Fiscal cliff deal impact on low income Nevadans


From Jon Sasser –

Fiscal cliff deal passed yesterday by Congress looks helpful to low income Nevadans in the short run but raises major concerns for the future. Details at http://news.yahoo.com/details-legislation-averting-fiscal-cliff-080939257–finance.html

Good things:

  • Emergency unemployment insurance benefits extended for one year
  • Income tax hike averted for all below $400,000 (single) $450,000 (married)
  • earn income tax credit extended for five years
  • improvements to child tax credit extended for five years
  • sequester cuts in discretionary spending postponed for two months
  • no cuts to health care or entitlement programs
  • apparent extension of the Mortgage Forgiveness Debt Relief Act – seehttp://www.huffingtonpost.com/2013/01/01/fiscal-cliff-news_n_2393443.html

Bad things:

  • continuation of the temporary payroll tax was not seriously discussed

Future concerns:

  • debt ceiling was not addressed so the next fight will take place on 3/1 when both the debt ceiling and the temporary suspension of the sequester cuts expire

· revenue lost by continuing lower taxes to those between $250,000-$40000 means increased likelihood of additional cuts to make up that difference in deficit reduction deal. President had hoped to raise $1.6 trillion in revenue over 10 years (as part of $4 billion “grand bargain”) The bill only raises $620 billion, suggesting that future deficit reduction could come from cutting programs.

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