...in the nick of time. How OUR brave lawmakers avoided the fiscal cliff. Happy 2013.

We can all breath a little easier...for a while...and possibly be able to start making some plans for the future with the knowledge that the game rules are set and are not going to change for a while.
Hopefully this will stimulate hiring and spending and help our economy rebound by resolving uncertainty over the fiscal cliff before financial markets reopen on Wednesday.

In a Hollywood style New Year's drama that climaxed in the middle of the night, Senate endorsed a bipartisan  legislation by 89-8 early Tuesday. More suspense than the count down to Ryan Secrest's Crystal ball on mid night.

McConnell and Biden had an agreement Sunday night but Dems pulled back Monday morning. Democrat Tom Harkin of Iowa said the agreement was too generous to upper-bracket earners. 
"No deal is better than a bad deal. And this look like a very bad deal," said Harkin.
President Obama's original position was to push the top tax rate on family income exceeding $250,000 from 35 percent to 39 percent.

This measure is the first significant bipartisan tax increase since 1990, when former President George H.W. Bush violated his "read my lips" promise on taxes, would raise an additional $620 billion over the coming decade when compared with revenues after tax cuts passed in 2001 and 2003 during the Bush administration. 

However since the old policies expired at midnight Monday, it is officially considered a whopping $3.9 trillion tax cut over the next decade. I guess it all depends on what you point of view is.

To the average tax payer what all this means is extending jobless benefits for the long-term unemployed for an additional year at and preventing a 27 percent cut in Medicare payments to doctors. 
Our seniors can still see a Doctor when needed.
The agreement would also renew tax breaks for businesses and for renewable energy purposes, like tax credits for energy-efficient appliances. We will all resume paying 2 percentage more in Social Security payroll taxes, an additional $1,000 out of the wallets of typical families earning $50,000 annually.

Capital gains and dividends over $400,000 for individuals and $450,000 for couples would increase from 15 percent to 20 percent.

Inheritance taxes will allow a $5 million exemption on estates inherited from individuals and a $10 million exemption on family estates but would raise large estates the top tax rate to 40 percent.

...and yes! Let's not forget, since we are cutting to the bone, they also decided at the last minute to use the measure to prevent a $900 pay raise for lawmakers due to take effect this spring.

Not intended to promote the purchase or sale of anything.