Where do I begin with Vice President Joe Biden and Sen. Maj. Leader Mitch McConnell working on a compromise for the “fiscal cliff”? Or should I be more radical and quote Malcolm X and say we are being “Hoodwinked”! Nah, I will just give you my “Thought Provoking Perspective”. Minorities, particularly people of African American decent have been over the cliff since August of 1619!
Let me speak to the point; it is neither our president nor the Senate, any emerging agreement will be damaged by the Tea Party lead House of Representatives. An alleged deal was proposed that would prevent the automatic spending cuts and tax increases that technically went into effect at 12AM last night. Last night a proposed deal passed the Senate 89-8 vote where as of this writing the bought and paid for House the House of Representatives disagrees and over the cliff we go.
The Senate fiscal cliff deal includes the following important provisions:
- Bush Tax Cuts – The deal would maintain tax cuts for individuals earning less than $400,000 and couples earning less than $450,000. It would also push the capital gains tax rate to 20 percent for individuals earning over $400,000 and families earning over $450,000.
- Unemployment Protection – Federal unemployment insurance would be extended for one year under last night’s compromise.
- Payroll Taxes – The payroll tax cut, which benefits working men and women, would expire as part of this compromise. Republicans, who favor tax cuts for the rich, have always opposed this tax cut, which benefits wage earners.
- Stimulus – As part of this compromise, three credits will be extended for one year; the Earned Income Credit, America’s Opportunity Credit, and Child Tax Credit.
- Estate Tax – The estate tax, which was set to revert back to its Clinton levels, where it was taxed at 55 percent tax rate, will get an exemption of $5 million and a 40 percent rate after that.
- Itemized Deductions – – Itemized deductions would be capped for those making $250,000 and for married couples making $300,000.
The bill faces an uphill battle in the House of Representatives, where some Democrats and Republicans oppose the bill. One is most striking about the bill is how it ends the payroll tax credit, one of the only credits which directly benefits American workers. The Working Pay Credit, another credit for working Americans, was ended in 2010.
The Republican House’s refusal to compromise on this issue for the American people, the economy, and the good of the nation is tantamount to a crime that should be prosecuted under the RICO Statute. I don’t claim to be anything of a political scholar. Rather, just a man with the ability to reason and use common sense. You can bet it will be the least of thee who will lose.
Therefore, I say the hatred for the president should not be significant enough to destroy the lives of millions of American families. And that’s my Thought Provoking Perspective…
Knowledge is the gift that keeps on giving.