Deal emerges in 'fiscal cliff' talks; Obama to speak
65 replies, posted
[quote][b]WASHINGTON – A deal was emerging Monday that would raise taxes on incomes, including investments, for taxpayers making more than $450,000 a year – although the two sides remain divided on what to do about the automatic spending cuts that make up part of the year-end “fiscal cliff.”[/b]
The contours of the agreement between Vice President Joe Biden and the Republican leader of the Senate, Mitch McConnell, represents a significant compromise for Democrats, as well as Republicans, making it uncertain it could pass Congress in the hours remaining before a midnight deadline.
More than $600 billion in revenue would be raised – far less than the target President Obama first set in talks with congressional leaders. The president sought $1.6 trillion in new revenue from a large deficit-reduction package, and at least $800 billion in earlier talks with Republicans over a deal on tax increases.
Without action taxes will automatically rise on New Year’s Day and massive spending cuts would start the next day in a potentially upsetting jolt to the economy.
The president was set to speak, surrounded by middle-class Americans, at 1:30 p.m. in an event on the White House grounds.
The agreement would set the top tax rates at 39.6% for income above $450,000 for households and $400,000 for singles, which is a narrower definition of who is wealthy than Obama once sought. according to a source who was not authorized to discuss the negotiations. The president won reelection campaigning on asking those who earn above $250,000 to contribute more in taxes.
Investment income tax rates would also rise for those higher-income households, from the historic low 15% rate on capital gains and dividends to a new 20% rate. The president had sought to tax dividends at the same rate as ordinary income.
The estate tax, which has been a key sticking point throughout the weekend of negotiations, appears to have been settled. The agreement cuts the difference, setting the new rate at 40% on estates valued at more than $5 million – a compromise between today’s 35% rate and the 45% rate Democrats sought on estates of $3.5 million or more.
One area that hewed closer to Democratic priorities was the income level for phasing out deductions on upper income households, which would be set at $250,000.
Even with these thorny tax issues all but resolved, a deal remains in doubt.
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The vice president and the Senate Republican leader continue to discuss the mandatory budget cuts coming Jan. 2 that both sides also want to address.
Those cuts had been set as a last-ditch trigger after a previous deficit-reduction effort failed. Lawmakers had hoped the severity of the reductions that slice across defense and domestic accounts would spur negotiations for a broader budget deal.
Republicans want to no reductions, or at most, reductions only for a month, which would set up another budget battle quickly in the new year. Democrats prefer to postpone those cuts for a year to allow a longer timetable for further talks.
The outlines of this deal stemmed from hours of negotiating between Biden and McConnell that ran well past midnight Sunday and picked up again at 6:30 a.m. on Monday morning. The proposal, however, was being met with mixed results in Congress.[/quote]
[url]http://www.latimes.com/news/politics/la-pn-fiscal-cliff-deal-emerges-20121231,0,7786205.story[/url]
Buckle your seatbealts because Congress won't pass it.
I'm (hopefully) expecting everyone to flip a shit and burn something if we keep putting up with this stupid shit from politicians. But everyone's treating it like that sex offender neighbor where they just kinda joke about him raping their kids and then go back to watching tv or something.
I want to go over the cliff plz
[QUOTE=seroyal223;39043280]I want to go over the cliff plz[/QUOTE]
I know shit will be tough, but seriously, going over the cliff will literally save this country in the long run :v:
Congress won't pass it. They'll bicker over it until it's too late to do it.
[QUOTE=Paul McCartney;39043323]I know shit will be tough, but seriously, going over the cliff will literally save this country in the long run :v:[/QUOTE]
Hopefully it will purge the white collar crime in the government by giving everyone involved a bad name.
[editline]31st December 2012[/editline]
I'm probably being too optimistic though...
I'm sorry but what's so important about the fiscal cliff? Aren't tax rises and spending cuts exactly what the country needs?
isn't it already too late at this point?
I'd like to point out for the record that today is December 31st, and no matter what they pull today, no deal is going to be signed and implemented before the deadline at midnight.
I suspect that even if a deal was hammered out and attempted to ram through Congress, there are enough people willing to filibuster it until it goes over the deadline.
[QUOTE=Generic.Monk;39043663]I'm sorry but what's so important about the fiscal cliff? Aren't tax rises and spending cuts exactly what the country needs?[/QUOTE]
Huge cuts to social security along with a tax rise on everyone would be extremely damaging to low-income families.
Also often the way economics seems to work is a lot more about the theatrics than the numbers of the thing. This has been hyped up for months as "OMG it will be the end of the world if we go over the cliff" so if it happens investors and other moneyfolk will lose their shit
[QUOTE=Generic.Monk;39043663]I'm sorry but what's so important about the fiscal cliff? Aren't tax rises and spending cuts exactly what the country needs?[/QUOTE]
The fiscal cliff is spending cuts and tax raises all over the board.
It would've been nice if they've only put spending cuts in place where it's needed/justified (military comes to mind) and raising taxes on the upper-class & above.
[editline]Dammit Smurfy[/editline]
Ninja'd
[img]http://imgkk.com/i/ye7i.png[/img]
[QUOTE=smurfy;39043747][img]http://imgkk.com/i/ye7i.png[/img][/QUOTE]
Now remove the "Deal" part and you have "Congress: The Show"
They better pass this, not gonna pay 40% dividend tax.
[b]Edit[/b]
Wait, what's this:
[QUOTE]The agreement would set the top tax rates at 39.6% for income above $450,000 for households and $400,000 for singles, which is a narrower definition of who is wealthy than Obama once sought.[/QUOTE]
I thought that tax was only for dividends, which generally apply for every shareholder that recieves dividend, regardless of the amount of it, Anyone?
they strike a deal right after obama raises their salaries. funny.
From the sounds of it, going over the Fiscal cliff is what America needs to do to save itself. All this arguing is just to keep the voters happy in the short term.
[QUOTE=cyclocius;39044881]From the sounds of it, going over the Fiscal cliff is what America needs to do to save itself. All this arguing is just to keep the voters happy in the short term.[/QUOTE]
I don't see why facepunch doesn't understand how going over the fiscal cliff will fuck EVERYTHING up
The deficit doesn't mean jack shit when compared to the lower class getting completely fucked, businesses laying off tons of workers, losing a fuckton of critical government services, etc.
It will NOT be a good thing, even in the long run.
Prepare your orifices:
[quote]The US House of Representatives will not meet the Monday night deadline on voting to avert the #fiscalcliff[/quote]
[url]https://twitter.com/BBCBreaking/status/285857742755880960[/url]
[QUOTE=PassTheBong;39044800]they strike a deal right after obama raises their salaries. funny.[/QUOTE]
It wasnt just THEIR salaries. It was a raise for all federal employees - some of which hadnt received a raise in 3 years.
Happy New Year Middle Class: The Fiscal Cliff Is Going To Rip You To Shreds
[QUOTE=UziXxX;39045283]Happy New Year Middle Class: The Fiscal Cliff Is Going To Rip You To Shreds[/QUOTE]
Guess who doesn't love the lower & middle class?
[SUP][SUP]
Hint: they like to associate themselves with elephants[/SUP][/SUP]
part of me hopes we fucking don't raise the debt ceiling and default too
just part of me
[QUOTE=Van-man;39045323]Guess who doesn't love the lower & middle class?
[SUP][SUP]
Hint: they like to associate themselves with elephants[/SUP][/SUP][/QUOTE]
because all republicans are racist old white men who hate poor people
[QUOTE=UziXxX;39045451]because all republicans are racist old white men who hate poor people[/QUOTE]
Aren't they?
[QUOTE=UziXxX;39045475]No.[/QUOTE]They make every effort to appear that way, that is for sure.
[QUOTE=UziXxX;39045451]because all republicans are racist old white men who hate poor people[/QUOTE]
All those high enough up in the political food-chain to make a impact are.
[QUOTE=UziXxX;39045475]No.[/QUOTE]
There's 4 months to 1st April.
[QUOTE=Van-man;39045604]All those high enough up in the political food-chain to make a impact are.[/QUOTE]
Tell me what it must be like knowing all of them personally :]
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