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, grumbling by liberal senators and a near-revolt by conservative representatives, the fiscal cliff deal was approved by the 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.

Seriously? January 02, 2013 at 07:18 PM
I think it is crazy that they got rid of the adoption tax credit. Hollywood, NASCAR and big oil get to keep their subsidies, but an average hard wroking couple who is adopting get nothing to help cover a small portion of the $50k+ cost. Im glad washington has its prioreties straight.
siobhan hullinger January 02, 2013 at 08:20 PM
It's only one part. They still have to address the debt ceiling and spending. I haven't seen the details of the deal but you can expect at least an increase in FICA, no matter what your tax bracket is.
Charlie Kadlec January 03, 2013 at 12:22 PM
No, I do not like the "fiscal cliff deal". The real "fiscal cliff" is the unsustainable deficit spending which this bill does not address -- it even perpetuates the worst of Washington practices by including lobbyist-driven "pork" -- special tax breaks for rum producers, NASCAR, Hollywood, asparagus growers and others. Did the people voting for this bill even know what was in it ? The President got what he wanted, the "tax the rich" change in the tax code. After signing the bill he promptly left for Hawaii to continue his vacation. Proposals for spending reductions can wait, assuming that he plans to offer any before the next crisis deadline, in about two months. Charlie Kadlec Acton


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