Do You Like the Fiscal Cliff Deal?

The agreement reached between the White House and Congress doesn't address spending cuts and leaves another potential debt limit showdown on the table. It also increases taxes on income over $400,000. Is this a deal that works for you?

After a marathon holiday negotiation session, after grumbling by liberal senators and after a near-revolt by conservative representatives, the fiscal cliff deal was approved by the U.S. House of Representatives late Tuesday night. 

The bargain will increase taxes on income above $450,000 for families, increase capital gains taxes, permanently fix the alternative minimum tax, change the estate tax and provide some changes in deductions. It also will extend unemployment benefits, earned income tax credits and other tax breaks for the working class. The Washington Post has a cheat sheet with all of the details.

Middle class taxpayers will still see a smaller paycheck in 2013; The payroll tax cut was not preserved as part of the fiscal cliff deal. That tax specifically pays into social security. If you make $50,000 a year, the payroll tax increase will cost you about $1,000. That has some liberal economists upset with the deal.

What do you think? Did the president give away the store by moving the top bracket tax increase from $250,000 to $450,000? Did House Republicans lose out by pushing spending cuts down the road by two months? Or is the sort of compromise you were waiting for? Tell us your thoughts in the comments section below.

Patricia January 03, 2013 at 02:04 PM
Well its a shame that the middle class that everyone was so concerned about during the elections are going to see higher taxes. Also, this deal solved very little except kicking the can down the road. We still haven't begun to think about decreasing out debt or any kind of tax code fix. Hopefully the new session will bring some fresh ideas.
Witold Witkowski January 03, 2013 at 02:27 PM
The people most hurt in this 'deal' are the middle class earners. The average family will feel the loss of $100-$200 per paycheck, and the worst part is that this 'deal' only postpones the problem! We're still working in deficit mode! There were no cuts to government budgets, just decreases in the yearly increases! So programs that were getting $150 Million/year and requested $200 Million/year only got $175 Million, and thats called a CUT! Democrat and Republican lawmakers alike should be ashamed of themselves.


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »