◼ If the president and Congress don't reach an agreement, roughly $671 billion in tax increases and spending cuts would take effect — yet the nation would still continue to run a deficit nearly twice the size of the pre-recession 2007 deficit. - The Oklahoman Editorial
If the tax cuts first enacted under former President George W. Bush are allowed to expire due to fiscal cliff inaction, the income tax rate will jump from 35 percent to 39.6 percent for top earners (including many small-business owners) while those in the lowest income bracket face a tax increase of 50 percent. The marriage penalty will be reinstated, the child tax credit will be cut in half, the death tax rate will be as high as 55 percent, the capital gains tax rate will rise from 15 percent to 23.8 percent, and the top dividends tax rate will rise from 15 percent to 43.4 percent. In addition, several Obamacare-related taxes take effect next year, further impacting citizens.
Falling over the fiscal cliff also could result in nearly 30 million additional filers being hit by the alternative minimum tax, including some earning as little as $33,750, according to the IRS. The impact of those fiscal cliff tax increases would likely be felt by nearly all Americans in some fashion....
Yet even with everyone from the very rich to the relatively poor taking a (sometimes substantial) tax hit, the fiscal cliff's tax-and-spending changes would still leave the United States with a sizable deficit. The cliff involves about $671 billion in tax increases and spending cuts; the country is on pace for a fifth consecutive annual deficit of more than $1 trillion. That leaves a deficit of more than $300 billion.
This is the harsh reality of Obamanomics. Under this president, you could increase taxes on the rich, the poor, married couples, those with children, small business, big business and everyone in between, and slash defense spending — and you still can't pay for all his spending. You don't even come close.
