The House has passed a bill to avert the fiscal cliff, 257-167. 151 Republicans voted no in the House against the tax increase. The legislation now goes to Obama for his signature. The bill passed the Senate 89-8 in an early morning vote today.
So what does the fiscal cliff deal mean for most people? As Andrea Bitely put it, “77.1% of tax payers will feel a roughly $1,635 tax increase thanks to Congress. For the average American effected by this increase, that’s one month-ish of rent; or 470ish gallons of gas; or 1,105 loaves of bread; or 472 lbs of ground beef; or 10,000 eggs; 269 lbs of ground coffee; or 12,874 kWh of electricity; or 2,725 lbs of bananas.”
And according to a report from Bloomberg, “More than 80 percent of households with incomes between $50,000 and $200,000 would pay higher taxes. Among the households facing higher taxes, the average increase would be $1,635, the policy center said. A 2 percent payroll tax cut, enacted during the economic slowdown, is being allowed to expire as of yesterday.”
