Our president is light years better than a Mitt Romney ever would have been. Count your blessings. Democrats and other progressive independents too do NOT betray a president that has worked his hardest for us under HUGELY difficult circumstances and often racist animus. He is, in my view, a SAINT and has the patience of Job!
The GOP did not want to raise income taxes on anyone.
The GOP wanted to tie deep spending cuts into any deal.
The GOP did not want to see extensions in key Democratic favored programs.
It did not get what it wanted.
It did get $150,000 increase in the tax ceiling, and it joined the democrats in supporting
The Dems did very well indeed (read on to find out how)..
Here is what the deal does:
A) All wage earners will see their payroll taxes return to 6.2 percent on earnings up to $113,700 in order to return the funding stream to Social Security and Medicare.
B) Individuals who earn more than $400,000 and couples who make more than $450,000 will see income tax rates increase from 35% to 39.6% For people at those income levels, tax rates on capital gains and dividends are expected to rise to 20%, up from 15%. In addition to the capital gain and dividend rates, health care reform will levy a new surtax of 3.8% on capital gains for wealthy Americans, pushing up the top capital gains rate to 23.8%.
C) Estate tax rates are poised to rise from 35% to 40% for estates valued at more than $5 million.
D) Creation of a permanent inflation "patch" that would shield millions of middle class taxpayers from the AMT (Alternative Minimum Tax that is supposed to guarantee that wealthy taxpayers pay a minimum amount of federal income tax, regardless of deductions, credits or exemptions. In essence, it is a flat tax with two brackets -- 26% and 28%)
E) Extended Measures/Programs:
- Unemployment extended for one year, preserving benefits for 2 million Americans who were at risk for losing benefits at year's end.
- The Child Tax Credit, Earned Income Tax Credit and Obama Opportunity Tax Credit (college tuition credits) will all be extended for five more years.
- One-year extension of the Research and Experimentation Tax Credit and Production Tax Credit, Alternative Energy Credits, along with an extension of the 50 percent Bonus Depreciation for businesses' capital expenditures.
- One-year extension of the DocFix current Medicare reimbursement rates, shielding participating doctors from a potential 27% cut in reimbursements.
AND...It would also temporarily delay the sequester -- i.e., billions of dollars in across-the-board spending cuts -- for another two months....when the debt ceiling debate will be a full force.
It will pass the Senate in a bipartisan vote and Boehner is going to have accept Democratic support in the House (which will weaken him). Not Bad.