This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/world/2013/jan/01/obama-house-back-fiscal-cliff-deal
The article has changed 11 times. There is an RSS feed of changes available.
| Version 9 | Version 10 |
|---|---|
| Obama calls on House to follow Senate and back fiscal cliff deal | Obama calls on House to follow Senate and back fiscal cliff deal |
| (4 months later) | |
| Barack Obama has called for the House of Representatives to follow the Senate's lead and pass the fiscal cliff deal "without delay" to extend tax cuts for middle-class Americans and raise tax rates on top earners. | Barack Obama has called for the House of Representatives to follow the Senate's lead and pass the fiscal cliff deal "without delay" to extend tax cuts for middle-class Americans and raise tax rates on top earners. |
| The Senate voted 89-8 early on Tuesday to pass legislation to block the impact of across-the-board tax increases and spending cuts scheduled to take effect at the beginning of the new year. The legislation would prevent middle-class taxes from rising, and raise rates on incomes over $400,000 (£246,0000) for individuals and $450,000 for couples. | The Senate voted 89-8 early on Tuesday to pass legislation to block the impact of across-the-board tax increases and spending cuts scheduled to take effect at the beginning of the new year. The legislation would prevent middle-class taxes from rising, and raise rates on incomes over $400,000 (£246,0000) for individuals and $450,000 for couples. |
| "While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," Obama said in a statement after the Senate voted overwhelmingly to approve the legislation. | "While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," Obama said in a statement after the Senate voted overwhelmingly to approve the legislation. |
| "There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans," he said. | "There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans," he said. |
| The House reconvened at noon, with a vote possible later on in the day. Shortly after representatives are due back in the Capitol, Republican members of the House will hold a closed-door session to discuss a "way forward" in regards to the fiscal cliff, a senior party aide said. | The House reconvened at noon, with a vote possible later on in the day. Shortly after representatives are due back in the Capitol, Republican members of the House will hold a closed-door session to discuss a "way forward" in regards to the fiscal cliff, a senior party aide said. |
| The meeting will go some way to deciding if the bipartisan bill comes before the chamber on Tuesday. | The meeting will go some way to deciding if the bipartisan bill comes before the chamber on Tuesday. |
| Speaking on MSNBC, Republican representative Tom Cole urged colleagues to vote on the package without amendments. | Speaking on MSNBC, Republican representative Tom Cole urged colleagues to vote on the package without amendments. |
| "We ought to take this deal right now, and we'll live to fight another day, and it's coming very soon on the spending cut," Cole said. "We know the essential details and I think putting to bed this thing before the markets [open on Wednesday] is really a pretty important thing to do." | "We ought to take this deal right now, and we'll live to fight another day, and it's coming very soon on the spending cut," Cole said. "We know the essential details and I think putting to bed this thing before the markets [open on Wednesday] is really a pretty important thing to do." |
| The House is expected to vote on the bill later on Tuesday. It is due to reconvene at noon. While Democrats had little problem getting a bill through the Senate where they have a majority, the House is much more difficult, where the Republicans hold sway. The Obama administration hopes that a combination of Democrats and moderate Republicans will see it pass. | The House is expected to vote on the bill later on Tuesday. It is due to reconvene at noon. While Democrats had little problem getting a bill through the Senate where they have a majority, the House is much more difficult, where the Republicans hold sway. The Obama administration hopes that a combination of Democrats and moderate Republicans will see it pass. |
| A deal was reached late on Monday night when the White House and Congressional leaders reached a compromise to avert some but not all of the austerity measures due to take effect on Tuesday. | A deal was reached late on Monday night when the White House and Congressional leaders reached a compromise to avert some but not all of the austerity measures due to take effect on Tuesday. |
| Without a deal, every taxpayer in America faced imminent steep rises. These would be accompanied by deep cuts in federal spending programmes, ranging from defence to welfare, in particular unemployment benefits. | Without a deal, every taxpayer in America faced imminent steep rises. These would be accompanied by deep cuts in federal spending programmes, ranging from defence to welfare, in particular unemployment benefits. |
| Because the House did not have chance to vote on the Senate deal, the fiscal cliff deadline technically passed at midnight. But if the agreement is approved later on Tuesday, any economic damage should be averted. The goal will be to have full Congressional approval before Wall Street reopens on Wednesday. | Because the House did not have chance to vote on the Senate deal, the fiscal cliff deadline technically passed at midnight. But if the agreement is approved later on Tuesday, any economic damage should be averted. The goal will be to have full Congressional approval before Wall Street reopens on Wednesday. |
| The Republican minority leader in the Senate, Mitch McConnell, hammered out the accord with vice president Joe Biden, after two months of talks between Obama and other Congressional leaders failed. | The Republican minority leader in the Senate, Mitch McConnell, hammered out the accord with vice president Joe Biden, after two months of talks between Obama and other Congressional leaders failed. |
| As well as the tax rises on wealthy Americans, the deal also delays automatic federal spending cuts for two months. | As well as the tax rises on wealthy Americans, the deal also delays automatic federal spending cuts for two months. |
| "Just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans," Obama said at a hastily arranged news briefing. "Obviously, the agreement that's currently being discussed would raise those rates and raise them permanently." | "Just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans," Obama said at a hastily arranged news briefing. "Obviously, the agreement that's currently being discussed would raise those rates and raise them permanently." |
| Going over the "cliff" makes a deal more palatable to Republicans. With taxes automatically going up at midnight, Republicans in the House, ideologically opposed to tax rises, would in fact be voting to bring them down, at least for all but the top 2% of wealthiest taxpayers. | Going over the "cliff" makes a deal more palatable to Republicans. With taxes automatically going up at midnight, Republicans in the House, ideologically opposed to tax rises, would in fact be voting to bring them down, at least for all but the top 2% of wealthiest taxpayers. |
| Under the deal, taxes will not go up for most Americans. Unemployment benefits, help with university tuition and tax credits for clean energy companies will all be protected. | Under the deal, taxes will not go up for most Americans. Unemployment benefits, help with university tuition and tax credits for clean energy companies will all be protected. |
| Tax rises will be imposed only on households earning $450,000 a year or more, or individuals earning more than $400,000. The Democrats had been pushing for a $250,000 threshold while the Republicans had wanted the limit set at those earning $1m or more. But the deal postpones difficult decision on spending cuts for two months, meaning there will be more tough negotiations ahead. | Tax rises will be imposed only on households earning $450,000 a year or more, or individuals earning more than $400,000. The Democrats had been pushing for a $250,000 threshold while the Republicans had wanted the limit set at those earning $1m or more. But the deal postpones difficult decision on spending cuts for two months, meaning there will be more tough negotiations ahead. |
| Earlier on Monday Obama said his preference would have been for a "grand bargain" that would have dealt more broadly with America's economic problems, especially its huge deficit. But, showing his exasperation with Republicans who control the House, he said this was not possible with this Congress. | Earlier on Monday Obama said his preference would have been for a "grand bargain" that would have dealt more broadly with America's economic problems, especially its huge deficit. But, showing his exasperation with Republicans who control the House, he said this was not possible with this Congress. |
| It is the first time Congress has met on New Year's Eve since 1995 when Washington was confronted by another Democratic-Republican economic showdown. | It is the first time Congress has met on New Year's Eve since 1995 when Washington was confronted by another Democratic-Republican economic showdown. |
| Obama, in spite of having won a second term, desperately needs this victory over the Republicans to prevent that second term being destroyed by repeated stand-offs with Republicans in Congress. | Obama, in spite of having won a second term, desperately needs this victory over the Republicans to prevent that second term being destroyed by repeated stand-offs with Republicans in Congress. |
| The danger for the Obama administration in the showdown was that a combination of sudden tax rises and government spending cuts would have a negative impact on the country's sluggish rise out of recession. | The danger for the Obama administration in the showdown was that a combination of sudden tax rises and government spending cuts would have a negative impact on the country's sluggish rise out of recession. |
| Details of the deal | Details of the deal |
| • Taxes will rise for individuals earning more than $400,000 and households that make more then $450,000, with the rate rising to a maximum of 39.6% from the current 35%. Capital gains and dividends in excess of those amounts would be taxed at 20%, up from 15% | • Taxes will rise for individuals earning more than $400,000 and households that make more then $450,000, with the rate rising to a maximum of 39.6% from the current 35%. Capital gains and dividends in excess of those amounts would be taxed at 20%, up from 15% |
| • Estate tax will rise to 40% on the portion of estates exceeding $5m in value. At the insistence of Republicans, the $5m threshold would rise each year with inflation. | • Estate tax will rise to 40% on the portion of estates exceeding $5m in value. At the insistence of Republicans, the $5m threshold would rise each year with inflation. |
| • Tax breaks will be maintained for families with children, for low-earning taxpayers and for those with a child in college. The alternative minimum tax, which was due to expand to affect an estimated 28 million households for the first time in 2013, with an average increase of more than $3,000, remains at its present level. | • Tax breaks will be maintained for families with children, for low-earning taxpayers and for those with a child in college. The alternative minimum tax, which was due to expand to affect an estimated 28 million households for the first time in 2013, with an average increase of more than $3,000, remains at its present level. |
| • The deal leaves untouched a scheduled 2 percentage point increase in the payroll tax, ending a temporary reduction enacted two years ago to help revive the economy. | • The deal leaves untouched a scheduled 2 percentage point increase in the payroll tax, ending a temporary reduction enacted two years ago to help revive the economy. |
| • Benefits for the long-term unemployed, which were about to expire for an estimated two million jobless Americans, will be extended for a year. | • Benefits for the long-term unemployed, which were about to expire for an estimated two million jobless Americans, will be extended for a year. |
| • A 27% cut in fees for doctors who treat Medicare patients will be postponed for a year. Also included in the deal is a provision to prevent a threatened spike in milk prices. | • A 27% cut in fees for doctors who treat Medicare patients will be postponed for a year. Also included in the deal is a provision to prevent a threatened spike in milk prices. |
| Our editors' picks for the day's top news and commentary delivered to your inbox each morning. | Our editors' picks for the day's top news and commentary delivered to your inbox each morning. |