- Posted January 2, 2013 by
This iReport is part of an assignment:
The fiscal cliff: Messages to Washington
Partial Cliff Averted in Last Ditch Effort
- zdan, CNN iReport producer
Although not their finest moment, members of the US House of Representatives passed the compromise deal passed in the early morning hours of 2013 by the US Senate which partially averts the fiscal cliff's most devastating effect. In this last ditch effort after the economic ship of state had already gone over the edge, it was primarily Democratic members who won the day as only 85 Republicans voted for the deal.
For the moment, the nation and its varied economic entities can breathe a short sigh of relief...at least for another month or so.
The compromise reached is not the greatest legislation ever passed, but at least it is something more than nothing. No one got exactly what they wanted and many members of Congress had to give up much more than they wanted as did the President.
President Barack Obama spoke a short while ago and congratulated the Congress and its leaders along with Vice President Joe Biden in securing that the Bush/Obama tax cuts would remain in place for those making up to $400,000 per year individually or $450,000 per year as a couple. The President also threw down the gauntlet taunting Republicans by stating he would not debate the debt ceiling which must be raised by February. If the debt ceiling is not raised, it could shut down the government.
While the legislation is not ideal for either liberals or conservatives, doing nothing would have been worse.
The biggest drawback to the compromise is that there are now new cliffs coming up shortly as the new Congress is sworn in on Thursday. There is not only the debt ceiling which, whether the President wants it or not, will be a fight, but there is also the issue of sequestration put off for two months and battles ahead for entitlement and tax code reform.
There were a couple of very good solutions that came out of the compromise. For one, the alternative minimum tax has been tied permanently to inflation and will no longer threaten up to 30 million taxpayers with shelling out much, much more than they should each April. Another bonus in the compromise was keeping the nation from drowning in a doubling of milk and dairy prices, since Congress has failed to pass or renew a farm bill. The "milk cliff" has now been bridged.
While it is good that the House voted and voted in the affirmative for the Senate's compromise bill, anyone who thinks we are out of the mess we are in needs to recheck their logic and rationale. The New Year has begun with a fight and several more battles already have the armies amassing for confrontation.
From the Cornfield, at least for tonight, the nation can sigh in relief. Apparently God is still in His heavens.
Oh, by the way, as an aside, even with the deal expect to see 2% less in your paycheck as the payroll tax cut holiday is now over.