According to the nonpartisan Tax Policy Center, “77 percent of American households will face higher federal taxes in 2013 under the agreement negotiated between President Barack Obama and Senate Republicans” over the New Year holiday.
As a result, the government will bring in over $620 billion in new revenue, over ten years – or approximately $62 billion per year.
However, the deal also provided for over $300 billion in new spending over the next ten years, adding an additional $4 trillion dollars to the deficit in the same time period.
Given that the federal deficit in 2012 was $1.1 trillion, simple arithmetic shows that the fiscal cliff deal goes a long way from even making a dent in our nation’s long-term debt problem.
The mission of Ending Spending in 2013 will be advocating for large-scale solutions that put America back on a path to prosperity. In the coming months, we’re looking forward to a serious conversation about just how we get there.
Stay tuned.
