Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
November 24, 2014

Fiscal Cliff Deal Likely Early in 2013

While Vice President Joe Biden and Senate Minority Leader Mitch McConnell (R-KY) made significant progress in negotiating a resolution for the “fiscal cliff,” any final deal will pass after the nation takes a brief plunge over the edge. The Washington Post has the details.

“House Republican leaders announced they would hold no votes Monday night, ensuring that the nation would go over the ‘fiscal cliff’ for at least a day.”

“Under the proposed accord being hammered out by Biden and McConnell, households earning less than $450,000 would largely escape higher income tax bills, though couples earning more than $300,000 a year and individuals earning more than $250,000 would lose part of the value of their exemptions and itemized deductions.”

“Low-income households would also benefit from a five-year extension of credits for college tuition and the working poor first enacted as part of Obama’s stimulus package in 2009. And businesses would see a variety of popular tax breaks extended, including a credit for research and development.”

“The tax on inherited estates would rise from 35 percent to 40 percent, though Democrats agreed to keep in place the current exemption for estates worth up to $5 million. And nearly 30 million households would be protected from paying the costly alternative minimum tax for the first time… The developing agreement calls for a permanent fix.”

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