President Barack Obama gestures as he speaks about the fiscal cliff in the South Court Auditorium at the White House in Washington.
Senate Minority Leader Mitch McConnell, R-Ky., followed by Sen. Pat Roberts, R-Kan., second from right, leaves the Senate chamber to meet with fellow Republicans in a closed-door session as the “fiscal cliff” negotiations continue at the Capitol in Washington, Sunday, Dec. 30, 2012. Leaders in the Senate and the House are under pressure to find a legislative path to head off the automatic tax hikes and spending cuts set to take effect Jan. 1, 2013. (AP Photo/J. Scott Applewhite)WASHINGTON – Hours past a self-imposed deadline for action, the Senate passed legislation early New Year’s Day to neutralize a fiscal cliff combination of across-the-board tax increases and spending cuts that kicked in at midnight. The pre-dawn vote was a lopsided 89-8.
Senate passage set the stage for a final showdown in the House, where a vote was expected later Tuesday or perhaps Wednesday on the measure, which also raises tax rates on wealthy Americans.
Even by the recent dysfunctional standards of government-by-gridlock, the activity at both ends of historic Pennsylvania Avenue was remarkable as the administration and lawmakers spent the final hours of 2012 haggling over long-festering differences.
“It shouldn’t have taken this long to come to an agreement, and this shouldn’t be the model for how we do things around here,” said Senate Republican leader Mitch McConnell, who negotiated the agreement with Vice President Joe Biden.
Under the deal, taxes would remain steady for the middle class and rise at incomes over $400,000 for individuals and $450,000 for couples – levels higher than President Barack Obama had campaigned for in his successful drive for a second term in office.