“Fiscal Cliff” Deal Passes Senate After Midnight

“Fiscal Cliff” Deal Passes Senate After Midnight

With just a few hours in to 2013, the Senate approved the much talked about deal to avoid the “fiscal cliff” tax hikes and budget cuts, budget cuts that would especially affect social programs.

With the decision coming technically too late, as it was voted on at about 02.07 a.m., and also considering that the House of Representatives could not take up the measure until late on Tuesday, major panic on the stock market was avoided thanks to speedy action by the lawmakers and to the fact that markets were closed on New Year’s Day.

While the "fiscal cliff" deal is viewed as “imperfect” by most politicians, all could agree that it was a better move than allowing tax increases across the board.

The deal has as a main component the protection of “middle class” citizens, as "fiscal cliff" tax increases only apply to individuals with an income above $400,000 and households who earn more than $450,000.

All this is coupled with reduced tax exemptions and deductions for the wealthier Americans, and a serious increase in taxes on inheritances over $5 million from 35% to 40%.

These measures would protect about 2 million people who receive unemployment benefits, doctors who treat Medicare patients, and countless Americans who would have had to pay the Alternative Minimum Tax.

Both parts agreed, however, that negotiations aren't closed as this is not the final form of the “fiscal cliff” law.

Posted by James Fried on Tuesday January 01 2013, 6:20 PM EST. Ref: Yahoo. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0