On January 1, the U.S. House of Representatives voted 257-167 to pass the Senate compromise tax bill to stop the so-called “fiscal cliff” of tax increases and spending cuts. While Democratic politicians are portraying this deal as a victory as “98% of Americans will not see their taxes increase,” the reality is that 77% of Americans, including about two-thirds of the working class, will see tax increases.

Many tax cuts for wealthy also kept

San José, CA – Early New Year’s Day, the U.S. Senate voted 89-8 to pass a compromise bill to put off the so-called ‘fiscal cliff.’ The bill now goes to the House of Representatives, where Republicans are likely to try to get even more tax breaks for the rich.

Tallahassee, FL – The afternoon clouds were dark, but even the threat of rain couldn't stop students, retirees, and union members from taking a stand against federal budget cuts. About 35 people rallied outside of Republican Congressman Steve Southerland’s office here, Dec.10, demanding no cuts to Medicare, Medicaid, or Social Security.

Right wing hypes fear of a ‘fiscal cliff’ to extend tax cuts for the rich

The federal government is on course for large spending cuts and tax increases starting January of 2013. This comes from a combination of three things: the end of some of the Obama administration stimulus that began in 2009; the end of large tax cuts, especially for the wealthy, done under the Bush administration; and automatic spending cuts designed to reduce the federal budget deficit. While some of the tax increases would not fully take effect until April 2014, and others could be reversed, the right wing is using fears of a ‘fiscal cliff’ to try to extend tax cuts for the rich and block planned cutbacks in military spending.