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Senate-Passed Deal Means Higher Tax on 77% of Households
By Richard Rubin
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. A 2 percent payroll tax cut, enacted during the economic slowdown, is being allowed to expire as of yesterday.
The heaviest new burdens in 2013, compared with 2012, would fall on top earners, who would face higher rates on income, capital gains, dividends and estates. The top 1 percent of taxpayers, or those with incomes over $506,210, would pay an average of $73,633 more in taxes. Continue: Senate-Passed Deal Means Higher Tax on 77% of Households, Bloomberg >
As Paul Price noted in The Ultimate Buy (Votes) Now, Pay Later (with OPM) Presidency, the 2% FICA (payroll) tax holiday, which funded an increase in consumer spending two years prior to the presidential election, was likely to end. "If any part of tax relief does not get extended, this 2% temporary cut might be sacrificed as it brings in big money and there are no more big elections for two years." Sure enough, that tax holiday is over.
Every temporary tax cut will ultimately convert to a tax increase upon its expiration.
Obama might argue that he didn't raise taxes on the 77% of households whose taxes will go up as a result of the 2% FICA tax holiday expiring.
Zero Hedge: And The Winner Is…
They came; they spoke; they voted…
- *CANTOR VOTES NO ON BUDGET BILL
- *PAUL RYAN VOTES YES ON BUDGET BILL
- *BOEHNER VOTES YES ON SENATE BILL
- Republicans: Yea 85 – 151 Nay
- Democrats: Yea 172 – 16 Nay
'Cliff'-Off (for now)…'Debt-Ceiling'-on. Time to start buying March vol steepeners? But the bottom line is simple: the Bush tax cuts are dead. Long live the Obama tax cuts.
ALL TAXES, NO CUTS: HOUSE ACCEPTS SENATE 'DEAL'
By MIKE FLYNN
Tonight, the House voted to accept the Senate amendments to House Resolution 8, setting in motion the enactment of the McConnell-Biden brokered deal to avert the "fiscal cliff." The House will next hold a quick vote to pass the underlying resolution. The House GOP caucus voted against the proposal by almost a 2-1 margin. The measure secured a healthy 250 votes for passage because of overwhelming support from Democrats.
SOURCES: ENOUGH REPUBLICANS WILLING TO UNSEAT SPEAKER BOEHNER
American Majority Action spokesman Ron Meyer told Breitbart News late Tuesday that enough House Republicans have banded together in an effort to unseat House Speaker John Boehner from his position–they just need a leader to take up the mantle.
“At least 20 House Republican members have gotten together, discussed this and want to unseat Speaker Boehner–and are willing to do what it takes to do it,” Meyer said. “That’s more than enough to get the job done, but the one problem these guys face is they need a leader to coalesce behind.”
