Here's What's in The Fiscal Cliff Deal
January 1, 2013
At around 2 a.m. on New Year's Day, the Senate passed a measure aimed at pulling the country back from the "fiscal cliff" of automatic tax hikes and spending cuts. The measure, hammered out by Vice President Joe Biden and Republican Senate Minority Leader Mitch McConnell, still needs approval by the House. Here's what's in it:
- Higher taxes on individuals earning $400,000 or more and families making $450,000 or more. Under that threshold, the Bush-era tax cuts would be permanent for all but the wealthiests households. The $450,000 threshold for families is a significant increase from Democrats’ initial proposal to raise taxes on Americans making $250,000 or more but it is lower than Republicans’ earlier proposal to raise taxes on households making $1 million or more