As daylight begins to shine on the fiscal cliff deal just passed by Congress, it's clear the expected bipartisan betrayal has occurred. And it lays the groundwork for much more to come.
In brief, the deal protects wealthy households earning up to $450,000 annually from tax increases, as it makes Bush tax cuts permanent for 98.5 percent of Americans. With this provision, President Barack Obama broke his promise to raise taxes on those earning more than $250,000 per year.
The deal also ended the payroll tax holiday, hitting vulnerable working and middle class families with significant tax increases likely to take further steam out of the economy. This increased tax burden of about $1,000 for a family earning $50,000 per year should have been replaced by another tax break for working families to prevent a reduction in demand that's likely to further stall the ailing economy.
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Jill Stein
The deal also ushered in an additional $205 billion in wasteful corporate tax favors. New racetracks will get tens of millions, Goldman Sachs gets $1.6 billion in tax-free financing for its new massive headquarters, banks get a $9 billion loophole for offshore financing, and U.S. multinationals are allowed to dodge taxes on income earned by foreign subsidiaries giving them all the more reason to move jobs offshore.
Taking care of ill family members at home was dealt a setback with a provision being repealed in the Affordable Care Act designed to let millions of elderly and disabled people get help at home rather than be placed in institutional care.
The deal included an urgent renewal of unemployment insurance, though many observers considered this was virtually a given. It also deferred the self-inflicted devastation of the sequester, which would impose $110 billion in across-the-board domestic and military cuts for two months.
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Reach Jill Stein for President, U.S. Post Office Box 260217, Madison WI 53726-0217 or go to JillStein.org
In supporting the bill, President Obama gave away the one bargaining chip - the expiring Bush tax cuts - he could have used in negotiations on spending cuts and the debt ceiling. He received little of substance in return. He actually ceded nearly half the $1 trillion in new revenue that John Boehner agreed to, (getting only $600 billion in tax increases on the wealthy over the next decade).
This lays groundwork for a disaster. President Obama has already agreed to $4 trillion in deficit reduction. The revenue side of the deal he just signed generates little more than $600 billion. That means we can expect bipartisan collaboration on more than $3 trillion in cuts going in to the next round of brinksmanship over the debt ceiling.
President Obama has already indicated his willingness to cut Social Security, Medicare and other health programs. Now, thanks to his early capitulation, the Republicans have all the cards in their hands.
Our voices are needed more than ever to continue the fight for strong Medicare, Social Security and Medicaid and for an economy that works for all of us. Once again we're seeing that real solutions will not be coming from the corporate-sponsored political establishment.
Reach Jill Stein for President, U.S. Post Office Box 260217, Madison WI 53726-0217 or go to JillStein.org
