Fiscal perspective (UPDATE)

Perspective...

Out of all that class warfare promulgated, all the 'tax the rich' and 'fair share' hullabaloo, atop the employment hurt that's coming with tax rates raised on the top earning employers...out of all of that theater, here's all that last night's vote actually acomplished...(via ZeroHedge)

Kinda what a 41:1 ratio of tax hikes to spending cuts looks like, huh? But there's no spending problem...no, nothing to see here. And our president assures us of that, using all the usual buzzwords...

Obama: We can’t simply cut our way to prosperity. Cutting spending has to go hand-in-hand with further reforms to our tax code so that the wealthiest corporations and individuals can’t take advantage of loopholes and deductions that aren’t available to most Americans. And we can’t keep cutting things like basic research and new technology and still expect to succeed in a 21st century economy. So we’re going to have to continue to move forward in deficit reduction, but we have to do it in a balanced way, making sure that we are growing even as we get a handle on our spending...

Today’s agreement enshrines, I think, a principle into law that will remain in place as long as I am President: The deficit needs to be reduced in a way that’s balanced. Everyone pays their fair share. Everyone does their part. That’s how our economy works best. That’s how we grow.

In other words, no real reforms, no real deficit reduction...just more confiscation of wealth for more of Obama's spending.

UPDATE: More perspective from AEI's James Pethokoukis...

Forget about budgetary baselines for a second. What will Americans pay in taxes this year vs. last year in light of the fiscal cliff deal? Well, let’s run the numbers (with some help from JPMorgan):

• Payroll tax hike: $125 billion
• Income tax hike and the phaseout of exemptions: $35-50 billion
• Investment tax hike: $5 billion
• PPACA health care taxes: $38 billion

So that works out to roughly $220 billion, or 1.2% of GDP. It’s a deal that, as The Washington Post puts it, ”takes money out of the hands of many Americans, sucking it out of the economy and slowing economic activity.”

The deal also worsens incentives to work, save, and invest. But at least it removes some uncertainty from the economic picture, right? Maybe not, says economist Mike Feroli of JPMorgan:

The sequestration associated with the Budget Control Act was deferred for two months. The fate of these across-the-board budget cuts come March remains uncertain. This uncertainty, combined with the unresolved fate of the debt ceiling, probably curtails any “certainty bounce” in confidence that would be expected with the resolution of the fiscal cliff.

So no “Certainty Dividend,” either.

Happy New Year!