With no time to spare, lawmakers in Washington have kept the country from falling of the “Fiscal Cliff.” During an 11th hour session on New Year’s Night, the House of Representatives voted 257 to 167 in favor of a bill that for now avoids major tax increases for most Americans making less than $400,000 a year. The plan also included little spending cuts – much to the chagrin of house republicans who felt that spending cuts are needed to bring the country’s fiscal house in order.
With the senate also passing the bill less than 24 hours earlier, it is now on the desk of President Barack Obama awaiting his signature.
The measure raises tax rates on incomes over $400,000 for individuals and $450,000 for couples, a victory for the president and house democrats. It also extends expiring unemployment benefits, prevents a cut in fees for doctors who treat Medicare patients and cancels a $900 pay increase that was set to be given to lawmakers this year. Another provision is designed to prevent a spike in milk prices.
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