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Tue 10:28: Fiscal cliff vote expected about 11 p.m.

January 1, 2013
The Associated Press , Tribune Chronicle | TribToday.com

WASHINGTON - Weary lawmakers pushed at last toward a final vote on emergency legislation to avoid a national "fiscal cliff" of major tax increases and spending cuts in a New Year's Night culmination of a struggle that tested divided government to the limit.

Passage would send the measure to President Barack Obama for his signature and hand him a political triumph less than two months after he secured re-election while campaigning for higher taxes on the wealthy. The extraordinary late-night House vote was coming nearly 24 hours after Senate action spilled over from New Year's Eve into the predawn hours of 2013.

In addition to neutralizing middle class tax increases and spending cuts that technically took effect Monday at midnight, the legislation raises tax rates on incomes over $400,000 for individuals and $450,000 for couples. Remarkably, in a party that swore off tax increases two decades ago, dozens of Republicans supported the bill at both ends of the Capitol.

Republicans did their best to minimize the tax increases in the measure.

Rep. David Dreier, R-Calif., in the final days of a 32-year-career in Congress, said the legislation was not the grand bargain we'd hoped for" to reduce federal deficits. "But it is an essential bridge to what I hope will be a comprehensive and long-term solution. It will bring us back from the edge of the fiscal cliff and implement tax cuts for 99 percent of taxpayers."

Declared Rep. Marcy Kaptur, D-Ohio: "This is a great victory for the middle class, whose taxes will not go up tomorrow."

The bill would also prevent an expiration of extended unemployment benefits for an estimated two million jobless, block a 27 percent cut in fees for doctors who treat Medicare patients, stop a $900 pay increase for lawmakers from taking effect in March and head off a threatened spike in milk prices.

It would stop $24 billion in spending cuts set to take effect over the next two months, although only about half of that total would be offset with spending reductions elsewhere in the budget.

Even with enactment of the legislation, taxes are on the rise for millions.

A 2 percentage point temporary cut in the Social Security payroll tax, originally enacted two years ago to stimulate the economy, expired with the end of 2012. Neither Obama nor Republicans made a significant effort to extend it.

The fiscal cliff measure had cleared the Senate on a lopsided predawn New Year's vote of 89-8, and House Republicans spent much of the day struggling to escape a political corner they found themselves in.

 
 
 

 

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