first they're gonna do their politics they're gonna play of the blame game again proof for another month.
Now now to your point we had a big press conference Alan Krueger from the white house council of economic advisors and -- the courts it was focus on the payroll tax cut.
He did -- a little bit to extending unemployment claims and just moments ago.
Mitch McConnell -- come out said that he is confident that these payroll taxes will be extend it so we can sort of put a check mark that's that even though no one's sure how it's going to be paid for.
I think that's right.
You know the the argument of course is how they're gonna pay for for a while Republicans were saying -- want to do this at all.
But I think the polls are are really moving against them I think there's a -- there's a real consensus that this payroll tax.
Holiday which is flawed as -- real problems.
But letting it go would would suck an awful lot of money out of people's pockets at a time when the economy is is is pretty shaky.
So I think there's a general consensus we're gonna do it the question -- you say is how to pay forward Democrats won a millionaire's tax Republicans won't.
My own sense is we'll we'll end up doing is not pay for.
I'll get affect in other events are taken that takes is through the next what I wanna focus on the Alternative Minimum Tax I think most Americans realize that.
This was this sort of I thought it was a vindictive law -- rule when I read it you know of them went after may be a 150 households.
Because they were skirting the law -- -- paying taxes and now of course in -- there's millions of average Americans.
How's -- how likely is that to.
Be extended.
-- -- taxes one of these policy accidents you're exactly right it was originally intended to -- a handful of very very rich people who weren't paying any taxes.
Unfortunately because it was indexed to inflation and not indexed very well.
It's been hitting more and more people.
Now it's about five million if we don't do something to patch and we do -- every year every couple years if we don't do some of the patches 125 million middle class people.
Many of those are just working.
Families.
In high tax states with kids.
We probably don't wanna do that.
So again we're probably gonna find some way to fix it it'll happen at the end of the year may not actually even happen until sometime early next year.
Is this is a really an issue -- -- people pay their taxes and April.
-- -- I've got a minute so wanna quickly go talk about the extent of unemployment benefits.
This might be something that plays well in the 2012 elections I don't know the Republicans wanna fight this hard.
What do you think -- like.
-- -- that this gets extended.
Well again what happens if they don't extend it is that it goes back to about 45 weeks currently covers people who who are unemployed for a ninety -- -- so this is very long term unemployed people.
It is it kind of people you -- feel sorry for.
On the other hand it's it's very expensive it's gonna cost -- -- fifty billion dollars to extend this is a real question how again how do we pay for -- the answer probably again -- we don't.
But this is another one of these issues that the Democrats probably other politics on their side on this this is money that goes to people who are likely to spend -- -- -- increased demand that's a good thing.
Now our you brought up toward packs a minute ago reminds me of the tires that have and as a kid my bike at the woman's inner tube tires and they're coming out of flat have a patch of level one of those homemade taxes until eventually just eroded in the what it was I -- terrible as that were overbought right now -- -- tax policy will keep pets in this thing up until eventually got to throw it away.
You know -- -- come on the show and I always say we've got to do basic fundamental tax reform.
Nobody listened to me we're still not doing it and you're right were -- this this tax system together with -- -- -- bubble -- it's not work -- Power next time come on I'll give you a -- megaphone him without dissent how are hard -- banks like but it would appreciate it.
Now your thoughts on America's toughness because earlier I asked.
