Moody's says 'fiscal cliff' deal doesn't end credit downgrade risk

[red states rule]

Another credit downgrade is likely which means taxpayers will pay more in interest payments on the soaring debt. And all we will hear is how it is NOT the fault of Dems and Obama
WASHINGTON -- Moody's (http://www.latimes.com/topic/economy-business-finance/moodys-corporation-ORCRP010209.topic) Investors Service warned (http://www.moodys.com/research/Moodys-Anticipates-Further-US-Fiscal-Action-Following-Fiscal-Cliff-Deal--PR_263047) Wednesday that the "fiscal cliff (http://www.latimes.com/topic/fiscal-cliff/EVBAE00011.topic)" tax deal was not enough to remove the risk of a downgrade of the U.S. credit rating.
The company, one of three major credit rating firms, said the deal approved Tuesday night to raise about $620 billion in tax revenue over the next 10 years was "a further step in clarifying the medium-term deficit and debt trajectory of the federal government."
But the package, which averted income tax increases on most Americans, did not produce "meaningful improvement" in the ratio of the federal government's debt to its economic output.
Although Moody's said it expected additional deficit-reduction measures in the coming months, the company did not remove its negative outlook on the U.S.' AAA rating. President Obama (http://www.latimes.com/topic/politics/government/barack-obama-PEPLT007408.topic) and Congress (http://www.latimes.com/topic/politics/government/u.s.-congress-ORGOV0000131.topic) delayed automatic federal spending cuts for two months to provide time for negotiations on more deficit-reduction measures.
"Moody's will need to consider these measures in assessing the rating outlook," the company said Wednesday. The nation's debt outlook after those negotiations will determine whether Moody's downgrades the U.S. rating a notch to Aa1.
Moody's initially warned in September that it probably would downgrade the rating if U.S. officials did not address the nation's rising debt. Fitch Ratings issued a similar warning in November and reiterated it last week.
Fitch, which also has a negative outlook on the U.S. rating, had no update Wednesday. http://www.latimes.com/business/money/la-fi-mo-fiscal-cliff-moody-credit-rating-20130102,0,4205703.story?track=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MoneyCompany+(Money+%26+Compa ny)

[revelarts]

and there's this
http://washingtonexaminer.com/tim-carney-how-corporate-tax-credits-got-in-the-cliff-deal/article/2517397#.UOgwoLaA3Aa

Surprise surprise, Not all tax breaks were cut for "big biz".
.If the middle class could hire a K st. lobbing group and big account firms we'd still have our cuts and tax loop holes. just like hollywood and a few others .... OH look the usual suspects
Citibank
GE
Morgan Stanley
Goldman Sachs


...The Family and Business Tax Cut Certainty Act of 2012, which passed through the Senate Finance Committee in August, was copied and pasted into the fiscal cliff legislation, yielding a victory for biotech companies, wind-turbine-makers, biodiesel producers, film studios -- and their lobbyists. So, if you're wondering how algae subsidies became part of a must-pass package to avert the dreaded fiscal cliff, credit the Biotechnology Industry Organization's lobbying last summer...

....General Electric and Citigroup, for instance, hired Breaux and Lott to extend a tax provision that allows multinational corporations to defer U.S. taxes by moving profits into offshore financial subsidiaries. This provision -- known as the "active financing exception" -- is the main tool GE uses to avoid nearly all U.S. corporate income tax.
....
The K Street firm Capitol Tax Partners, led by Treasury Department alumni from the Clinton administration, represented an even more impressive list of tax clients, who paid CTP more than $1.68 million in the third quarter.

Besides financial clients like Citi, Goldman Sachs and Morgan Stanley, CTP represented green energy companies like GE and the American Wind Energy Association. These companies won extension and expansion of the production tax credit for wind energy.

Hollywood hired CTP, too: The Motion Picture Association of America won an extension on tax credits for film production.

After packing 50 tax credit extensions into the bill,....
...Baucus' bill sat ignored until last week, when the White House sat down with Senate Republicans to craft a deal averting the fiscal cliff.

A Republican Senate aide familiar with the cliff negotiations tells me the White House wanted permanent extensions of a whole slew of corporate tax credits. When Senate Republicans said no, "the White House insisted that the exact language" of the Baucus bill be included in the fiscal cliff deal. "They were absolutely insistent," another aide tells me. (The White House did not return requests for comment.)

Sure enough, Title II of the fiscal cliff legislation is nearly a word-for-word replication of the Family and Business Tax Cut Certainty Act of 2012.

So, this wasn't a case of lobbyists sneaking provisions into a huge package at the last minute. That probably wouldn't have been possible, many lobbyists told me Wednesday, because the workload in the past two weeks was too large and the political stakes were too high.

One lobbyist who worked on the bill over the summer said he would never ask a member " 'Hey, can you do this for a client,' when their political lives are on the line."

"The legislators and the staff go underground when things get so intense," another Hill staffer-turned-lobbyist told me. "Nobody has time for a meeting. Nobody wants to talk about what's going on. ... The key is to plant the seed months in advance."

GE, Goldman Sachs, Diageo -- they planted their seeds over the summer. They'll enjoy the fruit in the new year.

Obama's working for who? making sure who pays there "fair share"?

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[Tyr-Ziu Saxnot]

Another credit downgrade is likely which means taxpayers will pay more in interest payments on the soaring debt. And all we will hear is how it is NOT the fault of Dems and Obama

Not a shock on that.
Just like obama got his tax the rich delivered by the Republicans and then he immediately comes out saying they still aren't paying enough. This lying jackass has no concept of limits.. He wants to be dictator. He shall not become one unopposed. He knows that and that is why his second big campaign is to abolish gun ownership here!
All these buffoooooooooooooooooooooooooooooooons here and elsewhere that go along with this traitorous bastard should themselves have to pay for their part in this treason!
I am myself making a LIST AND CHECKING IT TWICE.-- ;)--Tyr

[aboutime]

Seriously. Is anyone really surprised to learn about this?