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Despite deal, taxes to rise for most Americans

President Barack Obama and Vice President Joe Biden make a statement regarding the passage of the fiscal cliff bill in the Brady Press Briefing Room at the White House in Washington, Tuesday, Jan. 1, 2013. (AP Photo/Charles Dharapak)

As an evening haze lights the sky with a reddish glow, the lights of the U.S. Capitol burn into the night as the House continues to work on the "fiscal cliff" legislation proposed by the Senate, in Washington, on Tuesday, Jan. 1, 2013. (AP Photo/Jacquelyn Martin)

WASHINGTON (AP) ? While the tax package that Congress passed New Year's Day will protect 99 percent of Americans from an income tax increase, most of them will still end up paying more federal taxes in 2013.

That's because the legislation did nothing to prevent a temporary reduction in the Social Security payroll tax from expiring. In 2012, that 2-percentage-point cut in the payroll tax was worth about $1,000 to a worker making $50,000 a year.

The Tax Policy Center, a nonpartisan Washington research group, estimates that 77 percent of American households will face higher federal taxes in 2013 under the agreement negotiated between President Barack Obama and Senate Republicans. High-income families will feel the biggest tax increases, but many middle- and low-income families will pay higher taxes too.

Households making between $40,000 and $50,000 will face an average tax increase of $579 in 2013, according to the Tax Policy Center's analysis. Households making between $50,000 and $75,000 will face an average tax increase of $822.

"For most people, it's just the payroll tax," said Roberton Williams, a senior fellow at the Tax Policy Center.

The tax increases could be a lot higher. A huge package of tax cuts first enacted under President George W. Bush was scheduled to expire Tuesday as part of the "fiscal cliff." The Bush-era tax cuts lowered taxes for families at every income level, reduced investment taxes and the estate tax, and enhanced a number of tax credits, including a $1,000-per-child credit.

The package passed Tuesday by the Senate and House extends most the Bush-era tax cuts for individuals making less than $400,000 and married couples making less than $450,000.

Obama said the deal "protects 98 percent of Americans and 97 percent of small business owners from a middle-class tax hike. While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country."

The income threshold covers more than 99 percent of all households, exceeding Obama's claim, according to the Tax Policy Center. However, the increase in payroll taxes will hit nearly every wage earner.

Social Security is financed by a 12.4 percent tax on wages up to $113,700, with employers paying half and workers paying the other half. Obama and Congress reduced the share paid by workers from 6.2 percent to 4.2 percent for 2011 and 2012, saving a typical family about $1,000 a year.

Obama pushed hard to enact the payroll tax cut for 2011 and to extend it through 2012. But it was never fully embraced by either party, and this time around, there was general agreement to let it expire.

The new tax package would increase the income tax rate from 35 percent to 39.6 percent on income above $400,000 for individuals and $450,000 for married couples. Investment taxes would increase for people who fall in the new top tax bracket.

High-income families will also pay higher taxes this year as part of Obama's 2010 health care law. As part of that law, a new 3.8 percent tax is being imposed on investment income for individuals making more than $200,000 a year and couples making more than $250,000.

Together, the new tax package and Obama's health care law will produce significant tax increases for many high-income families.

For 2013, households making between $500,000 and $1 million would get an average tax increase of $14,812, according to the Tax Policy Center analysis. Households making more than $1 million would get an average tax increase of $170,341.

"If you're rich, you're almost certain to get a big tax increase," Williams said.

___

Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2013-01-02-Fiscal%20Cliff-Tax%20Impact/id-5de1868c32c54e4bbea6199c8c339e50

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Tuesday, January 1, 2013

Dancing troupe of middle-class taxpayers: Obama's 'fiscal cliff' trump card?

President Obama took to the stage Monday to press Congress not to allow taxes to go up on middle-class taxpayers ? and he had a rambunctious group of them on hand to support him.

By Linda Feldmann,?Staff writer / December 31, 2012

President Obama smiles and gestures as he speaks about the 'fiscal cliff' Monday in the South Court Auditorium at the White House in Washington.

Carolyn Kaster/AP

Enlarge

The campaign is over, but when President Obama stepped on stage Monday to make a statement on fiscal cliff negotiations, it felt more like a pep rally than a sober policy update on an issue of global import.

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The 8 Best Employees Of 2012

It doesn't take all that much to be a good employee. But to be one of the best? Now that takes character.

The following employees saved lives, rescued sick customers, returned lost money and performed tasks that customers never thought plausible. Hats off to you all.

Check out the best employees of 2012:

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Source: http://www.huffingtonpost.com/2012/12/31/best-employees-2012_n_2387886.html

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Addicted to Astrology: Libra 2013 Yearly Forecast/Horoscope

As 2013 begins, the Sun transits your 4th House of home, family and where you live, Libra. Additionally, Pluto continues its long transit of your 4th House of home, family, motherhood and the past as January opens. Pluto (slow but powerful change) also begins the year in your 4th House where it has been since 2008. You have noticed a powerful change in this area of your life, Libra. Your family dynamics, where you live, the past, motherhood and all things domestic are highlighted during this transit through your 4th House. It is important to stress that Pluto affects each of us on a different level but still retains the same impact. Bottom line: Your home life will continue to slowly but surely transform into a better and improved overall life with the right love. A soothing home environment and children and motherhood should transform in the lives of all Libras, single and coupled. Love wise, you tend to prefer long term relationships but in 2013, you strike out on your own if not entirely happy at home. If your partner does not keep the home fires burning, then Libra might decide to find someone who does. Expect these areas to slowly but surely change. When all is said and done, Libra will find a perfect home life but there are bound to be some obstacles along the way. Who ever said life was easy, Libra? And remember that we create our own lives. Astrology can be useful in knowing what to expect and working with those energies. ?Major change is in store in your home life. A move, marriage or divorce or having children are strong possibilities with this placement. Think back to 2008 and see how your home life has changed. What?HAS changed, Libra?
Uranus (Surprises) opens the year in your 7th House of marriage, divorce and open enemies. Expect the unexpected when it comes to seeing things you never saw coming in these areas of your life. This planet represents a shock to your system. You could learn secrets about marriage, someone else's marriage or someone close to you could be keeping secrets from you or telling them behind your back. Not to worry, Libra, as you will learn everything you need to know about the culprit. Where you have been stuck in a rut, this planet comes in to shake you up. If you're not in a rut, you might get a serious wake up call when it comes to your personal and professional life. This is not the time to bury your head in the sand when it comes to unexpected news, whether this news pertains to you or someone you're close with. Expect an element of surprise when it comes to all properties of the 7th House and realize that partnerships come to your direct attention in surprising ways. Expect?NEW friends and new experiences to come out of nowhere where business and personal relationships are involved.

Saturn (Lessons/Structures) is in your 2nd House and you find yourself concerned with collecting valuables and acquiring more money. There could be offers to earn more income during this transit, Libra. You could change your home life during this time and if you're single, a marriage proposal is a strong possibility. Libra finds 2013 to be a year when financial offers present themselves and escalate with Saturn in your 2nd House. Those Libras who have taken short cuts or the easy way out regarding finances can expect to learn some valuable lessons. Those Libras who have worked hard will reap the greatest benefits. The cardinal rule is always at work in your life, Libra. This applies to everyone but you will benefit by adhering to the laws of the physical universe. If you have been honest, hard working and forthright, then expect 2013 to be an important year for finances and will present new offers to make more money. Take all offers you receive ultra seriously as you can make a fortune with Saturn in the 2nd House. It's all related to your past actions leading up to now.

Neptune (Illusions/ What is hidden) continues its transit of your 6th House of health, diet and exercise. The 6th House also rules your daily routines. This is a good time to pay strict attention to your health, as you might not be seeing your overall health clearly, Libra. With Neptune, you may have difficulty with issues regarding your health and daily work routine when it comes to clarifying things. If there is an illness diagnosed, get a second opinion, Libra. Your health can come under a magnifying glass during this time. Neptune is sometimes referred to as the planet of trickery so make sure you see things as they really are. It's time to face the music where your mind, body and spirit are involved, Libra. Escapism can backfire on you so be mindful when consuming alcohol or experimenting with other ways of escapism via your health. Avoid addictions, as the urge to escape will be quite intense. Neptune also involves alcohol and drugs, so be especially careful with your health when it comes to excess in any of the aforementioned areas, Libra. Jupiter (Prosperity/Expansion) transits Gemini and your 8th House until June 25th, 2013. You notice movement, luck, optimism and expansion in all properties of the 8th House. Sex, money and taxes will be important areas, as will the money of others and deeply committed relationships. A note about Jupiter, Libra. This planet can create an OVER abundance of optimism and this could be dangerous. You don't want to get too excited or you could end up disappointed in these areas. You're due for a more comfortable life but you need to utilize a sense of going with the flow and erase any hint of expectations. On June 25th, Jupiter enters Cancer and your 10th House of prestige, career and public recognition. You will be due for major expansion in these areas beginning on June 25th and lasting throughout the next year. Your best times for love are when Venus travels through your sign or travels through another air sign such as Gemini or Aquarius. For you, Libra, the times listed below are excellent for love and serious relationships in 2013: 2/2 - 2/25: Venus in Aquarius 5/9 - 6/2: Venus in Gemini 8/16 - 9/11: Venus in Libra 2013 is a year to make strides in your home life and/or your professional life and brings about many offers to make money. You can find the perfect financial niche and learn where you really STAND in your home life and with your relatives, Libra.

Source: http://astrologyaddict.blogspot.com/2012/12/libra-2013-yearly-forecasthoroscope.html

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NFL Playoff Schedule: Wildcard, Divisional Round Schedules Complete

The Broncos don't know who, but they know when they will play their divisional round playoff game.

Commissioner ROGER GOODELL announced today the schedule of sites, dates and times for the National Football League Wild Card Playoffs of January 5-6 and Divisional Playoffs of January 12-13 (all times Eastern):

NFL WILD CARD WEEKEND

Saturday, January 5

AFC: 4:30 PM (ET)	Cincinnati at Houston (NBC)
NFC: 8:00 PM (ET)	Minnesota at Green Bay (NBC)

Sunday, January 6

AFC: 1:00 PM (ET)	Indianapolis at Baltimore (CBS)

NFC: 4:30 PM (ET)	Seattle at Washington/Dallas (FOX)

NFL DIVISIONAL PLAYOFFS

Saturday, January 12

AFC: 4:30 PM (ET)	Baltimore/Indianapolis/Cincinnati at Denver (CBS)
NFC: 8:00 PM (ET)	Green Bay/Washington/Dallas/Seattle at San Francisco (FOX)

Sunday, January 13

NFC: 1:00 PM (ET)	Washington/Dallas/Seattle/Minnesota at Atlanta (FOX)

AFC: 4:30 PM (ET)	Houston/Baltimore/Indianapolis at New England (CBS)

In the Divisional Playoffs, the division champion with the best record in each conference will host the lowest seeded Wild Card survivor. Once teams are seeded for the playoffs, positions do not change:

American Football Conference	National Football Conference
1. Denver (13-3, AFC West champion)	1. Atlanta (13-3, NFC South champion)
2. New England (12-4, AFC East champion)	2. San Francisco (11-4-1, NFC West champion)
3. Houston (12-4, AFC South champion)	3. Green Bay (11-5, NFC North champion)
4. Baltimore (10-6, AFC North champion)	4. Washington/Dallas (9-6/8-7) (NFC East champion)
5. Indianapolis (11-5)	5. Seattle (11-5)
6. Cincinnati (10-6)	6. Minnesota (10-6)

The AFC (CBS, 6:30 PM ET) and NFC (FOX, 3:00 PM ET) Championship Games will be played on Sunday, January 20.

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Source: http://www.milehighreport.com/2012/12/30/3819870/nfl-playoff-schedule-wildcard-divisional-round-schedules-complete

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Major Setback in Last-Ditch 'Fiscal Cliff' Talks

Democratic Senate Leader Harry Reid on Sunday rejected the latest offer from Republican Leader Mitch McConnell, stalling tense last minute negotiations and pushing the country that much closer to the fiscal cliff as the senators seemed unable to find a bipartisan deal before automatic tax cuts and spending hikes kick in for the new year.

A senior Democratic aide tells me that, although talks continue, the McConnell offer was "a major setback."

"We are hugely disappointed," the aide aid tells ABC News.

The McConnell offer, according to the aide, included:

- An extension of the Bush era tax cuts for taxpayers who earn "well above" the $250,000 income level that Democrats proposed - An extension of the current estate tax - A reduction in cost of living increases for Social Security recipients (" chained CPI"), which is a major sticking point for some Democrats - No increase in the debt ceiling, which would set up another tough fiscal debate early in the new year

For Democrats, the Social Security provision, which was offered by President Obama as part of a grand bargain that would have included $1.4 trillion in tax cuts and increase in the debt ceiling, is a non-starter and was never going to be part of this stop-gap deal.

"We are now further apart than we were 24 hours ago," the aide says.

The "major setback" of talks was evident on the floor of the Senate this afternoon.

"I'm concerned about the lack of urgency here, I think we all know we are running out of time," Senate Minority Leader Mitch McConnell, R-KY., said, "I want everyone to know I am willing to get this done, but I need a dance partner."

McConnell said he submitted the Republican's latest offer to Majority Leader Reid at 7:10 p.m. last night and was willing to work through the night.

But Democrats have not made a counter-offer and Reid rejected McConnell's proposal.

"At this stage we're not able to make a counteroffer," Reid said noting that he's had numerous conversations with President Obama yet the two parties are still far apart on some big issues, "I don't have a counter-offer to make. Perhaps as the day wears on I will be able to."

McConnell said that he believes there is no major issue that is the sticking point but rather, "the sticking point appears to be a willingness, an interest, or frankly the courage to close the deal."

McConnell placed a call to Vice President Biden to see if he could "jump start the negotiations on his side."

"The other side is intentionally demanding concessions they know we are not willing to make," said Reid.

The two sides will meet separately at 3 p.m. and afterwards Reid said he hopes there is an announcement to make on a way forward.

Repeating remarks he made Friday after a meeting with congressional leaders, President Obama said on Meet the Press that should negotiations fail he has asked Senate Majority Leader Harry Reid, D-Nev., to introduce a stripped- down proposal to Congress for a straight up-or-down vote - if it isn't blocked.

"If all else fails, if Republicans do in fact decide to block so that taxes on the middle class do in fact go up on January 1, then we'll come back with a new Congress on January 4, and the first bill that will be introduced on the floor will be to cut taxes on middle-class families," he said of the worst case scenario. "I don't think the average person is going to say, 'Gosh, you know, that's a really partisan agenda.'"

ABC's Sunlen Miller contributed to this report.