Late Tuesday Congress finally approved a plan that ended Washington’s long drawn out battle infamously known as the “fiscal cliff.” The House Republicans conceded to President Obama’s request to allow taxes to rise on the country’s wealthiest households.
First, the senate approved the legislation then the House voted in its favor, 257 to 167, which sent the measure to Obama for his signature. The bill is known as the “largest tax cut in American history.” It will protect millions of middle class taxpayers from tax increases were set to effect in January. Though it will also let rates increase on wages and investment profits for households bringing in more than $450,000 per year. The bill will also keep unemployment benefits going to the country’s 2 million unemployed workers so they do not lose their federal checks.
Economists were worried that if the deal did not pass that the scheduled tax increases and the spending cuts would have sent the economy back into a recession. Meanwhile, many conservatives opposed the legislation. They were against the legislation due to the raise in taxes without making any forceful cuts in government spending.
Finally after weeks of the parties arguing whether taxes should increase for anyone, the compromise bill came through the Senate on early Tuesday in a very unusual New Year’s Day vote. The vote was 89 to 8, with both parties enormously supporting the bill. It is important to note that neither party was completely thrilled with the bill. Liberals did not like the provisions regarding inherited taxes. Meanwhile, conservatives complained about new taxes and the lack of spending reductions.
In the next upcoming month we will give you helpful tips to help you prepare for the upcoming tax season. If you have tax questions or needs our tax preparation professionals are happy to discuss your tax questions free of charge. For more information about our services, visit us today at www.businesstaxpreparation.com. With over 16 years of tax preparation experience we look forward to the 2013 tax season.
For more information about our tax services visit us at www.businesstaxpreparation.com. Contact us by phone at 866.676.9417 to receive a free, no obligation consultation.