House gives final passage to fiscal cliff bill

Legislation to block the "fiscal cliff" is headed to the White House for President Barack Obama's signature. The bill will avoid, for now, the major tax increases and government spending cuts that had been scheduled to take effect with the new year.
Associated Press
Jan 1, 2013

 

Final approval came in the House on New Year's Night. The vote was 257 to 167.

The Senate passed the bill less than 24 hours earlier.

The measure raises tax rates on incomes over $400,000 for individuals and $450,000 for couples, a victory for Obama.

It also extends expiring unemployment benefits for the long-term jobless, prevents a cut in fees for doctors who treat Medicare patients and cancels a $900 pay increase due to lawmakers in March.

Another provision is designed to prevent a spike in milk prices.

 

Comments

EdO's

Bankruptcy at an accelerated rate and these worthless representatives crow about averting a fiscal cliff. They are selling us out to the highest bidder.

Average Joe doesn't comprehend "trillion".

Ask yourself why are prices increasing on everything? Look up what monetizing the debt means.

mikel

you are correct ed. most of the bloggers on here have no idea how much this actually hurts the country!

Licorice Schtick

Register Blogs - def. - A dozen or so people with nothing better to do, tapping time away, each thinking he or she is the only one online who REALLY understands what's going on.

Contango

@ Licorice Schtick:

If you understand microeconomics (personal finance), you have a 'fairly' good grasp of macroeconomics ( national and world economies).

Countries like individuals can and do go bankrupt.

Every great nation or empire in the history of the world has ended in fiscal failure through currency manipulation and too much debt.

The U.S. is currently and has been living beyond its means.

And yes, having been successful with my personal finances, I think I gotta pretty good grasp of "really" what's goin' on.

44846GWP

You wish.

Contango

@ Zippy:

The S&P was up 13% for 2012.

Ya shoulda takin' your savings that you blew on a depreciating asset and bought appreciating ones.

Read: "Rich Dad, Poor Dad."

shucks

@ Licorice Schtick

Good definition.
Most of these "experts" have puffed up imaginations of themselves. Reality and truth trump opinion.

Contango

@ 4shizzle:

If you "truly" believe in Obamanomics: Get out your credit cards, borrow as much as you can from your savings and others and use debt in order to spend your way to wealth.

shucks

@ contango

What is your solution to all these problems?

Contango

@ 4shizzle:

#1: Dust off "Simpson-Bowles" and debate it.

IMO, we're in so (bleepin') deep, that the only "solution" is the other side of the fiscal toilet.

Remember: Don't personally save money; borrow, borrow, borrow and spend, spend, spend in order to help the U.S. economy!

shucks

I wanted to know YOUR solution. Is 'Simpson-Bowles' your solution?
Briefly clue me what does'Simpson-Bowles ' mean.

Does that mean for example : Millionares/billionares pay no taxes and get rid of SS and Medicare?

KnuckleDragger

LOL. You just made my point about being one or the dozen or so that licorice was talking about. Uninformed party hack...Doesn't even know what Simpson-Bowles is, despite the commission being formed by his messiah to address the spiraling national debt.

shucks

What is your solution, brilliant one?

And besides-- I wasn't talking to you.

KnuckleDragger

Whaaaa!!! Look up Simpson-Bowles Commission, it is a pretty good solution. The problem is that Obama ignored what was said in their report because it called for cuts in nearly all government programs. The fact is he wants to grow government, and the only way he can do that is to tax everyone heavily. Just because you don't like the facts doesn't mean they are no longer facts. Obama put together this bipartisan commission and then ignored them when he found out that doing the right thing would not get him re-elected. Why should you worry though, you are likely one of the majority who doesn't pay any income taxes.

shucks

I haven't seen anything great yet.

YOU tell me what's so great about it.
Millionares/billionares pay no taxes and get rid of SS and Medicare?

(I'm sensing you are going to be a waste of time.)

Contango

@ 4shizzle:

http://thehill.com/blogs/on-the-...

A TRA86 style approach: Lower taxes, broaden the base, reduce spending.

Not a "solution," but it very well may stay off the executioner for a while.

Are you doin' your "patriotic" duty as a good consumer and spending much more than your income?

mikel

licorice, no, i don't think that i am the only one that knows what is going on. what i do know is that we can not continue to spend money that we don't have! of course, you may not have a problem with that.

Maggdi

And yet here you are Tick. Apropos somehow...

KnuckleDragger

ROTFLMAO! Since you are one of those dozen, I guess you would know. Between yourself, big dog, Don S, and 4shizzle, I haven't seen a more uninformed bunch of Democratic Party hacks anywhere. This isn't the only blog I'm on but it is definately one of the most ignorant. At least in other blogs the liberals there actually make the attempt to do some research. I'm sure I will now be bombarded with insults...that's OK I have my big boy pants on. LOL

shucks

Do you always wear your underwear outside your big boy pants ?

KnuckleDragger

No, but it's apparent you wear your brain on your backside.

shucks

Your mother dresses you funny.

Contango

Obamanomics: Tax, borrow, print and spend until bankruptcy ends.

Dr. Information

Horrible deal yet again. The guys on capital hill do not care. More taxing, more spending.....next to nothing in cuts to fix our debt. Print, Spend, Spend Spend,....oh and tax.

Contango

Also, remember to borrow!

We're spending about $360B annually to service the national debt. So far so good as long as interest rates stay artificially low.

When rates 'eventually' rise again - look out!

http://www.treasurydirect.gov/go...

Japan's new PM wants to print Yen to "infinity and beyond." It's beginning to look like a 1930s style worldwide currency race to the bottom.

Maggdi

It seems to be a habit with this administration that these important bills are voted on in the middle of the night ( holidays preferred ) and information released on Fridays after business hours... nothing to see here people, move along.

wiredmama222

The next cliff is the one about spending so hang on, guys. This isn't over yet. This is just the first cliff, not the end so give it time. The next one in less than three months has to do with spending. Then you can shout and yell about how bad the spending habits are and how little they are doing in Washington. And they will have a fresh batch of people to do it with. Maybe the new kids on the block can screw it up even more. That should make it interesting.

What gets me is, what the heck were these people in congress doing all this time? They sure weren't doing their darn jobs or this wouldn't have gone to the last minute and beyond. They certainly had plenty of time to do it right the first time, but they can't bend, cooperate or give one single inch it seems to help the American public. Now that seems pretty unfair to me...but what the heck do I know, I am just a citizen whose life is being affected by the Republican's attitude of "do it my way or else" attitudes. I am getting really sick of that.

Maggdi

"but what the heck do I know"...apparently you know enough to blame the Republicans for all the woes of the world. Funny thing is I can find plenty to blame on both sides. Are you able to find something the Democrats are at fault for?

The Big Dog's back

Let me think...... NO!

Maggdi

Question Answered! What a breath of fresh air... To the point and Honest! May I suggest though, that blindly following others has caused the greatest human suffering mankind has known.

Contango

@ wiredmama222:

If you "truly" believe in Obamanomics: Get out your credit cards, borrow as much as you can from your savings and others and use debt in order to spend your way to wealth.

Dr. Information

@wired...lady, the only thing they did here was jack up taxes so they can spend more and kick the can down the road. Thats IT!!!!!!!!!!!! It's funny because the Republicans are the ones meeting in the middle. Your messiah is the one saying my way or the highway. Time to take off the blinders, but I know that wont happen.

arnmcrmn

@DOC, Do not argue with this big dog loud mouth. I've been posting online for years and these people are just out to rile you up.

The Big Dog's back

It's really hard trying to get Repubs to pay for what they already spent. Ever try to collect on a bet with a Repub?

mikel

wired, apparently you do not realize that it was prezo himself that said he would not concede to any gop wants, desires etc. in the end the only thing he gave up was increasing the tax increase limit from $250,000 to $450,000. also, you accuse the gop of not doing anything and making poor decisions over the last 10 years. however, you do realize that during the bush administration that congress was controlled by democrats right? congress has the power to set the spending limits not the prez. so, during the bush years it was the democrats that actually ran up the numbers not bush himself.

so, you never answered one of my previous questions that i had asked you about income vs spending. why not?

donutshopguy

wired,

Of course you can continue with avoiding the 400 lbs gorilla in the room (national debt). You must not be sick of that.

SamAdams

There was no excuse for the "fiscal cliff" or the bad last-minute legislation. A budget should have dealt with that long, long ago (in fairness to the Democrat-controlled Senate, it's tough to approve a budget when the Democrat-controlled White House hasn't presented one in over three years). Meanwhile, Democrats and Republicans alike voted for this ridiculous measure and both kicked the can as far as March when the President will doubtless demand the debt ceiling be raised yet AGAIN.

What we REALLY need is comprehensive tax reform. That's not a new idea. It's been around for years. And Democrat Presidents and Democrat-controlled Congresses have refused to consider it just like the Republican Presidents and Republican-controlled Congresses before and after them.

Know what I'm getting out of this? It's still all about power and politics. It's not about "we, the people" at ALL. Unfortunately, "we, the people" are the ones who continuously get shafted while the politicians continue to make excuses and deliver explanations that strain credulity.

Boehner wouldn't negotiate, and then caved. Obama wouldn't negotiate at ALL. Biden negotiated a LITTLE. McConnell then caved. And Obama's on his way back to pick up his multi-million dollar vacation where he left off. Reminds me a whole lot of 18th Century France...

The Big Dog's back

Aloha sam.

Contango

99% of those "temporary" Bush tax cuts have now become the permanent Obama tax "rates."

The Mkt. is up because it likes certainty.

The next "fecal cliff" is the federal debt ceiling debate - should be fun.

OMG.LOL.WT_

Interest on the HORRIBLE NATIONAL DEBT is 1.4% of GDP.

Contango

@ OMG.LOL.WT_:

You're right, 'no big deal.' Go back to sleep. We'll wake you if anything important happens.

http://money.cnn.com/2012/03/05/...

OMG.LOL.WT_

OK Thanks

Kimo

With all the money people saved by shopping at "Save Money So The Chinese Can Live Better", everyone should be flush with cash.

After "saving" all that money, howinthehell could anyone be broke?

KnuckleDragger

LOL. Your family must be ticked off that you didn't get them anything for Christmas. From what I saw there aren't any stores, chain or mom and pop that carry many products made in America. You just won't face facts, the future of America isn't overpaid unskilled union factory jobs. Now you can go back to writing apology letters to your family members, they must be proud.

Jack5Jon

I am an independent, so do not label me as a supporter of one party or the other. In all the comments I have read (both from politicians and bloggers) are two items I do not read.

One, why has no one in Congress mentioned stopping foriegn aide? Of all the trillions we have given away; it seems the US has to send OUR troops into wars to these same countries. We sacrifice our fine soldiers; and, add to more spending. Five years ago I wrote the GAO asking for a ten year breakdown of how much money we gave away to which countries. I have never received an answer.

Two, why can't the two parties in Congress agree on a flat tax program? I asked the IRS for the total individual and business incomes (be it wages, dividneds, interest, etc.) and total annual spending by the Federal Government. I wanted to figure out what the flat tax rate would be to cover the spending. I never heard from the IRS.
And, why doesn't the Congress try to imploy the methods Bill Clinton used to create the surplus we had at the end of his term?
Frankly, I believe it will take BOTH parties to work together to resolve our budget. I am so tired of the name calling and finger pointing. If this were a marriage, I would recommend a divorce.

Maggdi

Good questions all Jack... Answers: Not enough opportunity for graph... And Billy Jeff had a little help: A Republican Congress.

OMG.LOL.WT_

Irreconcilable differences for sure.

arnmcrmn

Absolutely kicked the can in this deal. Nothing was done but delay the inevitable. I feel bad for the middle class, they are the ones that are going to feel the brunt of all this bs. If we don't wrangle this debt and get control of it, eventually the money will run out because it won't be worth the paper its printed on.

Tax, Spend, Print, seems to be the new American way.

arnmcrmn

In praising Congress's huge new tax increase, President Obama said Tuesday that "millionaires and billionaires" will finally "pay their fair share." That is, unless you are a Nascar track owner, a wind-energy company or the owners of StarKist Tuna, among many others who managed to get their taxes reduced in Congress's New Year celebration.

There's plenty to lament about the capital and income tax hikes, but the bill's seedier underside is the $40 billion or so in tax payoffs to every crony capitalist and special pleader with a lobbyist worth his million-dollar salary. Congress and the White House want everyone to ignore this corporate-welfare blowout, so allow us to shine a light on the merriment.

http://online.wsj.com/article/SB...

.....who's fooling who now. You just cannot make this stuff up.

Contango

"One of the unintended consequences of all of these new taxes may be a population shift in the United States. Many people in higher income states like CA, NJ, NY or CT will be paying well over 50% now between Federal taxes (39.6%), the rise in Social Security taxes (2.00%), the new Obamacare tax (3.8%) and the increase in Medicare taxes (1.45% to 2.35%).

Add to this state income taxes and many people in those states will be paying 50-60% of their income in combined taxes."

Thanks to the politicos, we'll all eventually end up being wage slaves for the govt.

Remember: The Social Security tax and the Fed. income tax were all originally "rich man" taxes. Kinda "trickled down" didn't they?

http://www.zerohedge.com/news/20...

Watch as the underground economy grows and grows as the lower classes try to get out of paying increasingly onerous taxes.

arnmcrmn

^absolutely true. We are looking more and more like failing Europe each and every day.

Whoever posted makers vs takers said it right.

But then again, a city in CA just passed legislation that allows tax dollars to be used to perform transgender surgery. Oh Boy...no wonder CA is so broke.

cam

wow a repub congress voted it in yet people still want to blame the dems.

KURTje

Some of these posters keep me laughing. How's Dave's barber shop doing?

arnmcrmn

Believe me Im not happy with any of them, we just raised taxes in a crappy economy and kicked the can down the road for 2 months, all the while shot down federal help for the east coast because many Dems tried as usual to slip in a ton of PORK in the last minute......Examples?

Here they are, your tax dollars at work:
$2 million to repair roof damage at Smithsonian
$336 million for Amtrak-related expenses
$8 million to buy new cars for federal agencies
$150 million for fisheries in Mississippi and Alaska
$4 million for repairs at the Kennedy Space Center

How can anyone with a right mind vote YES for something like this. We demand more from our leaders, not the same things. Until this pork is removed, I say keep voting NO.

Contango

It's a d*mn shame when ya gotta read the foreign media in order to get the facts.

"Workers making $30,000 will take a bigger hit on their pay than those earning $500,000 under new fiscal deal":

http://www.dailymail.co.uk/news/...

Even though I think that Al Gore is the biggest form of hypocrite, Al Jazeera tells ya things about U.S. foreign policy that never make it into the Obama Media Circus.

(Thanks to Second Opinion for pointing out the story.)

arnmcrmn

@Contago....and those liberals think they got this great deal.