The Ugly Truth About The ‘Fiscal Cliff’ Deal
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!
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.”
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