By Aaron Joseph. Working into the wee hours of early New Year’s morning, the US Senate passed an ‘imperfect’ tax bill that will prevent the economy from going over the fiscal cliff. Next up, the bill must be voted upon in the House of Representatives.
Technically, all the Bush era tax cuts expired last night at midnight and taxes went up on all American’s, as well as the limitations on nearly all Federal entitlement programs. With the passage and implementation of this bill there will be no negative ramification of having missed the midnight deadline.
The “Fiscal Cliff” bill in essence is a budget bill for the United States government. Each year, congress is required to pass a budget bill. Recent political rancor, and what is recognized as rudderless leadership from the executive branch of government, has caused the budget argument to polarize the entire Congress.
To be fair, Vice-President Joe Biden was called to the Senate late last night to help broker, and finalize the deal. This, after the President held a mid-day Dec. 31st press-conference filled with bitter comments aimed at the senate.
Key pointers between the Republican and Democratic parties are Downsizing the 14 trillion dollar deficit, tax rates, and payment sizes and costs of the various Federal welfare programs and entitlements.
The “Fiscal Cliff” bill would allow tax rates to go up only upon families earning a joint income of more than $450,000, or for singles, $400,000. It would also prevent. The president was demanding that the taxes go up upon all American’s making more than $250,000 Joint, or $200,000 single.
As well, the Estate Inheritance tax would only effect properties worth more than $5,000,000. The Democrats (President wanted no cap). Also, Federal programs and welfare entitlements would be extended.
The bill heads to the US House of Representatives today to be voted upon.