Late last night, the U.S. Congressed the American Taxpayer Relief Act of 2012. Read more about that here.
Here’s a comment on that Act this morning from BMO Capital Markets economist Michael Gregory (my emphasis):
“The bottom line is that taxes will be going up for most Americans, ranging from a 2 percentage point increase in payroll taxes for all employees, to higher tax rates on ordinary income, capital gains and dividends for those making above $400k …[There are] more fiscal battles on the horizon. For now, however, we can relish in the fact that the fiscal cliff was averted, political compromise was achieved (yes, 85 of 236 House Republicans voted in favour), and America’s finances are starting to move to a firmer footing.”
Here’s Scotiabank’s Derek Holt and Dov Zigler in their morning note on yesterday’s theatrics in Washington: Continue reading Reaction to resolution of U.S. fiscal cliff drama