Word has it that during the final days of the “fiscal cliff” fiasco, Republican House Speaker John Boehner bumped into Democrat Senate Majority Leader Harry Reid in the White House lobby, and told Reid to “go f**k yourself.” But why would Reid do such a thing, Mr. Speaker? There are plenty of Americans for him to screw instead. The New Years’ Day fiscal cliff deal is all about some people screwing other people, while the problem they ostensibly set out to “solve” just gets worse.
There isn’t much “deficit reduction” in the fiscal cliff deal. The only thing that got substantially reduced is the size of the American private sector. President Obama immediately began calling for even higher taxes and more spending. America is not yet small enough for his tastes.
The Wall Street Journal published a chart of the taxes that are going up:
Note the hefty increase to capital gains and dividends, plus the increased estate tax. That all combines into a whopping incentive not to accumulate savings or make investments, especially for the substantial group of investors who would also run afoul of the higher personal income tax bracket. Instead of simplifying taxes, Congress and the President just made them more complicated, introducing yet another step to the progressive tax ladder… which accountants will now scramble to keep their half-millionaire clients from taking.
Read more at Human Events. By John Hayward.