A Gigantic Sigh of Relief as Tax Uncertainty Ends

By CATHERINE RAMPELL, NYT

Even though Congress’s last-minute deal means higher taxes for almost all Americans, businesses and consumers are relieved that some of the uncertainty about what they will owe the government this year is gone.

“Once something gets settled, even if it’s not the most popular settlement option, it still gives you a sense of what the rules are and what you need to do to readjust,” said Sam Ramey, the owner of Sultan Mediterranean Cafe in North Andover, Mass., who says he hopes the deal will bolster the spirits of his customers.

“It’s not that you say ‘Today I’m not buying a sandwich because of all the uncertainty,’ but if you don’t feel that ease of mind that lets you go out and buy a sandwich, you don’t go out and buy a sandwich,” he said.

Congress’s compromise on taxes eliminates some uncertainty. But there’s no getting around the outcome that it will also reduce how much consumers have available to spend on dining out and other discretionary expenses.

(More here.)