I figured I’d begin 2013 with an update of this fiscal cliff deal from articles around the web. The deal was approved by an 89-8 vote in the Senate just after 2 a.m. on New Year’s Day., it stops many tax hikes but still a lot of answered questions remain. Here is a couple of things within the deal that stick out to me. Of course, in 150 page Bill, there are many details still not yet being reported.
- Extends Bush-Era Tax Cuts
- Primarily targets taxpayers who earn more than $450,000 per year–remember, Obama wanted this figure to be $250,000.
- Estates would be taxed at a top rate of 40 percent, with the first $5 million in value exempted for individual estates and $10 million for family estates
- Extends jobless benefits for the long-term unemployed for one year.
The deal is now headed to the House for a vote which its unclear when or if they will bring it to a vote today.
Here is a link to the entire Senate Bill which was passed 89-8 and how they voted. Locally, here is how our Senators voted.
- Barbara Boxer – Yes
- Diane Feinstein – Yes
Here is a link to how the house voted and how our local House representatives voted
- John Garamendi – Yes
- Jerry McNerney – Yes
- George Miller – Yes
Obama, Senate Republicans reach agreement on ‘fiscal cliff’
The Senate approved a bipartisan agreement early Tuesday morning to let income taxes rise sharply for the first time in two decades, fulfilling President Obama’s 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.), passed 89 to 8 in a highly unusual New Year’s morning vote. It now heads to the House, where leaders have not guaranteed passage but top officials believe it could win passage in the next few days.
Why your paycheck is getting smaller no matter what
Congress is struggling to pass legislation to keep broader middle class income taxes from rising. But it looks like workers will still have to pay at least 2% more in payroll taxes.
That’s because the government had temporarily lowered the payroll tax rate in 2011 to 4.2% from 6.2%, in an effort to keep more cash in the pockets of Americans and provide a boost to the economy. The tax cut, which applies on the first $113,700 in annual earnings, expired on Monday.
Now most of the country’s 160 million workers will see smaller paychecks. No one is expecting the payroll tax cut to be extended.
Monthly paychecks will have $50 less for those earning $30,000 annually, and will shave off $189.50 for those with incomes totaling $113,700.
Details of tentative deal that would avert fiscal crisis
Highlights of a tentative agreement Monday between the White House and Senate Minority Leader Mitch McConnell, R-Ky., aimed at averting wide tax increases and budget cuts scheduled to take effect in the new year. The measure would raise taxes by about $600 billion over 10 years compared with tax policies that expire at midnight Monday. It would also delay for two months across-the-board spending cuts otherwise set to begin slashing the budgets of the Pentagon and numerous domestic agencies.
Fiscal cliff’s new definition of rich
Being “rich” could become a whole lot tougher. Under the current fiscal cliff deal passed by the Senate and awaiting a vote in the House, taxes would rise only on couples making more than $450,000. That’s a lot higher than the $250,000 threshold that policy makers had long marked as the dividing line between the middle class and the rich. Just under 2% of filers, or 2.85 million, have adjusted gross incomes above $250,000.
Fiscal Cliff Deal: $1 in Spending Cuts for Every $41 in Tax Increases
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.
In first test of 2016 primary, Rubio and Paul vote against ‘fiscal cliff’ deal
It could be considered the first vote of the 2016 presidential primary, and Sen. Marco Rubio defied most of his party by voting against the “fiscal cliff” deal GOP leader Sen. Mitch McConnell and Vice President Joseph R. Biden struck.
Mr. Rubio was one of just eight senators to vote against the legislation, which cleared in an easy 89-8 vote just after 2 a.m. on New Year’s Day
Cliff Campaigners? Marco Rubio, Republicans Up for Election Say ‘No’ to Deal
Who voted “no” on the “fiscal-cliff” deal this morning? Republicans up for re-election in 2016, that’s who.
The eight no-voters were:
- Sen. Michael Bennet, D-Colo., up in 2016
- Sen. Tom Carper, D-Del.
- Sen. Chuck Grassley, R-Iowa, up in 2016
- Sen. Tom Harkin, D-Iowa
- Sen. Mike Lee, R-Utah, up in 2016
- Sen. Rand Paul, R-Ky., up in 2016
- Sen. Marco Rubio, R-Fla., up in 2016
- Sen. Richard Shelby, R-Ala., up in 2016
The three senators who didn’t vote:
- Sen. Jim DeMint, R-S.C., resigned from the Senate
- Sen. Mark Kirk, R-Ill., up in 2016
- Sen. Frank Lautenberg, D-N.J.
Deficit ‘fiscal cliff’ bill actually spends $330 billion more
The “fiscal cliff” deal that was designed to save money actually includes $330.3 billion in new spending over the next decade, according to the official estimate the Congressional Budget Office released Tuesday afternoon.
CBO said the bill contains about $25.1 billion in new cuts, but those are swamped by the new spending on extended unemployment benefits for the long-term jobless and other new refundable tax credits that President Obama fought for.
Boehner’s 100 loyal soldiers might give him political cover on ‘cliff’
Speaker John Boehner (Ohio) has about 100 Republican members he can count on if and when the Senate-passed “fiscal-cliff” bill hits the House floor, according to an analysis by The Hill.
But it remains unclear if Boehner and his lieutenants will be able to convince the majority of the GOP Conference to back legislation that increases tax rates on the wealthy and lacks significant spending cuts. The Senate passed its fiscal-cliff bill, 89-8, early on New Year’s Day.
House Republicans prepare for final passage of ‘fiscal cliff’ bill
House Republicans were clearing a path for final passage late Tuesday of a measure that would let taxes rise for the richest Americans, shield the middle class, extend emergency unemployment benefits and end Washington’s long drama over the “fiscal cliff.”
The maneuvering set the stage for a late-night vote after a wild day in which the critical measure was assumed for several hours to be headed for defeat.
In a closed-door meeting with Republican lawmakers, House Speaker John A. Boehner (R-Ohio) and Majority Leader Eric Cantor (R-Va.) outlined options for handling the bill, including a proposal to satisfy conservatives by tacking on billions of dollars in new spending cuts.
But the leaders warned that the Senate was unlikely to approve any changes to the carefully calibrated compromise and that a vote to amend the measure probably would leave the nation facing historic tax increases for virtually every American — and force House Republicans to take the blame.
Senate-Passed Deal Means Higher Tax on 77% of Households
The budget deal passed by the U.S. Senate today would raise taxes on 77.1 percent of U.S. households, mostly because of the expiration of a payroll tax cut, according to preliminary estimates from the nonpartisan Tax Policy Center in Washington.
More than 80 percent of households with incomes between $50,000 and $200,000 would pay higher taxes. Among the households facing higher taxes, the average increase would be $1,635, the policy center said. A 2 percent payroll tax cut, enacted during the economic slowdown, is being allowed to expire as of yesterday.
5 things to know about the fiscal cliff
- No side won
- We may have a new definition of “wealthiest Americans.”
- The deal “kicks the can,” and three more “fiscal cliffs” are looming.
- If it doesn’t pass
- Either way, your paycheck is likely to shrink
