For now, it seems that the fiscal cliff crisis has been temporarily adverted. The Senate and House approved the American Taxpayer Relief Act of 2012, which has prevented old budgeting from sending the country hurtling down the Fiscal Cliff.
But don’t get too excited. The battle isn’t over and in some ways it’s just beginning. The new deal, which is designed to keep our economy from another recession, increases taxing on the wealthy but has temporarily halted many changes in government spending.
In further detail, here’s what some of the new bill entails:
- Tax rates will increase for taxpayers with incomes higher than $450,000
- Changes in estate taxing was adverted
- Middle class has an extension on stimulus tax cuts
- Capital gains taxes increase to 20% for high earners
- Some estimates say the deal will provide bout $600 B in revenue over the next 10 years.
However, there’s been no real agreement on what should be done about government spending cuts.Read More