Terence P. Jeffrey
Jan 2, 2013
Republicans Rand Paul of Kentucky, Mike Lee of Utah, and Marco Rubio of Florida were among only eight senators who voted at 1:39 a.m. on Tuesday against a “fiscal cliff” deal that increased taxes on Americans making over $250,000 but suspended the spending cuts that were set to automatically take effect under the terms of the deal President Barack Obama and House Speaker John Boehner made in August 2011 when they increased the federal government’s debt limit by $2.4 trillion.
On Monday, the federal government once again hit its debt limit, having borrowed all of the additional $2.4 trillion authorized by the Obama-Boehner deal.
According to a summary of the fiscal cliff deal published by the New York Times, it increases the income-tax rates for individuals making more than $400,000 and couples making more than $450,000. It also phases out exemptions and deductions for individuals earning more than $250,000 and couples earning more than $300,000.
The deal, according to the Times, also puts a two-month “pause” on $110 billion in spending cuts that would have taken place in 2013 under the Obama-Boehner deal of 2011. So, the future spending cuts that were agreed to in August 2011 as compensation for immediately increasing the debt limit by $2.4 trillion are now on hold–even as that $2.4 trillion in new debt has already been accumulated.
This article was posted: Wednesday, January 2, 2013 at 5:28 am