The deal to avoid the fiscal cliff is done as the House passed the Senate version in a late night session on Tuesday.
The vote was 257-167. The fact that only 85 Republicans (out of 241) supported the deal calls into question Speaker Boehner’s leadership in the next congress, although it is doubtful anyone has the fortitude – or the stature – to challenge him. All but 20 Democrats voted for the bill.
Gone is the payroll tax holiday, which means 77% of American households will experience a tax increase in the new year. Taxes on dividends and capital gains go up for those making over $400,000 ($450,000 for families) while the estate tax now has a $5 million exemption. The rates for the rich climb t0 39.6%.
The deal also rescinded the pay raise granted Congress by an Obama executive order.
The measure also will keep benefits flowing to 2 million unemployed workers on the verge of losing their federal checks. And it will delay for two months automatic cuts to the Pentagon and other agencies that had been set to take effect Wednesday.
Read more at American Thinker. By Rick Moran.
Photo credit: Jessie Owen (Creative Commons)