Senate Passes Fiscal Cliff Bill, 89 to 8
Update 12:10 am MT : The Senate passed the fiscal cliff bill. Sens. Rand Paul, Carper (D-DE), Tom Harkin, Michael Bennet, Rubio, Grassley, Shelby and Lee voted against it. The vote is 89 to 8. The House will not vote tonight. AP article here.
Interesting that Colorado Senator Mark Udall voted for it while Senator Michael Bennet voted against it -- both are Democrats. Here's why Tom Harkin opposed it.
One additional saving: Congress won't be getting a $900 pay raise scheduled to take effect this spring.
Update: 11:45 pm MT: The Senate is now voting. [More...]
Original Post: 12/31/12 7:25 pm:
Is anyone surprised? Congress has reached a deal on the Fiscal Cliff. They will vote tonight.Ezra Klein reports:
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, under the terms of the emerging agreement.Estate taxes will increase ato a top rate of 40% after a $5 million exemption. The alternative minimum tax will be gone for 30 million families. Unemployement benefits are extended another year.
Businesses will get tax credits for research and development. Payments to Medicare doctors will not be cut. There will tax credits for college tuition and the working poor for five more years.
Tax rates: current tax rates will be extended for all wage earners making below $400,000 and couples making below $450,000.
Capital gains tax: Capital gains and dividend tax rates will increase from 15 to 20 percent. (It will be 20%)
Renewable energy tax credit: the tax credit for renewable energy companies will be extended for another year.
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