I think the most important thing we need right now is a long term economic and tax plan. Right now, businesses are sitting on the sidelines because they don't know what the future holds. As it stands right now, there are several tax cuts that are set to expire 12/31/2012. I don't mean tax cuts expiring for the rich, tax cuts expiring for EVERYONE. The Bush tax cuts expire for everyone on 12/31/12. There has been no legislative action taken to extend them for anyone, not even those making less than $250K. There has only been rhetoric on "news" programs and political ads. Also set to expire is the cut in social security tax that everyone has enjoyed the last 2 years. Social security payroll tax is set to return to the regular rates on 1/1/2013, not for just the rich, for everyone. This affects those making under $100K more than those making over $250K.
Every year congress has to "adjust" the AMT so that it doesn't adversely affect more and more middle class taxpayers. I believe it has been taken care of for 2012, but it certainly hasn't been done for 2013. Why doesn't congress fix it once and for all?
Throw in all of the new taxes for the healthcare law and taxes go up even more. If you have dividends and capital gains, your taxes will go up on these regardless if your total income is over or under $250K.
How can you plan? If you own a business, how can you plan? If you can't plan, you won't hire. If you won't hire, unemployment stays high. If unemployment is high, there is less spending. If there is less spending, the economy won't grow.
The Congress and the President need to fix our problems. They can't kick the can down the road. Unfortunately, nothing will be done at least not until after the election (saving their jobs is their most important priority). Then there will be the rush to jam everything through in a lame duck session.
I would rather have a long range well thought out bipartisan economic plan even if it meant my taxes would go up than to continue with this uncertainty. I am tired of last minute fixes that temporarily address the problem, sometimes for as little as a few months.
Unfortunately no plan is a plan. It is just a bad plan.