Friday, January 4, 2013

Confused About the "Fiscal Cliff"?

For those of you who have been hearing the words "fiscal cliff" and have no idea what it means or have only been met with confusing explanations, Imara Jones of Colorlines gives a very straight forward explanation of the fiscal cliff deal or the "American Taxpayer Relief Act" as it is officially known.

Here are a few choice quotes from the article:

"By exempting all incomes up to $400,000 from key tax hikes, the American Taxpayer Relief Act treats many of the rich as if they were working poor. Under it, a person earning $20,000 and another earning up to 20 times this amount will see their tax bills remain the same."

"In point of fact those now earning $350,000 and above actually constitute the top 1 percent all income earners. Therefore, through the $400,000 exemption, this bill in effect reclassifies part of the 1 percent and moves them to the 99 percent. This strange move further skews the tax code towards inequality. 97 percent of the 1 percent are white."

While the Act is a step toward raising the taxes on the rich, it is not changing much and leaves ample room for loopholes around taxes.  It is not doing much in the way of racial economic equality and is not by any means the end all solution.

Read the full article here.

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