Plan B Forum

He should have kept the limit at $250,000. Anyone making that amount is rich by the standards of anyone in the bottom 50% of US households (who make less than 1/5th that amount) and keeping that limit would raise more revenue to reduce the deficit.


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http://news.yahoo.com/ap-sources-fiscal ... nance.html

AP Sources: 'Fiscal cliff' deal emerging


President Barack Obama gestures as he speaks about the fiscal cliff, Monday, Dec. 31, 2012, in the South Court Auditorium at the White House in Washington. The president said it appears that an agreement to avoid the fiscal cliff is "in sight," but says it's not yet complete and work continues. (AP Photo/Charles Dharapak)


WASHINGTON (AP) — Working with Congress against a midnight deadline, President Barack Obama said Monday that a deal to avert the "fiscal cliff" was in sight but not yet finalized. The emerging deal would raise tax rates on family income over $450,000 and individual income over $400,000 a year, increase the estate tax rate and extend unemployment benefits for one year.

"There are still issues left to resolve but we're hopeful Congress can get it done," Obama said at a campaign-style event at the White House. "But it's not done."

In the building New Year's Eve drama, the parties still were at an impasse over whether to put off the automatic, across-the-board spending cuts set to take effect at the beginning of the year and if so, how to pay for that.

One official said talks were focused on a two-month delay in the across-the-board cuts but negotiators had yet to agree on about $24 billion in savings from elsewhere in the budget. Democrats had asked for the cuts to be put off for one year and be offset by unspecified revenue.

The president said that whatever last-minute fixes are necessary, they must come from a blend of tax revenue and constrained spending, not just budget cuts.

And a little more than an hour after Obama spoke, Senate Republican leader Mitch McConnell said it was time to decouple the two major issues.
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yrs,
rubato

$250,000 is not rich in the north east especially Long Island and New York City. Check the costs in this area before a blanket reject.

That's also $250,000 per couple, I believe the limit for individuals was intended to be $200,00 --- still not even close to rich in the Northeast or other parts of the country -- but yes, much better off than many many others.

I think the point is not that increasing taxes marginally on high earners will throw us into (or keep us in) a recession, but rather that this is a silly ploy, intended to divert attention from the Real Problem, which is out-of-control Federal spending.

The pity is that the politicians representing both parties are addicted to profligate spending, and the only difference is the people who will benefit most. Defense will apparently get more than it even asked for, despite the fact that everyone involved claims we are standing down.

Fortunately, I will only be paying significant income taxes for a short while longer.