Congress approved a plan to save America from the fiscal cliff on January 1. Everyone breathed a sigh of relief. Yet, only one month later, the Hurricane Sandy relief bill has blown away any supposed savings that would have come from the plan.
The plan to avoid the fiscal cliff shielded millions of Americans from tax increases that would have come into effect at the end of January. It also raised tax rates on households making more than $450,000 per year. The plan also delayed the automatic spending cuts to the Pentagon and other government agencies that were scheduled to hit in March.