U.S. Senate leaders reached a tentative last-minute deal to avert the “fiscal cliff” of automatic tax increases and spending cuts scheduled for January 1, though not in time for the agreement to be approved by members of the House of Representatives, who were set to vote as soon as Tuesday afternoon. The deal permanently increases capital-gains, dividend, and income tax rates on individuals making more than $400,000 per year and couples making more than $450,000; begins phasing out certain tax deductions on incomes above $250,000; and provides for an additional two months to negotiate $110 billion in cuts to military and domestic spending programs. Senate Democrats had briefly withdrawn from the talks after Republicans proposed to recalculate inflation in such a way as to lower benefit payments from entitlement programs, prompting Senate Minority Leader Mitch McConnell (R., Ky.) to ask Vice President Joe Biden to help restart the negotiations. “I need a dance partner,” said McConnell.
Weekly Review
Weekly Review
Weekly Review
U.S. Senate leaders reached a tentative last-minute deal to avert the “fiscal cliff” of automatic tax increases and spending cuts scheduled for January 1, though not in time for the agreement to be approved by members of the House of Representatives, who were set to vote as soon as Tuesday afternoon. The deal permanently increases capital-gains, dividend, and income tax rates on individuals making more than $400,000 per year and couples making more than $450,000; begins phasing out certain tax deductions on incomes above $250,000; and provides for an additional two months to negotiate $110 billion in cuts to military and domestic spending programs. Senate Democrats had briefly withdrawn from the talks after Republicans proposed to recalculate inflation in such a way as to lower benefit payments from entitlement programs, prompting Senate Minority Leader Mitch McConnell (R., Ky.) to ask Vice President Joe Biden to help restart the negotiations. “I need a dance partner,” said McConnell.