Lamar Alexander
Bob Corker
U.S. senators Lamar Alexander and Bob Corker voted in favor of a “fiscal cliff” deal early Tuesday morning that would allow tax rates to rise only for wealthy Americans while temporarily suspending sweeping federal spending cuts.
The deal was approved 89-8 in the U.S. Senate but still has to be passed by the House. Approval there is not guaranteed.
The agreement would raise tax rates for individuals who earn more than $400,000 and couples with incomes of more than $450,000. It would also extend unemployment insurance for another year and temporarily delay $110 billion in across-the-board spending cuts to military and domestic programs.
Alexander, a Tennessee Republican, released a statement after the 1:39 a.m. vote early Tuesday, New Year’s Day. The vote could help the nation avert the so-called “fiscal cliff,” a package of automatic across-the-board spending cuts and tax increases scheduled to start going into effect this month.
“This agreement rescues 99 percent of Americans from individual and estate tax increases in 2013, and then makes these lower rates permanent, providing certainty and creating jobs,” Alexander said.
However, the senator said the Medicare fiscal cliff remains.
“Sen. Corker and I have a proposal to deal with the out-of-control spending that will soon bankrupt the programs seniors rely on to pay their medical bills,” Alexander said. “If we don’t deal with this during the debt ceiling debate, we are on the road to becoming Greece.”
Under the agreement approved by the Senate early Tuesday morning, tax rates would jump from 35 percent to 39.6 percent on individual incomes over $400,000 and couples’ incomes over $450,000, the New York Times reported.
Tax deductions and credits would start phasing out on incomes as low as $250,000. Tax rates on dividends and capital gains would also rise as would the estate tax. The agreement did not renew the two-percentage point payroll tax cut.
The Times reported that Tuesday’s agreement was worked out in last-minute negotiations between Vice President Joe Biden and the Republican Senate leader, Mitch McConnell. Forty-seven Republicans, 40 Democrats, and two Independents voted for the bill. Three Democrats and five Republicans voted no.
Don Griffin, Crossville, TN says
The fact that the so called “fiscal cliff” legislation was passed to avert a sweeping tax increase on one hand is commendable. However, the pork that was also passed through in this bill is despicable. It’s time for our elected officials to stand up and do what’s right instead of buying in to these back door deals in the name of compromise. Both Alexander and Corker should be ashamed for voting for this pork bill and then promote a positive spin on the outcome. I’m guessing that their strategy works on most of their constituents since the majority is either uninformed or they just don’t care. After all, it’s not their money. As a country we will continue to ‘kick the can’ as long as everyone gets a piece of the action. Shameful performance from two men with integrity.
John Huotari says
I wasn’t aware of the specifics of any additional spending in this bill when I wrote this story, but I have heard some criticism of the bill since then for the reason you cited. What spending are your referring to?
Don Griffin, Crossville, TN says
John,
The performance of our legislators continues to be disgusting at every turn. They truly have no shame.
I specifically object to the provision in the bill that allows any US corporation to create a shell corporation in the Cayman Islands and transfer domestic patent ownership to this shell. Royalties or licensing fees paid on the patent become payable to the shell, which then escapes US income tax. Wow! Congress talks about closing loopholes as they are creating new ones. Most people, unfortunately, either are uninformed or don’t care, especially if they are getting their fair share (phones, food stamps, extended unemployment benefits, etc.). There are other pork projects and tax dodges in the bill (check out the financial institution provision).
As a Nation, we are dumbing down and going down the tubes as a responsible people.
Don Griffin
Crossville, TN
John Huotari says
I’ll see what else I can find out about additional spending.