Here the bottom line. This deal does absolutely nothing to address the outrageous spending that’s going on in this country. It won’t improve the economy and these Washington idiots on both sides of the aisle are not gonna get the revenue they expect to get by raising taxes. Both side were playing to public for fools, but some of us aren’t that stupid.
Three hours shy of the midnight deadline, the White House and congressional leaders reached a deal to avert the so-called fiscal cliff, several sources confirmed to The Huffington Post.
Under the deal brokered by Vice President Joe Biden and Senate Minority Leader Mitch McConnell (R-Ky.), Congress would permanently extend the Bush income tax cuts at $400,000 and below, keep the estate tax threshold at $5 million and extend unemployment benefits for one year. It would also temporarily delay the sequester -- i.e., billions of dollars in across-the-board spending cuts -- for another two months.
The cost of continuing current spending levels will be paid for through an even mix of tax revenue increases and later spending cuts. Half of those cuts will come from defense spending; half will come from nondefense spending.
The deal includes other tax provisions as well: It extends the child tax credit and the college tuition credit for five years, individual and business tax extenders for two years, and the Medicare "doc fix" for one year. The Alternative Minimum Tax will be permanently fixed.
The agreement also extends the farm bill for one year.
The deal still requires buy-in from members of both parties, and Biden was set to meet with Senate Democrats Monday night to try to sell them on the package. That could prove challenging given that key progressive groups, including the AFL-CIO, made it clear earlier Monday that they would oppose any deal that raised the income limit for extending the Bush tax cuts above $250,000.
Still, both Senate Majority Leader Harry Reid (D-Nev.) and House Minority Leader Nancy Pelosi (D-Calif.) gave the deal their blessing Monday night in a phone call with President Barack Obama, sources confirmed.