Wednesday, January 2, 2013

President Obama's Spin Speech After Passage of “Fiscal Cliff” CRAP SANDWICH in U.S. House – Video 1/1/13

It's Pretty Obvious That Barack Obama Won The Fiscal Cliff Battle...OBAMA MAKES HIS WINNER'S SPEECH...THEN
Back to Vacation: Obama Takes Midnight Flight to Hawaii
The full text of the:American Taxpayer Relief Act of 2012, AKA the bill to avert the Fiscal Cliff.Why is it 157 pages?
barack obama fiscal cliff
This photo, taken by AP photographer Charles Dharapak before the President Barack Obama's statement Tuesday night, says everything about who won the first round of the fiscal cliff battle:

WATCH VIDEO
THE MAKINGS OF A 'CRAP SANDWICH'
Because in addition to the tax and spending stuff, there's all kinds of goodies, like extensions of credits for green energy, and all that stuff in there, that they always put in these things.
1. There's a provision extending a tax policy related to Puerto Rican rum.
2. And a tax credit for 2 and 3 wheel electric vehicles.
3. Something having to do with Diesel Fuel:
4. An extension of some special rules for the film and television business.
5. Some kind of gift to the car-racing world.
ALSO YOU HAVE THE TAX INCREASE IN PAYROLL TAXES Capital Gains and Dividend
Income taxes will stay at current rates for households making less than $450,000 per year ($400,000 for individuals).  This is a huge tax cut relative to the Fiscal Cliff tax rates, which would have increased taxes for everyone.
* Income taxes for income above $450,000 ($400,000 for individuals) will revert to the Clinton era 39.6% from the current 35%. These households constitute fewer than 1% of American households.
* Capital gains and dividend taxes for households earning over $450,000 will rise from 15% to 20%.  This income will also be hit with the 3.8% surcharge for Obamacare, so the full increase will be from 15% to 23.8%. For dividends, this is still a massive cut from the Clinton-era rates of 40%.
* Some tax deductions for households earning more than $250,000 will be phased out. So, on a net basis, taxes may rise for about 2% of American households.
* The payroll tax will likely revert back to 6.2% from 4.2% for the first $110,000 of income (per the Washington Post). This will effectively increase taxes on almost everyone.
* The estate tax will stay basically the same: The threshold for taxable estates will remain at $5 million, with a 40% tax rate over that level.
All of these tax rates would be "permanent," meaning that Congress would have to agree to change them. This is a big deal. Almost every fiscal agreement reached by Congress since the Bush tax cuts of 2001 has been scheduled to phase out at a future date.
* Some tax cuts for middle- and lower-income households would be extended for 5 years.  These include a child credit, the earned income tax credit, and a tuition credit.
* Unemployment benefits would be extended for one year.
All these changes are expected to raise about $600 billion in new revenue over 10 years versus current tax levels. That's obviously far less revenue than would be raised if the Fiscal Cliff tax rates were enacted.

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