Yesterday, the Senate avoided the fiscal cliff by passing a bill to limit the raise in rates to single persons with more than $400,000 of income and $450,000 for married couples, although deduction phase-outs start at lower levels.
At this time (2:50 pm on Tuesday), we are awaiting action by the House of Representatives. Passage by the House is by no means assured (nor whether the Speaker will even bring it to the floor for a vote) – one report I read indicated that for each $1 of spending cuts, there are $40 of new taxes. This is a problem for many Republicans who are looking for more balance.
We will see how this pans out. If the House passes the bill, I will be back with more info on the new law law which presumably would be signed into law by President Obama.
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