Missouri Lawmakers Talk Fiscal Cliff Deal
ST. LOUIS, MO (KTVI) – The deal raises the payroll taxes you pay for social security. That effects almost every American. The rest of the tax hikes effect the most affluent Americans. But those tax hikes are why conservative republicans in the house are so far refusing to go along with the bi-partisan Senate deal.
“Wouldn’t it be great if we could glue ourselves to each other across the aisle? After all, it is only if we are sticking together that we’re going to be able to address the problems that face this country.” said Rep. Emmanuel Cleaver (D) – Missouri.
Finally, a deal to raise taxes and put off spending cuts passed the senate before dawn. A lot of republicans voted for it even though they didn’t like all of the new taxes.
“Let me first of all join my colleague from Indiana in expressing my concern about where we are on taxes and spending and my hope that we get somewhere and get somewehere quickly. We have certainly brought this down to the last moment.” said Sen. Roy Blunt (R) – Missouri
In the last minute deal? More taxes. Income tax rates will go up for individuals who make more than $400,000 a year. They’ll also rise for couples making more than $450,000. Affluent Americans who leave behind large estates escape taxes on the first five million they leave. The rest will hit with an estate tax of 40 percent.
Social security withholding taxes go up for every wage earner amounting to about two percent of gross income. People who make their living from investments face a higher capital gains tax.
Deep spending cuts are put off for two months. But one local congressman who was defeated for re-election says we’ll face a mess like this again.
“There’s a very fundamental struggle going on about how our government works. The election we had in 2012 answered some of those questions. But we still have a divided government.” said Rep. Russ Carnahan.
A divide that seems to get larger with each crisis.