Home > A3, Learning > Fiscal Cliff Deal: Deal or Dud?

Fiscal Cliff Deal: Deal or Dud?

On January 2, 2013, Congress passed a bill that was “avert” the fiscal cliff. What the fiscal cliff deal really did was nothing to better America’s economy. There was a stalemate between the Democrats and Republicans. This plan was a last-minute resort due to the procrastination.


The Republicans let taxes rise for the wealthier Americans.



Democrats lost when it came to the “higher threshold for how much income will face a higher tax rate“. Both parties broke some of their values in this deal just avoid something that will come back 2 months later after the delayed spending cuts are started.

We also revised what makes a person a “wealthier American”. The Top 2% used to be individuals who made $250,000. The new definition of a wealthier American” today is a person that makes $400,000 and families earning more than $450,000. The tax hikes will only effect this new Top 2%. In 2011, the average median American household income was $50, 054. They also made a cap for deductions for people who made $250,00 and $300,000 as a family, and this allows “the president bragging rights to say the deal raises taxes on people at those income levels”. The cap of deductions still won’t be enough and they will have to raise the taxes again.

The current deal only delays the sequester, which are “a series of automatic cuts in federal spending”, this brings back the same problem that we faced before. The Senate is making a plan to get $12 billion revenue and $12 billion in spending cuts. The spending cuts are either non defense and defense cuts. These spending cuts are just going to make the problem worse because the Congress is going to arguing what to cut. After they get the spending cuts settled, they have two other issues to discuss. They will have to decide about the debt ceiling and whats acceptable for it to be. After they get both of those done, they can focusing on keeping our government from coming to anotherfiscal  cliff.


The Republicans in the House of Representatives and Senate didn’t like this deal. In the Senate the pro to con ratio was 89 to 9. The Senate didn’t have much of a debate between whether or not the bill could be approved. But the House of Representatives had a harder time agreeing on this deal. The ratio for them was 257 to 167. Which means that there were a lot of people in House that didn’t approve  with this plan.

The fiscal cliff deal wasn’t the best plan to take. This problem will be around until we decide to take care of it instead of putting it off for another day. To find the solution may be hard but if we take care of now it will be easier to fix than later. And it’s for us as a nation to start it today!

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