You have to give Congress credit, the television spot, sound bite and photo op drama was high as the “fiscal cliff’ was “avoided” in New Years Eve and New Years Day votes in the U.S. Senate and House.
Automatic tax hikes and spending cuts that were set to begin yesterday were avoided, but the health of the U.S. economy remains perilous.
What really happened was business as usual on Capitol Hill. By extending the Bush era tax cuts to everyone earning less than $450,000 per year, middle and lower class workers will pay less in income taxes. But approximately 96 percent of millionaires will also be paying less income tax than they would have paid if no deal was passed and Clinton era tax rates were restored.