UPDATED: THERE IS A ‘FISCAL CLIFF’ DEAL BETWEEN REPUBLICANS & THE WHITE HOUSE
UPDATED: THERE IS A ‘FISCAL CLIFF’ DEAL BETWEEN REPUBLICANS & THE WHITE HOUSE (HERE’S WHAT YOU NEED TO KNOW) Posted on December 31, 2012 at 9:09pm by Becket Adams Print »Email » Comments (87) [Editor's note: Updates will be added to this article as they become available]: A pleased-looking Sen. Mitch McConnell (Courtesy the New York Times) With just hours to go before the Jan 1. deadline, the White House and Senate Republicans have reportedly reached a deal to avert the so-called “fiscal cliff.” Wall Street Journal ✔
@WSJ Breaking: White House official says fiscal cliff deal is reached. on.wsj.com/ShHjC6 31 Dec 12 ReplyRetweetFavorite Republican leadership has already “okay’d” the deal and Rep. Nancy Pelosi (D-Calif.) and Sen. Harry Reid (D-Nev.) have allegedly signed off on it. Major Garrett
✔ @MajorCBS Reid = Yes. McConnell = Yes. Pelosi = Yes Boehner/Cantor/McCarthy = ? The whole ballgame. Welcome 2013. #fiscalcliff 31 Dec 12 ReplyRetweetFavorite The deal would extend Bush-era tax cuts for family incomes below $450,000, according to the Associated Press.
Robert Costa@robertcostaNRO What I hear: In final deal, traditional IRA accts will be encouraged to transfer to Roth. Dems won't love, but generates short term rev
31 Dec 12 ReplyRetweetFavorite “Income taxes go up for individuals making over $400K,” writes ABC News’ Jonathan Karl, “40% Estate tax kicks in at $5 million, indexed for inflation.” “Tax rates on cap gains and dividends go to 20 percent — permanently,” he adds. Another part of the deal involves delaying the automatic spending cuts that were scheduled to take effect on Jan. 1. “Two month delay in the fiscal cliff spending cuts intended to give Congress more time for more comprehensive measure,” reports CBS News’ Mark Knoller. However, it should be noted that postponing the automatic spending cuts (i.e. the “sequestration”) for two months means that they will come up again for debate just as we again turn our attention to the debt ceiling. “The US debt will now remain unchanged until the next ‘deal’ since debt ceiling was just breached,” writers at Zero Hedge note.
Also, this from National Review’s Robert Costa: Robert Costa@robertcostaNRO So: 1 month of 2 month sequester delay is paid for by this IRA change. Short term volntry transfer IRA tax leads to less gov rev longterm.
31 Dec 12 ReplyRetweetFavorite Vice President Joe Biden headed to Capitol Hill late Monday to meet with Senate Democrats and sell the plan.
After arriving at the Capitol, Biden and Sen. Reid ignored reporters’ shouted questions about whether a deal had been reached, Biden responding only, “Happy New Year.”
GOP leaders are reportedly confident that the deal with pass in both chambers by wide margins. But there are some things to keep in mind. Although it seems that leaders in both parties are on board with the deal, it’s unclear whether the “legislative language for [a] ‘cliff’ deal will be ready for Senate vote tonight or tomorrow,” Knoller notes.
Also, even if the bill is approved the Senate — which it probably will be — the House is another matter. Many GOP members object to the income, estate, and capital gains tax increases.