Cliffhanger: How Far Will You Fall if There's No Deal in Washington?
It should be a drinking game for as much as we've heard the term 'fiscal cliff' since the polls closed in November, but what does it mean for your paycheck?
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With hours left in 2012, it's still uncertain whether an agreement will be reached between Republicans and Democrats that would avoid having the country go over the dreaded "fiscal cliff" tax increases for just about everyone.
An impasse between congressional Republicans and the White House centers over just whose taxes will go up — with the president indicating those who make $400,000 or more should see their tax rates go up, while Republicans are pushing for no increases at all, or hikes for just those making more than $1 million. Spending cuts have also remained a sticking point between the two parties.
The hike will come at midnight as tax cuts from the Bush administration set in 2001 and 2003 will expire, increasing everyone's income tax rates. Another $110 billion in automatic cuts to domestic and military spending — the result of the 2011 standoff over raising the federal debt ceiling — will start to kick in, according to a report from CNN.
According to the nonpartisan Tax Policy Center, those in Wisconsin making between $20,000 and $40,000 could pay more than $1,200 in additional taxes if the national falls off the "fiscal cliff." Those making between $40,000 and $65,000 will pay almost $2,000 more. Upper-middle-class workers taking in almost $110,000 will see $3,500 less per year.
Patch's media partners at FOX6 News talked with Mordecai Lee, UW-Milwaukee Professor of Governmental Affairs, who said: “This is the total breakdown of what is the essence of politics. The essence of politics is solving problems — making it from ‘A’ to ‘B’ no matter what the obstacles are."
In addition if a deal is not reached by Tuesday, almost 40,000 unemployed in Wisconsin will see no income, as unemployment benefits will end for those who have received checks for more than 26 weeks.
Just what kind of affect would falling off the "fiscal cliff" have on your pocketbook? To find out, check out this tax calculator from the Tax Policy Center.
Bob McBride
12:38 pm on Monday, December 31, 2012
Why should we worry? If they can get this done there must be nothing to worry about...
http://www.huffingtonpost.com/2012/12/28/obama-pay-raise-congress_n_2377714.html?utm_hp_ref=politics
FreeThought Troy
1:25 pm on Monday, December 31, 2012
Wow...
I wish I could get a raise for two weeks working - one week off, constant bickering with my co-workers and not actually getting anything accomplished.
Then leaving for a Christmas Vacation while my "company" is going bankrupt statinig it's someone else's problem when one of the first lines in my job description state it is not
John Boehner. Worst. Speaker. Ever.
Bob McBride
1:32 pm on Monday, December 31, 2012
Yeah, just ignore the guy who signed off on this. He's wonderful.
Randy1949
12:49 pm on Tuesday, January 1, 2013
@Bob McBride -- Nope: http://www.huffingtonpost.com/2013/01/01/fiscal-cliff-deal-_n_2392533.html?utm_hp_ref=politics
Bob McBride
1:14 pm on Tuesday, January 1, 2013
That article is about as clear as mud.
According to that, if they pass measures to avoid the fiscal cliff, they block a pay hike for Congress. However, Obama's signed off on them and Crazy Joe and some other low-productivity employees getting the raises anyways. Even if you take the first sentence to be correct in light of what Obama has signed off on, it appears only Congress won't get the raise.
I'll wait until something with a little more detail pops up before deciding that all those folks, from the top banana on down, won't take care of their own concerns first and foremost.
Randy1949
1:23 pm on Tuesday, January 1, 2013
True. It's also unclear (at least as of my most recent info) that the House will pass the 'Deal'.
But my understanding of the pay raise for Congress was that it was part of a pay raise for all federal employees. Why penalize the grunts while Congress was/is sitting on its collective behind? Should the President have vetoed the pay raise for everyone?
Bob McBride
1:29 pm on Tuesday, January 1, 2013
We aren't exactly swimming in extra bucks. I say, yes, freeze all pay increases until we start getting our house in order. If we're not running efficiently as a whole then no one should be getting raises just because they've managed to stay OTJ for a certain amount of time. Develop some efficiencies, start saving the taxpayer some money and show some movement in the right direction and maybe we can revisit merit raises at that point in time. For now we're in the middle of a "crisis". We shouldn't even be thinking about raises at this point in time.
Steve ®
1:38 pm on Monday, December 31, 2012
Obama needs taxes to go up on all to feed his union donor payback addiction. He is 100% incapable of generating revenue by growing the economy. That is if he even would want that in the first place. Someone working hard and getting rich isn't fair, or just and we need to take that to give to those we feel are are more fit.
Bren
2:04 pm on Monday, December 31, 2012
Steve, the economy has been improving, although slowly. I'm not sure what's not fair about working hard and getting rich, unless it's by cheating on taxes and/or exploiting employees, offshoring jobs, or conducting in unfair business practices that undermine the level playing field. That's sort of unfair.
Steve ®
3:55 pm on Monday, December 31, 2012
One comment we're in a recession, the other we're improving. Stay consistent here Bren.
So why does he need more money from those that earn it? Why can he not budget with what he is receiving, or try and generate more with growth?
Bucky
4:07 pm on Monday, December 31, 2012
Most people that are getting rich are not hard workers, if they even work at all. Others that are mannualy working may be filling their pockets.
Steve ®
1:25 am on Tuesday, January 1, 2013
Another brilliant post by Bucky. The blue fister that keeps on giving.
Bren
2:02 pm on Monday, December 31, 2012
We're all going to have to pay a lot more attention to politics from now on, and force the "mushrooms" to do the same. It's clear that both parties have a lot of dead wood. They get away with all this crapola because people keep voting so many of these politicians back into office without expecting any accountability. Let's make 2013 the year that the b.s. stops. I plan to contact my elected officials in D.C. and let them know they had better figure this out correctly (not attacking social programs) and fast, otherwise I will be donating to their opponents in the next election.
I understand that wage freezes and increased work loads do little for morale, but the morale of the larger citizenry has to take precedence. For the work Congress has done, they should be turning in their paychecks, not getting a raise.
FreeThought Troy
2:16 pm on Monday, December 31, 2012
I also think someone needs to sit the TeaPublicans down and explain compromise doesn't mean walking away from the table and saying no to each and every proposal handed to them. The definition of negotiation IS NOT, give an inch, deny the foot then pout and cry when not everything wanted is offered - even if it's what your constituents want.
Steve ®
3:57 pm on Monday, December 31, 2012
You can't balance this Obama budget with tax increases, there just isn't enough money in the system. Cuts must happen, something the dems refuse to be serious one.
Randy1949
12:54 pm on Tuesday, January 1, 2013
We can't balance the budget with cuts to social programs and entitlements either, something the GOP refuses to acknowledge. You ready for some cuts to defense spending?
morninmist
3:26 pm on Monday, December 31, 2012
I read that the House will not consider any bills tonight.
TheNewDeal @TheNewDeal 2m
Republicans Hate Obama More Than They Love America. They Will Screw Us All to Spite Him.... They Just Did. #FiscalCliff #p2
morninmist
3:27 pm on Monday, December 31, 2012
POLITICO @politico
Breaking: The House is not scheduled to vote on any fiscal cliff package on New Year’s Eve.
morninmist
3:35 pm on Monday, December 31, 2012
http://bigstory.ap.org/article/house-wont-vote-midnight-cliff-deal
House won't vote before midnight on 'cliff' deal
Dec. 31 4:19 PM EST
House won't vote before midnight on 'cliff' deal
WASHINGTONCopyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.38.8951-77.0364
WASHINGTON (AP) — The House will miss the midnight Monday deadline lawmakers set for voting to avoid the "fiscal cliff."
House Republicans notified lawmakers that the chamber will vote Monday evening on other bills. They say that will be their only votes of the day.
President Barack Obama and Senate Republican leader Mitch McConnell said Monday they are near a deal to avoid wide-ranging tax increases and spending cuts — the fiscal cliff — that take effect with the new year.....
Both men said they were still bargaining over whether — and how — to avoid $109 billion in cuts to defense and domestic programs that take effect on Wednesday.
It remained unclear whether the Senate would vote Monday.
morninmist
3:36 pm on Monday, December 31, 2012
Looks like there was some sanity in the Senate while the TeaRepugs control the House!!
The Raw Story @RawStory 1h
News outlets are reporting that a Biden and McConnell agreed to a deal averting the #fiscalcliff: goo.gl/XBAMl
Steve ®
3:58 pm on Monday, December 31, 2012
1 Trillion in new taxes start Jan 1st due to Obama care.
You voted for it, now pay up
morninmist
4:00 pm on Monday, December 31, 2012
ah, the teabaggers got their widdle feelings hurt. Now they are stamping out of the chamers. what a bunch of crybabbies!
REVOLT! HOUSE GOP BACKLASH AT OBAMA
Republicans Furious – At Obama's Words!... 'Sounded Like A Slap In The Face'... CLIFF: No Vote In House Tonight...
http://www.huffingtonpost.com/
Patriot
6:49 pm on Monday, December 31, 2012
Not much different than the Fab 14.
Conspiracy T
5:01 pm on Monday, December 31, 2012
Logistically speaking, it is highly unlikely that both chambers can pass anything by midnight, after which the more than $500 billion in tax hikes are set to start kicking in, followed by sweeping spending cuts.
Read more: http://www.foxnews.com/politics/2012/12/31/lawmakers-struggle-to-produce-fiscal-deal-as-ball-drop-set-to-ring-in-tax-hikes/#ixzz2Gfo9RPsa
How exactly is that a Republican thing? Sounds like both sides need to smacked around by the citizens of this country.
Craig
7:17 pm on Monday, December 31, 2012
The 2% FICA tax break should never have been implemented to begin with. Extending the Bush tax cuts can be done months from now without any real adverse effects. The Treasury can fudge the numbers for about two months, so in reality the cliff is not 1/1/13...more like 3/1/13.
If they stop filling Quest Cards and paying unemployment, then we may have the American equivalent of an Arab Spring.
Just remember if people start to riot and kill each other- those in Washington DC are responsible, and please don't claim it is Bush's fault.
jbw
12:27 am on Tuesday, January 1, 2013
Yeah, I'm not sure who expected SS contributions to be cut in half permanently, unless they are for abolishing the whole thing.
Food is the most important thing to placate the populace, followed by TV, booze, drugs. That is what the whole food stamp set of programs is about, right? I'd appreciate a heads-up before our government decides to let the cities burn.
I'm curious though, does Arab Spring resemble Irish Spring, or does it smell like teen spirit?
jbw
12:19 am on Tuesday, January 1, 2013
OMG, er, OM-! I just went over the freakin' cliff!!! I guess I'm dead now. Well, I'm going to take care of a little more work, have a snack, and go rest in peace.