Tuesday, January 1, 2013
Looks Like the Fiscal Cliff is Averted
The Senate passed a bill to avert the Fiscal Cliff. (See NY Times article here.) Assuming the House also passes it, the Bush tax cuts are permanent except for those making over $400,000. The sequester is postponed with promises of finding cuts that are not across the board, unemployment insurance time period is extended again, some tax incentives for "green" energy remain, and a few other minor details. All in all, it looks more like a stimulus bill than a bill related to the deficit. David Brooks' column today is good on how the politicians continue to refuse to make any tough decisions. He also says that the ultimate fault lies with we voters--we want things and are willing to pass the costs on to our children and grandchildren. I think he is right.