House Passes Bill To Avert Fiscal Cliff

The House of Representatives passed the bill to avert the fiscal cliff on Tuesday after House Republicans relented to the Senate’s “far from perfect” plan.

The House passed the bill 257 to 167 with bipartisan support, making it possible for the country to avoid across the board tax hikes and spending cuts.

House leaders initially considered holding a vote on an amendment, which would add $323 billion in spending cuts, but the Senate, led by Democrats, refused to accept an amended bill, reports CBS News.

While Democrats were not all happy with the bill, they still largely supported the measure. Only 16 voted against it. The deal to avert the fiscal cliff came after talks took place between Vice President Joe Biden and Senate Minority Leader Mitch McConnell (R-KY).

The Senate was able to pass the bill with a vote of 89 to eight early Tuesday morning. Al Jazeera notes that the compromise bill will extend the Bush era tax cuts for Americans who earn less than $400,000.

The deal also includes a rise in the inheritance tax for estates worth more than $5 million for an individual and $10 million for a couple from 35 percent to 40 percent. There will also be a raise in capital tax of up to 20 percent as well as a one-year extension for unemployment benefits that would have otherwise expired.

There is also a five-year extension for tax credits that will help poorer and middle-class families. There is also a congressional pay freeze and a fix to prevent doctors from having a massive reimbursement gap from treating Medicare patients.

Are you glad that the fiscal cliff has been avoided?