There are a lot of layers to this so-called "Fiscal-Cliff Deal". I like how these politicians waited till the last minute, like 6th graders with a book report due the next day. While everyone is distracted by the holiday, they strike a deal. I am always suspicious of these last minute agreements.
First of all, one of the most corrupt politicians in the U.S., Mitch McConnell, brokered this deal with Vice President Biden. Why was Harry Reid taken out of the conversation?
Second, this deal has once again, kicked the debt ceiling can down the road, which means another siege of tantrums and crying by politicians who don't care about doing the right thing.
Third, is the dark horse, Congress, that brainiac, "Plan B" Boehner can't control, they are going to have to approve this. There is already pushback. The holdouts that won't raise taxes on anybody ever. They might be considering this "deal", but their first considerations are always their own hides.
Taxes are going to go up for everyone no matter what is said and done. The payroll tax cut for the middle class will end. People making over $400,000 will be taxed 39.6% up from 35%.
I don't know how much offshoring people with $400,000-$450,000 do with their money. But one thing I'd like to know, is how are we ever going to get millionaires cash that's flowing to offshore accounts? Behold, FATCA, a new magical rule whereby the IRS requires offshore banks to report all U.S. account holders. So far only 7 nations have agreed to this. Doesn't seem terribly promising. FATCA goes into effect today.
Unemployment insurance was extended, as it should be, since Republican foolishness has kept the recession grinding on. The economy is improving little by little, in spite of them.
While the confetti is still falling and the back slapping continues, there is great relief all over the land.
However, something else might be trickling down. Congress, who lives in fear of the next election. They must be crapping themselves. What to do? Raising taxes could be very bad for Fright Wing political careers. John Boehner said on Nov.7, 2012 that, "The American people have also made it clear, there is no mandate to raise taxes".
Get out the Kleenex, because there's going to be a lot of crying, gnashing of teeth and carrying on.