"CBO: 'Fiscal cliff' deal carries $4 trillion price tag over next decade
By Peter Schroeder         - 01/01/13 02:07 PM ET
   
The Senate deal to avoid the "fiscal cliff" will add roughly $4 trillion to the deficit when compared to current law, according to new numbers from the Congressional Budget Office (CBO).



The CBO determined Tuesday that the package, hammered out late Monday evening by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.), would — over the next decade — come with a $3.9 trillion price tag.
The agreement, which is pending before the House after passing in an 89-8 Senate vote early Tuesday, would extend lower tax rates on annual household income under $450,000 and postpone automatic spending cuts for two months.

The extension of lower tax rates for the bulk of the nation's taxpayers and the addition of a patch to the Alternative Minimum Tax would add roughly $3.6 trillion to the deficit over the next decade, the CBO said. Other individual, business and energy tax extenders would add another $76 billion. The extension of unemployment benefits would cost roughly $30 billion, and the so-called "doc fix" would tally another $25 billion through fiscal 2022.

The CBO says the budget agreement will lead to an overall increase in spending of about $330 billion over 10 years.

The combination of tax hikes and spending cuts that make up the fiscal cliff — if allowed to proceed — would improve the nation's deficit, but economic experts on both sides warn its dramatic impact would push the nation back into a recession if allowed to take effect in 2013."





Note NO cuts ins spending- the cuts the GOP wanted, but lots of higher taxes- the taxes the Dems wanted.