Some good things about the fiscal cliff deal

January 1, 2013
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  1. The payroll tax cut is no more. If it had been allowed to continue, Social Security and Medicare would be in even more trouble.
  2. A 4 percent tax increase on people making over $400K a year isn’t the end of the world, given that Democrats control the White House and the Senate.
  3. Democrats now support the vast majority of the “Bush tax cuts.”
  4. The spending cuts (“sequestration”) were put off for just two months. When discussing those, Republicans will have more leverage than Democrats.
  5. Also, next will be the debt ceiling discussion, where Republicans will have all the leverage.

Of course, none of this changes the fact that, in the long run – or even the medium run – we’re doomed. But still…

Happy New Year!

UPDATE: More:

  1. The new tax rates are finally permanent! No wrangling every few years.
  2. Dividends will be permanently taxed at a maximum rate of 20 percent. Before the Bush tax cuts, they were taxed as ordinary income (39.6 percent)
  3. The AMT patch is finally permanent!
  4. Estate taxes only kick in after $5 million. And they’re capped at 40 percent after that.

5 Responses to Some good things about the fiscal cliff deal

  1. Mike Schmidt on January 1, 2013 at 7:16 am

    And a lot of RINOs can be primary-ed out of existence.

  2. Setnaffa on January 1, 2013 at 8:21 am

    Dipping a sandwich in liquified crap is not less detestable than making the whole sandwich out of filth.

    America proved that we are willing to accept either.

  3. Bob in VA on January 1, 2013 at 8:56 am

    I don’t agree with point #5. They’ll have a little leverage but the mainstream media will browbeat them daily and give O as much time on any network (except FOX) to castigate the Pubbies into until they cave – AGAIN!

  4. RedStateGal on January 1, 2013 at 9:18 am

    I feel this is a pretty decent deal for Republicans. De-Linking Spending from taxes at least gives us a fighting chance because Americans, most of them, want their goodies. They also want spending cuts according to the polls. Does this make sense? No. But people are weak and corruptible. Permanent AMT patch. Love it – no more gun to the head of average Americans. Permanent tax rates? That allows businesses to plan.

    Is this my dream? No, but neither is it Obama’s or the Dems dream. That means we didn’t get screwed royally.

  5. bobo on January 1, 2013 at 8:58 pm

    I’ll tentatively agree for now but reserve judgement until the “Cliff”/Debt Ceiling negotiations but it could have been a lot worse and it’s definitely not an Obama win.

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