(CNN) -- President Barack Obama has signed into law a bill to avert the fiscal cliff, a day after the House and Senate approved the much-debated legislation.
Obama, who returned to his family vacation in Hawaii after Tuesday's House vote, signed the bill via autopen on Wednesday.
But new battles over taxes and spending await Washington in the next few weeks.
Congress averted that self-built precipice late Tuesday when the House voted to stave off widespread tax increases and deep spending cuts by accepting a brokered Senate compromise. It makes permanent the Bush administration's tax cuts for individuals earning less than $400,000 per year and couples earning less than $450,000.
It raises rates on those who make more than that from 35% to 39.6%, bringing back a top tax bracket from the Clinton administration, and will raise roughly $600 billion in new revenues over 10 years, according to various estimates.
The bill also extends unemployment insurance and delays for two months the threat of sequestration -- a series of automatic, across-the-board cuts in federal spending.
Economists had predicted the combination of those tax increases and spending cuts could have thrown the U.S. economy back into recession and driven unemployment back into the 9% range.
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I think it's great that we got this out of the way. I'm also greatful that we didnt go over the fiscal cliff because otherwise we would not be able to do some of the things that we wanted to do.Things like eat out i know people like to do that, and that's why i'm glad that they finally came to a decision, Because i like to go on vacations, and eat out, but i dont do it all the time.
ReplyDeleteMatthew Hodek
Per. 3
About time we got this law pass.It's about time wealthy got pay they're share.
ReplyDeleteRyan Tappe P7th
I agree with Ryan. It must've been a pain when poor people had to pay tax and wealthy didn't. Now maybe wealthy and poor will be equal some day. Instead of them wasting their money on useless stuff.
ReplyDeleteDavid Hoang p3
At best, they actually agreed on something, but in no way did this actually solve anything. Yes, the rich should pay more then the poor. However, if Congress is going to raise the limit of taxation for the rich, they should at least put this huge amount of money to good use by saving it up to lower the debt. Tax's are of no use when the government is just going to spend the BILLIONS anyway. Why take from the people who are running this country? Its there money that the Govt. is just going to spend away on useless programs that just drive us deeper in debt. If it was my understanding, DEBT, the "fuel" of this crisis, is the reason why this bill was passed...NOT for more ammo to spend! It just scares me how fast we're digging this dark hole of poverty and depression. One day will lose sight of seeing that Light of abundance, ever again...
ReplyDeleteJonas Fisher, P2.
I'm very glad this whole "fiscal cliff" thing got sorted out. Yes, the wealthy should be taxed more because they can afford it. But a talented musician or actor should be able to spend it on nice things. We need to find the nice balance between taxing the wealthy and taxing the middle class. Most of all I think that we need to focus on getting out of debt.
ReplyDeleteAlex Pederson 3rd hour
I agree with Jonas, they did agree on something but I feel like it's just putting off the problem. Fix it, not just delay the outcome. We collect all these taxes for our goverment to spend all our hard earned money on stupid things that our country doesn't really need. Our country is so crippled with debt that I'm afraid our government will cave in one day because it has no power over other countries from all the money we owe.
ReplyDeleteCassie Pelland, per. 3
I agree with cassie, its good they got something past, but it really is only delaying the problem. We need a permanent solution! We need it fast or our goverment will cave in like cassie said. We Spend so much money on helping other countries we don't have enough money to help our own country. I'm not saying its bad that we are helping other countrys. Its just i would like to see some serious work done in the Good old U.S.A. So my kids can have a strong country to grow up into. Because right now its not looking like we are going in the right derection
ReplyDeleteMitchell Roberts,per.3
It's a great thing that this was passed, because it's helping us save money. Some people don't even spend that much money on eating out and other fun activities like that. There are some people that are putting money towards cars and colleges for their kids. If the wealthy are already able to afford these things and spend their money on an abundant of activities or expensive clothes, cars, and electronics then it's a good thing that the government is making them pay more than other families that are possibly going paycheck by paycheck or ones that don't have a wide spending budget.
ReplyDeleteAmy Montebello, per.3
It's a great thing that this was passed, because it's helping us save money. Some people don't even spend that much money on eating out and other fun activities like that. There are some people that are putting money towards cars and colleges for their kids. If the wealthy are already able to afford these things and spend their money on an abundant of activities or expensive clothes, cars, and electronics then it's a good thing that the government is making them pay more than other families that are possibly going paycheck by paycheck or ones that don't have a wide spending budget.
ReplyDeleteAmy Montebello, per.3
I think ending the fiscal cliff is a good thing. Raising the taxes for Upper class people is a fair way to end this. The wealthy should get taxed more anyway since they make more a year then the lower and middle class people. Even though it wasn't that big a of raise it will help taxes for the future.
ReplyDeleteJacob Pearson 2nd
LAST COMMENT!
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