AFA of PA ACTION ALERT
January 2, 2013
Happy New Year from Congress — Tax Hikes Ahead!
As you probably have already heard a ‘deal’ has been reached to avert the ‘fiscal cliff,’ but it’s not good news for America. The 157-page bill was passed in both the Senate and House in less than 24 hours on a holiday. Did they even read the bill or is it another ‘we have to pass the bill so we’ll know what’s in it’ deal? The Senate voted without a score of the bill from the Congressional Budget Office (CBO).
Here’s some of what we know is in the “deal”:
- The payroll tax “holiday” has ended. The Wall Street Journal calculates that the “typical U.S. family earning $50,000 a year” will lose “an annual income boost of $1,000.”
- there is a 10 to 1 ratio of tax increases to spending cuts
- the bill increases government spending by about $330 billion
- the estate tax will stay basically the same: The threshold for taxable estates will remain at $5 million, with a 40% tax rate over that level.
- the CBO has determined the ‘fiscal cliff’ deal carries a $4 trillion price tag
- All of these tax rates would be “permanent,” meaning that Congress would have to agree to change them. This is a big deal. Almost every fiscal agreement reached by Congress since the Bush tax cuts of 2001 has been scheduled to phase out at a future date
Did you know every member of the PA Delegation to Washington, DC voted for the ‘fiscal cliff’ deal?
Let Senator Casey, Senator Toomey and your US Congressman know your thoughts on these tax hikes and spending increases. You need to hurry as the 112th Congress ends tomorrow and the newly elected Congressmen will be sworn in.