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Mon Dec 31, 2012, 09:04 PM

AP: White House And GOP Reach Deal On Fiscal Cliff

Last edited Mon Dec 31, 2012, 10:18 PM - Edit history (2)

Source: TPM

Citing a Senate Democratic aide, the Associated Press is reporting that the White House and GOP have reached a deal on the fiscal cliff. No more details yet.

(more details)
http://www.nytimes.com/2013/01/01/us/politics/2-sides-in-talks-inch-closer-but-no-fiscal-deal-on-final-day.html?pagewanted=all

Under the deal, income taxes would rise to 39.6 percent from 35 percent on income over $400,000 for single people and $450,000 for couples. Above those income levels, dividends and capital gains tax rates would also rise, to 20 percent from 15 percent.

An official familiar with the negotiations stressed that taxes would rise in some sense on the top 2 percent of earners, as Mr. Obama has wanted since his first presidential campaign in 2008. That is because the deal would reinstate provisions to tax law, ended by the Bush tax cuts of 2001, that phase out personal exemptions and deductions for the affluent. Those phaseouts, under the agreement, would begin at $250,000 for single people and $300,000 for couples.

The estate tax would also rise, but considerably less than Democrats had wanted. The value of estates over $5 million would be taxed at 40 percent, up from the current 35 percent. Democrats had wanted a 45 percent rate on inheritances larger than $3.5 million.

Under the deal, the new rates on income, investment and inheritances would be permanent, as would a provision to stop the alternative minimum tax from hitting middle-class families.

Read more: http://livewire.talkingpointsmemo.com/entry/ap-white-house-gop-reach-deal-on-fiscal



http://politicalticker.blogs.cnn.com/2012/12/31/details-emerge-in-fiscal-cliff-agreement/

(snip)
The same source said the plan postpones the sequester by two months, half paid for through tax revenue and half paid for through spending cuts. Half of the spending cuts stems from defense spending and half from non-defense spending.

The individual $5 million exemption level for the estate tax, an element supported by Republicans, will remain. But that cap is indexed to inflation, meaning it will increase every year, according to the same source, an element incorporated at the insistance of moderate Democrats.

Additionally, the “Doc Fix,” payments to doctors who take Medicare patients that the GOP wanted, will continue but will not be paid for by the Affordable Care Act.

The tentative agreement also includes a one year extension of unemployment benefits and will allow income taxes for individuals making more than $400,000 a year and households making $450,000 to return to the Clinton-era rate of 39.6%.

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Response to cal04 (Original post)

Mon Dec 31, 2012, 09:07 PM

1. Well, if it's true, they sure are bringing it right down to the wire.

Talk about 11th hour deals!

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Response to cal04 (Original post)

Mon Dec 31, 2012, 09:08 PM

2. CNN: Joe Biden heading to the Capital, Dem Source: Reid & Pelosi Have Signed Off On The Deal...

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Response to cal04 (Original post)

Mon Dec 31, 2012, 09:31 PM

3. And I Was Already All Buckled In and Ready Too!

 


.
.
.

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Response to cal04 (Original post)

Mon Dec 31, 2012, 09:31 PM

4. Tax hikes at the top end (back to 39.6%), capital gains to 20%, estate to 40%

 

extension of UE and Medicare current rates...

therefore an Obama WIN!

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Response to cal04 (Original post)

Mon Dec 31, 2012, 09:33 PM

5. Once again Obama caves...... sad

permanent tax cuts for the wealthy at the expense of the poor and middle class....

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Response to bowens43 (Reply #5)

Mon Dec 31, 2012, 09:38 PM

6. I am afraid so....The 250,000 number was/is very important.......nt

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Response to Stuart G (Reply #6)

Mon Dec 31, 2012, 09:41 PM

9. This difference will mean more cuts to the social safety net by

 

the corporatists, including Obama.

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Response to plethoro (Reply #9)

Mon Dec 31, 2012, 09:54 PM

11. Social Security, food stamps, SSI, military pensions, Head Start, environmental research, all on the

chopping block when it comes time to extend the debt ceiling, I suppose.

This is not really as positive as we need because this means that Obama will have to go through this ordeal once again in a few months. And what will he have left to give then?

I'm not so sure this is all that great. Sorry to be a spoilsport, but it is not the last we will hear of this phony fiscal cliff business.

I'm hoping that revenues pick up real quickly so that the debt ceiling issue will not be so big.

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Response to bowens43 (Reply #5)

Mon Dec 31, 2012, 09:39 PM

7. And the defense cuts extended for

 

a brief period. LOL You know where that's going...That was a big one. Bring on the drones. Another major setback.

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Response to bowens43 (Reply #5)

Mon Dec 31, 2012, 09:53 PM

10. Permanent tax cuts

and the inheritance tax will be tied to inflation, so that 5 mil amount will go up annually. "Chained CPI" is already being redefined as "slightly bending the cost curve" for public consumption as it will likely be a part of any budget deal negotiations. There was NO WAY they were going to let the defense budget be subject to automatic cuts...of course there would be a "deal". We're gonna get hosed I bet.

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Response to bowens43 (Reply #5)

Mon Dec 31, 2012, 11:06 PM

14. I object to the word "cave."

It implies a different outcome was desired.

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Response to bowens43 (Reply #5)

Tue Jan 1, 2013, 12:42 AM

15. He is the president for us "all" not just democrats, that means its part of his job to find ways

to get as good a deal for everyone.
Am I happy its 400k and not 250k? No, I am not but can I live with it? Yes, I can.

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Response to cal04 (Original post)

Mon Dec 31, 2012, 09:40 PM

8. So, they are voting in an hour. ??

Nothing obvious on C-SPAN>

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Response to cal04 (Original post)

Mon Dec 31, 2012, 10:55 PM

12. Harry Reid tells reporters the Senate is waiting on CBO, but will vote tonight.

Schumer: Dems won't block McConnell-Biden agreement. Most support it as preferable to going over the cliff.

Harkin says he'll vote against the deal. His vote isn't required of course.

Sen. Schumer: VP Biden was "very persuasive, but didn't need to do much convincing."

Nancy Pelosi ‏
When a final agreement is reached and passed by the Senate, I will present it to the House Democratic Caucus

Sherrod Brown will support the fiscal cliff bill, insists Democrats will not negotiate around debt limit.


comments coming from twitter
https://twitter.com/brianbeutler

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Response to cal04 (Original post)

Mon Dec 31, 2012, 11:03 PM

13. So technically we went over the cliff anyway

(since the House won't vote till tomorrow) and this is all we got. Should have held out a few more days and gotten more GOP concessions.

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Response to Live and Learn (Reply #13)

Tue Jan 1, 2013, 12:48 AM

16. Short term it wasnt much true but long term I am hoping the

the democrats are able to make use of it in the next mid term elections to retake congress, if they can take a clear majority there and also one in the senate maybe just maybe more of the stuff most of us here wanted (including myself) such as closing every single loophole companies like GE and people like Mitt are using.

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