Fiscal Cliff Avoided, What Happens Next?

4 years ago

After a New Year’s Eve vote in the Senate and a New Year’s Day approval in the House, the fiscal cliff has been averted. America's not going "over the cliff," and lawmakers managed to wrangle some kind of a bipartisan agreement. So why are so many people still unhappy? As you can imagine, in this highly polarized Congress, what the GOP and Democrats want are so diametrically opposed that any kind of agreement is going to be splitting the baby.

Jan. 1, 2013 - Washington, District of Columbia, U.S. - President BARACK OBAMA makes a statement following passage by the House of Representatives for tax legislation designed to avoid the ''fiscal cliff.''. Vice President JOE BIDEN joined the president on stage. (Credit Image: © Brendan Hoffman/MCT/

The biggest takeaway is that households with annual incomes of more than $450,000 will lose Bush-era tax cuts, raising their rate from 35% to 39%. Slate has a good rundown of all the key tax cuts and increases, so does National Journal.

Here’s the White House statement on the fiscal cliff deal, and President Obama even released a video this morning, cautiously praising the bipartisan agreement, while being very candid about the fact that the plan doesn’t meet all his goals and calling the fiscal cliff deal the first step towards reducing the deficit.

While most people were making resolutions and watching bowl games, political junkies were lighting up twitter with play-by-plays about John Boehner, Eric Cantor and Harry Reid.

Here's What People Are Tweeting About the Fiscal Cliff

The New Year's Day vote included not just the tax items, but several other riders that will affect American women.

  • Extension of the Farm Bill that will prevent increases in milk prices.
  • Measures for homeowners that could reduce the number of foreclosures.
  • Preservation of tax credits for parents, such as the Child Tax Credit, Dependent Care Credit, and Earned Income Tax Credit.
  • What was notably not voted on was a measure to provide relief funds for victims of Hurricane Sandy.

    Stock markets are up today with news of budget agreement, and President Obama’s finally in Hawaii for his belated Christmas vacation, although he still needs to sign the bill into law.

    And tomorrow? the new members of the 113th Congress will get sworn in.

    News and Politics Editor Grace Hwang Lynch blogs at HapaMama and A Year (Almost) Without Shopping.

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