Fiscal Cliff Averted: 6 Things You Don't Have to Worry About Anymore

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Fiscal Cliff
After months of lead-up, America finally went over the fiscal cliff -- for about 34 hours. But if you didn't notice the plague of miseries that was predicted after the great tumble, don't be surprised: The country had barely taken its lemming-like dive before Congress and President Obama hammered out a bipartisan agreement that simultaneously garnered votes and bitter abuse from both sides of the aisle.

For most Americans, this should be a serious load off their minds. In the majority of households, taxes will go up by less than 1.5 percent -- a fraction of the increase that would have happened if the fiscal cliff dive had been permanent. And even in the country's richest zip codes, things aren't all that bad. Granted, dividend and capital gains taxes rose slightly, as did income tax on workers making more than $400,000.

The estate tax, also known as the "Paris Hilton tax" due to the way it generously collects so little from the inheritances of the heirs of the super rich, went up from 35% to 40%. But, before you become too sympathetic to the injured squeals issuing from ski slopes and country clubs across the country, remember that the first $5 million of every estate is still tax-exempt, and the new 40 percent rate is still a nice drop from the 55 percent rate that held sway before Dubya started slashing it back in 2001.

With an eye toward the bright side, here's a recap of six things that you no longer need to worry about now that the fiscal cliff has been averted:





Bruce Watson is a senior features writer for DailyFinance. You can reach him by e-mail at bruce.watson@teamaol.com, or follow him on Twitter at @bruce1971.

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11 Comments

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democrackso

partyofnohastogo
Yeah,.......we went over the cliff long ago under Bush. With Bush raising the debt limit 8 times and Cheney saying deficits don't matter no wonder we're in this mess today.
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Senator Obama said President Obama is unpatriotic, irresponsible and lacks leadership for raising the debt ceiling. I have to agree 100% with Senator Obama even he knows President Obamas a hypocrite.

January 05 2013 at 6:36 PM Report abuse rate up rate down Reply
Robert & Lisa

With our average net worth down to almost half of what it was when Bush left office and the poverty rate up by 50%, we still have plenty to worry about...

January 05 2013 at 3:15 AM Report abuse +3 rate up rate down Reply
gmydogbud

Question: Is President Obama going to return the over SEVEN - HUNDERED - BILLION - DOLLARS - He - REMOVED - FROM - THOSE - ON - MEDICARE & TOOK - TO - HELP - PAY - FOR - HIS - "OBAMA - CARE"?
Medicare payments - HAVE - GONE - UP - . THANK - YOU - PRESIDENT - OBAMA - & CONGRESS!!!
Supplemental - Health - Insurance - HAS - GONE - UP - THANK - YOU - President - OBAMA - & CONGRESS!!!
Dental - Insurance - HAS - GONE - UP -THANK - YOU - PRESIDENT - OBAMA - & CONGRESS!!!
Prescription - Drug - Insurance - HAS - GONE - UP - THANK - YOU - PRESIDENT - OBAMA - & CONGRESS!!!

At a time when our country is clean out of MONEY - Why - do our politicans have plenty of money to send to countries and people who have seen to it that Americans are DEAD?
Why do our Politicans have plenty of money for Illegal Aliens & Their Anchor Babies?
Why do our politicans encourage & support Illegal Immigration?
Why do our politicans have enough money to send to the countries of Illegal Aliens, For Their Children or Children of their Relatives?
Where is the recompense, for those whos Grandparents & Parents came to this country Legally?

Where is the Fairness, that we hear so much about?

January 04 2013 at 6:58 PM Report abuse rate up rate down Reply
patsy

What happens when the debt of this country get's to the point where it will destory peoples lives?Obama will TAX everyone . The debt of this country will destroy america. yet the democrats will keep spending.

January 04 2013 at 6:14 PM Report abuse -1 rate up rate down Reply
bobbsafe

Here we are with the S&B "back" to where it was before the 2008 crash. It has moved up 50% since then based on the Fed printing. Other than that - I must be missing the reason things are so great again.

January 04 2013 at 6:12 PM Report abuse +1 rate up rate down Reply
crimeslawyer

Happy days are here again!

January 04 2013 at 12:47 PM Report abuse -3 rate up rate down Reply
groucho3710

Just to add a little liberal bias, otherwise known as balance... Unemployment insurance is a lifesaver, period, and when there aren't as many jobs available as there are people looking for work, it's even moreso. I know that one from experience. Before I retired, after two years of looking for work, I heard more than once from prospective employers about how one half-inch ad in the Sunday paper brought 400-500 resume's the next day and the fax machine never stopped working. Job fairs overflow with people. I remember seeing on tv, but can't remember where it was, the lines of applicants around the block after some company advertised for help. Let's get real about this makers-and-takers nonsense. Also, an influx of government capital does not depress/repress private capital. This happens when the private sector is unable or unwilling to spend, and consumers (70% of our economy) aren't spending. It doesn't repress, it replaces. First you have to repair and revive the patient, THEN you take him off life support and set him off on his own. Elementary, my dear conservative.

January 04 2013 at 12:47 PM Report abuse -6 rate up rate down Reply
anthdif

Nice try Bruce but fortunately your spin will not go without challenge by people who read more than your headline. Taxes went up for all middle class americans as you so aptly point out in your article. Trying to sell it as a small increas `1.7% and not as great as it could have been had we gone over the fiscal cliff doesn't answer how your president, Obama, said no tax increase for the middle class. Obama emphasizes the term "lame duck," which means I can go back on election promises.

January 04 2013 at 12:01 PM Report abuse +4 rate up rate down Reply
nnorthcharleston

the earned income credit is a joke first you get back ALL THE MONEY YOU HAVE PAYED IN TAX'S OVER THE YEAR oh wait than the government give you thousands more kind of like you go to the bank where you dont have any money in it so they just gave you a few thousand and tell you to go have some more little bash---- so the government can give you lots more money

January 04 2013 at 11:32 AM Report abuse +3 rate up rate down Reply
ncheels015

yea you dont have to worry about a big tax increase, we will just slowly increase your taxes untill your tapped out.........

January 04 2013 at 11:16 AM Report abuse +2 rate up rate down Reply
1 reply to ncheels015's comment
dembaitnswitch

The Obama administration will more than likely try to weasel more pork in every bill they come up with, along with forced taxation like in HB3200. The debt ceiling issue is coming up soon, look for more unread legislation to be put to a vote.

January 04 2013 at 11:20 AM Report abuse +3 rate up rate down Reply
1 reply to dembaitnswitch's comment
dickvipp

An exaple of the pork that is being faced today is the Sandy relief bill. Check it out. Besides helping Alaskan fishermen, it gives $17 billion to community organizing efforts.

January 04 2013 at 12:21 PM Report abuse +4 rate up rate down