Fiscal Cliff Update: Senate Reaches Deal, House Approves
A summary of the deal reached as the House approves the Senate-passed package in a late-night vote of 257 to 167.
In the wee hours of January 1, 2013, Senate leaders reached agreement on legislation designed to avert the so-called "fiscal cliff." That agreement has now been approved by the House by a 257 to 167 vote. According to The Washington Post the measure "would let the top tax rate rise immediately from 35 percent to 39.6 percent on income over $450,000 for married couples and $400,000 for single people." Although the bill passed will protect middle income families from an increase in income taxes, the legislation passed Tuesday night will not stave off an increase in payroll taxes. A 2 percent payroll tax cut passed during the economic downturn expired Dec. 31. According to Bloomberg the average increase would be $1,635. The increase will …
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