Skip to comments.Obama, Senate Republicans reach agreement on ‘fiscal cliff’ (All taxes, no cuts)
Posted on 12/31/2012 9:32:12 PM PST by Ernest_at_the_Beach
President Obama and Senate leaders struck a bipartisan agreement late Monday to let income taxes rise sharply for the first time in two decades, fulfilling Obamas promise to raise taxes on the rich and avoiding the worst effects of the fiscal cliff.
The agreement, brokered by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.), primarily targets taxpayers who earn more than $450,000 per year, raising their rates for wages and investment profits. At the same time, the deal would protect more than 100 million households earning less than $250,000 a year from income tax increases that are scheduled to take effect this month.
The deal came together barely three hours before the midnight deadline, after negotiators cleared two final hurdles involving the estate tax and automatic spending cuts set to affect the Pentagon and other federal agencies this week.
(Excerpt) Read more at m.washingtonpost.com ...
So, the incoming Congress gets to vote on this, right?
CBO is scoring the Bill.....Vote expected around 3 or 4 AM!
Isn’t the old Congress over now?
I don’t think they have even voted yet as of 12:30am 1/1/13.
House Votes tomorrow.....
Old Congress still in session.
Not sure when it changes.....someone will be along to fill in that detail!
Nothing they do binds the new Congress
No Debt Ceiling Hike Either!!
“Bush” Tax cuts made permanent on 99%+ of Americans. AMT fix permanent. Death tax reduced and permanent (another day to fight to make it zero). Huge GOP victory in my mind. DUMMiies voting for making all these “taxes” untouchable and nonnegotiable. Awesome. Now, let us debate about how much the top “1%” should pay. And solve the fiscal imbalance.
It's up to Obama to decide whether they are in session or not as far as I have gathered from the new "constitution" we've been running on since 2008.
House does NOT have to vote on this yet. There will be calls to amend it, send it back to the Senate, and go to conference - I would almost bet on that.
Why would Bonehead make his GOP Rino Monkeys, the source of his
power as speaker, vote for a tax increase on the rich. Why would he
expose them now, when he was unwilling to expose them with plan B
a week ago.
There will not be a vote in the house to raise taxes on the rich.
I don’t care what the MSM says about it.
Bonehead will not put the source of his power, the Rino Monkeys
at risk of getting primaried by voting for a tax increase on the rich.
So anyone know what the taxes rates are for income over $400K under this deal?
Those people up there are the biggest wimps to let the socialist agenda run all over the American people who are Americans not socialists. It seems not one of them will fight a strong fight. They could not get the base out to support them. What the heck do they expect now. It is NOT right to tax another group of Americans double to help pump up this free loading society. The producers are already being taxed higher than the poor! Hello.. now.. double tax. I sure wish there were a rebellion on this out of control spending money give away programs which is a corrupt government. These republicans are about finished because how in the world do they ever get more people to vote for them. I blame them for a lot of this. We need an overhaul. We need new people over seeing the books and procedures. We need term limits. They are making voters uninterested in the process so we will keep losing our countrys free market values.
With new tea party conservatives coming in, you can bet your ass Boner will have a vote before they get there. He’ll have a hard enough time finding enough traitors to join him now.
I think it goes to what it was under Clinton...and I think that was near 40%.
The GOP has never proposed a plan that would cut one-tenth of this amount. They are not a serious participant in this discussion, since, if they support spending >$3 trillion dollars (which they do), they must be accountable to pay for it (which they are not).
39.4% I think.
Question for anyone...
I can’t recall why Republicans agreed TO CREATE this Fiscal Cliff nightmare last year.
Anyone have a summary or a good link?
I especially want to read quotes from Republicans who thought this was a great idea last year.
The current congress ends January 3rd, 2013.
Here are the details of the deal:
likely to look like:
Tax rates will permanently rise to Clinton-era levels for families with income above $450,000 and individuals above $400,000. All income below the threshold will permanently be taxed at Bush-era rates.
The tax on capital gains and dividends will be permanently set at 20 percent for those with income above the $450,000/$400,000 threshold. It will remain at 15 percent for everyone else. (Clinton-era rates were 20 percent for capital gains and taxed dividends as ordinary income, with a top rate of 39.6 percent.)
The estate tax will be set at 40 percent for those at the $450,000/$400,000 threshold, with a $5 million exemption. That threshold will be indexed to inflation, as a concession to Republicans and some Democrats in rural areas like Sen. Max Baucus (D-Mt.).
The sequester will be delayed for two months. Half of the delay will be offset by discretionary cuts, split between defense and non-defense. The other half will be offset by revenue raised by the voluntary transfer of traditional IRAs to Roth IRAs, which would tax retirement savings when theyre moved over.
The pay freeze on members of Congress and all other federal civilian employees, which Obama had lifted this week, will be re-imposed, .
The 2009 expansion of tax breaks for low-income Americans will be extending, continuing a more generous Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit.
The Alternative Minimum Tax will be permanently patched to avoid raising taxes on the middle-class.
The deal will not address the debt-ceiling, and the payroll tax holiday will be allowed to expire.
Two limits on tax exemptions and deductions for higher-income Americans will be reimposed: Personal Exemption Phaseout (PEP) will be set at $250,000 and the itemized deduction limitation (Pease) kicks in at $300,000.
The full package of temporary business tax breaks benefiting everything from R&D and wind energy to race-car track owners will be extended for another year.
Scheduled cuts to doctors under Medicare would be avoided for a year through spending cuts that havent been specified.
Federal unemployment insurance will be extended for another year, benefiting those unemployed for longer than 26 weeks. This $30 billion provision wont be offset.
A nine-month farm bill fix will be attached to the deal, Sen. Debbie Stabenow told reporters, averting the newly dubbed milk cliff.
I think the hope was that Romney would be president, etc.
So why all the talk about going over the cliff tonight?
If they can just vote whenever, then what was the rush about midnight?
It was over raising the Debt Ceiling....
The dirty deals are done on holidays and in the middle of the night like our GOP and Democrat politicians did here in Pennsylvania back in 2005.
They raised the pay of judges, legislators etc. by some 16 percent during the July 4th holiday weekend.
The leaders get together, trade votes finding enough in each party to get the dirty deal passed.
Legislators who know we would throw them out are given protection by leadership (they get to vote NO and pretend to look good for the folks back home).
There will be lots of GOP guys who vote NO on the deal, but then continue to support their leaders like Boehner, Cantor, McConnell etc. etc.
Forget the phony deal that means nothing as spending continues to drive this country into the debt abyss.
Its time to tell the ones who vote NO on this and beat their chests claiming to be conservative they have to separate themselves from the business as usual GOP political leadership like Boehner.
Remove them from leadership of the GOP or put your words into action with a third party caucus in Congress not associated with the liberals who lead the GOP.
The house should have done it's duty and filed impeachment charges then and there on the spot.
What are the limits of statutes on Constitutional violations?
You can’t fight Santa Claus. You want all the republicans to lose in the next election?
Paul Ryan, Conservative, VP
Sarah Palin, Conservative, VP
Todd Akin, Conservative, Senate
Richard Mourdock, Conservative, Senate
Sharron Angle, Conservative, Senate
Christine O’Donell, Conservative, Senate
George Allen, Conservative, Senate
Joe Miller, Conservative, Senate
Ken Buck, Conservative, Senate
Alan West, Conservative, House
Doug Hoffman, Conservative, House
Every one of above great conservatives would have the courage to vote for cuts in spending. But they can’t. They lost elections. Now they have zero power to do anything in Washington.
Obama’s taking his fat ass to the cleaners too. I hope he spends his last days broke on the streets.
In this case "that fellow behind the tree" is the saver who has his assets in dollars. Both sides have agreed that they're going to tax him by inflating the value of the dollar away. They aren't cutting any spending. They're printing the money to pay for the deficit!
The "fiscal cliff" was a successful media creation of the Democrat "mainstream" newsrooms. "We must stop global warming NOW or the oceans will rise and we'll all be drowned!" "We must stop the Africanized killer bees NOW before they migrate north and kill us all!" "Radon..!" "Black mold..!" "Lead-based paint..!" "DDT..!" Etc.
Alarmist, apocalyptic stuff sells, and the political scum fall for it every time... because the massive, ignorant chattering class (ie., the people who elect scum like Ubama) fall for it every time. The fact is, whatever legislation comes out of this "crisis", if any, can be passed a month or two months from now and simply made "retroactive".
They've done it before.
No cuts, no surprise there. Nothing will change until we hit bottom. The bottom will take many by surprise and it will be unpleasant.
Senate voting now and loudmouth Coburn, the conservative blowhard caves again. Worthless.
Looks purdy unpleasant to me. They had lil chulrun out there and a whole lot of pushin and shovin with a really big crowd.
We've been down there around July 4th watching the fireworks from the top of one of the biggest parking buildings but this time two are dead and three others shot. What a mess!!!
South Dakota’s so-called conservative Thune caves. I regret working for that worthless, spineless RINO.
And in Washington,....MSNBC is showing the Senate Floor with a lot of activity...I assume Voting or getting ready to vote.
Who were the 8 Senators that voted “NO!”???
Thanks for the info.
What a disgrace to the human race!!!
No votes: 3 Ds (Bennet, Cardin, Harkin); 5 Rs (Grassley, Lee, Paul, Rubio, Shelby) 8 posted on December 31, 2012 11:23:47 PM PST by GOPyouth
“So, the incoming Congress gets to vote on this, right?”
Not yet, from my limited understanding. I’ve been lead to believe that the lame ducks have until the third. Boner should double down, let the taxes go up and shut the damned federal government down.There is no deal, the senate can’t ram this down the throat of the house unless they allow it
That's a terrific link.
Wikipedia just nails the history.
No obvious political bias to my eye.
I remember now that I was very upset when Republicans agreed to extend the new debt ceiling past the 2012 election.
I felt Conservatives held at least 50% of the political high ground on the debt issue.
I saw one thing that gave me a little comfort.
I thought the Defense Budget was going to be cut $55 billion a year for 9 years if the “Sequester” became law.
No - just a one year absolute cut.
Then, a slow increase each year, but less than the expected rate of inflation.
Paul is the only one I can sincerely believe voted out of principle on this one.
Grassley is scared of being primaried, Rubio used to be Speaker of the Florida House where he had to twist arms to push “deals” through like this. He was put in by the GOP-E to take out Crist back in 2010 because of Charlie’s sex life vulnerability.
Lee has made conservative noises to get himself past Bennett in the 2010 primary. Shelby is from Alabama where someone like Roy Moore who is more conservative could take him out in a primary over this.
That’s my blunt and honest assessment of the situtation.
There are very few who have any principles down there.
Third party would be a tough choice, but don’t we need one to stand for real cuts in spending and a more immediate balanced budget before it is too late.....