UPDATED: THERE IS A âFISCAL CLIFFâ DEAL BETWEEN REPUBLICANS & THE WHITE HOUSE
UPDATED: THERE IS A âFISCAL CLIFFâ DEAL BETWEEN REPUBLICANS & THE WHITE HOUSE (HEREâS WHAT YOU NEED TO KNOW) Posted on December 31, 2012 at 9:09pm by Becket Adams Print Â»Email Â» 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 âfiscal cliff.â Wall Street Journal â
@WSJ Breaking: White House official says fiscal cliff deal is reached. on.wsj.com/ShHjC6 31 Dec 12 ReplyRetweetFavorite Republican leadership has already âokayâdâ the deal and Rep. Nancy Pelosi (D-Calif.) and Sen. Harry Reid (D-Nev.) have allegedly signed off on it. Major Garrett
â @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 âIncome taxes go up for individuals making over $400K,â writes ABC Newsâ Jonathan Karl, â40% Estate tax kicks in at $5 million, indexed for inflation.â âTax rates on cap gains and dividends go to 20 percent â permanently,â he adds. Another part of the deal involves delaying the automatic spending cuts that were scheduled to take effect on Jan. 1. âTwo month delay in the fiscal cliff spending cuts intended to give Congress more time for more comprehensive measure,â reports CBS Newsâ Mark Knoller. However, it should be noted that postponing the automatic spending cuts (i.e. the âsequestrationâ) for two months means that they will come up again for debate just as we again turn our attention to the debt ceiling. âThe US debt will now remain unchanged until the next âdealâ since debt ceiling was just breached,â writers at Zero Hedge note.
Also, this from National Reviewâs 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 reportersâ shouted questions about whether a deal had been reached, Biden responding only, âHappy New Year.â
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, itâs unclear whether the âlegislative language for [a] âcliffâ deal will be ready for Senate vote tonight or tomorrow,â Knoller notes.
Also, even if the bill âis approved the Senate â which it probably will be â the House is another matter. Many GOP members object to the income, estate, and capital gains tax increases.