Print Page   |   Contact Us   |   Your Cart   |   Report Abuse   |   Sign In
News & Press: Arizona Business News Updates

CEO Update - December

Monday, December 10, 2012   (0 Comments)
Posted by: Rick Murray, CEO
Share |

A Current Look at The Fiscal Cliff Discussion

As if the rhetoric from the elections wasn't enough, now we need to suffer through the fiscal cliff negotiations as both sides have taken a position of trying to negotiate a deal through the media. For me, this whole episode is kind of like sausage. I don't want to know how it's made; please just get it done. Everyone knows we need to reduce spending and increase revenues...a pretty simple formula. Everyone's ox will be equally gored.

Late last week, President Barack Obama unveiled his proposal to avert the looming fiscal cliff at the end of the year, which was immediately rejected by House Speaker John Boehner (R-Ohio) and Senate Minority Leader Mitch McConnell (R-Kentucky). Consistent with the provisions in the fiscal 2013 budget package, the proposal called for a net $1.6 trillion in new tax revenue over ten years, plus $400 billion in cuts to federal spending.

On the tax side, the White House proposal would increase the top marginal income tax rates and investment tax rates for upper-income individuals, extend the lower Bush-era rates for low- and middle-income taxpayers, reduce the value of certain tax preferences for upper-income taxpayers, and return the estate tax to its 2009 levels (a top rate of 45 percent with a $3.5 million exemption).

Additionally, the proposal calls for patching the individual alternative minimum tax, renewing various expired and expiring business tax extenders provisions, and extending bonus depreciation as well as the temporary two percent payroll tax holiday. For the longer term, the White House proposed reforming the tax code in a manner that would retain the levels of progressivity achieved through the proposed adjustments to the income tax rates.

For spending reform, the plan calls for a one-year delay in the sequestration provisions enacted under the Budget Control Act of 2011, a multi-year stimulus package with at least $50 billion allocated for 2013, an extension of unemployment insurance benefits, and additional unspecified savings from non-entitlement mandatory programs-all to take effect next year. This would be followed in the long term by up to $400 billion in cuts to Medicare and other entitlement programs outlined in the president’s FY 2013 budget. The proposal also reportedly included a provision that would allow the White House to raise the federal debt ceiling by limiting Congress’s power to block future debt ceiling increases.

For his part, Speaker Boehner rejected the proposal and reiterated Republicans are willing to accept new revenue in a fiscal cliff deal if it comes from tightening or eliminating deductions and tax credits, but not by tax rate increases.

In response, on Monday, Speaker Boehner sent a letter to the President with a new counteroffer proposal inspired on testimony by Erskine Bowles, the Democratic co-chair of a presidential committee tasked with figuring out how to solve the debt problem.

The three-page letter proposes cutting $2.2 trillion that does not raise tax rates on upper income Americans but does include $800 billion in new tax revenue, $600 billion in health care cuts and $600 billion in other cuts in discretionary and mandatory spending.

The White House quickly responded, noting that Boehner’s plan doesn’t meet the "balance test.” Furthermore, the Obama Administration noted there would be no compromise on higher taxes for those earnings more than $250,000. Speaking Tuesday, the president stated that while tax rates must go up for a fiscal cliff deal, it may be possible to lower rates at the top end of the scale late next year as part of tax reforms that would close loopholes and limit deductions.

Weigh in - what are your thoughts on the Fiscal Cliff? How do you think these discussions should be handled?

May the Workforce be With You


Date: Friday, October 28, 2016
7:45 AM - 9:00 AM
GateWay Community College Copper Room


ASBA's Fantasy Lights Holiday Soiree


Date: Thursday, December 1st
6:00 PM - 9:00 PM
Stone House Pavilion at the Phoenix Zoo

Get $5k-$20 in Free Marketing: Make 2016 Your Year for Success!

In Business Magazine

Use In Business Magazine as a tool to reach your customers for 2016. Through Print, Online, Social Media, Email & Events, you can realize an additional $5k to $20k in free advertising with In Business Magazine over 2016.


Small is the New Black


What’s trending for 2016? Small Business! This year, resolve to support our local economy by “Thinking Small” at least one time each week! Need help finding a small biz? Visit! #ThinkSmallBiz


Allowing you to concentrate on what’s really important.

Low and Johnson Inc.

We understand the insurance needs of locally-owned businesses because we’re one, too. As an ASBA member backed by CNA, we’re dedicated to helping small businesses like yours safeguard all you've worked so hard to build.



ASBA 101


Date: Held monthly
Time: Click to check times
Location: Phoenix or Tucson


ASBA Speed Networking


Date: Every 2nd Tuesday of the Month
Time: 3:30 PM - 5:00 PM
Location: Phoenix or Tucson

You're important to us and we want to help protect you

Mutual of Omaha

and your family through the use of insurance products. As a valued association member, you have the opportunity to purchase an insurance policy with lower premiums and/or enhanced benefits not available to the general public. Click here to learn more.


Have questions on small business and health insurance?

Health Insurance

Get the latest on individual, sole proprietor, or group plans related to small business. We can help you find the right plan for you, and your employees. Click to learn more!


CopperPoint Insurance Companies

CopperPoint Mutual

CopperPoint Insurance is Arizona's premiere provider of workers compensation insurance. We've been providing coverage and advocating for Arizona businesses, small and large, throughout the state since 1925.


Association Management Software Powered by®  ::  Legal