policyshop.net — This is the headline we should really be seeing after last night's fiscal cliff deal. As a result of the deal, the bulk of the Bush tax cuts will remain permanently in place, the AMT will be eliminated, and Obama's stimulus tax cuts, mainly aimed at the working poor, will live on for another five years (as well as stimulus tax cuts for business.) According to the CBO, the final bill will cut taxes by $3.6 trillion compared to current law. Most of that lost revenue is due to extending the Bush tax cuts for households making under $450,000. Now, it is certainly imaginable that President Obama and Congressional Democrats will ask for, and get, additional revenues down the line. But it's a good bet that such future revenue will be relatively in modest in scope and that the big tax cut enacted yesterday will largely live in on.
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