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GOP Senators coming around to taxes in deficit deal?

November 12, 2011

Two Republican Senators told attendees at the Reuters Washington Summit last week that nearly half of the Senate is pushing for a deficit-reduction approach that would cause pain for both sides. For the GOP, that means accepting taxes in any deal.

12 Days Super Committee CountdownThe big problem, however, is that the lawmakers talking taxes are not part of the Joint Select Committee on Deficit Reduction.

Republican Sens. Lamar Alexander of Tennessee and Tom Coburn of Oklahoma told the Reuters gathering that a growing number of their party colleagues know that significant tax increases will be needed to strike a budget deal that also reins in health and retirement costs.

Alexander, who is stepping down from his post as Republican Conference chair (the GOP's number three leadership slot) next year, said Republican rank-and-file could back a deficit compromise with new revenues as long as Democrats showed some willingness to give on entitlement programs.

The comments by the two Senators doesn't mesh with the official word from their party's leaders.

And so far, the six Republicans on the super committee are still a united front, at least publicly, against any deal that includes new taxes or tax increases.

We'll know by Nov. 23 whether the GOP leadership or Coburn and Alexander are on the mark.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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