Ok, you’re sick of it. So let me put it straight and simple. What was agreed upon during the so called negotiation immediately before the ‘fiscal cliff’ was a tax increase disguised as tax reform.
Try not to laugh. Its true.
The only tangible agreement that’s been leaked so far is to calculate future tax brackets and entitlement benefits based on ‘chain-weighted CPI’. This is a more accurate measure of inflation than what is currently used. In other words, its more window dressing disguised as reform.
Let me explain.
Indexing tax brackets for inflation prevents taxpayers from paying higher taxes unless their real earnings rise. As the Tax Foundations Dr. Steven Entin has elaborated, raising income thresholds by less each year means more ‘bracket creep’ into higher tax rates for more citizens.
For those new to the culture wars, here’s a translation: the deal done at 2 am by Biden was an insult to the Republics true need for real solid governance. Daniel Henninger was right, the greatest threat to the upward arc of human progress is the collapse of public policy making. That’s the biggest cliff of all.
Where does this lead us?
A good guess would be four years of trench war.
Remember the Somme?