Weekly editorial recap
THURSDAY
TAX POLICY
Like chess masters positioning their pieces for a donnybrook to come, members of Congress in the lame-duck session leading up to their Christmas recess are positioning themselves on the issue of tax hikes. ...
The problem is that Americans sitting down to do their taxes in January and February need to know the rules of the game. There are several tax questions now in limbo on which the Congress ought to be able to reach bipartisan accord, even if they have to be handled in stand-alone bills. For starters, Nevadans and residents of other states without state income taxes wonder whether they're going to be able to write off millions of dollars in state sales taxes next year, as they have in the past. ...
According to the IRS, 345,244 Nevadans claimed more than $546 million in deductions for sales taxes in 2008. ...
Yes, broader tax reform, combining enormous simplification with lower rates or even the elimination of whole classes of taxes that make America less competitive for business expansion, is needed. But that's not likely to be done by Christmas. ... Congress should re-authorize (the deduction) during the next month.
