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Backing away from the no-tax pledge, conciliatory tax talk: A D.C. miracle?

September 8, 2011

Capitol Hill has become a decidedly uncollegial place.

Political-animals Sure, there have always been sharp differences between Democrats and Republicans. But I remember a time in Washington, D.C., when opposing points of view were expressed in an enthusiastic but civil manner and the business of the country was paramount on both sides of the political aisle.

Sadly, those days are gone. Every appointment by a sitting president is subject to heated and sometimes hateful hearings. Any idea, regardless of merit, is shot down simply because the opposition came up with it first.

It's cliche to compare Congress to an elementary school filled with spoiled kids who just want to fight all the time, but the description too often fits.

Those in charge tend to whip up the partisan animosity instead of showing leadership and trying to ratchet down the heated rhetoric.

And outside agitators in the guises of lobbyists and business trade groups and think tanks seem to get a kick out of stirring the pot and then stepping back and watching it boil over, leaving Americans wondering how the mess will ever be cleaned up.

But it looks like some members are reassessing the current Congressional mood and their actions.

OK with the payroll tax cut: For months, Republicans have resisted the president's call to extend and expand the current payroll tax cut for workers. The tax relief, they argued, was too small to make much difference to workers or the economy.

Now some in the Grand Old Party are actually saying that they'll consider, even support, the 2 percentage point employee payroll tax break.

No-tax pledge second thoughts: Just as notable, or perhaps even more so, is the about face of Republican lawmakers in regard to the highly touted Americans for Tax Reform no-tax pledge.

"At least two Republican congressmen say they don't remember signing it," according to a report in USAToday. "One signed it, but has since disavowed it. A half dozen have bucked pressure from within their own party and never signed it."

And a few others in the GOP have said that while they support the Taxpayer Protection Pledge in principle, they would rather violate it than turn their back on a deal to reduce federal spending.

I don't know about you, but I'm going to be on the lookout for pigs flying down the street.

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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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