Posted on 01/01/2013 11:36:51 AM PST by SeekAndFind
I'm a little under the weather today --- a drag when you have family visiting from out of town --- so we're a little late getting a thread started on the Biden-McConnell fiscal-cliff deal. The Senate voted overwhelmingly in favor of the package, which deals with tax rates but pushes spending decisions out another two months:
The Senate, in a pre-dawn vote two hours after the deadline passed to avert automatic tax increases, overwhelmingly approved legislation on Tuesday that would allow tax rates to rise only on affluent Americans while temporarily suspending sweeping, across-the-board spending cuts.
The deal, worked out in furious negotiations between Vice President Joseph R. Biden Jr. and the Republican Senate leader, Mitch McConnell, passed 89 to 8, with just three Democrats and five Republicans voting no. Although it lost the support of some of the Senate’s most conservative members, the broad coalition that pushed the accord across the finish line could portend swift House passage as early as New Year’s Day.
Quick passage before the markets reopen on Wednesday would likely negate any economic damage from Tuesday’s breach of the so-called “fiscal cliff” and largely spare the nation’s economy from the one-two punch of large tax increases and across-the-board military and domestic spending cuts in the New Year.
John Boehner warned people not to expect a rubber stamp on the deal:
The House Speaker, John A. Boehner, and the Republican House leadership said the House would “honor its commitment to consider the Senate agreement.” But, they added, “decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members — and the American people — have been able to review the legislation.”
What did the deal include? It made permanent the Bush-era tax rates for everyone earning below $400,000 (and couples earning $450,000), while raising the marginal rate for everyone else to the Clinton-era 39.6%. Some deductions will begin phasing out at $250,000, though, which gives Obama a win in the deal. Estate taxes will go back up again, and unemployment insurance will get another extension. The bill will also apply a permanent patch to the AMT. However, the payroll-tax holiday will expire, which means that FICA withholding will return to the 2010 levels.
The deal did not include any resolution on either the sequester or the debt limit. If there is a silver lining for Republicans, it’s that they have successfully delinked tax rates and spending issues in this fight. The next round of bargaining will deal only with government spending, and House Republicans will have the debt ceiling as a powerful card to play.
With the Senate voting 89-8 in favor of the bill, I’d guess that House Republicans will grudgingly go along with the deal, with a big assist from House Democrats this time around. They have until tomorrow to get the deal done in this session of Congress, though, so expect to hear plenty of debate first.
Adds $4 trillion to budget deficit. Way to cut spending McConnell you loser!
The Senate “no” votes were from Sens. Tom Carper (D-Del.), Tom Harkin (D-Iowa), Mike Lee (R-Utah), Richard Shelby (R-Ala.), Rand Paul (R-Ky.), Chuck Grassley (R-Iowa), Michael Bennet (D-Colo.), and Marco Rubio (R-Fla.).
For those of you who are worried about dying too late to save your estate from taxes...
On the White House’s part, Joe Biden gave in on the estate tax in a deal to spare estates worth as much as $15 million.
A Colorado Democrat handpicked by Senate Majority Leader Harry Reid (D-Nev.) to helm the party’s 2014 campaign effort was one of the eight “no” votes against the fiscal cliff deal last night.
Sen. Michael Bennet (D-Colo.) was appointed to fill the seat left vacant by Ken Salazar’s appointment to the Interior Department in 2009. He won his first full term in 2010, and was named to chair the Democratic Senatorial Campaign Committee last month.
“Washington once again has lived up to its reputation as the ‘Land of Flickering Lights,’” Bennet said. “For four years in my townhall meetings across the state Coloradans have told me they want a plan that materially reduces the deficit. This proposal does not meet that standard and does not put in place a real process to reduce the debt down the road.”
(This guy is more seriously than most Republican senators ).
Democrats Give Republicans First Good Rogering Of The New Year
“The Senate “no” votes were from Sens. Tom Carper (D-Del.), Tom Harkin (D-Iowa), Mike Lee (R-Utah), Richard Shelby (R-Ala.), Rand Paul (R-Ky.), Chuck Grassley (R-Iowa), Michael Bennet (D-Colo.), and Marco Rubio (R-Fla.).”
That’s it?!?!?!
This is WHY you dont directly elect these jokers
SOME THINGS THAT WERE INSERTED IN THE SENATE BILL:
1. There’s a provision extending a tax policy related to Puerto Rican rum.
2. And a tax credit for 2- and 3-wheel electric vehicles.
3. An extension of some special rules for the film and television business.
4. Help to asparagus farmers.
For those of you who receive income from Stock Dividends...
Dividend taxes for those earning less than $450,000 a year will remain at 15% (18.8% with the surcharge, for those with income between $250,000 and $450,000).
As for the 2% payroll tax cut... IT’s GONE!
The payroll tax cut was always supposed to be a short lived measure to boost the economy. And it shouldn’t have happened in the first place. All that cut did was weaken social security which will hurt the poor and middle class much more meaningfully that added the 2% back onto a person’s paycheck like before two years ago. And the genuinely poor don’t pay income tax - they get it back at filing time by way of deductions.
How can this possibly Constitutional as I quote below from what it says?
Section. 7.
All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.
She quickly recovered her composure and said the American people are losing patience so the House Republicans should pass it anyway as a sign of good faith while they negotiate the other issues...
The “Gobbler” needs to get between axe and stump.
McConnell excelled at getting GOPers to vote against this disaster as much as he did in rounding up filibusters for the repeal of DADT and the ratification of the New START treaty.
IOW, a weak and feckless effort, followed by failure.
The whole package was passed as an amendment to a House bill.
If the silver lining is Boner’s hide, it might be worth it. That way, most House republicans can vote no and let Boner and his rino cronies get the Dims to pass it. Boner could be the fall guy. Boner will not fight on the debt ceiling and we need someone who will stand up to president Lucifer.
Just say NO.
According to the Congressional Budget Office, the last-minute fiscal cliff deal reached by congressional leaders and President Barack Obama cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts.
Way to go, pubbies!!
To be perfectly honest, I make quite a bit less than $400K so I really can’t afford my takes going up. I don’t want anyone’s takes going up, but we re-elected 0bama so I guess this is the best deal we’ll get? I hope that all of the conservatives who stayed home because they didn’t want to put the Mormon Rino into office feel better.
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