You knew it was going to happen. The fiscal cliff was just a tool for getting the GOP to go along with huge tax increases.
The “deal” — more of a mugging, actually — conjures $15 billion in cuts while giving the Man Who Would Be King and the Democrats $620 billion in new tax revenues.
Now don’t be fooled by any of those numbers. That $15 billion in “cuts” won’t happen. The cuts have not actually been made as part of the deal. They’re just future cuts on paper, which means they will be forgotten the day after the press stops covering the “deal,” which will be day after tomorrow.
And just in case you’re on the Left and you’re thinking, “yay, $620 billion in new revenues,” that’s not going to happen either.
It’s simply a fact that the more government raises taxes, the more the economy that produces those tax revenues slows. Thus, higher taxes are a losing game all around, for consumers and for government.
The cliff deal is being touted as preventing tax increases for most Americans, but the deal doesn’t do anything to stop the expiration of the temporary reduction in Social Security payroll taxes. That means in 2013, the typical family earning $50,000 to $75,000 will pay an additional $800 or so, according to the Tax Policy Center.
According to the Congressional Budget Office, the cliff deal will add almost $4 trillion to the federal deficit over the next 10 years. That’s in political math, however. In realistic terms, that means the government will continue to spend the same outrageous amounts of money while not raising taxes enough to theoretically cover the overspending — not that it ever could.
And there is some very odd spending included in the fiscal cliff package. Among the greasier bits of pork: safety equipment and training for private mining companies; subsidies for Hollywood films; money for NASCAR racetracks; $9 billion for Wall Street banks; money to promote electric scooters; and cheaper office space for Goldman Sachs.
The deal keeps the Bush tax cuts for most people earning under $400,000, but if you’re self-employed, you’re getting the shaft because your top tax rate is going up from 40 percent to 50 percent, according to CNN’s Ari Fleischer. If you live in a high-tax state like California, combined state and federal taxes will push the top self-employment rate to 60 percent.
So the upshot of the deal is that your taxes will go up if you work for someone else, they’ll go up even more if you work for yourself, and if you fit either of those categories and are very successful, then you’re really screwed.
But the “good” news is — filtering reality through the White House official baloney spin machine — your taxes aren’t going up nearly as much today as Obama will want them to go up tomorrow when the projected revenues fail to appear.