The deal actually does not raise taxes. Higher rates for those $400K & up are already law. The bill cuts taxes. Many on right don't get this—
Brit Hume (@brithume) January 01, 2013
Does the crap sandwich passed by the US Senate early this morning raise taxes or cut them? It all depends on how you look at it.
Fox News’ Brit Hume says the bill cuts taxes. That is to say, it extends the Bush-era income tax cuts to taxpayers earnings $400,000 per year or less. In making this argument, Hume is echoing Grover Norquist, who told the Washington Post editorial board last year that “Not continuing a tax cut is not technically a tax increase.”
If you don’t follow the Hume/Norquist logic, read that sentence again: ”Not continuing a tax cut is not technically a tax increase.”
Hume’s Fox News colleague Chad Pergram, on the other hand, says the Congressional Budget Office estimates that the bill will result in $620 billion in new tax hikes:
So which Fox News guy is right? Does it really matter?
Whether you call them tax cuts or tax increases, our taxes are going up. And the crap sandwich passed by the US Senate this morning does nearly nothing to reduce federal spending.
It seems to us that “many on the right” have a very good understanding of the situation.