There is more financial work for members of Congress to do, even with this week’s deal to avoid the so called fiscal cliff at the start of 2013.
The $16.4 trillion debt ceiling will have to be addressed next month, along with the sequester, the automatic $110 billion in spending cuts that were supposed to take effect on January first, but were delayed.
“We keep spending money we don’t have,” said First District Congressman David McKinley, a Republican, said on Wednesday’s MetroNews Talkline.
“We’re borrowing 43 cents on every dollar and we continue to do that.” He says he voted against the compromise plan that passed the U.S. House of Representatives on Tuesday because it included $620 billion in new revenues with only $15 billion in spending cuts.
“That’s not the way we’re supposed to be operating here. We’ve got to get this debt under control,” Congressman McKinley said.
Second District Congresswoman Shelley Moore Capito, a Republican, was also a ‘no’ vote because of the limited amount of spending cuts included in it.
“When the bill came out, my mouth just dropped open and I’m thinking to myself, ‘Have we not learned that we cannot keep spending money that we don’t have for future generations?’” she said.
“I have voted (in the past) to extend the tax rates. I believe in that, but we have got to get ahold of the spending.”
Third District Congressman Nick Rahall cast one of the 257 ‘yes’ votes for the bill in the U.S. House on Tuesday.
“I think it’s a step in the right direction,” he said on Wednesday’s MetroNews Talkline. “It’s a compromise that will grow our economy, that will protect the middle class, that will continue to provide jobs for our people.”
In total, the legislation will raise roughly $600 billion in new revenues over a decade. It includes the following provisions:
- The tax rate for people making more than $400,000 will rise from 35% to almost 40%.
- Itemized deductions will be capped for individuals making $250,000 annually and for couples making $300,000 each year.
- The estate tax rate will rise to 40%.
- Child care, tuition and research and development tax credits will be renewed.
- Unemployment insurance will be extended for one year.
- The alternative minimum tax will be permanently adjusted for inflation.
If no deal had been reached, tax rates would have gone up for everyone this week. At the same time, the across the board automatic federal spending cuts would have taken effect on January 1st.
Previous: The looming fiscal cliff which Americans have heard so much about in recent weeks, has apparently been averted in Congress. The U.S. House of Representatives late Tuesday night approved the Senate Version of the agreement.
The vote was 257-167. Enough Republicans signed onto the agreement, fearful any attempt to retool the measure and send it back to the Senate would be dead on arrival. President Obama hailed the measure saying it raises taxes only the top 2% of wage earners in America and avoids a tax hike for the middle class.
Some Republicans aren’t so sure. Furthermore, some in the House were miffed the agreement does nothing to trim government spending.
West Virginia First District Representative David McKinley was among those who went against House Speaker John Boehner and opposed the deal.
“Simply put, the Senate version of the bill raises taxes, increases spending and only promises potential spending cuts in the future,” said Rep. McKinley in a press release following the vote. “It failed to address our long-term debt problem and is anything but the balanced approach promised by President Obama. America is now more than $16 trillion in debt. And Congress has failed in the past to cut spending that it promised the public.”
Republican Congresswoman Shelley Moore Capito also voted against the deal. Democrat Third District Congressman Nick Rahall voted in favor of the measure.
UPDATE–New Year’s Day Both West Virginia U.S. senators Jay Rockefeller and Joe Manchin voted in favor of a bill early New Year’s morning that keeps the U.S. economy from going over the fiscal cliff, but the measure faces an uphill battle in the U.S. House.
The vote, which came at about 2am Tuesday, would raise taxes on some wealthy Americans but keep tax cuts in place for the middle class. Observers say the bill does little to reign in the nation’s debt.
In a prepared statement following the vote Rockefeller said the Senate had done the right thing by “preventing a tax increase on the middle class; requiring the very wealthy to start paying their fair share; providing financial certainty for individuals, families, and businesses; and giving the nation a bipartisan compromise solution that moves us past the fiscal cliff. Tomorrow, House Republicans need to step up to the plate and join us in supporting middle class and working families in West Virginia and across America. House Republicans should allow a straight up or down vote on the bipartisan Senate deal, with no ducking and no gimmicks, and make clear to the American people whose side they’re on.”
Rockefeller went on to say the bill is far from perfect.
Manchin also issued a statement following his “yes” vote:
“This is not the ‘big fix’ I want, but it’s the best we can do at this late hour. First thing tomorrow, though, I will start working again on making this a better deal for the people of West Virginia and this great country. The fact is, this deal is the flawed product of a broken process that puts politics ahead of people. And it sets up for more dangerous political gamesmanship in the months ahead. But the bottom line is this last-minute deal guarantees that the paychecks of middle class Americans won’t take a big hit from higher taxes on New Year’s Day, and it protects 99 percent of all West Virginians.”
The U.S. House is scheduled to go in session Tuesday at noon.
Even though the deadline for a deal passed when 2012 ended at midnight Tuesday, Congress can agree to a bill retroactively.
PREVIOUS The start of the Year 2013 will mean higher taxes and across the board federal spending cuts in areas of education and defense among others.
Even though Vice President Joe Biden was still working with U.S. Senate leaders on ways to avoid the so called “fiscal cliff” on Monday night, the U.S. House of Representatives was scheduled to end the day’s work without a vote on any plan.
Earlier on Monday, President Barack Obama said a deal was “in sight,” but not finalized, on possible ways to keep the tax increases for everyone and across the board spending cuts from taking effect automatically with the start of the New Year.
“It’s a Band-Aid on a gaping wound,” Second District Congresswoman Shelley Moore Capito said of a possible plan on Monday’s MetroNews Talkline.
“It’s not enough to figure out how to sustain the promises that we’ve made to generations to move forward.”
U.S. Senator Joe Manchin was also predicting a short term fix.
“We’re not talking about a grand bargain here,” he said on MetroNews Talkline as well. “At this point and this time and at the 11th hour, they’re just thinking a deal would help suppress the markets from going in a very unfavorable direction.”
Even a short term plan, though, will need approval from both the U.S. Senate and U.S. House to take effect and that was looking highly unlikely, according to reports out of Washington, D.C. early on Monday evening.
That means new tax rates and large scale federal spending cuts will kick in, as scheduled, on Tuesday.
Reports on negotiations Monday indicated progress, with Democrats agreeing to raise the threshold for tax increases to $450,000 in family income and $400,000 for individuals. Rates would stay the same for people making less than those amounts each year.
There were also indications the sequester, automatic spending cuts scheduled to take effect if other cuts were not made, could be delayed for several months or even a year or two.
Congresswoman Capito says, regardless of the outcome of talks, the issues should not have been pushed to the last day of 2012. “Everybody knows that you don’t make your best decisions when your back is up against the wall,” Congresswoman Capito said.
“If you’ve done proper planning, which we’ve known this is coming, we’ve been here since the middle of November, since after the election. We could have avoided all of this hand wringing.”
The U.S. House could opt to vote on any agreement on Tuesday.
19
Comments
CaptainQ
When it comes to our elected leadership in Washington D.C., I'll BELIEVE it when I SEE it, and even after I see it, I'll STILL have a hard time believing it.
The Democrats and Republicans are SO far apart in the Capitol that they have to send telegrams out just to WAVE at each other!
Obama secretly WANTS the 'Fiscal Cliff' to kick in, make no mistake about it. If, by some miracle, a 'deal' comes out of Congress, I wouldn't be surprised if Obama comes up with a reason to veto it.
Don't hold your breath, it ain't over yet!
December 31, 2012 at 2:22 pm | Report comment
Hop'sHip
Just trying to understand the Captain's logic, assuming there is some. Now please explain, oh Captain, why is it that "Obama secretly WANTS the 'Fiscal Cliff' to kick in, make no mistake about it."? Does this tie to his obsession of wanting to destroy West Virginia?
January 2, 2013 at 8:29 am | Report comment
CaptainQ
The logic is simple, Hop'sHip (and BTW, welcome to the NEW MetroNews MB!).
It is going to take a LOT of extra revenue to fund all of the measures of ObamaCare as well as make any reasonable headway on lowering the Federal Budget Deficit (since reducing Federal spending is something that Obama/Democrats do NOT do well). So it would stand to reason that he would WANT all of the Bush II tax cuts to expire. It's very odd that the very same Bush II Tax Cuts he RAILED AGAINST in his FIRST Presidential campaign of 2008 are the VERY SAME ONES he fought HARD to retain/extend (with a few notable exceptions) in 2013. To quote the late Arte Johnson of Laugh-In fame: "Very interesting"
I openly admit, I was WRONG to predict that Obama would allow the Fiscal Cliff situation to linger. This is one of those times I am very HAPPY to be incorrect.
January 2, 2013 at 11:01 am | Report comment
Jeff
I really hate reading and seeing all of the Bull that has been posted, printed, and televised about the physcal cliff and "all" the work being done to avoid it lately.
The American people are not as stupid as the many "duly elected" people in Washington want to beleive. It is obvious that there was going to be some sort of attempt to fix the problem. Additionally most would have predicted that it was going to be some sort of temporary fix at best. It appears that this is what is going to occur.
Again, the political bull that goes along with partison politics in this country will prevail. Our representatives as a whole need to be chastised for not doing what is best for the country and its people.
As most polls these days show, there is a general disapproval of the way that congress is handling our country. The worst in history. But, somehow everyone is to stupid to understand if you keep electing the same idiots, they are going to keep doing the same things. WAKE UP people.........it is time to clean house in DC, or just keep quiet about the things you disagree with and suck it up.
December 31, 2012 at 3:24 pm | Report comment
J!
I for one am sick of this! These politicains are giving all of us the same lies! They continue to "put the band aid on the open wound" because they are too worried about their own agendas and not the good of the people. We need to stop listening to the propaganda and lies and stand on our own feet. We have to make wholesale changes to the government, give the power back to the people, and not let these idiots on capital hill keep deciding whats best for you and I. You want change? Real change? Then stop voting people who could care less whether you live or die into office. Make a stand! Tell them we won't be bullied anymore, then vote a common man, someone who will fight for us in.
December 31, 2012 at 3:47 pm | Report comment
GregG
I got an idea! Put the foot to the floorboard and go over this so called "Fiscal cliff" doing 120 mph! What is it going to matter, tomorrow is going to be just like today and yesterday....the rich getting richer, poor getting poorer and the middle class working 2-3 low wage jobs to support both groups.
December 31, 2012 at 3:53 pm | Report comment
CaptainQ
Kind of like Slim Pickens riding and shouting YEEHAW! while falling from the sky straddled on the back of a nuclear bomb in the film "Dr. Strangelove", right GregG?
December 31, 2012 at 7:03 pm | Report comment
GregG
Yea!!!! Just like that. I love Slim Pickens.
January 1, 2013 at 9:32 am | Report comment
Mac
Sad to say it, but you hit the nail on the head Greg. And in Washington you have the Dems protecting the poor and the GOP protecting the rich. No way to win...
January 1, 2013 at 8:45 am | Report comment
Andy
What we need is an organized effort to hold elected officials accountable. An organization supported by donations that would have a staff and a web site for each elected official with daily activities of the elected official. A lobbiest for the people.
January 1, 2013 at 11:00 am | Report comment
Mojo
And now, Act II begins in Washington's "Theater of the Absurd." This all plays into Obama and the Democrat's hands. With the Senate passing it's version of a 'fiscal cliff' bill, now all blame for the fiscal cliff 'failure' will fall on the GOP dominated House. Either way, the Republicans LOSE this political battle. If they PASS the Senate's bill unchanged, Obama can claim HE forced the GOP into compromise. If the House rejects it, then Obama will point and shout "it's THEIR fault! THEY raised your taxes!"
In the end, Obama smells like a rose, while the GOP just plain SMELLS.....
Brilliant plan by Obama!
January 1, 2013 at 7:45 pm | Report comment
Gary R. Keiffer
We need spending cuts. We need the pipeline from Canada. We need Obama to open Federal land for drilling. Most tax loopholes need closed. Rocky is out of touch with West Virginia. Hes against guns and coal. Hes just a rubber stamp for Obama.
January 2, 2013 at 7:34 am | Report comment
Chalkdust
Mr. Keiffer:
Thanks for bring a bucket-full of common sense to bare on the subject. I would like to add if you don't mind; Joe Manchin, (who I would cheer if he was only West Virginia-like once in awhile) seemingly trying to appear reasonable, is in fact just as empty as Rocky the carpetbagger.
Three cheers for;
Capito
McKinley
They stood their ground for all of our future to- morrows.
January 2, 2013 at 8:44 am | Report comment
NorthernWVman
Until we get a FLAT TAX nothing will change. The hype about the rich getting richer or paying their "fair" share is so untrue. The current system automatically puts division in our country. I say put a flat tax in place, it stops a lot of the power grabs for one or the other socio-economic class. That is one wedge taken away from out political arena. Close ALL loopholes and tax credits. No reason someone that only pays $2,000/year in taxes gets a so called refund for over $6,000. How about a simple 10% on all income, personal, company and estate.
January 2, 2013 at 8:04 am | Report comment
Chalkdust
Anybody and I mean ANYBODY who proclaims the democrat protects the poor and Republicans protect the rich is part of the flippin' problem.
First, there probably are as many "rich" mealy-mouth democrats as there are republicans (see Hollywood, CA phone book)Secondly, the democrats are simply protecting the slush fund of taxpayer "entitlements" that can be handed out at election time to buy votes. (like free phones, increased welfare payments, ect., ect. ) On the other hand, every dummie knows that truly rich people, (democrat and republican alike) have long ago sheltered their wealth from the taxman's long reach. Further, one may impugn the republican's philosophy of supporting smaller government and lower taxes, but to accuse them of the same small-mindedness as put people in boxes as to how much money they make, is indeed insane.
Thirdly, the old bromide "that the poor gets poorer and the rich get richer" is the product of a underdeloped mind. The fact established by many government satisics is the poorer get richer and the rich, well..... they just stay very well off.
"I slept and dreamed of beauty...I awoke and found that life was duty".
-Unknown
January 2, 2013 at 8:16 am | Report comment
Jim
I love Obama's press conference line immediately after the bill passed: "... Republicans need to understand that cutting spending will not lead you to prosperity..."
However, this poster has trouble getting his head around the premise that you can somehow borrow your way to prosperity? Amazing statement!
January 2, 2013 at 8:41 am | Report comment
CaptainQ
Checkmate! The President played this PERFECTLY! My prediction was wrong (thankfully) that Obama would stand pat for a while on this, but it looks like the Right Wing Media (much to my chagrin) had it correct all along.
The bottom line is, Obama and the Democrats successfully painted the House GOP membership into a corner. They basically got the RAM the Senate version of this bill under the threat of making 'the financial markets and national economy crash' if they didn't accept it immediately. This is why they had no choice but to approve this measure which is, at best, a 'stop gap' bill with little next to no spending cuts. For all the 'talk' about balancing the Federal Budget and lowering the Federal Deficit, all this bill amounts to is more 'kicking the can further down the street.' This whole 'fiscal cliff drama' was masterfully played by Obama and the Democrats.
They came out looking like HEROES while the GOP (thanks to the Main Stream Media) all looks like ZEROES. I've said it before and I'll say it again. President Obama is the best PURE POLITICIAN in America today. NO ONE 'plays the game' like him.
January 2, 2013 at 10:29 am | Report comment
jethro
what a bunch of can kickers!
raise taxes all you want, still not enough to get out of debt. maybe the dems dont want us out of debt? i dont get it. what are they gonna do?print more money?
January 2, 2013 at 12:48 pm | Report comment
J
Anybody know how a revenue bill that began in the senate is constitutional?
January 2, 2013 at 6:50 pm | Report comment