Professor Ventry Comments on ‘Fiscal Cliff' for KCRA-3
Professor Dennis Ventry commented for local television station KCRA-3 on the possible implications of the federal government's failure to avoid the "fiscal cliff" that would have imposed dramatic tax increases and spending cuts had Congress failed to act prior to the January 1 deadline. Professor Ventry's comments were included in reports that were broadcast or appeared on the KCRA website prior to the passage of a last-minute deal to avoid the onset of austerity measures at the start of the new year.
In an interview taped on December 27, Ventry noted that higher-income individuals could prepare for a possible tax hike by moving expected income into the current year, selling off stocks that had gains, and holding those that had losses. He noted, however, that middle-class Americans could do "little or nothing" except to budget for an expected higher tax bill, which was virtually certain due to the expected expiration of the 2 percent payroll tax cut.
In another interview on December 28, Ventry commented on the problems that uncertainty over tax rates were causing for employers and payroll processers. "The payroll systems managers and the employers that I've talked to over the last few days are experiencing all kinds of uncertainties," Ventry said in an on-camera interview. He recommended that workers ask their employers how they are handling the fiscal cliff and pay close attention to their next pay stub. "It's going to be hard for the average employee to figure out whether they're getting cheated or not," he said.
In another report published on the KCRA website, Ventry commented on other problems associated with the uncertainty over tax rates. "The IRS isn't going to be able to accommodate processing returns until mid-February, an entire month later [than usual], meaning they have to do their work in a shorter period of time, meaning that the refunds are going to be coming later and later, meaning that perhaps even the hallowed date of April 15 gets pushed back," said Ventry.
Professor Ventry is an expert in tax policy and legal ethics. His research interests include tax expenditure analysis, family taxation, professional responsibility and standards of care, tax filing and administration, tax compliance, public finance, and tax and legal history. In addition, he was recently added as a co-author on the casebook, Legal Ethics and Corporate Practice.
KCRA report: "3 parachutes to prepare for fiscal cliff fall"
KCRA report: "Fiscal cliff impacts paychecks"
KCRA report: "Payroll managers struggle with ‘fiscal cliff' uncertainty"