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Published on January 3rd, 2013 | by RLn Staff

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Harbor Currents: NEWS Jan. 3, 2013

Fiscal Cliff Deal Met
WASHINGTON — The Senate-passed compromise measure to avert the
fiscal cliff was met Jan. 1, averting a fiscal cliff. The bill passed the House of
Representatives 257 – 167. It will become law when President Barack Obama
signs it.

Several estimates have cited that the legislation will raise about $600
billion in new revenues within 10 years. Had the House not acted, the tax cuts
enacted within the past decade would have expired fully, broad tax increases
would have kicked in and there would have been a $110 billion in automatic cuts
to domestic and military spending.

The deal extends unemployment benefits for one year, asks the wealthiest
to pay higher taxes and preserves Social Security and Medicare for seniors.
The (George W.) Bush tax cuts are set to extend for people making less
than $400,000 and families earning more than $450,000 to 39.6 percent. People
who make more than $400,000 now are subject to a 20 percent tax on their
capital gains and dividends. Households earning between $500,000 and $1
million will pay about $15,000 more in taxes. Households earning more than $1
million would average out at about $170,000.

Wealthy Americans will be able to bequeath up to $5 million without being
taxed, but will be taxed up to 40 percent for any amounts greater than the $5
million. The Alternative Minimum Tax will be permanently lifted.
However, the payroll tax cut won’t be extended for another year, which
means workers will their paychecks reduced in 2013. Americans earning $30,000
or more will take home $50 less per month and people earning $113,700 will lose
$189.50 per month.

Lawmakers failed to include raising the borrowing limit, which was due
Dec. 31, 2012, as part of the cliff deal. Therefore, the U.S. Treasury Department
will enact “extraordinary measures” to avoid a government default. A fight about
whether to raise the debt ceiling is sure to come in the months that follow.
The deal delays the series of automatic cuts in federal spending, for two
months. Meanwhile, the Senate plan calls for $12 billion in new revenue and
another $12 billion in spending cuts. The spending cuts are to be split between
defense and non-defense spending.

The debt ceiling and a continuing budget resolution are battles that will
continue throughout the year.

Officer-Involved Shooting
LONG BEACH — An underage suspect was sent to the hospital with minor
wounds, Dec. 29, after a shooting incident with an officer on the 6800 block of
Beechley Avenue.
Witnesses said that the suspect was arguing with people at the home and
fired a few rounds from the handgun, which prompted the call from a neighbor
into the police station.

The Long Beach Police Department officer, who responded to the call,
saw several people in front of the home. When the officer made contact with the
group, the suspect pulled out a firearm and shots were fired.

After the shooting, the suspect was transported to a local hospital where
he received treatment for a minor wound and then released into police custody.

The minor is being booked on charges of assault with a deadly weapon and
exhibiting a firearm in a police officers presence. Because the suspect is a minor and his name will remain undisclosed to the public. A firearm was recovered at the scene.

Anyone with information regarding this incident should call (562) 570-7244
or anonymously at (800) 222-8477, or www.lacrimestoppers.org

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