A last minute ‘fiscal cliff’ deal that was hashed out by the White House and the House of Representatives has passed in the Senate. The bill, dubbed the “American Taxpayer Relief Act of 2012,” preserves the Bush-era tax cuts for all taxpayers except individuals earning more than $400,000 per year and includes spending cuts while preserving programs such as unemployment benefits. However; the bill is set to go before the House next and there are ominous signs that it might face resistance from House Republicans when it is voted upon.
“This Congress unfortunately has been most known for an unwillingness to compromise, an unwillingness to come together to act on behalf of the American people,” said House Democratic Whip Steny Hoyer. “Today is Jan 1st. Taxes will be going up on everybody in America if we don’t act.”
“This is not a good deal,” said Rep. Steve LaTourette of Ohio. “This is a sad state of affairs; that we’re going to take a bill that was passed on New Year’s Eve by some sleep-deprived octogenarians that has very, very heavy on taxes and does nothing to cut spending, which is really part of the big problem that we have in the country.”
Even some Democrats have expressed dissatisfaction with the bill, pointing out that it falls short of Obama’s earlier commitment to raise taxes on those making $250,000 or more per year. Democratic Senator Tom Harkin, D-Iowa lamented that the deal “makes tax benefits for high-income earners permanent, while tax benefits designed to help those of modest means and the middle class are only extended for five years.”
“There’s more work to do to reduce our deficits,” said President Obama, “and I’m willing to do it. But tonight’s agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans.”
