Updated 01/01/2013 03:58 PM
Deal to avert 'fiscal cliff' reportedly reached
A deal has been reached to avert the fiscal cliff, but it seems the US is still set to plummet off it, at least temporarily. The Senate approved a deal earlier this morning, while the House will reconvene this afternoon. YNN’s Erin Billups has the details.
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WASHINGTON, D.C. -- In the eleventh hour, Senate leaders and Vice President Joe Biden reached a fiscal cliff deal late Monday night.
The deal allows for individuals making $400,000 and couples making $450,000 or less to keep the Bush era tax rates permanently. Unemployment benefits will be extended, as well as the current estate tax exemption.
It also delays the $110 billion across-the-board spending cuts, called the sequester, for two months, paid for by a combination of revenue and spending cuts.
"Preventing that tax hike has been my top priority. Because the last thing folks, like the folks up here on this stage right now is to pay an extra $2,000 in taxes next year," said President Obama.
But taxes are still scheduled to go up for all taxpayers January 1st, because Congress was unable to pass the deal in both chambers. The House adjourned before midnight Monday. Still, as long as lawmakers approve the deal within the next few days, there will be little impact to taxpayers.
There's no guarantee though, the deal will sail through the GOP-led House.
What is clear is that neither side is completely happy with the plan. Some Democrats wish the president had held firm to his $250,000 tax break cut-off.