2nd January 2013, 9:20 AM
So the Senate and the House passed the fiscal aversion deal. Though most House Republicans voted against the bill, enough voted in favor of it that, along with House Democrats, they were able to pass it. Now the bill will be signed by President Obama and avert the "crisis" retroactively. The bill allows tax rates for individuals making over $400k/yr. and households making over $450k/yr. to rise while stopping tax hikes for everyone else. House Speaker John Boehner voted in favor of the legislation.
This bill does not address spending cuts, however, which are due to take effect automatically in the near future unless Congress acts. The new Congress will likely inherit this issue. On the table are so-called "entitlement" programs such as Social Security, Medicare, and Medicaid. The president also wants to extend unemployment benefits which are due to expire early this year. Republicans would rather use the newly gained revenue from raising taxes on the rich to pay off the deficit rather than spend it all on government programs as the president wishes to do.
So that's one major battle out of the way, and the final one for the lame duck Congress. Rest assured, we will not be paying higher taxes this year. Also, the American market is thriving now due to Congress's ability to pass a bipartisan fiscal bill. There is an air of optimism for the moment.
This bill does not address spending cuts, however, which are due to take effect automatically in the near future unless Congress acts. The new Congress will likely inherit this issue. On the table are so-called "entitlement" programs such as Social Security, Medicare, and Medicaid. The president also wants to extend unemployment benefits which are due to expire early this year. Republicans would rather use the newly gained revenue from raising taxes on the rich to pay off the deficit rather than spend it all on government programs as the president wishes to do.
So that's one major battle out of the way, and the final one for the lame duck Congress. Rest assured, we will not be paying higher taxes this year. Also, the American market is thriving now due to Congress's ability to pass a bipartisan fiscal bill. There is an air of optimism for the moment.