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House Passes Fiscal Cliff Bill


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#1 reisooh

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Posted 31 December 2012 - 01:34 PM

President Obama discusses ongoing fiscal cliff negotiations. December 31, 2012.

http://www.youtube.com/watch?v=q1H5mLSKo7g

Edited by reisooh, 01 January 2013 - 11:30 PM.


#2 reisooh

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Posted 31 December 2012 - 01:51 PM

CBS News reports there's been agreement on one of the major hangups to a deal. Multiple congressional sources tell CBS News that the two sides have agreed on an income threshold for the expiration of the Bush-era tax cuts for the wealthiest Americans: $400,000 for individuals and $450,000 for families. Other items that could be included in a deal include an extension of unemployment benefits and reimbursement rates for doctors who treat Medicare patients.

Edited by kindle, 31 December 2012 - 01:51 PM.


#3 Smokey

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Posted 31 December 2012 - 03:48 PM

Obama’s Crisis Demagoguery

"This is not just the confident manner of a re-elected president, but the contempt of a man who believes he doesn’t have to listen to anyone but himself. This may presage future fights over taxes in which he thinks he will continue to have the whip hand over the GOP. But the law of unintended consequences may eventually catch up with him. Though his soak-the-rich rhetoric resonates with many Americans, they also understand that entitlement reform is in the best interests of the nation and that raising taxes on millionaires won’t balance the budget. Few outside the hard left really believe, as Obama seemed to say today, that America only has a tax problem, not a spending problem."

#4 reisooh

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Posted 31 December 2012 - 09:40 PM

Fiscal cliff deal has been reached. $400,000 for individuals and $450,000 for married couples.

#5 reisooh

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Posted 31 December 2012 - 09:47 PM

Here are the known details of the deal

Tax rates: current tax rates will be extended for all wage earners making below $400,000 and couples making below $450,000.

The automatic spending cuts under the sequester will be delayed for two months. The cost of continuing current federal spending levels will be offset by revenue increases and some spending cuts. The spending cuts will come half from defense and half non-defense accounts.

The two-month window is to allow Congress and the White House to come up with a larger deal on spending cuts, leading to another (though smaller) "fiscal cliff."

The estate tax: it was set to increase from 35 percent to 55 percent in 2013. Instead, the compromise sets the new rate at 40 percent with the first $5 million worth of property exempt from being taxed.

Capital gains tax: Capital gains and dividend tax rates will increase from 15 to 20 percent.

Alternative Minimum Tax: a permanent fix to the tax that would hit middle class families

"Doc Fix": doctors will be shielded from a massive reimbursement gap for treating Medicare patients.

Unemployment benefits: unemployed workers will receive their benefits which expired over the weekend.

Renewable energy tax credit: the tax credit for renewable energy companies will be extended for another year.

While the extension of unemployment benefits and the Medicare "doc fix" cost money, and revenue will be lost due to a fix in the Alternative Minimum Tax, the package will still increase the federal government's receipts. The total package will add $600 billion to federal coffers.

Edited by kindle, 31 December 2012 - 09:51 PM.

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#6 Ironhorse

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Posted 01 January 2013 - 05:20 PM

Looks like there will be no deal. They don't know what to do. Looks like this thing is going back to square one.

#7 reisooh

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Posted 01 January 2013 - 08:26 PM

I guess we'll see shortly, sounds like they're voting around 9pm.

#8 Donna

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Posted 01 January 2013 - 08:56 PM

Obama’s Crisis Demagoguery

"This is not just the confident manner of a re-elected president, but the contempt of a man who believes he doesn’t have to listen to anyone but himself. This may presage future fights over taxes in which he thinks he will continue to have the whip hand over the GOP. But the law of unintended consequences may eventually catch up with him. Though his soak-the-rich rhetoric resonates with many Americans, they also understand that entitlement reform is in the best interests of the nation and that raising taxes on millionaires won’t balance the budget. Few outside the hard left really believe, as Obama seemed to say today, that America only has a tax problem, not a spending problem."


As a re-elected president, he's entitled to believe the constituents who re-elected him. "Soak-the-rich"? How about we just bleed the poor? Yes, America has a spending problem . . . too much war (which conservative Mitct Daniel said we could do two on the cheap!) not enough infrastructure, Wall Street and banks gone wild with a gamble the rest of the nation had to back, because, you know, they're "TOO BIG TO FAIL" and yet they did. So, we, the taxpayers, bailed out the powers that be and left our neighbors and friends at the mercy of "TOO BIG TO FAIL"(and, if that's true, then they are TOO BIG TOO EXIST!) The Law of Unintended Consequences is a GOP problem, (at the moment!)

#9 Donna

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Posted 01 January 2013 - 09:04 PM

In the meantime, hard-working families are suffering, losing their homes, their jobs, their hopes of a better future for their children.
I'm glad you're in that tax bracket that was/is protected, but I belong to that other bracket, and before you balance the budget on the over-worked/broken backs of others, that for a moment, you stop thinking "ME" and wonder about the "WE".

#10 reisooh

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Posted 01 January 2013 - 09:58 PM

Issa said he won't vote yes. The debate should run for at least an hour.

Republicans are saying a bi partisan vote in half an hour or 45 minutes.

Edited by reisooh, 01 January 2013 - 10:03 PM.


#11 reisooh

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Posted 01 January 2013 - 11:02 PM

Boehner wouldn't normally vote, he did this time, he voted yes, it appears at least 85 repubs voted yes. Ryan voted yes, Cantor voted no. Bill passes 257 to 167. President is suppose to speak shortly.

Edited by reisooh, 01 January 2013 - 11:05 PM.


#12 reisooh

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Posted 01 January 2013 - 11:13 PM

President to make statement at 11:20

http://www.youtube.com/watch?v=vIvkhO5MwmU

Live Stream is only available for a short while, it goes dead and is not viewable after a short while
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#13 reisooh

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Posted 01 January 2013 - 11:29 PM

Now then...that wasn't so bad...was it... I'll update the video after the WhiteHouse releases it.

#14 reisooh

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Posted 01 January 2013 - 11:43 PM

The Tax Agreement

Permanent extension of the middle class tax cuts: This will provide certainty for 114 million households including lower tax rates, an expanded Child Tax Credit, and marriage penalty relief—steps that together will prevent the typical family of four from seeing a $2,200 tax increase next year. In addition, it includes a permanent Alternative Minimum Tax (AMT) fix.

Most progressive income tax code in decades: By raising income tax rates on the wealthiest and keeping taxes low for the middle class, the agreement will ensure we have the most progressive income tax code in decades.

Extension of Emergency Unemployment Insurance benefits for 2 million people: The agreement will prevent 2 million people from losing UI benefits in January by extending emergency unemployment insurance benefits for one year.

Extension of tax cuts for 25 million working families and students: The deal extends President Obama’s expansions of the Child Tax Credit, Earned Income Tax Credit, and the President’s new American Opportunity Tax Credit, which helps families pay for college. The President fought hard to extend these credits, overcoming Republican insistence that income taxes go up by an average of $1,000 for 25 million working families and students. The agreement would extend them for five years.

Extension of renewable energy incentives, the R&E tax credit and other business incentives: The agreement extends tax relief for businesses through the end of next year. This means extending the Production Tax Credit, a key incentive for renewable energy that many Republicans had been trying to end, as well as the Research & Experimentation tax credit. In addition, the agreement extends 50 percent bonus depreciation, a cost-effective temporary measure to support investment and growth. All of these would be extended through the end of 2013.

Fixes the SGR (“doc fix”) with no cuts to the Affordable Care Act or to beneficiaries: The agreement avoids a 27 percent cut to reimbursements for doctors seeing Medicare patients for 2013 by fixing the sustainable growth rate formula through the end of next year (the “doc fix”). The President stood firm against Republican proposals to pay for this fix with cuts to the Affordable Care Act or the beneficiaries.

Postpones the sequester for two months, paid for with $1 of revenue for every $1 of spending, with the spending balanced between defense and domestic: The agreement saves $24 billion, half in revenue and half from spending cuts which are divided equally between defense and nondefense, in order to delay the sequester for two months. This will give Congress time to work on a balanced plan to end the sequester permanently through a combination of additional revenue and spending cuts in a balanced manner.

Raises $620 billion in revenue according to Congress’ Joint Committee on Taxation by achieving the President’s goal of asking the wealthiest 2 percent of Americans to pay more while protecting 98 percent of families and 97 percent of small businesses from any income tax increase.

Restores the 39.6 percent rate for high-income households, as in the 1990s: The top rate would return to 39.6 percent for singles with incomes above $400,000 and married couples with incomes above $450,000.

Capital gains rates for high-income households return to Clinton-era levels: The capital gains rate would return to what it was under President Clinton, 20 percent. Counting the 3.8 percent surcharge from the Affordable Care Act, dividends and capital gains would be taxed at a rate of 23.8 percent for high-income households. These tax rates would apply to singles above $400,000 and couples above $450,000.

Reduced tax benefits for households making over $250,000 (for singles) and $300,000 (for couples): The agreement reinstates the Clinton-era limits on high-income tax benefits, the phaseout of itemized deductions (“Pease”) and the Personal Exemption Phaseout (“PEP”), for couples with incomes over $300,000 and singles with incomes over $250,000. These two provisions reduce tax benefits for high-income households. This sets the stage for future balanced approaches to deficit reduction, which could include additional revenue through tax reforms that reduce tax benefits for Americans making over $250,000.

Raises tax rates on the wealthiest estates: The agreement raises the tax rate on the wealthiest estates – worth upwards of $5 million per person – from 35 percent to 40 percent, in contrast to Republican proposals to continue the current estate tax levels.

The agreement’s $620 billion in revenue is 85 percent of the amount raised by the Senate-passed bill, if that bill had been enacted and made permanent: The agreement locks in $620 billion in high-income revenue over the next ten years. In contrast, the bill passed by Democrats in the Senate achieved approximately $70 billion through one-year provisions; these same provisions could have raised a total of $715 billion over ten years if Congress acted again to extend it permanently. However, the Senate bill itself locked in only one year’s worth of savings so would have required additional extensions to achieve those savings.

Part of a balanced process of deficit reduction and stronger growth.

Strengthens our recovery next year by cutting taxes for the middle-class: The independent, non-partisan Congressional Budget Office (CBO) estimated that allowing the full effect of the “fiscal cliff” would cause our economy to enter a recession and actually shrink next year primarily as a result of higher taxes on the middle class and across-the-board spending cuts. The final agreement prevents taxes from rising on the middle class and delays the across-the-board “sequester.”

Temporary measures to support consumer spending and business investment: Extending unemployment insurance is one of the more effective ways to encourage consumer spending. And bonus depreciation will give companies incentives to invest.

Provides greater economic certainty for families and businesses: The agreement will make it easier for families and businesses to plan and will help our economy grow.

Cuts the deficit and reduces the debt as a share of the economy over the next five years: Since April last year, the President has signed into law 1.7 trillion in deficit reduction, including $700 billion in spending cuts from enacted appropriations bills in 2011 and 2012, and $1 trillion in the Budget Control Act. This tax agreement not only further reduces the deficit, but raises $620 in new revenue from high-income households. Together with a strengthening economy these steps will bring down the deficit as a share of the economy over the next five years.

Establishes a foundation for additional balanced, pro-growth deficit reduction through tax and entitlement reform: The agreement leaves substantial scope for reducing tax expenditures for high-income households, reforming corporate taxes to broaden the base and cut the rate to make America more competitive, and to take further steps to reform entitlements.
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#15 kelley

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Posted 01 January 2013 - 11:52 PM

Wow. I'm impressed at the comprehensive lipstick application with such a tight schedule. Strengthens this, expands, protects that and those. Just skippy.
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#16 reisooh

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Posted 02 January 2013 - 12:02 AM

Released a couple minutes ago

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

President Obama delivers a statement on the bipartisan agreement passed today that will protect 98 percent of Americans and 97 percent of small business owners from a tax hike. January 1, 2013.

#17 Random Thoughts

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Posted 02 January 2013 - 07:15 AM

Passing the bill doesnt fix everything, obviously. But it does avoid what most definitely would have been a big hit to the recovery.
The expiration of the tax holiday will affect everyone. And to some degree will slow the economy, as everyone will have a little less discretionary money to spend. But the affects will not be nearly as bad as what we were potentially facing.
Not patching the AMT would have had a major impact on many peoples finances this next few months. As many middle income families would have seen their tax liability increase dramatically. I personally believe the estimates of the potential damage to the economy, ( had they not passed the bill) were conservative.

True, the wealthy will pay more. But considering that many of them rely on the spending of the lower income classes for their income .... then they potentially could have taken a double hit. Not only seen their taxes rise,( along with everyone elses)... But also most likely seen their income and cash flow decreased substantially.
The opinion that we have kicked the can down the road.. is true to a great degree... But at least we have bought some time for the government to address many of the problems. And hopefully begin fixing things in a more controlled, and constructive manner. Rather than see the economy take a major step backwards, ( for everyone), overnight.

Edited by Random Thoughts, 02 January 2013 - 12:49 PM.

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#18 grayarea

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Posted 02 January 2013 - 08:35 AM

Please note that our 9th District Congressman, Todd Young, voted no.

I imagine he would have preferred sequestration and moving back into a recession.

And this guy wants to run for Senate....

#19 Quasar

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Posted 02 January 2013 - 08:51 AM

I like the no vote...

Its time to do something about our spending problem... And we act as though it does not exist...

#20 snowman

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Posted 02 January 2013 - 09:02 AM

yes, now it's time to cut spending on corporate farm subsidies, oil & gas subsidies, and military spending.
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