Senate Passes Bill to Avoid Fiscal Cliff

 

” The Senate voted early Tuesday morning 89-8 in favor of the scaled-down bipartisan package that would halt historic tax hikes for many Americans and postpone automatic spending cuts for two months. The bill will now go to the House, which is expected to be back in session at noon today.

The outlines of the deal Mr. McConnell and Mr. Biden worked out included raising tax rates for individuals making more than $400,000 and families with incomes more than $450,000, and extended unemployment benefits for the long-term jobless. It also continued a number of programs from Mr. Obama’s 2009 stimulus law, including tax credits for college tuition and for green-energy programs.

The question now is whether the bill can pass the House. Breitbart points out that the deal reached “cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts,” according to the CBO. Commenting on the lopsided ratio, one House Republican said, “I can’t imagine a ratio such as that warming our fiscal hearts.” “

 

 

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