January 1, 2013. The colossal effort to reduce the awful boogey man of the national debt has resulted in what? $60 billion more in tax money each year. With a trillion dollar budget gap that’s not even a drop in the bucket.
The politicians are grinning and slapping themselves on the back for not falling over a cliff that they built themselves.
In the deal almost all the rich get the Bush tax cuts permanently. Their first $400,000 gets taxed at the lowered Bush era tax rates. ($450,000 for two income earners) A husband a wife making $500,000 get the same Bush tax rate on the first $450,000 and a higher tax rate on the $50,000. The net effect is an increase in taxes of a crushing…$2,000. (LOL)
Not being mentioned is that the average person’s taxes will go up. While the Bush tax cuts are permanent for almost everyone, the reduction in Social Security taxes have ended. We’re back up to 6.2% from the 4.2% that we’ve been paying the last two years. A family making $50,000 a year (the national average) will be paying an extra $1,000 or so in taxes, nothing to laugh at, at all.
No new jobs come out of the deal, just an extension of unemployment benefits for those whose regular benefits have expired.
And in return Congress gets a two month breather before the “cliff” of automatic spending cuts reappear and they have to go through this all over again.
Daddy Warbucks is grinning from ear to ear.
Other problems spotted by Robert Reich, Clinton’s former Secretary of Labor.