WASHINGTON (Reuters) - Following are some comments from analysts on the two-year extension of Bush-era tax cuts and business tax breaks that Congress passed and sent to President Barack Obama, who is set to sign it on Friday.
“Congress finishes the tax bill, but punts key spending decisions into early next year. Along with those spending decisions come big policy choices, which will have to be made under severe time constraints with the debt ceiling looming.”
“This tax package is a temporary compromise that deserves its widespread condemnation. The only optimistic sign for tax policy is some new support for tax reform, voiced by the president and others.”
“It will help struggling entrepreneurs by extending tax benefits, encouraging small businesses to invest via the R&D tax credit, and putting more money in consumers’ pockets via the payroll tax reduction and the extension of unemployment benefits.”
“The incoming Congress must begin the important work of comprehensive reform of our antiquated tax system in order to make American enterprise more competitive in markets both at home and abroad. We currently have the second highest corporate tax rate among developed countries and - with Japan’s recent proposals to cut its rate - we may soon have the highest corporate income tax rate among developed nations.”
Reporting by Donna Smith; Editing Vicki Allen