The Ugly Truth About The 'Fiscal Cliff' Deal


The deal went down, but spending and taxes will not. At least this is what will come of the "fiscal cliff" deal that the House of Representatives passed on Tuesday. Lawmakers in Washington would have us believe that they saved the day, but did they? Ben Swann, from Fox News 19 in Ohio, pulls the mask off of the 'fiscal cliff' deal and exposes the ugly truth of what it really is.

Swann begins by reminding us of the rhetoric we all heard during the debates about the "fiscal cliff." The core of the arugment was "that the richest Americans would have to pay more" and thereby "sparing the middle class" from tax increases. This is what the media and the politicians sold to America. But now that the deal is done, is this what really took place?

According to the bill, those individuals who make $400,000 or greater will be taxed at a rate of 39.6%, while married couples who make $450,000 will face the same tax rate. That's an increase from the previous rate of 35%.

Additionally, the Estate tax will have a top rate of 40%.

The bill also provides for a 5-year expansion of the Child Tax Credit, the Earned Income Tax Credit, and $2,500 Tax Credit for College Tuition.

The deal also extends unemployment benefits for the long-term unemployed for one year.

This is supposed to raise tax revenue significantly, right? Wrong. For all of the fighting over the "deal," the amount of revenue projected to be raised, as a result of this bill, is $620 billion over the next ten years! That's just about half of the deficit spending we've seen each year over the past five! This bill predicts revenue to be only increased by $62 billion per year!

To help demonstrate that $62 billion in comparison to our spending, the U.S. spends $3.4 trillion every year and $1.3 trillion of that is borrowed money! At the current rate of spending, the federal government will eat up that $62 billion in just two months!

Swann points out that the $1 trillion in spending cuts that were supposed to go into effect this year from last year's debt ceiling fight, called sequestration ($500 billion from domestic programs and $500 billion from military spending), the bill now delays those for at least two months.

In addition, the bill does not protect against the expiration of the payroll tax reduction. This means that 80% of Americans who make over $40,000 a year will see their taxes go up. According to the Tax Policy Center, those making between $40,000 and $50,000 will see an average tax increase of $579 in 2013. Those that make between $50,000 and $75,000 will see an average tax increase of $822.

"But it wouldn't be Washington," Swann says, "without special interests tax breaks and those are in this bill as well." What are those special interests?

$430 million for Hollywood through "special expensing rules" which encourage TV and film production in the United States.

$331 million for railroads in tax breaks.

$222 million for Puerto Rico and the Virgin Islands on taxes collected on rum.

$70 million for NASCAR by extending a "7-year cost recovery period for certain motorsports racing track facilities."

$59 million for algae growers through tax credits.

$4 million for electric motorcycle makers by expanding and existing green-energy tax credit.

Swann sums up what it means for you and me. "Congress cut virtually nothing from its own budget, but had no problem cutting into the budgets of Americans making $40,000 a year and up."

"At the end of the day," says Swann, "this whole fiscal cliff drama was nothing more than political theater with the same end result: Government raising taxes on those they promised not to raise taxes on and spending more money than ever."

How does it increase spending you ask? According to the Congressional Budget Office (CBO), the bill increases spending by $4 trillion over the next decade!

Obama disagrees with Swann, but then we know Barack Hussein Obama is a liar anyway.

Watch Swann's report below:

FOX19.com-Cincinnati News, Weather

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Comments

comments

  • Dan

    Working people sell 5/7ths of their lives to earn a living. Those Dollars represent hours, days, weeks, months and years of their lives. What % of those Dollars can be confiscated for tax by various Government entities before the Working Class becomes the Slave Class?

  • Andy Miller

    I don't understand your math, but 62 B of 3.4 T in a year is only 1 week!

  • Bubblegum199

    I hope the people who voted for Obama now realize he was not helping them nor will he. His objective is to destroy America. There are so many issues where Obama should be impeached but our Congress is scared to do so. More and More Muslim terrorists are being placed in our government such as Jarrett, Rice and Obama that soon we will have no priviledges at all. How can you people who voted for him believed in his lies and now see that he is not for you and his and Michelle's hatred of America is their goal in destroying it. There is more to come and you liberals will sh_t in your pants when you find out his true goal. Thank you you dumb liberals for you are the cause of the destruction of America all because you want freebies.

    • emjay98

      Unfortunately for the rest of us, I don't imagine that those who voted for Obama will even realize the reality of the situation, mainly because they refuse to listen to what he means instead of what he says. He can lie so proficiently that they they are unable to comprehend his words.

  • popham

    The "fiscal cliff" hoax is yet another in a long line of what the White House and
    Capitol Hill enjoy doing the most, which are authorized, planned 'debates' on
    ongoing economic crises to keep all Americans distracted and on edge.
    We call it "perpetual suspense" in which the politicians and media are complicit
    in keeping us all on the edge of our chairs, as these Washington elites play us
    like the pawns and victims that we have become.
    So sit back and relax my fellow Americans, for there is more "perpetual suspense"
    coming in a month with the debt ceiling negotiations. Can't wait for that.
    Again, we need a new Congress/Senate, but most of all, we need a new
    president of the United States of America............soon.
    Good luck, America.

  • popham

    In the list of special interests that benefit from the " fiscal deal", lest we not forget
    the Samoan Islands where Nancy Pelosi's husband has a huge stake in the
    tuna business.

  • Greg137

    The Republicans and the Nation would have been better off if there was no deal...

    The Republicans couldn't get rid of Boehner either for selling the party down river...

    Our Tea Party is alive and well, but is the Republican party dead????? Did RINOs in the party kill it? Is it time to form a new conservative party? Or should we clean House by removing the traitors at the primaries??? It wasn't the majority of Republicans that voted in favor of the fiscal cliff, so it is not an easy question... Speaker Boehner should have some primary opposition at least... Any takers? WE the people are looking for someone who will run against Boehner in the Ohio primaries, someone who is conservative, and has a rock solid track record...

  • Kay

    We could have more revenue by agreeing to 250k as cap for bush tax cuts. Reps turned that down. Spending cuts to be decided in next two months. I think there should have been more revenue by taxi g people making over 250k. But that would be a commie to you.

    • dankster

      sure, why not. then we could run the government for three months instead of just two. hey why don't obozo just raise taxes on everyone and we could make it 4 or 5 months maybe. we could borrow the rest from china and we'd make through the year just fine. hey, why not forget about raising taxes on people and just seize what everybody earns this year? guess what? it wouldn't be enough. you can't spend 12 trillion when you only have 620 billion, but guess who just did? this is not a revenue problem, this is a spending problem.

    • popham

      And we must be reminded that the U.S. 'government' has a daily income
      of $5 billion with per diem expenditures of $11 billion.
      The alleged national debt is now $16.5 trillion on which there is daily
      interest of a staggering $854 million.
      And then there is the true national debt of $86 trillion.
      And these morons on Capitol Hill think they made a great deal by taxing
      the rich a bit more......not.
      Oh, we almost forgot. A recent IMF report reveals the global derivatives
      market is valued at $600 trillion and is only backed by $60 trillion in
      real assets, many of which are over-valued.
      What could possibly go wrong?
      Good luck, everybody.

  • retiredmillwright

    Obamas' socialism is like a giant snake squeezing the s--t out of a eagle, Its just a mater of time before he swallows us.