Averting Fiscal Cliff & Stopping Middle Class Tax Hikes (Senator Johanns R-NE)

[Omaha Steve]

The Senate took the first step tonight in stopping our economy from going over the so-called fiscal cliff – a mix of upcoming tax hikes and automatic, across-the-board spending cuts. The package we passed was negotiated by Senate Republican Leader Mitch McConnell (R-Ky.) and Vice President Joe Biden.

I supported this agreement. I wish it would have done more to cut spending and strengthen programs like Social Security and Medicare, but I couldn’t ignore what it did do: Prevent a tax hike on an estimated 99 percent of Americans. The package also contained an extension of the current farm bill, which passed in 2008.



With the Senate’s overwhelmingly bipartisan vote, I expect the House of Representatives to take up the package in the next few days. Since no package will be signed by President Obama before the New Year, any final deal will likely take place retroactively so tax rates will continue uninterrupted for the overwhelming majority of American taxpayers.



Below are the details of the legislation that passed tonight by the Senate:

Permanently extends current tax rates for families earning less than $450,000 a year;
Makes permanent current capital gains and dividends rates for families earning less than $450,000 while changing the rate to 20 percent for families making more than $450,000;
Extends popular tax credits – like the tuition and child care tax credits – for five years;
Extends the current $5 million estate tax exemption but the tax rate on estates over that limit would change from 35 percent to 40 percent;
Prevents a 27 percent reduction in Medicare payments to doctors and other health care providers treating patients on Medicare;
Replaces two months of the approximately $100 billion across-the-board spending cuts known as sequestration scheduled to start in January;
Extends the current farm bill, which passed in 2008, through the end of this fiscal year;
Permanently patches the Alternative Minimum Tax. This tax was originally designed to prevent high-income earners from using exemptions to avoid paying income taxes but did not automatically adjust for inflation. Without patching the AMT, this tax would impact nearly 135,000 Nebraska households earning as little as $33,750 a year according to the Congressional Research Office.

What the Senate did tonight was just a step. More must be done and I will continue working to right our fiscal ship in the New Year by cutting spending and strengthening programs like Social Security and Medicare. The stakes are too high for us to put off the tough choices any longer.



I’ll keep you updated as Congress debates – and hopefully solves – these important issues.

[Flashmann]

1. I wish it would have done more to cut spending and strengthen programs

like Social Security and Medicare........

I'll buy the cut spending part,but,c'mon....The part where you wish Social Security and Medicare would have been strengthened??....That's a bald faced lie......You know......I know it...We ALL know it......

See asshat,that little (r) by your name screams what you are about......And doing anything constructive for the average Joe,is NOT what you are about......

The accurate statement would've been,"I wish it would have done more to cut spending and SCRAPPED programs like Social Security and Medicare".

Get it right,turd.......