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Subscribe to RSSPresident Obama praised lawmakers and Vice President Joe Biden after the House of Representatives voted to pass a Senate measure to avert the most serious impacts of the so-called fiscal cliff.
Updated at 12:32 a.m. ET: An agreement to stave off the harshest and most immediate consequences of the fiscal cliff won approval in the House late Tuesday. President Barack Obama signed the law on Wednesday night, the battle over which foreshadowed more fights with Congress over spending.
Following a day of hectic wrangling on Capitol Hill — where the prospects for passing the bipartisan, Senate legislation regarding the fiscal cliff hung in the balance for much of New Year's Day — the House voted 257 to 167 to pass the belated compromise measure over the objections of many conservative Republicans.
The legislation takes steps toward resolving the combination of automatic tax hikes and spending cuts that took effect at midnight on Jan. 1. It preserves tax rates as they were at the end of 2012, except for those individuals earning more than $400,000 and households earning over $450,000. It also allows taxes on capital gains and dividends to go up, and extends benefits of the unemployed. Additionally, the Senate bill delays the onset of the "sequester" — the swift, automatic spending cuts — for two months.
Fiscal cliff compromise leaves few satisfied
"Thanks to the votes of Democrats and Republicans in Congress I will sign a law that raises the taxes on the wealthiest of Americans," Obama said in remarks at the White House Tuesday, "while preventing a middle-class tax hike."
The House vote laid bare some of the internal ideological divisions to plague the GOP over the past two years. More Republican congressmen (151) voted against the Senate bill than for it (85), meaning that Democrats' support was needed to advance the final deal. House Speaker John Boehner, R-Ohio, took the rare step of casting a vote, and did so in favor of the legislation. Rep. Paul Ryan, R-Wis., the former Republican vice presidential nominee, also supported the package. But Boehner's top two lieutenants, Majority Leader Eric Cantor, R-Va., and Majority Whip Kevin McCarthy, R-Calif., each opposed the deal.
The House voted Monday to approve the Senate's fiscal cliff bill by a vote of 257-167. Richard Lui, Luke Russert and Mike Viqueira report on MSNBC.
"Now the focus turns to spending," Boehner said in a statement following the House vote. "The American people re-elected a Republican majority in the House, and we will use it in 2013 to hold the president accountable for the ‘balanced’ approach he promised, meaning significant spending cuts and reforms to the entitlement programs that are driving our country deeper and deeper into debt."
While the last-minute action on Capitol Hill essentially mitigates much of the risk posed to the U.S. economic recovery by the fiscal cliff, it hardly brings resolution to the bitter and often intractable fight in Washington over taxes and spending. The first half of 2013 will feature battles in Congress over raising the debt limit, continuing basic government funding and the expiration of this two-month delay in the sequester.
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Obama nodded to those looming fights in his remarks Tuesday evening, renewing his call for "balance" in any solution in the coming year to address deficits and debts. But the president also sternly warned Congress against using the debt ceiling as a bargaining chip, as Republicans had in summer of 2011.
"While I'll negotiate over many things, I will not have another debate with this Congress over whether to pay the bills they have racked up," Obama said.
PhotoBlog: Deal done, Obama heads back to Hawaii with a weary wink
The fiscal cliff itself was the product of discord in Congress resolving those very issues. And the difficulty in attaining even this less ambitious piece of legislation — versus the kind of "grand bargain" Obama had first sought in talks with Republicans — offered a cautionary tale for the 113th Congress, in which the House and the Senate remain controlled by the same parties as during the past two years.
Squabbling
And even for much of Tuesday, House approval of the fiscal legislation — which was negotiated by Senate Minority Leader Mitch McConnell, R-Ky., and Vice President Joe Biden — was far from certain. GOP leaders were forced to cajole conservatives who complained the fallback deal contained insufficient spending cuts. Only after it became clear that Republicans wouldn't have the votes to amend the Senate proposal — which the upper chamber said it wouldn't even consider — did House Speaker John Boehner, R-Ohio, bring the bill to the floor.
The squabbling was familiar to any observers of Congress during the past two years. This divide almost resulted in a government shutdown and a default on the national debt in 2011. It again threatened Tuesday to allow the painful, across-the-board tax hikes and spending cuts to play out just as the U.S. economic recovery showed signs of accelerating.
PhotoBlog: See images of Congress working overtime to avoid fiscal cliff
And this deal just approved by Congress in the waning hours of 2013's first day all but ensures that much of the coming year will be dominated by similar battles in Washington. Republicans are hopeful they might be able to extract more spending cuts and entitlement reforms with the government up against other deadlines, like the one needed this spring to authorize more government borrowing.
That could complicate Obama's already-ambitious second term agenda. The president said just this past Sunday on NBC's "Meet the Press" that he will seek comprehensive immigration reform legislation and new laws to address gun violence.
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I see over and over again typos on MSNBC of late. Here was a vote after midnight on Tuesday around 2 a.m. and a couple of times in this article there is a mention of the day being Sunday. MSNBC corrected this while I was typing, but if you read earlier, you might have thought "What"... regards the cliff, I say lets go over and drop the tax down to 250,000 dollars of income a year. If that isn't rich, what is?
Somebody tell that little impetuous Eric Cantor that America doesn't care what he can or cannot support. Put the measure to a vote.
I want my tax refund and on time. Pass this bill House.
Agreed. I do my taxes as soon as I get my W2s. That's in late January. They're really gonna exacerbate my OCD if they screw this and I can't do my taxes on time.
If Republicans block this bill , at this stage, we will witness the end of the GOP Party and the beginning of 20 years of Democratic control of our government.
ugh to bohner and bohner jr. coupla tools. WOuld people remeber this next time they vote??
Keep it up, GOP....and you can GUARANTEE big loses in the next election. Holding out to protect the rich is UN-American. Roll up your sleeves and WORK or get out and go home! Disgusting!
I would like to thank the GOP...For everything...The Banking scandal that crippled out economy...Our war in Iraq that killed and wounded thousands of American Service men and women...There Insistence that NO GOVERNMENT is good Government....Every plank of the GOP Platform is Rotten...They hand this Nation misery after Misery based upon some quasi-Conservative \business social agenda that is driven from the irrational need to return to the 50's in America.....There doing a stand up job..or No job....I cant wait for there NEXT INSTALLMENT of AMERICAN MISERY..oh wait here it comes....THE CLIFF...why thanks again...GOP....
I am so upset with the Republican party!!! They are a bunch of idiots... Enough said. I hope their sorry butts get thrown to the curb next election day.
They don't get it that it is what the majority of the people want! It's about them or nothing. IDIOTS!!!!
Vote it down. It does nothing to stop the SPEND and TAX democrats from bankrupting our country. In fact, even if it passes Obama will continue to raise taxes and spend like a fool.
If you have any doubt just look at how the dems are ruining the California economy (same stupid strategy)
Cantor and all who object can vote "Present"...There are enough SPENDOCRATS and moderate GOPers to pass this without them.
Trying to advance the current bad position is pointless when you have a much better front in the debt ceiling.
Congrats Pig. You beat Feasty. You're both #2 in my eyes.
I thought Government officals were elected by the public....which in turn means, they work for us. What usually happens when people you hire are not doing their job???? They're fired!!!! I'm for firing everyone... start from scratch...everyone who is currently in office, can't be re-elected and we start anew. I know the idea is fantasy and can't happen but something needs to be done so everyone realizes that they are working for US!!!!
This is a terrible bill. The country needs a permanent solution, not to continue the current model and delaying any attempt to address the problems.
The tax hike is fine but doesn't make dent in the budget imbalance.
All that time and we get another 'nothing' solution. Kick every politician out of office!
Cantor is a Weasel among Weasels. A Pencil Neck Aristocrat who never made an Honest Living in his Pencil Neck Life.
We're right back where we started with 50 Republicans defying the entire United States voting population and every poll known to mankind. Well, the new Congress gets sworn in on Thursday so let's see if Bonehead comes out on top or if it's Eric Cantor. My personal bet is on Cole from Oklahoma. He's been sounding a like lot a man looking for a CEO position.
the republicans want my SS and my children's SS.money
God , I love the GOP/TP . 2014 is coming guys n gals ,and "That Right Soon " . See you folks in 2030 ,maybe . Yes join the GOP , No one can snatch defeat from the jaws of victory ,quite like Boehner and Cantor .
All I can say is...Vote all republicans and teabags out of politics. They are totally worthless, we pay them and they do nothing. What a bunch of A$$HOLE$!!!!!!!!!!!!!!!!!!!!!
That will never happen. I live in the midwest which is all Republican. So your dreams will never come true.
the House is nothing but a house of corporation greedy bastards ..that were elected ..as ordinary people in secrete
Those that hold up the deal and are set on screwing the majority of Americans, be warned. The People's memory is long and the midterm elections are only 2 years away.
I wish there was some way to strip all the people in congress of their legislative authority and remove them from office, this is including the president. Then get some some people who know how to work together, compromise for the good of the country and elect them to congress.
This is crazy, any businessperson would be fired if they could not reach a budget.
I wish the Supreme Court could do something to get all the members of congress and the president out of office. None of them deserve to be there. They've had several of years to work this out. They cant do it!!!
Lets get people in there that can!!!
Phuk the democrat-communists. All they know is tax, tax, tax, then spend, spend, spend.
Do you think before typing. It's both parties who have been doing nothing but spending the last 12 years.
If the house fails to act, Taxes will REALLY go up!
What do you communist slugs care. You contribute nothing to America. POS moochers.
Joe, I suspect you could not tell a communist from a socialist from a fascist from a chemist if they introduced themselves.
Joe Thomas, what do YOU contribute to America? It's funny, that's the question you raise, of an individual contributing something to his/her country...the community??? That's VERY COMMUNIST of you.
So we have tax hikes, and a call for spending reduction.
One side wants more money, the other wants to spend less.
Gee, doesn't take an economics degree here.
But then again what do we expect? Regardless what occurs it's just more kicking the can right down the road to pass onto our future generations. The history books will not be kind to us...
Boehner should put the Senate bill up for a House vote. He's got that power and authority.
If it doesn't pass, they can try changes.
Not putting the Senate bill up right now is simply idiotic.
Boehner will never do it because he would vote yes because he is a democrat in sheep clothing.
No flux in fiscal deal as the Senate will not entertain the changes. No the flux is in between the Cantor TEA and the Boehner GOP. Since Boehner already caved I think we are witnessing the end of the GOP and the birth of the new two-party system of DEM and TEA. I was a Republican for 35+ years and left when the TEA poisoned the party. It is one thing to be conservative and quite another to be radically religious zealots and fiscal facists. No flux in fiscal deal...just between TEA and GOP.
You were NEVER a Republican......you are a joke
trouble 1954, you are the joke!