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Home Front: Politix
U.S. Congress misses "fiscal cliff" deadline despite Senate bill
2013-01-01
The U.S. Senate passed a plan to avert the "fiscal cliff" at midnight Monday, which would extend current tax rates for most American households and postpone the automatic spending cuts that threaten a new recession.

The bill came too late for the Congress to meet its deadline of New Year's Eve for passing laws to halt a combination of tax increases and spending cuts totaling more than 600 billion dollars, which strictly speaking came into force on Tuesday.

The bill cleared the Senate with a 89-8 vote, while its fate in the House of Representatives is uncertain.

The agreement emerged at Monday night after a day of intensive negotiations as both parties made last-ditch efforts to bridge differences.

U.S. Vice President Joe Biden, who negotiated the deal with the Senate Republican leader Mitch McConnell, went to Capitol Hill Monday night to build support among senators.

The plan would prevent a tax rate rise on individuals with an annual income below 400,000 U.S. dollars and households making up to 450,000 dollars.

Meanwhile, the start of 1.2 trillion dollars in automatic spending cuts over 10 years, known as the "sequester," would be put off for two months. It had been scheduled to begin with the new year.

Under the deal, jobless insurance benefits for about 2 million long-term unemployed would be extended for a year.

The Republicans dropped their long-term resistance to higher tax rates and accepted a delay in spending cuts, while the Democrats compromised on the income threshold for tax rise and softened their stance on estate taxes.

The plan still needs approval from the House of Representatives that adjourns till Tuesday noon and a vote is expected on Tuesday at the earliest. It is uncertain whether it would get enough GOP support.
Posted by:tipper

#8  A number of Guam patrons, both local + stateside, argue that only the outbreak of a major war can save the US Economy from the US Govt, as the GOP-DEMS have shown its more important to get re-elected + NOT be held accountable for anything bad than to effec or permanently solve a Prob(s).

SNAFU > CHINA-VS-JAPAN IN EAST ASIA = Once again, the US has NOT been in a direct military confrontation wid a major Nuclear Power since 1962 [Cuba = POTUS JFK] + 1973 [Yom Kippur = POTUS Nixon], both vee the then-USSR. HISTORY SUGGESTS THAT CHINA WILL LIKELY UNILATER SHOOT FIRST - THERE WILL BE JAPANESE CASUALTIES + QUITE POSSIBLY US CASUALTIES.

* DEFENCE.PK/FORUMS > CHINESE THINK-TANK: WAR IS INEVITABLE BETWEEN CHINA + JAPAN.

IIUC ARTIC = CHINA is willing to attack Japan unless Japan makes concessions on the Senkakus + Okinawa. China wants unchallenged "strategic access" for the PLA into WESTPAC from NE Asia = Okinawa-Taiwan Straits + ITS NOT TAKING "NO" FOR AN ANSWER.
Posted by: JosephMendiola   2013-01-01 19:50  

#7  House Republicans Weigh Two Options for Vote
Posted by: tipper   2013-01-01 19:27  

#6  I am franchising Tar and Feathers R Us outlets. Be the first in tomorrow's new growth industry.
Posted by: whitecollar redneck   2013-01-01 16:07  

#5  A white turd: A Bad Deal everyone can agree on.
Posted by: Jack is Back!   2013-01-01 11:04  

#4  Probably about the same place the Budget is, #1 B.

Oh, wait - we don't have one. :-(
Posted by: Barbara   2013-01-01 09:59  

#3  The USA fell off the fiscal cliff years before. Like Wiley Coyote, but without the realization of what is to come.
Posted by: Anguper Hupomosing9418   2013-01-01 09:36  

#2  About as useless an agreement as they could possibly have come up with.
Posted by: Glenmore   2013-01-01 08:46  

#1  And the budget cuts are where again ?
Posted by: Besoeker   2013-01-01 07:30  

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