The fiscal cliff moved, barely, at about two a.m., New Year's Day, when the Senate voted to approve a plan that would rescind the Bush tax cuts only for families who earn $450,000 a year or more. The plan faces promised opposition in the House.
After fifteen months of stalling and obstruction on any attempt to address the apparent economic disaster the USA was approaching, Minority Leader Republican Senator Mitch McConnell declared on New Year's Eve day, in the last twenty-four hours available to craft a solution, that he was ready to deal, "But," said the good Senator, "I need a dance partner." It seems his official dance partner, Majority Leader Democrat Harry Reid, had quit negotiating, refusing to counter offers by Senator McConnell and insisting his previous offer was the final offer. Enter Vice President Biden, at Senator McConnell's request.
At roughly ten o'clock New Year's Eve, Senate Aides were allowed to tell the press that a deal had been reached, and that the Vice President was carrying it to the White House. By eleven-thirty, no further word was forthcoming, but at about two o'clock in the morning, New Year's Day, the Senate voted for a package that temporarily averted disaster while actually satisfying no one.
As reported by many sources, about the only things of broad effect that were tax issues. The Bush Tax Cuts will remain in effect for all except those families who earn more than $450,000 a year in taxable income ($400,000 for individuals), and capital gains and dividends taxes will rise from 35% to 40%, but at the same income split. Inheritance taxes will also increase, but the existing $5 million deductible will remain, and the infamous annual scramble to avoid having ordinary families pay the Alternative Minimum Tax is no more. It was given a permanent fix. However, the two percent tax holiday on Social Security payroll taxes will be allowed to expire. Long term unemployment benefits are extended for one year. The farm bill, the impending loss of which had led to farm consortiums funding TV ads threatening to charge $8.00 a gallon for milk, was also included in the package.
So, that seems like a lot. What didn't get fixed? How high could that fiscal cliff be? Pretty high, it turns out. The greatest sticking point, once the idea of taxes increasing on the wealthy was handled, was when and how to deal with the eight to ten percent across-the-board cuts to most federal agencies. The President wanted to put them off a year. The Republicans tried to hold up the tax package for a deal now. Ultimately, it was agreed to extend the implementation date for two months. At about the same time, a vote will be due on raising the debt ceiling again. Americans can expect to be treated to a display of brinkmanship equal to the past 48 hours at that time. It's as if Congress were trying to reinforce the idea that individual ideologies as embodied by its members is far more important than its own constituents... and that perception has certainly been emphasized over the past few days.
Until the House of Representatives votes, nothing has really been "fixed." That's important to remember in this day of optimism. The Senate alone cannot send anything to the President for signature. And some members of the House have already indicated they will fight vigorously to defeat this package. They insist the cuts must begin now. They are also angry because the President pointed out that it has been their intransigence on the tax issue that has brought America to the brink of a repeat of the most recent debt ceiling debacle, when they got America's debt rating reduced. That was the event that created the cliff over which America is still poised to dive if they make good on their threat to derail the deal struck by Senate Republicans. If that happens, the Congressional Budget Office foresees a plunge back into recession, with unemployment at nine percent or more by spring.
The good news is that the House is much less likely to defeat this package in the end. They have finally come to understand that Americans blame Republicans far more than Democrats (although Democrats come in for a substantial share of blame) for this debacle, and even for the slowness of the economic recovery from the 2008 crash. Despite aggressive gerrymandering several of the TEApublican Representatives were defeated in the last election, and more are already under threat for the by election of 2014. They can't risk their story being that they voted the country back into recession. Debate and vote is expected New Year's Day, although the vote may occur at some early hour on January 2.
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Comments: 26
WAY TO SCREW THE AMERICAN PEOPLE.
I hope they take this deal and shove it where the sun doesn't shine turning it sideways twice while doing it...Make it all the more painful to them.!
Am I a tea party person, no, first and foremost I am a conservative, but the Tea Party has done a lot of good, and maybe if you would open your eyes to teh tresonous evil coming from the white house, then you might understand why people stand by moral and ethical values, not something you see much of in DC by ANY PARTY!
And, they will keep coming on a regular basis because we are in the worst fiscal crisis since Washington was president...Ya'll, on both sides, can keep high fiving each other about who won which points on whom...a 16 trillion dollar debt and a 6 trillion dollar deficit are not going to go away because of clever (and cheap) sound bites...
I am investing in assault rifles...If you come down to Lake Begone, bring beef jerky and some dried beans...I'll have the 'possum all skinned and ready and the collards all properly wilted...
Been bloggin' this two days and a night, wonderin' when you'd show up. Listen... you're absofarkin'lutely right. It took the Democrats a while to get into the spirit of the TEA-Twits' douch-baggery, but once they did they certainly held up their end. I knew McConnell didn't have the stones for the wall defense, but when he caved and Reid just sat there and pouted because McConnell took too long... I knew we'd reached parity in douche-baggeryhood.
These fools have spent the last year and a half betting MY economic life on who would be president, and then not knowing what to do whether on the winning or losing side. I am Mercutio, hurt aneath their arm. Enuff.
And I'll tell you something else... based on the vitriol on Gather, I thought this last couple of days would generate a whole lot of views and get me paid. HA! Only on Gather does anyone really care. This was as close to a "real-time" blog as I could do in this format, and nobody came to the party except a few diehards from Gather, and some of my friends. EVERYBODY oughta care. I don't givadam whether you agree, disagree or just hate me personally... this is IMPORTANT.
Oh well...
Guys 'n gals... I told MY Senator and Representative what I think of their performances... have youi done the same?
Whatever does happen...it will be insufficient by a factor of 10...
Today's discussion didn't amount to much--probably the most salient point of business was to delay the raise for Federal workers--and the most useless 60 seconds was when Michelle Bachmann showed up to complain about how little respect she has for the President, not to mention how little time any of the House reps. had to read and consider the fiscal cliff bill that passed the Senate at 2 a.m. (The bill itself is one sentence long, by the way. Is Ms. Bachmann's schedule so full she can't read one sentence? Does she have to pay someone else to wipe her butt for her because she 'doesn't have enough time'?)
And then there were the five speeches about renaming a post office in honor of a fallen soldier. I'm all for honoring the troops--but today, of all days? REALLY guys? And then, after approx. an hour of 'discussion' (of multiple topics, most of which were not relevant to the fiscal cliff but had quite a bit to do with political posturing) the House recessed, to await the "Call of the Chair". Wonder how long it will be before the call to vote is issued? When hell freezes over?
I'm pissed. Frothing at the mouth pissed. It is very clear to me now that while some reps. were interested in solving the problem, there are many in Congress who are more interested in posturing for their own benefit. I'd like to obtain a transcript of today's proceedings just to get the names of the idiots who wasted precious time NOT working but creating a circus sideshow with their rhetoric.
Before you blame the whole of the House of Representatives for failure to call for vote on the Senate's Bill, note who it was and what party affiliation they hold, which were the ones making the speeches and thereby, deliberately holding up any vote on the Bill.
You mentioned one, (R) Rep. Michele Bachmann, check the others, you'll see what I'm saying. I watched about 10 minutes of the delaying tactic on C-SPAN-1 and I got totally frustrated by what I was witnessing and turned the channel.
Is there procedure in place for limiting remarks to a single topic?
The only person who can push this to a vote is the Speaker of the House and since the House has had close to two years to reach an agreement--and failed miserably in doing so, I don't believe a vote will come to pass. We will be back to square one on Thursday when the next Congress is sworn in.
The House of Representatives voted Tuesday night to accept the Senates proposed Bill on tax increases. The President will sign it into law today.
However, the decision on the fiscal debt which is due on Thursday may well come down to the president issuing an Executive Order for our government to pay it's current bills, as per the Constitution, which states that our country must do so, even thought it does not expressly state how that must be accomplished. Ergo, Exec. Order.
One of the reasons I watch C-SPAN I & II, is because those channels normally either orally state for the record or display the name and party affiliation of the speaker below the picture.
You can say that again.
EVERYBODY oughta care.
Concur. And, since you insist:
Last year I again supported many third party candidates as dissent against long-term financial malfeasance by our two major political parties. I also put up blog posts suggesting others do the same.
Predictably, the hyper-majority of the public continues to reward such poor behaviours by re-electing these same two parties.
The public will - again overwhelmingly and very predictably - continue a well-balanced mélange of:
1. Denying our sovereign debt is a major issue.
2. Blaming politicians in general.
3. Blaming the other major party.
4. Being apathetic in not voting.
5. Continuing to reward these same two parties with donations and votes.
6. Not taking personal responsibility by seriously blaming our individual selves.
7. As our debt worsens, stage protests/strikes/riots as many have recently done in other countries when their sovereign debt that 'isn't a major problem!' forced them into severe, suicide-inducing austerity programs.