Working against any agreement is the presidential race. In a forthcoming issue of Time magazine, presumptive GOP presidential nominee Mitt Romney said that he did not want President Obama and Congress to deal with the issues in a lame-duck session.
“You would like them to defer to you?” asked Time correspondent Mark Halperin. Replied Romney: “Absolutely…. My hope is to be able to come into office with people on both sides of the aisle who are cognizant of the critical nature of what America faces fiscally, what the people of America are facing employment-wise, the failure in our economy that is hurting so many people, and that we’ll see Republicans and Democrats say, OK, well what kind of tax proposals will encourage economic growth? What kind of regulatory reform will encourage economic growth?”
However, if Congress waits, as Romney is asking, the Internal Revenue Service will be unsure of what income tax withholding rates to publish for 2013. Corporate boards won’t know the tax rates for dividends.
“They need to get this done by the end of September or early October,” warns Pete Davis of Davis Capital Investments, a former economist on the Joint Committee on Taxation, who now advises Wall Street clients.