(Image source: The Washington Post)

 

 

BY ZACH TOOMBS

 

 

The Senate overwhelmingly approved a last-minute deal to allow income tax increases only on wealthier Americans. But, with House Republicans yet to approve of that agreement, Congress has already missed the new year’s deadline it set for itself.

 

The Senate’s vote came around 2 a.m. eastern time — 89 in favor, only 8 against — borne out of negotiations between longtime lawmakers Mitch McConnell, the GOP minority leader, and Vice President Joe Biden. [Video: C-Span]

 

An agreement on handling the end of the Bush-era tax cuts is at the heart of the deal. The Senate called for an extension of those lowered rates for Americans making less than $450,000. According to The Washington Post, earners over that mark will see higher rates for income and investment profits.

 

It’s worth noting, because that new year’s deadline has been missed, payroll tax rates will still go up — meaning 160 million Americans across the income bracket will see 2 percent smaller paychecks. However, unemployment insurance would be extended.

 

The New York Times reports the agreement faced two final hurdles that forced concessions on both sides.

 

- Republicans agreed to put off spending cuts for at least two months, instead setting off costs in the meantime with new tax revenue

 

- Democrats gave in on the controversial estate tax — exempting estates worth up to $15 million from new taxes

 

To reach the $450,000 tax threshold, the White House gave up some ground. President Obama has longed pushed for higher rates on those making $250,000 or more. But the jump to that 450 level would be even further for House Republicans.

 

Last week, House Speaker John Boehner failed to rally fellow Republicans around a plan that raised taxes on people making $1 million or more. Fox News’ Chad Pergram says reluctance from the lower chamber could mean a deal for Congress as a whole is far from done. [Video: WNBC]

 

“You gotta remember that this House Speaker, John Boehner, is under no obligation to bring this up. They could bring it up and possibly change it, then ping pong it back to the Senate. So, this is far from over.” [Video: Fox News]

 

There were a few high-profile names who voted against the Senate deal. Among those three Democrats and five Republicans were Florida’s Marco Rubio, Kentucky’s Rand Paul and Iowa’s Tom Harkin.

Senate Reaches 'Fiscal Cliff' Deal, House Yet to Vote

by Zach Toombs
0
Transcript
Jan 1, 2013

Senate Reaches 'Fiscal Cliff' Deal, House Yet to Vote

(Image source: The Washington Post)

 

 

BY ZACH TOOMBS

 

 

The Senate overwhelmingly approved a last-minute deal to allow income tax increases only on wealthier Americans. But, with House Republicans yet to approve of that agreement, Congress has already missed the new year’s deadline it set for itself.

 

The Senate’s vote came around 2 a.m. eastern time — 89 in favor, only 8 against — borne out of negotiations between longtime lawmakers Mitch McConnell, the GOP minority leader, and Vice President Joe Biden. [Video: C-Span]

 

An agreement on handling the end of the Bush-era tax cuts is at the heart of the deal. The Senate called for an extension of those lowered rates for Americans making less than $450,000. According to The Washington Post, earners over that mark will see higher rates for income and investment profits.

 

It’s worth noting, because that new year’s deadline has been missed, payroll tax rates will still go up — meaning 160 million Americans across the income bracket will see 2 percent smaller paychecks. However, unemployment insurance would be extended.

 

The New York Times reports the agreement faced two final hurdles that forced concessions on both sides.

 

- Republicans agreed to put off spending cuts for at least two months, instead setting off costs in the meantime with new tax revenue

 

- Democrats gave in on the controversial estate tax — exempting estates worth up to $15 million from new taxes

 

To reach the $450,000 tax threshold, the White House gave up some ground. President Obama has longed pushed for higher rates on those making $250,000 or more. But the jump to that 450 level would be even further for House Republicans.

 

Last week, House Speaker John Boehner failed to rally fellow Republicans around a plan that raised taxes on people making $1 million or more. Fox News’ Chad Pergram says reluctance from the lower chamber could mean a deal for Congress as a whole is far from done. [Video: WNBC]

 

“You gotta remember that this House Speaker, John Boehner, is under no obligation to bring this up. They could bring it up and possibly change it, then ping pong it back to the Senate. So, this is far from over.” [Video: Fox News]

 

There were a few high-profile names who voted against the Senate deal. Among those three Democrats and five Republicans were Florida’s Marco Rubio, Kentucky’s Rand Paul and Iowa’s Tom Harkin.

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