Stocks rally as U.S. House undoes income tax hikes for more than 99% of U.S. households

“U.S. stocks rose, sending the Standard & Poor’s 500 Index to its biggest two-day gain since July, as lawmakers passed a bill averting spending cuts and tax increases threatening a recovery in the world’s biggest economy,” Inyoung Hwang reports for Bloomberg. “All 10 groups in the S&P 500 (SPX) rose at least 1.1 percent and all 30 stocks in the Dow Jones Industrial Average rallied. Apple (AAPL) Inc. and Facebook Inc. (FB) jumped more than 2.4 percent, pacing gains with technology companies.”

“The S&P 500 jumped 1.8 percent to 1,451.61 at 2:05 p.m. in New York. The benchmark index is up 3.5 percent over two days. The Dow climbed 224.30 points, or 1.7 percent, to 13,328.44 today. Trading in S&P 500 companies was 32 percent above the 30- day average at this time of day,” Hwang reports. “The House of Representatives passed a bill just after 11 p.m. in Washington yesterday by a vote of 257-167, undoing income tax increases for more than 99 percent of households.”

Hwang reports, “The bipartisan vote broke a yearlong impasse over how to prevent more than $600 billion in tax increases and spending cuts that could lead the economy back into recession… The measure isn’t the grand bargain on deficit reduction lawmakers wanted when they created the tax-and-spending deadlines over the past three years. While avoiding most of the immediate pain, it is only one step toward curbing the federal deficit — an issue that will return with a February fight over raising the $16.4 trillion debt limit.”

“Households making less than $450,000 per year would be spared an income tax rate increase under the agreement. The wealthy would see a rise in their top rate, to 39.6 percent from 35 percent,” Hwang reports. “The top tax rates on capital gains and dividends would go up to 23.8 percent, from 15 percent last year.”

Read more in the full article here.

[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]

69 Comments

  1. God bless the Republican-led U.S. House of Representatives!

    (There, maybe that’ll sway the low information American voter.)

    Depose all RINOs!

    May the next House squash the profligate spender Obama with an unmovable, rock solid debt ceiling!

    1. Eating this kind of shit is just a preview of what will happen to republikkans in 2014.

      Bank on it – the entire country an true Apple forum controbutors are sick of your hijacking. Fact.

      1. “We are saved! Did you not know it? We are saved! Taxes are going up on the 2%. There’s no more deficit. There are jobs for everybody, all the unemployed. Free health care for everybody. We are a utopia!” -Doug Urbanski

        1. Christie, a potential 2016 GOP presidential contender, reserved his most blistering words for the Republican House speaker. He described Boehner, variously, as selfish, duplicitous and gutless for reversing course at the last minute on Tuesday night and refusing to allow a vote on a $60-billion aid package before the current Congress adjourned.

        2. Boehner is simply pushing forward the original Gingrichian agenda of total partisan anhialation. By the Gingrich standard only one party knows what’s good for America and the only way that party can enforce its unilateral will is to incur zero resistance. Like Republicans of a decade and a half ago, when pushed into a corner, their true colors come shining through. They bite, scratch and hold their breath till they turn blue when every single thing doesn’t go their way. They lie cheat and steal too, and then acted self righteous and martyring when called on the carpet for it. Personally I’m thankful for the two -party system we have, but the Conservative party really needs to pull their collective heads out and get with the game that’s actually at hand and stop whining about the good ole days. I think the last few days has demonstrated that very well, even by the standards of a few forward thinking ‘publicans.

      1. Exactly.

        The Fiscal Cliff was a ruse and this extension of these tax rates will increase our national debt. A pox on all who voted for them of whatever party.

        BTW, Mr let’s drop politics- the Republican Leader voted against it. So much for gawd bless.

      1. That’s what give and take is. If the kkks had their way they’d social security and medicare taken away too and give all the tax dodgers more loopholes and less regulation in addition to lowering their taxes and then they’d blame the only decent real leader we have.

      2. Yeah we all have to sacrifice to pay for W’s 30 Billion $ a month war that went on for years to create the deficit that never existed when he came in.

        Don’t forget or distort that fact.

    2. When the total debt goes above the debt ceiling, not increasing the debt ceiling essentially makes the country default on its obligations. This may not necessarily have as cataclysmic an effect as the “fiscal cliff” scenario of yesterday, but would be still extremely devastating.

      By refusing to increase debt ceiling, the next Congress would really shoot themselves in the foot.

      1. President Obama can and will raise the debt ceiling it on his own if the white trash new violent right wing tp scum congress of kkks gives us a hard time.

        K’s you’ve hijacked this country’s soul for the last time get yourselves assault weapons and kill yourselves.

  2. How many times is it now that Barack Obama pulled this country back from the brink of doom? The man might go down as the greatest president since FDR before it’s all said and done.

      1. From the L.A. Times article you referenced:

        “But the credit isn’t coming back, so the end of the holiday means a pure tax increase on the 98% of WORKING Americans earning $113,700 or less in wages. For a couple touching, say, $80,000, the increase will come to $1,600.”

        Two articles. One from a non-partisan source and the other from a partisan left-leaning newspaper. Yet, BOTH say the same thing. What part of this do you not understand?

        1. What part of give and take don’t you understand?
          What part compromise don’t you understand?
          What part of the sum of all things I said don’t you understand?

          There are 16 million shades of grey in every reasonable spectrum. Why my way or nothing?

          1. Fact: A pure tax increase on the 98% of Americans including the poor and middle class in 2012 — do you understand?

            Fact: $1,600 coming out of my pocket in 2012 as a result of of higher taxes going to Washington — do you understand?

            Blame gaming, partisan prattling and name calling is simply a waste of time. Let’s move on …

            1. So, still no dispute of the reported facts regarding taxes going up for 98% of Americans. Glad we agree on something.

              Have a good one. I’ll move on …

            2. So that’s what it’s about? The cup s half empty, not the cup s half full??? That’s the problem, tunnel vision is paralyzing this country!

              Can’t you accept the bigger achievement as a worthwhile one, one that has decoupled the hostage taking on the part of the republikkkans of ” unless you give tax cuts to the tax dodging rich, we’re not giving tax cuts to te middle class”? That’s over now for good. Well worth reverting to the needed (and previous tax rate) of 6.2%

            3. No n likes taxes but they are a fact of life. Republikkkans are all tax dodgers and scammers that feel privileged and think they are above taxes…regulation…the law and the regular people.

    1. “Stocks rally as U.S. House undoes income tax hikes for more than 99% of U.S. households” is correct, but does not tell the whole story.

      Not surprising, the Bloomberg market focus is not at all concerned with higher taxes for the OTHER 99%, particularly low income and the middle class, soon to see lower earnings in their paychecks.

      The fact is, Washington just raised taxes on ALL AMERICANS.

      Next up. Washington has done such a great job and now with the extra money rolling in, its about time for a pay raise. 😉

  3. The whole thing was a ruse. More kicking of the can down the road- till the Debt Limit ruse coming up shortly. Republicans will demand more spending cuts that avoid the real things driving the deficit and Obama will grumble and cave in- as usual.

    1- Social Security and Medicare are not entitlements and are funded out of their own money. Not one penny of the national debt or deficit is due to these programs.
    2- The Republicans and more than a few Democrats oppose cutting one red cent from the bloated Defense, Intelligence and Homeland Security budgets.
    3- Extension of the Bush enacted and Obama extended tax rates has cost us trillions since their enacting. Making them permanent just makes the budget problem worse.
    4- The increase of Social Security taxes was an ill advised lame brained move by Obama to increase consumer spending in the economy. All it did was harm the Social Security Trust Fund. The “increase” is an expiration of the temporary reduction in the tax.
    5- Neither the path proposed by President Obama or the one proposed by Representative Ryan will close the deficit or reduce the debt in any meaningful way. Both Parties are being less than honest or forthcoming with the American people. The Simpson-Bowles plan is also a farce.
    6- Also note that the balance sheet of most States, Counties and other local governments are a train wreck.

    I don’t know if our nation deserves better than this, but we certainly need better government than this.

  4. Debt doesn’t matter. A robust economy matters. Debt numbers without context are a sham. The Fiscal Cliff is a sham. The Bush tax cuts were a sham.

    You all think that the debt number is a number that has to be paid off or the consequences will be dire for all. Well, it ain’t even close to the truth. Our ability to manage debt is the question that arises.

    How many countries in the capitalist system are debt free? 0!

    Gewt over yourselves. And you fiscal conservatives stop whining. Your side lost. Common sense prevailed.

    Politics blows. You are all losers.

    Carl’s Jr. Fuck You.

  5. As an Apple investor I am not worried about the debt ceiling being used to damage the economy as some would propose. The President said he would not debate the debt ceiling, nor allow it to be used as a bargaining chip, much to the detriment of the economy. How can he do that? Simple, under the 14th Amendment he has the authority to raise the debt ceiling all on his own to avert a crises. It has never been done before because congress has always acted responsibly before.

        1. Oh the smell of the mouse
          Who shits in his house of inbreds that sleep on the couch
          Who thinks he can think cause he lives on the brink
          Of irrelevant spouting and louse

          Phewww!

  6. “Shame on you. Shame on Congress,” Christie said at a news conference in Trenton, the state capital. “It’s absolutely disgraceful, and I have to tell you, this used to be something that was not political. Disaster relief was something you didn’t play games with.” But “in this current atmosphere, [it’s] a potential piece of bait for the political game. It is why the American people hate Congress.”

    At another point, he said of Republicans in Congress: “We’ve got people down there who use the citizens of this country like pawns on a chessboard.”

    “My party was responsible for this,” Christie said, charging “one set of Republicans was trying to prove something to another set,” and that Boehner was trying to “prove something. I hope he accomplished it.”

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