May 18, 2013
A ‘Manufactured Non-Solution’ to a ‘Manufactured’ Crisis (Video)
Posted on Jan 2, 2013
Phony-baloney tax cuts, a delay in spending reductions, an increase in the deficit and lots more work to be done—Heidi Moore at The Guardian details the fiscal cliff solution that isn’t.
Though the Senate allowed the Bush-era tax cuts to rise for people earning $450,000 and more, Americans began paying higher taxes through their paychecks Jan. 1 because Congress let the payroll tax lapse, raising the levy from 4.2 percent to 6.2 percent. The cost amounts to $1,000 per year for people earning $50,000 annually.
Additionally, the spending cuts that were threatened by the so-called fiscal cliff have been kicked down the road two months, to a deadline that coincides with the time the U.S. will hit its debt limit.
“The result: the new fiscal cliff will have even higher stakes,” Moore writes, “as the U.S. could spend the next two months wrestling with even greater potential economic disaster, and a more dire impact on the markets. Now, it’s not just some spending cuts that are on the table; it’s the full faith and credit of the U.S. government.”
—Posted by Alexander Reed Kelly.
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