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Fed Chair Bernanke talks tax policy

December 6, 2010

So what does the man who heads up the group that controls the United States' money think of our tax system?

During an interview with CBS' 60 Minutes correspondent (and Texas Tech alum) Scott Pelley that aired last night, Federal Reserve Board Chair Ben Bernanke focused on the economy and unemployment.

But he did offer a few thoughts on other fiscal and policy issues now being debated on Capitol Hill.

Bernanke said (around 8:50 of the 15 minute video segment) that the budget deficit must be cut, but not right now.

The Fed head offered some additional advice (10 minute mark of the video) to Congress on how to get the economy moving: clean up the tax code.

It's very inefficient, both for individuals and companies, said Bernanke. To improve things, he suggested closing loopholes and lowering tax rates, which would create more incentives for people to invest.

Of course, the number of potential investors is dwindling due to growing income disparity in the United States. "It's a very bad development," said Bernanke (13:30 into the interview), that's "creating two societies."

Bernanke was more optimistic about the longer-term outlook for the country.

"I have a lot of confidence in the United Sates," he said, citing the country's "excellent record of innovation" and our strong entrepreneurial culture.

The United States will retain its leading position in the world, predicted Bernanke, "but again, we gotta get there. And we have some very difficult challenges over the next few years."

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Getting ready for the year-end tax countdown

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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.)

Comments
  • The fact that he’s talking about QE3 is going send the gold bull even higher.

  • If you look at those 1 million jobs created he speaks about, you will find the vast majority of them were in the retail, healthcare and fast food industry. In other words, service sector which is NOT a skilled job, nor does it require a college degree.

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