The fiscal cliff deal raises taxes on the rich, investments and the vast majority of American households, while doing almost nothing to rein in spending.Continue reading. There's an eye-opening chart at the report.
Now that President Obama and fellow Democrats got their way on hiking taxes on the rich, they have no excuse for not taking on runaway government spending, Republican leaders argue. But some analysts doubt that the GOP itself is ready to take a serious stand.
The New Year's Day fiscal cliff deal hikes taxes by about $700 billion from 2013-22, IBD estimates. But that only will reduce the increase in the national debt by 14% over that period.
The deal does almost nothing to cut spending. It increases spending on jobless benefits by $30 billion. It boosts Medicare spending by $10 billion in 2013 by making yet another one-year "Doc Fix" patch delaying scheduled cuts in payments to doctors.
Thursday, January 3, 2013
At IBD, "After Fiscal Cliff Tax Hikes, Spending Cuts Finally?":