Tax Deal Set, But No Agreement on Sequester (How Is This A "Deal?")

Roll Call ^ | 31 Dec 12 | Alan K. Ota

[SkyPilot]

Senate leaders appear to have reached a bipartisan agreement to avoid midnight tax increases, embracing a $450,000 earnings threshold for extending existing tax rates.

But agreement remained out of reach Monday on how to avert $110 billion in automatic fiscal 2013 spending cuts scheduled to begin Jan. 2.

Senate Minority Leader Mitch McConnell suggested that Congress move ahead with tax legislation and “continue to work on the sequester part in the coming months.”

“We have reached agreement on all of the tax issues,” McConnell, R-Ky., told the Senate. “Let’s take what has been agreed to and get moving. . . . We all want to protect taxpayers and we can get it done now, right now.”

McConnell spoke shortly after President Barack Obama, in a pep rally-style appearance that irritated some Republicans, said a deal is “within sight” and claimed victory in his bid to make upper-bracket taxpayers pay more.

Wall Street applauded Monday’s news, with the Dow Jones Industrial Average jumping 80 points within minutes after McConnell spoke.

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However, Barbara Boxer, D-Calif., called an apparent decision to renew extended unemployment benefits, “very, very important.”

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An agreement on what to do about the automatic spending cuts, or sequester, appeared to remain out of the negotiators’ reach. Republican senators said the issue was complicated by Obama’s comment Monday that any replacement for the sequester must include revenue increases, and not rely solely on alternative spending cuts.

[SkyPilot]

This "deal" is no deal at all. The Sequester cuts remain in place, gutting the military, but the Democrats get tax increases, zero Entitlement reform, and they get to spread $200 Billion more to the perpetually unemployed.

Great.

Just great.

What are the Republicans doing? They KNOW that the hostage in the room has always been the US military. They negotiated this bad deal back in 2011, knowing that the DoD was ~18% of the budget, but would take 50% of the Sequestration cuts.

Now, they are backing away from sparing the military from being gutted in 2 days.

Thanks a bunch GOP!

[RummyChick]

AP has already reported we are going over the cliff.

[JewishRighter]

Any word on the debt ceiling?

[Terry Mross]

The house won’t go along with this. But that doesn’t matter. All obama has to do is sign an EO and everything hums right along.

[SkyPilot]

From the Weekly Standard, that is front page on Drudge:

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http://www.weeklystandard.com/blogs/source-tax-terms-locked_692469.html

"A senior Republican Senate aide passes along the tax terms of the deal being worked out by Democrats and Republicans on Capitol Hill and the White House to avert the "fiscal cliff." These terms are "locked," says the source, between Senate Republicans and the White House:

· Permanent extension of current rates on income below $400k (singles) and $450k (married). · Permanent 15% rate on cap gains and dividends for income below $400k (single), $450k (married). · Permanent 20% capital gains & dividends for those above $400k (single), $450k (married). · Permanent death tax at $5M exemption but a 40% Rate (as of tomorrow, exemption would be on estates valued at $1m at a 55% rate) · Permanent AMT patch · One year extension of 50% Bonus Depreciation No changes to the already scheduled sequestration cuts have been "locked," I'm told.

___________________________

That, to me, means that the GOP has completely caved. Not only do they give the Democrats everything they wanted, but the GOP is going to allow the defense budget to suffer what even Leon Panetta says is "disaster for the military."

This is going over the cliff - I don't care how they sell it.

[andyk]

Once again, the left will get everything they want. We end up with an even more progressive tax system.

[SkyPilot]

The debt ceiling is now completely out of the discussion.

[Taxbilly]

Sometimes it is hard to understand why these politicians are entitled to a salary. Most of these people could not make it in the private sector.

[Future Snake Eater]

Wow, tax increases AND the military will be gutted. Who knew the “super committee” deals would end up like this? Oh yeah, that’s right...everyone.

[concerned about politics]

“We have reached agreement on all of the tax issues,” McConnell, R-Ky., told the Senate. “Let’s take what has been agreed to and get moving. . . . We all want to protect taxpayers and we can get it done now, right now.”

Good Cop/Bad Cop. They probably had this all figured out months ago.

Go over the friggen cliff. Oboma doesn't have that much more support than republicans, and the other 20% will see nothing but an Oboma tax increase (Who's John Bohner? Never heard of him).
Go over the cliff, and Oboma will go over right along with us. Take that SOB down!

[SkyPilot]

Exclusive - GOP: Cuts Won't Be Stopped, Despite Dems' Reluctance

In an amazing bit of magic, the GOP manages to play the villan even towards its Conservative base.

Not only do they fold on everything the Democrats want (taxes, unemployment handouts, tuition tax breaks for perpetual students, zero entitlement reform, etc), they lead the charge to punish the US military!

Sequestration was a bad deal to begin with. They were mad to agree to it and hope that a "Super Committee" led by radical Democrats would actually work to stop the runaway train of entitlements.

Now, the GOP is the one pounding the fiscal stake into the already wounded (by previous $450 Billion in cuts) Pentagon.

With "friends" like these, who needs enemies?

[SkyPilot]

Wow, tax increases AND the military will be gutted. Who knew the “super committee” deals would end up like this? Oh yeah, that’s right...everyone.

Exactly.

By signing up to the tax cuts for the middle class, but allowing the Pentagon cuts, the GOP is handing the Democrats the gun during the negotiations.

It is mind boggling how stupid they really are.

[Eleutheria5]

http://www.youtube.com/watch?v=Pq4eeyVr_Hs

[JewishRighter]

So, the Republicans also wasted the opportunity to tie any action on the debt ceiling to any of these concessions on taxes? I'm shocked, shocked I tell you. /sarc x 10⁴⁷

[Future Snake Eater]

This part is just simply the only possible ending for the “super committee” deals. There’s no way, apart from Romney beating Obama this past NOV, that this was going to come to any other outcome. If that really was what the RNC was banking on with this deal, then they’re not just dumb, they’re impossibly reckless. Keep them away from roulette wheels at the casino...

[NittanyLion]

Well, I'm certainly disappointed that taxes increased on anyone. I'll be interested to see details of the permanent AMT patch. Not sure we were going to get a better deal than this, even though the class warfare sickens me.

As far as spending, it sounds like the cuts go into effect. Personally I hope they're made permanent and extended to other areas. My view is that there's plenty of bloat that can be cut in every department, including the DOD.

[Venturer]

Most of these people could not make it in the private sector.
.......................................................
They know that ,it’s why they ran for office.

Good pay, Good benefits ,Perks on and beneath the table, an office staff to kiss their ass, free trips, a good parking spot, haircuts,lobbyist money and tips on the market, they all end up millionaires, and on top of that get great pensions and no Obmacare.

[cashless]

In an answer to “How is this a deal” portion of the headline, you have evidently forgotten that as long as the Democrats have a promise from the Republicans that they just have to run out to the store to pick up some more Vaseline so the second half of the deal can be completed, then the 1/2 headline about 1/2 a deal is essentially correct.

[Redcloak]

The GOP caves again.

And now it’s time for conservatives to come to their senses. You cannot be a registered Republican and call yourself a conservative.

There is no such thing as a RINO. The sobriquet “Republican in name only” makes no sense at all when being a Republican means giving in to whatever demands are made by the far left wing of the Democratic Party. “Republican in name only” implies that “Real Republicans” stand for something other than an ever-expanding Welfare State. “Real Republicans” stand for big government; as much as any Democrat.

It’s time to declare yourselves: Are you conservatives or are you “Real Republicans”? You cannot be both.

[SkyPilot]

Well, I'm certainly disappointed that taxes increased on anyone. I'll be interested to see details of the permanent AMT patch. Not sure we were going to get a better deal than this, even though the class warfare sickens me.

I agree with you. The rhetoric from the media and the Democrats is to the left of Joseph Stalin. They actually believe that other people's businesses, farms, homes, bank accounts, and savings belongs to Washington to begin with, and as our Masters, we surfs should kiss their posteriors and be thankful they don't take it all (cue George Harrison).

There is a reason God commanded that we Do Not Covet.

What the Democrats (read: Communists) practice is not only sinful, it flies in the face of the Almighty, and they will someday answer to Him for it.

As far as spending, it sounds like the cuts go into effect. Personally I hope they're made permanent and extended to other areas. My view is that there's plenty of bloat that can be cut in every department, including the DOD.

There is "bloat" in any organization, including the car dealerership that didn't fix my car properly for the 3rd time, the real estate office that I paid that seemed to have 6 women on staff whose job it was to stare at the fax machine, and my kid's school that takes 70% of my five figure property taxes.

The DoD is the only Federal institution that takes on a global mission and performs thousands of missions magnificently every day. When disaster, war, and terror strike us, it answers. It is also a Constitutional institution. Someone name another Federal agency that can fill those squares.

What hurts the most is that it seems to be the GOP that is now the advocate of gutting the military.

They snatch defeat from the jaws of victory time, and time again.

[NittanyLion]

The DoD is the only Federal institution that takes on a global mission and performs thousands of missions magnificently every day. When disaster, war, and terror strike us, it answers. It is also a Constitutional institution. Someone name another Federal agency that can fill those squares.

Yes, I certainly agree with that. Personally I think that if we're going to cut funding for the DOD then every other gency should be hit with much larger cuts as a percent of their expenditures. And I think that's an argument that could be sold to the public using your above statement. Sadly I'm doubtful that it will actually occur, though.

[Michael Barnes]

Do everything you can in the next 6-8 weeks to be as prepared as you can be for the next year (lest you suffer trying to prepare during a collapsed or inflated economy). These pissants (ALL of DC, I don’t care what party denomination is after their names) KNOW some serious shit is coming and wont admit that there is no averting the collapse. Things are set for the perfect storm as more and more and more are laid off or otherwise fired. The Producers will NOT be able to support this country. It is now spiraling and I fear the “out of control” part has already been passed.

[RegulatorCountry]

Is anyone beginning to suspect that the cuts are being forced from without, and this massive, drawn out bit of theatre is just a game of musical chairs, trying to minimize political fallout by appearing to attempt to placate various political factions?

[Gandalf_The_Gray]

Is there anything in the works to fix the AMT?

Regards,
GtG

[smokingfrog]

I think you're right. The GOP painted themselves into a corner with those super committee deals.

[smokingfrog]

I think you're right. The GOP painted themselves into a corner with those super committee deals.

[smokingfrog]

I think you're right. The GOP painted themselves into a corner with those super committee deals.

[Ghost of Philip Marlowe]

It is a deal to kick the can down the road.

Essentially, the Bush tax cuts, so reviled by the communists, was allowed to expire so that those same communists could rewrite them and pass them and thus claim that THEY are the party of lower taxes (the GOP failed us and the nation). In rewriting the taxes, they employed Orwellian Newspeak and implemented a higher tax rate on “the wealthy,” which was really an assault on small businesses (S-corp) who file their business taxes on their personal income tax forms and increased the income and capital gains on the 1%, which will have a massive trickle-down effect on investment and especially consumption (which is 1/3 of the GDP).

They also increased spending massively (1/3of the GDP, so they hope they can lie about the GDP in half a year and say, “See, communism increases prosperity”).

They also delayed the sequestration (spending part) of the bill two months, so we all get to sit through the joy of this BS theater from now till then and through that farce of a fight (hint: the GOP has already lost that argument).

How the communists plan on spending that increased budgetary spending allotment since we’ve hit the debt ceiling is confusing for many people. But it is really quite simple: Obammie the Commie is a dictator who wipes his skinny ass with the US Constitution. As they are creating money and spending it by fiat, so he will spend beyond the debt ceiling set by congress (in accordance with that toilet paper he uses) by his own fiat.

Folks, the left, the communists/socialists/fascists are taking over this country and we have no one...NO ONE...fighting for our liberty and for the freedom and prosperity of our children.

[Ghost of Philip Marlowe]

I think that one million figure is a bit low. There are a ton of third-party vendors whose existence is dependent upon military contracts or with other firms that have military contracts.