Michael Gray–Fiscal Cliff Deal-New Taxes For All-Help For Some 29.Jan.13

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The latest fiscal cliff tax deal has ended uncertainty over the government’s operations, at least until the debt ceiling debate resumes. With the exception of the increased payroll tax, people making less than $250,000 per year come out fairly even on the deal and perhaps even benefit slightly. Higher earners receive a potentially crushing tax increase that will be felt for many years to come. Those people who create businesses and create weatlh will be penalized further and this will be felt in the economy as a whole. Add this increase to the boost in state taxes and you have a recipe for long-term economic contraction.

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