The Winners and Losers in the Fiscal-Cliff Deal – Slate 01-01-13

Salient to Investors:

Winners in the Fiscal Cliff deal:
  • Rich people because raising the threshold for higher taxes from $250,000 to $450,000 because taxes are assessed on marginal income.
  • Red State Democrats because they duck partisan controversy, which is right where they want to be.
  • The unemployed people.
  • Doctors because the deal completely punts on all kinds of substantive issues related to Medicare reimbursement rate issue.
  • The elderly.

Losers:

  • Grand Bargaineers because the win for the elderly was a catastrophic defeat for the grand bargain.
  • Fighting Democrats because the White House chose not to risk further re-enforcing a sense that the president is a weak poker player.
  • Grover Norquist.
  • The economy because the expiration of the payroll tax holiday means that taxes will go up on working people
  • The markets because for the next 2 months they have the debt ceiling standoff lurking over their head. 

Read the full article at

http://www.slate.com/articles/business/moneybox/2013/01/fiscal_cliff_deal_who_are_the_winners_and_losers_in_the_bargain_between.html.

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