US cuts partial 'fiscal cliff' deal | Bangkok Post: breakingnews

US cuts partial 'fiscal cliff' deal

Published: 1 Jan 2013 at 11.39
Online news:

WASHINGTON : The White House and top Republicans struck a deal to avert huge New Year tax hikes and spending cuts known as the "fiscal cliff" that had threatened to send the US economy into recession.

The pact would raise taxes on the richest Americans - those earning over $450,000 a year - but exempt everyone else, and will put off $109 billion in budget cuts across the government for two months, top congressional aides said.Vice President Joe Biden, who negotiated the deal with Republican Senate Majority leader Mitch McConnell, was on Capitol Hill to sell it to Democratic senators, a White House source added.Tax hikes and spending cuts were due to come into force on Jan 1. But as global markets, sure to be rocked by a failure to head off the fiscal cliff, are closed for New Year's day, lawmakers have time to vote the deal into law.A Senate vote was expected overnight on Monday while the House of Representatives was expected to follow suit on Tuesday after a display of dramatic New Year's Eve brinkmanship.The deal would mean a return to Bill Clinton-era tax rates for top earners to 39.6 percent, starting at a threshold of annual household earnings of $450,000 and above.Obama had originally campaigned for tax hikes to kick in for those making $250,000 and above and his acceptance of a higher threshold has already angered liberals, though still represents a political victory.The president said it would extend tax credits for clean energy firms and also unemployment insurance for two million people due to expire later Monday.It was also expected to include an end to a temporary two percent cut to payroll taxes for Social Security retirement savings and Medicare health care programs for seniors and changes to inheritance and investment taxes.The president angered Republicans in remarks in which he warned -- in what is certain to be a bitter fight over cutting the deficit -- that he was not...

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genii
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Discussion 7 : 01 Jan 2013 at 20.387
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If this were your household business what would you have to do to get things in order. The American taxpayers have let a bunch of money hungry politicans bankrupt the country. They just keep borrowing money and never pay off anything. The US credit rating will fall again shortly after this.
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pointman-1
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Discussion 6 : 01 Jan 2013 at 16.156
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Government mismanagement and being overly-deployed overseas, are two of the things that destroyed the Roman Empire. This is also part of the probelm in the USA. However, outsourcing jobs overseas and running huge trade deficits, has done terrible damage to the U.S. economy. If the United States, can restore its manufacturing base back inside the United States, and get government financial management under control, there's still hope for a bright future. The problem is, you can't spend like a drunken-sailor and get anything under control.
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onlyasking
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Discussion 5 : 01 Jan 2013 at 13.515
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If it was only the $16 T it would have been ok. But with the shortfall in SS and Medicare added it's closer to $80 T. If the US don't implement fundamental changes to it's fiscal and monetary policy they will trigger events that will make the 1930's look like a kindergarden party. Unfortunately I don't believe they have the political will to implement what is needed to change the course of events.
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packman
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Discussion 4 : 01 Jan 2013 at 12.464
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They voted for these budget cuts and tax increase and now they want to change everything. They need to get there act together. If we don't cut spending and increase taxes we are in the same boat we been in.
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geoffo
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Discussion 3 : 01 Jan 2013 at 12.243
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This is a warning to all Thais to stay well away from ideologues -whatever colour they are.
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jacksprat
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Discussion 2 : 01 Jan 2013 at 12.142
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The USA could do with some reconciliation too. Unfortunately, it is not coming from either party, especially since Obama no longer has to worry about reelection.
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borrocks
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Discussion 1 : 01 Jan 2013 at 12.021
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just kicked down the road for another 2 months while they continue to print $85 BILLION a month

America is in serious trouble and sadly this will end in tears for many around the World not just in the US
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