Monday, December 31, 2012

President Obama addresses nation during soaps, says "deal is within sight but not there"

President Obama appeared on network television around 1:40 PM Monday, New Years Eve, 2012, to say “A deal is in signt, but it is not yet done”.  He was surrounded by members of middle class families who would be affected by the Fiscal Cliff, especially the loss of unemployment benefits.

The president still points the finger at some Republicans, whom he says simply refuse to join in the shared sacrifice (a Ross Perot term from 1992) that could be expected by those with high incomes.

The “horizon deal” would raise taxes on couples making over $450000 a year (marginally) or individuals over $400000.  It would preserve tax cuts for families with children.

The president talked about a “responsible, balanced approach” but didn’t get into entitlement reform or discussion of the debt ceiling. He didn’t mention the AMT, but it is almost certainly in the legislation.
The markets reacted negatively right when the president said that we would have to negotiate deficit reduction “in several steps”.

The FICA payroll tax holiday of 2% will almost certainly expire tonight.

Although both houses were in session early Sunday night, it looks as though they both shut down around 7:30 PM because of the distraction of the Washington Redskin's divisional title championship game  with (and win over) the Dallas Cowboys on NBC. 

A critical point in NBC’s “Days of our Lives”, where Nick and Gabbie (and Will) almost told a priest “the truth” about Will’s baby was skipped.  It would be available online on NBC tomorrow. 

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