For the third year in a row two old senate compromisers save our country from going off the fiscal cliff after House and Senate fail to reach a deal. This actually is not the third time in the last three Decembers that congress has failed to tweak tax rules that have been the same for longer than any time since the Reagan Democrats worked with the President to bring the country out of the worst recession since the end of World War Two. The fiscal cliff was made in hopes that if congress had to act they would. It was designed in hopes of ending a long term standoff on what to do about the collapse of the economy after the biggest boom that we have ever experienced started off with two wars and a bank crisis that eroded America and the World’s confidence and caused unprecedented panic and a tightening of the consumer pocketbooks that presented a ripple effect that saw us reach the brink of economic ruin. Once again these two men worked together on a bipartisan deal that would save the world from the lack of confidence caused by a House led Republican majority and a Senate dominated by Democrats failing to make any move on tax reform. Tax Reform is the single best tool for manipulating the business and individuals to make decisions that will benefit society as a whole.
Joe Biden the former senator and current Vice President were asked for help from Senate Majority Leader Harry Reid not only from a public outcry for a dance partner. Biden just happened to be the one who answered the phone when Reid asked for help. Biden partnered with the Republican Senate Minority leader Mike McConnell for the third year to extend a rope that the Republican House will be able to climb up on Monday. It is expected that we will go over the cliff and the House will vote to agree to this deal on Monday while we all hang onto a tree branch and hope no Republican or Democrat Representatives break it in the House and these are the changes that every house will see from the deal:
1. Tax Rates will remain the same for workers earning less than $400,000 and couples making more than $450,000. This combined with a capitals gain tax rate being raised to 20% from 15% and the estate tax being raised from 35% to 40% will add six hundred billion dollars in revenue at least. The Alternative Minimum Tax would be at a permanent fix rate that will hit some middle class families.
2. Unemployment Benefits and the extensions made during the recession will remain the same they were set to expire on Monday.
3. Doctors will be shielded from a gap for treating Medicare patients that will aid in ensuring the services provided to Medicare patients.
4. The Renewable Energy Tax Credit that Obama feels is necessary for the pursuit of alternative fuels will be extended for another year.
5. There will be a smaller cliff that will be created that only relates to spending cuts that were a major sticking issue for both parties. Half of these spending cuts will be defense and the other half other programs and the details of these cuts will cause another cliff to be formed as a way of enticing both parties to work together on a solution to the too much spending and not enough taxes problem (Caldwell, 2012).
6. There are a lot more changes in tax laws that will be implemented when this deal is officially announced. However, it is important for us all to ask our congressman and women to debate issues like this in public. This is the third year in the row where changes in the tax code have been put off till the last days of December. This is the reason why they created the fiscal cliff so they would have to make tough choices and we would not be able to see them debate these tough choices on the house floor like most other debates that are available to watch on CSPAN. Please use this link to let your voice be heard: http://www.contactingthecongress.org/
Caldwell, L. A. (2012, December 31). It's offical: Deal Reached on "Fiscal Cliff". Retrieved December 31, 2012, from CBS News.com: http://www.cbsnews.com/8301-250_162-57561465/its-official-deal-reached-on-fiscal-cliff/
Jennifer dances on poles and sports lingerie in her new movie.See her hot bod