Debt limit showdown looms sooner as wealthy bet on Trump tax cutWASHINGTON/NEW YORK (Reuters) - The U.S. Congress may be headed for a reckoning with the federal debt limit within weeks, thanks to wealthy Americans and corporations deferring tax payments in the hope that they would benefit from the lower tax rates promised by President Trump. Trump promised tax cuts during his election campaign last year and has reiterated those promises in recent months leading some wealthy Americans and businesses to shift accounting for income into the future, betting that lower tax rates will arrive, perhaps in 2018, wealth managers told Reuters. “Everyone wants to talk about deferring income,” said Mark Copeland, senior partner at Signature Estate & Investment Advisors LLC in Newport Beach, California.  The U.S. stock market has also rallied since Trump’s election victory in November, partly on hopes for lower corporate tax rates.  “We are starting to prepare clients for potentially lower taxes in 2018,” said Julia Carlson, chief executive and at Financial Freedom Wealth Management Group LLC in Oregon. Trump promised to cut taxes as far back as September 2015 in a four-page plan and reiterated those promises in a two-page “Contract with the American Voter” before last November’s election and again in a one-page document in April, but Republicans in Congress remain divided on tax reform. The delay to tax payments could help to explain why tax receipts this fiscal year are coming in more slowly than projected, said tax experts and the Congressional Budget Office (CBO), an arm of Congress. “Taxpayers may have shifted more income than projected ... to later years, expecting legislation to reduce tax rates to be enacted this year,” the CBO said in a monthly report on Wednesday. The weaker tax revenues this year have forced the U.S. Treasury to borrow more money than expected to cover the federal budget deficit and that is putting the government on track to hit its legal debt limit sooner than expected, experts said. The U.S. government has a legal limit on how much it can borrow, currently set at about $19.8 trillion and the limit can only be increased by a vote of Congress. The need to raise the debt limit usually creates partisan debate in Washington. Conservative Republicans like to use the debt limit issue as leverage to demand cuts in spending but Democrats and moderate Republicans usually oppose such ultimatums on the grounds that the borrowings are used to fund spending approved previously by Congress.   This year, with Trump’s legislative agenda stalled and Congress preoccupied by Trump’s firing of former FBI director James Comey, the House Republicans known as the House Freedom Caucus along with outside conservative groups are again demanding spending cuts for support to raise the debt limit. In 2011 the failure to raise the debt limit in a timely way and the possibility that the U.S. government might default on its obligations led to the U.S. losing its prized triple-A credit rating from Standard & Poor’s. Since mid-March the U.S. Treasury has been using emergency funding powers to postpone hitting the debt limit and those measures had been expected to last until about October, but lower tax receipts so far this year may mean the debt limit will be hit sooner-than-expected. Treasury Secretary Steven Mnuchin urged Congress last month to raise the debt ceiling before lawmakers break for a long August summer recess, a call echoed last week by House Democratic leader Nancy Pelosi.  politicsNews
debt limit showdown looms sooner wealthy bet trump tax york reuters the congress may headed reckoning federal debt limit within weeks thanks wealthy americans corporations referring tax payments hope would benefit lower tax rates promised president trump trump promised tax cuts election campaign last year reiterated promises recent months leading wealthy americans businesses shift accounting income future betting lower tax rates arrive perhaps wealth managers told reuters everyone wants talk referring income said mark homeland senior partner signature estate investment advisors llc newport beach california the stock market also rallied since trump election victory november partly hopes lower corporate tax rates we starting prepare clients potentially lower taxes said julia carlson chief executive financial freedom wealth management group llc oregon trump promised cut taxes far back september plan reiterated promises contract american voter last november election document april republicans congress remain divided tax reform the delay tax payments could help explain tax receipts fiscal year coming slowly projected said tax experts congressional budget office cbo arm congress taxpayers may shifted income projected later years expecting legislation reduce tax rates enacted year cbo said monthly report wednesday the weaker tax revenues year forced treasury borrow money expected cover federal budget deficit putting government track hit legal debt limit sooner expected experts said the government legal limit much borrow currently set trillion limit increased vote congress the need raise debt limit usually creates partisan debate washington conservative republicans like use debt limit issue leverage demand cuts spending democrats moderate republicans usually oppose ultimatum grounds borrowing used fund spending approved previously congress this year trump legislative agenda stalled congress preoccupied trump firing former fbi director james come house republicans known house freedom caucus along outside conservative groups demanding spending cuts support raise debt limit in failure raise debt limit timely way possibility government might default obligations led losing prized credit rating standard poor since treasury using emergency funding powers postpone hitting debt limit measures expected last october lower tax receipts far year may mean debt limit hit treasury secretary steven mnuchin urged congress last month raise debt ceiling lawmakers break long august summer recess call echoed last week house democratic leader nancy pesos politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Debt limit showdown looms sooner as wealthy bet on Trump tax cutWASHINGTON/NEW YORK (Reuters) - The U.S. Congress may be headed for a reckoning with the federal debt limit within weeks, thanks to wealthy Americans and corporations deferring tax payments in the hope that they would benefit from the lower tax rates promised by President Trump. Trump promised tax cuts during his election campaign last year and has reiterated those promises in recent months leading some wealthy Americans and businesses to shift accounting for income into the future, betting that lower tax rates will arrive, perhaps in 2018, wealth managers told Reuters. “Everyone wants to talk about deferring income,” said Mark Copeland, senior partner at Signature Estate & Investment Advisors LLC in Newport Beach, California.  The U.S. stock market has also rallied since Trump’s election victory in November, partly on hopes for lower corporate tax rates.  “We are starting to prepare clients for potentially lower taxes in 2018,” said Julia Carlson, chief executive and at Financial Freedom Wealth Management Group LLC in Oregon. Trump promised to cut taxes as far back as September 2015 in a four-page plan and reiterated those promises in a two-page “Contract with the American Voter” before last November’s election and again in a one-page document in April, but Republicans in Congress remain divided on tax reform. The delay to tax payments could help to explain why tax receipts this fiscal year are coming in more slowly than projected, said tax experts and the Congressional Budget Office (CBO), an arm of Congress. “Taxpayers may have shifted more income than projected ... to later years, expecting legislation to reduce tax rates to be enacted this year,” the CBO said in a monthly report on Wednesday. The weaker tax revenues this year have forced the U.S. Treasury to borrow more money than expected to cover the federal budget deficit and that is putting the government on track to hit its legal debt limit sooner than expected, experts said. The U.S. government has a legal limit on how much it can borrow, currently set at about $19.8 trillion and the limit can only be increased by a vote of Congress. The need to raise the debt limit usually creates partisan debate in Washington. Conservative Republicans like to use the debt limit issue as leverage to demand cuts in spending but Democrats and moderate Republicans usually oppose such ultimatums on the grounds that the borrowings are used to fund spending approved previously by Congress.   This year, with Trump’s legislative agenda stalled and Congress preoccupied by Trump’s firing of former FBI director James Comey, the House Republicans known as the House Freedom Caucus along with outside conservative groups are again demanding spending cuts for support to raise the debt limit. In 2011 the failure to raise the debt limit in a timely way and the possibility that the U.S. government might default on its obligations led to the U.S. losing its prized triple-A credit rating from Standard & Poor’s. Since mid-March the U.S. Treasury has been using emergency funding powers to postpone hitting the debt limit and those measures had been expected to last until about October, but lower tax receipts so far this year may mean the debt limit will be hit sooner-than-expected. Treasury Secretary Steven Mnuchin urged Congress last month to raise the debt ceiling before lawmakers break for a long August summer recess, a call echoed last week by House Democratic leader Nancy Pelosi.  politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: debt limit showdown looms sooner wealthy bet trump tax york reuters the congress may headed reckoning federal debt limit within weeks thanks wealthy americans corporations referring tax payments hope would benefit lower tax rates promised president trump trump promised tax cuts election campaign last year reiterated promises recent months leading wealthy americans businesses shift accounting income future betting lower tax rates arrive perhaps wealth managers told reuters everyone wants talk referring income said mark homeland senior partner signature estate investment advisors llc newport beach california the stock market also rallied since trump election victory november partly hopes lower corporate tax rates we starting prepare clients potentially lower taxes said julia carlson chief executive financial freedom wealth management group llc oregon trump promised cut taxes far back september plan reiterated promises contract american voter last november election document april republicans congress remain divided tax reform the delay tax payments could help explain tax receipts fiscal year coming slowly projected said tax experts congressional budget office cbo arm congress taxpayers may shifted income projected later years expecting legislation reduce tax rates enacted year cbo said monthly report wednesday the weaker tax revenues year forced treasury borrow money expected cover federal budget deficit putting government track hit legal debt limit sooner expected experts said the government legal limit much borrow currently set trillion limit increased vote congress the need raise debt limit usually creates partisan debate washington conservative republicans like use debt limit issue leverage demand cuts spending democrats moderate republicans usually oppose ultimatum grounds borrowing used fund spending approved previously congress this year trump legislative agenda stalled congress preoccupied trump firing former fbi director james come house republicans known house freedom caucus along outside conservative groups demanding spending cuts support raise debt limit in failure raise debt limit timely way possibility government might default obligations led losing prized credit rating standard poor since treasury using emergency funding powers postpone hitting debt limit measures expected last october lower tax receipts far year may mean debt limit hit treasury secretary steven mnuchin urged congress last month raise debt ceiling lawmakers break long august summer recess call echoed last week house democratic leader nancy pesos politicsnews