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Do You Like the Fiscal Cliff Deal?

The agreement reached between the White House and Congress doesn't address spending cuts and leaves another potential debt limit showdown on the table. It also increases taxes on income over $400,000. Is this a deal that works for you?

After a marathon holiday negotiation session, after grumbling by liberal senators and after a near-revolt by conservative representatives, the fiscal cliff deal was approved by the U.S. House of Representatives late Tuesday night. 

The bargain will increase taxes on income above $450,000 for families, increase capital gains taxes, permanently fix the alternative minimum tax, change the estate tax and provide some changes in deductions. It also will extend unemployment benefits, earned income tax credits and other tax breaks for the working class. The Washington Post has a cheat sheet with all of the details.

Middle class taxpayers will still see a smaller paycheck in 2013; The payroll tax cut was not preserved as part of the fiscal cliff deal. That tax specifically pays into social security. If you make $50,000 a year, the payroll tax increase will cost you about $1,000. That has some liberal economists upset with the deal.

What do you think? Did the president give away the store by moving the top bracket tax increase from $250,000 to $450,000? Did House Republicans lose out by pushing spending cuts down the road by two months? Or is the sort of compromise you were waiting for? Tell us your thoughts in the comments section below.

Steve McMahan January 02, 2013 at 07:56 PM
This will do exactly what we don't need right now - stall the economy. All they want to talk about the people making north of $450K should pay more, while trying to push to the side the fact that people making $50K or above are getting whacked for another $1000+. Just Washington being Washington I guess.
Pat January 03, 2013 at 12:42 PM
The last thing we need right now is less money in our paychecks! Less money to spend, recession continues on and on! I suppose it could have been worse but any tax increase right now does not help the consumer!
Dan Byer January 03, 2013 at 01:32 PM
I'd have rather gone over the cliff and seen a real battle instead of settling for this pile of garbage. Instead, Obama caved to these economic terrorists AGAIN. Status quo is NOT why you were reelected, Mr. President.

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