Deal reached on ‘fiscal cliff’
FOX News, along with numerous other media outlets, reported that the White House reached a deal with Senate leadership to avoid the looming “fiscal cliff” on Monday night.
But no one was celebrating or popping champagne corks just yet, as the agreement still had to pass both houses.
Automatic tax increases and spending cuts were scheduled to kick in when the clock struck twelve. Congress could choose to come back and repair the damage in early January, had all parties not agreed on the compromises.
Reports said tax increases wanted by President Barack Obama would be limited to tax brackets of families making $450,000 and higher.
Instead of $110 billion in spending cuts wanted by Republicans, half from the defense budget and half from other departments, Congress may choose to make a 50-50 deal of half cuts and half revenue increases. The current deal would postpone the spending cuts for two months.
The big question remaining was whether or not the rank and file members of Congress would go along with the leadership compromise.
In the end, the Senate passed the measure by a vote of 89-8, with five Republicans and three Democrats voting against the deal.
The House vote was more of a challenge on Tuesday night. The 257-167 vote saw House Speaker John Boehner and about a third of his Republican majority lining up with the Democratic minority against the GOP majority, including Majority Leader Eric Cantor and party whip Kevin McCarthy.