The plunge off the fiscal cliff has been avoided! And by “avoided,” I mean delayed. The Wall Street Journal reports “In policy terms, it permanently codifies most of the tax rates that were set only temporarily in the Bush era. After years of failed efforts, the bill permanently keeps the middle class from being hit by the alternative minimum tax, a 1960s edifice intended only for America’s wealthiest.”
So, how long has the plunge over the fiscal cliff been delayed? Two months! WSJ continues. “In two months, the delayed $110 billion in spending cuts will again kick in. At the same time, the U.S. will face the need to increase its borrowing limit.”
The bill must have cut some spending, right? Well, spending will be “cut” $1 for every $10 of increased revenue (this was originally reported as a 1:41 ratio). There are reports that this deal will cut the deficit (the yearly overage) by $600 billion over 10 years, which leads people to believe spending is being cut. The truth is, under this deal, spending will increase by $330 billion over the next 10 years.
However, there is good news, the price of milk should stay relatively stable for the foreseeable future and Congress actually rejected their automatic pay raise.
Is it any wonder that Congress has such a low approval rating?