Politics & Government
Senate Passes 'Fiscal Cliff' Deal; House Could Vote Tuesday
Taxes to increase for those earning $400,000 or more.
Talk about last-minute. The Senate passed a deal to avert the fiscal cliff on a 89-8 vote almost two hours into the New Year.
The Senate package would put off budget cuts for two months and preserve Bush-era income tax cuts for individuals earning less than $400,000. For couples earning less than $450,000 the tax cuts would also remain.
Senate Minority Leader Mitch McConnell, R-Kentucky, said it shouldn't have taken so long to get an agreement. Still, he's proud of the progress.
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"We've done some good for the country," he said. "Now it's time to stop Washington's out-of-control spending."
The measure will now head to the Republican-led House for a vote as soon as Tuesday.
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- Tax rates on income above $400,000 for individuals and $450,000 for couples goes back to the Clinton-era rate of 39.6 percet (currently 35 percent
- Itemized deductions would cap at $250,000 for individuals and $300,000 for couples ($600 billion in additional revenue over 10 years)
- Taxes on inherited estates will go up to 40 percent from 35 percent
- Unemployment insurance would be extended for a year
- Alternative minimum tax would be permanently adjusted for inflation
- Child care, tuition and research and development tax credits would be renewed.
- "Doc Fix," reimbursements for doctors who take Medicare patients, will continue, but it won't be paid for out of the Obamacare
Congress avoided a Milk Cliff with last minute measures passed to prevent milk prices from shooting upwards $8 per gallon.
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