Sigh. The Republicans were, once again, played for suckers by the President, the Democrats and the Democrat media. * "According to the Congressional Budget Office, the last-minute fiscal cliff deal reached by congressional leaders and President Barack Obama cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts." (Matthew Boyle, Breitbart)
* "The budget deal passed by the U.S. Senate today would raise taxes on 77.1 percent of U.S. households, mostly because of the expiration of a payroll tax cut, according to preliminary estimates from the nonpartisan Tax Policy Center in Washington. More than 80 percent of households with incomes between $50,000 and $200,000 would pay higher taxes. Among the households facing higher taxes, the average increase would be $1,635, the policy center said." (Richard Rubin, Bloomberg)
* Everyone's paycheck is about to take a hit, and it's not the boss' fault. But some business owners say it's a tough talk to have.
The rate of workers' payroll taxes, which fund Social Security, has been 4.2% for the past two years. As of Jan. 1, it's back to 6.2%, on the first $113,700 in wages.
That forced Mike Brey, who owns four Hobby Works shops near Washington, D.C., to notify his store managers about the upcoming change during a conference call Monday. He called the experience uncomfortable. "These are the people who can least afford it," Brey said.
Brey said he can't raise compensation to ease the pain. Enduring the recession meant cutting his own salary, firing workers, taking on half a million dollars in debt and raiding his own 401(k).
"Any business that survived the recession did so by digging a big hole," Brey said. "We can't dig any deeper." (Jose Pagliery, CNN Money)
* "The Senate deal to avoid the 'fiscal cliff' will add roughly $4 trillion to the deficit when compared to current law, according to new numbers from the Congressional Budget Office (CBO)." (Peter Schroeder, The Hill)
* ‘Fiscal Cliff’ Deal Also Doles Out Millions for Hollywood, Railroads, Rum Producers (ABC News)
* “I appreciate all the hard work that went into avoiding the so-called 'fiscal cliff.' I especially commend Senator McConnell's efforts to make the best out of a bad situation. Nevertheless, I cannot support the arrangement they have arrived at. Rapid economic growth and spending reforms are the only way out of the real fiscal cliff our nation is facing. But rapid economic growth and job creation will be made more difficult under the deal reached here in Washington."
“Thousands of small businesses, not just the wealthy, will now be forced to decide how they'll pay this new tax, and chances are they'll do it by firing employees, cutting back their hours and benefits, or postponing the new hire they were looking to make. And to make matters worse, it does nothing to bring our dangerous debt under control."
“Of course, many Americans will be relieved in the short term that their taxes won't go up. However, in the long run they will be hurt when employers pass on to them one of the largest tax hikes in decades. Furthermore, this deal just postpones the inevitable, the need to solve our growing debt crisis and help the 23 million Americans who can't find the work they need.” (Senator Marco Rubio)
