Tax Cuts for Christmas!

The House tonight followed the Senate’s lead and approved a tax reduction without a corresponding offset in violation of their own pay-as-you-go rules. The legislation temporarily “patches” the Alternative Minimum Tax by making in inapplicable to those who don’t already pay it. But, since there was no ability to agree on which taxes to permanently increase to offset the temporary decrease for some people, they didn’t bother. In the mean time, while they’re selling it as a “middle class” tax cut, the beneficiaries will be households that make between $75,000 and $200,000. Median income in America today is $48,200. [Yahoo News, Census Bureau]