Capitol Hill Blue Forums Political Issues Politics In General Fiscal Deal e-update From Sen. Johanns

Senator Johanns e-Update
January 1, 2013

The Senate took the first step tonight in stopping our economy from going over the so-called fiscal cliff – a mix of upcoming tax hikes and automatic, across-the-board spending cuts. The package we passed was negotiated by Senate Republican Leader Mitch McConnell (R-Ky.) and Vice President Joe Biden.

I supported this agreement. I wish it would have done more to cut spending and strengthen programs like Social Security and Medicare, but I couldn’t ignore what it did do: Prevent a tax hike on an estimated 99 percent of Americans. The package also contained an extension of the current farm bill, which passed in 2008.



With the Senate’s overwhelmingly bipartisan vote, I expect the House of Representatives to take up the package in the next few days. Since no package will be signed by President Obama before the New Year, any final deal will likely take place retroactively so tax rates will continue uninterrupted for the overwhelming majority of American taxpayers.



Below are the details of the legislation that passed tonight by the Senate:

Permanently extends current tax rates for families earning less than $450,000 a year;

Makes permanent current capital gains and dividends rates for families earning less than $450,000 while changing the rate to 20 percent for families making more than $450,000;

Extends popular tax credits – like the tuition and child care tax credits – for five years;

Extends the current $5 million estate tax exemption but the tax rate on estates over that limit would change from 35 percent to 40 percent;

Prevents a 27 percent reduction in Medicare payments to doctors and other health care providers treating patients on Medicare;

Replaces two months of the approximately $100 billion across-the-board spending cuts known as sequestration scheduled to start in January;

Extends the current farm bill, which passed in 2008, through the end of this fiscal year;

Permanently patches the Alternative Minimum Tax. This tax was originally designed to prevent high-income earners from using exemptions to avoid paying income taxes but did not automatically adjust for inflation. Without patching the AMT, this tax would impact nearly 135,000 Nebraska households earning as little as $33,750 a year according to the Congressional Research Office.

What the Senate did tonight was just a step. More must be done and I will continue working to right our fiscal ship in the New Year by cutting spending and strengthening programs like Social Security and Medicare. The stakes are too high for us to put off the tough choices any longer.



I’ll keep you updated as Congress debates – and hopefully solves – these important issues.

from Yahoo politics The Ticket column 11:03 PM ET

Gosh

it is so horrible that this congressionally approved deal has no budget cuts....

Of course Obama put virtually the same deal on the on the table for speaker Boener.... the difference being that Obama's offer (the one Boener walked away from) included budget cuts.

By the way, in case no one noticed, the "deal" pushes off budget cutting discussion for two months.... which is a little beyond approximately one month time frame in which the the new debt limit impasse needs to be resolved.... go figure

Oh well. A new Congress gets sworn in on Thursday. Better luck next time.

Here is the real cliff off of which 99% of the country is being thrown. But, it'll be too late if you only notice when you hit the bottom.




Source: Census Bureau


Comment By STEVEN RATTNER
Emphasis added.

House Adjourns Without Taking Up Hurricane Sandy Relief Bill

Now is the time for your fears...
This is the F**k You poor and middle class people get.

TPM

Seems like the Senate had on the big boy pants. Majority and minority whips got everyone hunkered down and in line. Eight nays - I believe it was 3 Dems and 5 repubs.

Then came the circus.