Tuesday, January 1, 2013

Fiscal cliff averted, for now

The White House and the Senate came to an agreement 3 hours before the midnight deadline of the greatly feared fiscal cliff, then passed it 2 hours after midnight. The Bush tax cuts will remain for all except those earning over $400,000, and unemployment benefits will be extended for a year. Spending cuts will be put off for now with promises to get to them later. Now will the House pass it, that encrusted political body inhabited by fanatics incapable of adult behavior? However the dreaded and draconian automatic spending cuts have been delayed only for 2 months, when that nightmare will return in full force. Not a great deal*  but it's some small good news for the new year.

*Reich thinks it's rather bad, as does Sachs and Krugman. And this article shows the pork attached to it, though I like this particular bacon:

"Green energy was another big winner in the bill. Roughly a dozen provisions would extend credits and incentives for plug-in electric vehicles, energy-efficient appliances, biodiesel and renewable diesel, and other alternative energy initiatives."

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