The Senate tax bill is just that -- a tax bill. It would extend the Bush tax cuts for a year for all but the top 2 percent of households, and limit the deductions they can take. It would bring the estate tax back to its 2001 level with a $1 million exemption and 55 percent rate. It would raise taxes on capital gains and dividends from 15 to 20 percent -- which is really 23.8 percent when you include the Obamacare surtax. And that's it. It wouldn't extend the payroll tax cut. It wouldn't extend unemployment insurance. It wouldn't undo the sequester. It wouldn't do the doc fix. It wouldn't start any new infrastructure projects. If you add up all of the things it doesn't do, it comes out to about 1.8 million fewer jobs in 2013 than in a world without the fiscal cliff.In other words, it's what they wanted...
It also adds up to quite a bit less take-home pay for everybody. While the Senate bill ostensibly only raises taxes on the top 2 percent, the expiring payroll tax cut means that the middle-class would get hit hard too.
Friday, December 28, 2012
The Plan That Isn't
So this is the Democrats' fallback for the fiscal cliff: