Senate Approves ‘Fiscal Cliff’ Deal; House Meets New Year’s Day

The White House and congressional lawmakers have reached a deal to avoid the “fiscal cliff” that would delay harsh spending cuts by two months, Obama administration officials said on Monday.

The plan was hammered out by Vice President Joe Biden and Republican Minority Leader Mitch McConnell.

The Senate overwhelmingly approved the deal, 89 to 8, in a vote just before 2am ET on New Year’s Day. The House of Representatives is expected to vote or take up the deal when it meets on New Year’s Day.

So, technically, the U.S. went over the cliff when midnight struck and some $600 billion of tax hikes and spending cuts kicked in but a deal could be approved by the full Congress in the next few days.

The agreement, which includes both spending cuts and revenue increases, extends tax cuts on incomes up to $400,000 for individuals and $450,000 for couples. Those earning above that would be taxed at a rate of 39.6 percent, up from 35 percent.

Read more from this story HERE.