No Fiscal Cliff Deal Before Deadline
By: KNWA News
Updated: December 31, 2012
Late Monday afternoon, the House of Representatives announced they would
not be voting on a deficit deal, sending the U.S. over the fiscal cliff
at midnight.
In a rare New Year's Eve session, lawmakers raced to try to reach a deal to avert the so-called fiscal cliff - the automatic tax increases and spending cuts set to take effect as the calendar turns tonight. President Obama said that a deal is within sight, but there are still issues to be resolved.
Senate republican leader Mitch McConnell and Vice President Joe Biden are leading negotiations. A potential deal is expected to increase the estate tax, extend unemployment benefits, and bring back higher, Clinton-era tax rates on top earners.
Democrats have reportedly offered a major concession: an increase in the income threshold for tax cut extensions. From households earning $250-thousand, to those making 450-thousand dollars a year. This has created a divide within the party, with senator tom harkin saying he and other democrats may block such a deal.
The House of Representatives has wrapped up business for today. That means the earliest a vote could be expected on a fiscal cliff deal is tomorrow, that's after tax rates have technically already gone up.
For more on what the "cliff" means for Arkansans CLICK HERE.
In a rare New Year's Eve session, lawmakers raced to try to reach a deal to avert the so-called fiscal cliff - the automatic tax increases and spending cuts set to take effect as the calendar turns tonight. President Obama said that a deal is within sight, but there are still issues to be resolved.
Senate republican leader Mitch McConnell and Vice President Joe Biden are leading negotiations. A potential deal is expected to increase the estate tax, extend unemployment benefits, and bring back higher, Clinton-era tax rates on top earners.
Democrats have reportedly offered a major concession: an increase in the income threshold for tax cut extensions. From households earning $250-thousand, to those making 450-thousand dollars a year. This has created a divide within the party, with senator tom harkin saying he and other democrats may block such a deal.
The House of Representatives has wrapped up business for today. That means the earliest a vote could be expected on a fiscal cliff deal is tomorrow, that's after tax rates have technically already gone up.
For more on what the "cliff" means for Arkansans CLICK HERE.
