See, I told you so. Congress had two years to address the phony "fiscal cliff" that they created in a "bipartisan" deal in 2010. They waited until the "last possible moment" before the Republicans blinked and they both won.
"What do you mean that they both won?"
It's simple. You know how contractors are genetically programmed to mysteriously disappear from a job, plumbers genetically programmed to show their butt cracks, and cable installers are genetically programmed to be late? Well, Congressmen are genetically programmed to be incapable of cutting spending. Everyone got funding for their pet projects; cookies to hand out to their voters.
Predicting that congress would be irresponsible and sell the country out over the long term to avoid re-election problems in the short term is as predictable as the sunrise.
In their infinite wisdom, without possibly having had time to read the legislation, they voted to raise taxes on all income earners. You see, the evil Bush reduction of the FICA tax went away for all low and middle income earners. (Top earners max out no matter what.) They also taxed low, middle, and high earners for the new costs of Obamacare.
Now, to make us feel better, they also "stuck it to the man." The raised the top tax rates on the highest two tax brackets in exchange for a less than one percent cut in the planned seven percent increase of the federal budget years into the future that will never happen. Besides, making budgets is so 2008. Congress has ignored its Constitutional mandate to pass a budget since 2008.
Incidentally, while the tax rate increases stick it to people who own hardware stores, dry cleaners, boutique retail shops, bars and restaurants, etc., it has no effect on the super rich.
You shouldn't be. How many Congressmen and Senators do you own? The super rich do. Since the super rich don't earn income like you and I do, they don't have income taxed at the new rates. Income from bonds is tax exempt. Capital gains are still taxed at ten and fifteen percent.
Yep. Mitt Romney, Warren Buffett, and all the rest, still pay lower tax rates than you and I do.
Don't worry. I am sure this was just an oversight that Warren Buffet and company will point out and have fixed shortly. After all, Buffett is presently fighting the IRS in court over a billion dollar tax dispute. Wanna guess who will win?
Oh well. It goes on, and on, and on, and on and . . . .