The last charge of the 112 Congress has taken place. With just hours before the session was set to close, the congress passed the bill that will now go to Obama’s desk for signature. Only in my most vindictive moments did I want us to go over the cliff. I wanted the average person who voted for the current President to face the economic damage first hand. If nothing else, the prospect of facing an additional $2,500 in taxes with the possibility of the AMT hitting them, they may have learned what happens when a tax happy spend happy administration gets in power.
As it is, we have very little to be happy about. The first, if not only, is the fact that the Bush Tax Cuts are now permanent for everyone earning less then $450,000. About time! Although now that they are permanent, watch the left begin calling them the Obama Tax Cuts – as if.
The other positive is that the AMT’s annual correction is also permanent. No more posturing on that one.
But there is a TON to hate. Taxes going up for anyone in this economy is only going to do more harm than good. And those taxes are on business and investors. Not to mention investment itself.
And the worst part? There wasn’t ANY spending cuts of meaning. Rather we have that battle in two months. Oh yeah, I forgot the third thing – no debt ceiling limit rise.
All that means is that we get to go through this all over again in a few short months.