Update: House Passes Bill – Fiscal Cliff Averted

Fiscal Cliff

After a day of delays and GOP threats to torpedo the legislation, the House of Representatives seems set to vote on the Senate Bill as is.  The Senate bill passed at 2:00AM on New Year’s Day.  The compromise bill that the House will be voting on will raise taxes on individuals earning $400,000 and households earning greater than $450,000.  Originally it was $200,000 and $250,000.  In addition to the tax increase, the compromise staves off for two months, the spending cuts that were supposed to take effect.  Unemployment benefits will not revert back to 26 weeks.  Through most of the day, the GOP was discussing spending cuts which were not addressed in the Senate bill.  “I would be shocked if this bill didn’t go back to the Senate,” said Alabama Rep. Spencer Bachus, R. “I think we’re there on more revenue, but, you know, there is more revenue but no spending cuts.”  However, Democrats referred to the Senate Bill as a “take it or leave it proposition”.  If the GOP attempts to change any part of the bill, Senate Democrats have promised not to consider it.  So basically it’s now or never and there is little chance the Republicans would want to carry that burden, particularly when the majority of both parties approved the bill in the Senate.  The 113th Congress begins on Thursday and replaces one of the most ineffective, divided Congresses in this nation’s history.

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