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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.
Bipartisan outrage after House skips vote on $60 billion Sandy aid bill
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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you people across the nation elected new people all right corporation people...but you thought they were mom and pop people huh
I wonder just how responsible the people that post here are ? How much debt do they have and if they want the government to pay for it !
jim that's why we want you to pay for your damn war get it
I have no debt other than my house payment and monthly expenses. I/we put down more than 35% on current house which was $330K when purchased 8 years ago, all bills are paid off monthly (very few exceptions), credit score is well above 800, I save each month, have a good retirement plan and am fortunate to have excellent medical coverage which was in trade of a lower salary...I work 'with' working poor people and they are kind, hard working, caring and living as best they can...the GOP has just spit on them for ridiculous ideals...traditionally the GOP cares NOT for the American people...What did the GOP do upon Obama's inauguration day - fact: vowed to block everything he did and make him a 1 term President as well as block any and all attempts to help the US and it's citizens...
Americans have gotten used to living way beyond their means both personally and on a federal level.
Why did people agree to those freaking house loans that the banks waved underneath their noses, loans that far exceeded their ability to pay? But, they, lender and lendee, did it anyway. And many many of them found themselves defaulting those house notes. I am not sure the average American knows how to live a notched down lifestyle and god forbid, the marketers would not want us to. They wave every new gadget under our noses and then tell us that we NEED it,and we agree. Off we go to buy the latest thing. Whether we can afford to or not, whether we need it or not.
Our government, for the fools that I think they are, behave an awful lot like we do.
NEVER compromise with the communists. NEVER!
The Tea Party is now Communists! That's funny!
Lol, lol, wow, there sure are a lot of experts commenting on this particular subject, the majority are liberals of course, but, I might as well comment because I know about as much about it as you libs do.....the thing about it, is Government Spending, Government Spending and this bill Does Nothing to Curb spending, in fact, it condones spending, so, if you want your children/gr-children to struggle with HUGE Deficits down the road for all of this Democratic Spending, spew all of your venom out on the GOP, but, sooner or later there has to be a day of reckoning, probably sooner!!!
hey dumb azz lets give big oil more tax money how about that waist huh dumb azz
More tax money? Some of you people will never actually do the research.
Big oil, per percentage, pays a RIDICULOUS amount of taxes. They are given subsidies to offset the cost of drilling. If you had actually done your homework, you would have known this.
Try doing a little research before posting.
For the past several years they have had record profits. Why do they still need government welfare?
Big Oil does not need a subsidy to offset the cost of drilling. If they cannot afford to drill out of their own pockets, then they do not need to drill. PERIOD. Their profits are off the charts. For our government to continue to provide offsets for a PRIVATE industry, so that they can continue to do business is criminal.
The Congress and Obama have had over a year to deal with the Budget Control Act of 2011.
http://en.wikipedia.org/wiki/Budget_Control_Act_of_2011
The House of Representatives passed a bill in May of 2012, SEVEN MONTHS AGO, to deal with the Sequestrations.
http://www.ncsha.org/blog/house-passes-bill-replace-sequestration-cancels-vote-tax-bill
The House and Republicans need to Stand firm and say No more of these "crisis" bills and putting off dealing with problems until the last minute and passing Legislation written at the last minute that no one has had time to analyze and read.
The Senate knew this was coming for over a year now, The Republicans passed a Bill Last May, Seven Months ago, its not the Republicans fault the Senate hasn't done anything about it.
No More "Crisis" legislation!
If any bill wasn't written in a timely manner, has not been posted for 72 hours, which is the House rule, and people haven't had time to read and analyze it, then reject it, Until Congress does it right.
We don't want or need any more;
"We have to pass it to find out what's in it" –Nancy Pelosi, Legislation and laws!
The house has passed variations of "the Ryan Plan", and America has made it quite clear it has no interest in that.
This is a difficult situation. I think pretty much everybody here knows this deal was offered up so close to the Fiscal cliff so that when the Republicans rejected it they would be to blame. But the Republicans aren't the only ones to blame. The Democrats up top have refused to give hardly anything. I mean no spending cuts? If it had legitimate spending cuts I would be all for the House passing it, but you can't honestly think only raising taxes on those who make over $450,000 is compromise. Anyway if it gets passed America will slowly be overwhelmed by all the spending and the Republicans will be blamed by both sides for passing it. If it gets turned down Republicans will get blamed by the Democrats and Independents. Obama't extreme leftist strategy seems to be working this time, just not in a way that is good for America.
The House was in recess the last 17 of 19 weeks. Seems the GOP House could give a crapola.
The deal passed the Senate 89-8. Boehner said he would allow a vote on it in the House.
He should honor that, if he has any honor left.
What a load. The conservatives are the new enemy from within.
Not sure which 'family' is worse...the Kardashians who are trashy and greedy and selfish and amoral and clueless and egotistical or the GOP who are trashy and greedy and selfish and amoral and clueless and egotistical...
That is an absurd comment. My IQ dropped three points when I read it. Sheesh...
so joe, you must be a Kardasian fan!
Screw Obama.....41 Billion in taxes, 1 Billion in cuts....no thanks
did you get that number in your alfabet cereal
CBO says for every $41 in tax hikes there is $1 in cuts.
I'm asking every American (regardless of income level) to send a message to Congress and the White House. When you return to work tomorrow morning, after the long holiday weekend, be sure to fill out a new W-4 form and submit it to your payroll office. Increase your exemptions in order to reduce the effect of the tax increase on your paycheck withholding. Furthermore, when you fill out your 2013 tax return next January, be sure to take every deduction, exemption, and loophole you possibly can get away with. Minimize the impact of the tax increase on your pocketbook. The federal government does NOT deserve more money for "discretionary" spending.
The problem with spending in Washington has to do with priorities. Everyone seems to agree that spending cuts are vitally needed. The question is: what to cut? Here's my answer:
*Immediately end the war in Afghanistan and pull out all troops (we won the war when we killed bin Laden...mission was accomplished months ago).
*Close all military bases in Europe (they need to take care of themselves)
*Terminate all contracts for new military hardware (we don't need it)
*Privatize NASA (both are huge sources for pork-barrel spending by Congress)
*End pork-barrel grants for "basic research" (private sector can take over projects deemed to be of commercial value)
*Downsize Homeland Security (it is a huge money pit)
*Privatize NPR, PBS, and the National Endowments for the arts and the humanities
*Re-negotiate (and reduce) prices for goods and services on federal contracts. Terminate contracts for goods and services deemed non-essential to the functioning of the federal government.
*End industry subsidies across the board (let private sector competition drive down prices)
*Reform Social Security and Medicare so that the monthly payments and premium subsidies are indexed to income (in other words, people who are collecting large private pensions or 401K payments would receive less from SS and Medicare). Index the minimum eligibility age so that it is always 10 years less than average life expectancy (currently, life expectancy is about 76 years, so the SS & Medicare eligibility age would be 66). Increase the SS and Medicare payroll taxes to ensure the trust fund is self-supported by the payroll tax. And, BAN Congress from robbing the trust fund for discretionary spending (such as useless foreign wars and pork-barrel pet projects)
*Reform Unemployment Insurance so there is a pathway back into the workforce via re-education or re-training for new careers.
*Institute time limits on Welfare and Medicaid (it should not be possible or necessary to collect these for an entire lifetime)
*Privatize Amtrak (it needs to sink or swim on its own merit)
*End subsidies for the airlines (private competition should decide who succeeds and fails in this industry)
You've never used anything more than the simple tax forms (1040A), have you?
Some of this I agree with and some I do not.
Having time limits for Welfare and Medicaid may not be practical in all cases. These people are here and alive. If they are unable to be self supporting for whatever reason, what are we going to do with them? Throw them into the streets to starve and die? Really?
I would suggest that it might be more effective to NOT fund for children (if you cannot support yourself, you cannot support a kid) and throw that money toward good medical clinics, birth control and health/pregnancy education.
If you are going to index minimum SS eligibility to 10 years less than average life expectancy, then you cannot expect the older worker to retire, or be forced out of the workplace. I absolutely agree that Congress cannot rob from SS. Had they not already done this SS would not even be a discussion on the table. BTW, I do not think that SS is an ENTITLEMENT. I have paid into this system since I was 16 yo and expect to pay in for many years to come.
So little time passed, so many rude comments made to each other. I'm not getting involved in this fight. I may have a dog in this fight but I refuse to get involved in the garbage that's going on and will continue to do so.
Per CSPAN they will be voting for it tonight. The problem the democrats will not have the 218 to pass it. Thank you for shooting this terrible bill down with no cuts. Yes taxes will go up. The senate better think twice about drinking before voting.
89-8. The GOP simply must get back control of their spoiled brats in the House.
The only "path" for them is following the exit signs out of the building.
Agreed
It looks like Boehner has no teeth, and I cannot expect to get published what I think of Cantor. The Republicans' insistence on sticking to their dogma regardless of outcomes is dangerous and destructive. Scares me.
"The way forward," you clueless clowns, is to VOTE YES. PERIOD.
You think the country gives a *#&! about whether you "support" it or not?
You and yours are ENTIRELY RESPONSIBLE for this MESS. All of this could've been avoided LONG AGO.
So, SUCK IT UP, hold your noses - whatever - and VOTE YES. And then, GO AWAY...
Ask Americans if they WANT to pay taxes (at least the 50% that actually do) and they will say NO.
This isn't about passing a crappy band aid bill because you are held at gunpoint. There is supposed to be a 72 hours rule where bill are posted and debated before voted on. What's the rush? Democrats had 18 months to put a leash on Obama. He can't control his spending.
This is what the members of the house were elected to do. Stand up for America. Not roll over for Obama and his welfare nation.
House Repubs don't listen to Boehner. House Repubs don't listen to McConnel. House Repubs don't listen to the people. House Repubs listen to......?????
Grover Numbnuts and his pledge.
Sure hope everyone remembers this in 2014.
It's too bad a Mike Tyson in his Prime couldn't meet the Pencil Neck Aristocrat Eric Cantor in a Back Alley on a rainy night.
How can they let the payroll tax expire which will tax the loweer and middle classes and define rich as those claiming income of over $400,000 per year? I guess I'm part of the lower class in this Country and as a result my taxes are going up! I need to find a way to get more benefits!
Nothing in this bill addresses Americans or the nation.
More nonsense from the Obama administration. Keep RATES the same for the middle class but raise taxes on them via Obamacare? That's great for the economy.
Raise RATES on small businesses while the billionaire campaign contributors hardly get touched by the rate hike.
You will raise NO REVENUE and you have NO SPENDING CUTS.
And what is the purpose of Harry Reid? He blocks every piece of legislation that makes it to the Senate. Then he gets NOWHERE negotiating and they have to bench him for Biden.
Even his own party finds him incompetent. Amazing that democrats actually criticize Boehner.
GOP = D O U C H E BAGS....
Great post. So valuable. You are a typical liberal.
I am beyond disgusted. We have Rubio and Cantor basically looking to their own political future and not the American people. How unfortunate.
with the political fallout .and Tragedies of freedom and capitalism and financial system piece by piece such as a supermarket and not like State Responsible for people Majority Leader and House Speaker John Boehner, tells , Republicans he can't support the Senate bill in its current form; timing on House vote unclear.
If House Repugnicans can't even agree with Senate Repugnicans, just imagine the gridlock when any Repugnicans try to negotiate with the opposing party. Then again, you don't really need to imagine.
The Republicans have no more chips to bluff with! The fiscal cliff will bring in revenue and raise taxes on every American and that will be on their heads. It will also bring in much needed cuts to the military machine's coffers - also much needed. I'm not sure what they believe they're accomplishing but their game playing is only shedding light on the fact that they are willing to screw this country so their rich handlers can keep a few extra bucks in their wallets.
Yup. The House GOP is now screwing 98% of the people and 97% of the small businesses to protect those that are richer than god.
The GOP are not "protecting the wealthy." They are governing by their conscience, same as the Democrats. To the GOP, we spend too much money as it is. If we have debt, the answer is not to seize more for new spending, which this proposal does. The answer is to reign in spending and live within our means, the same as you and I have to do when we do our monthly household budget. The difference is that the government has no budget, and we are all simply part of a massive ATM that the government can access at any time it sees fit. Whether it is in the name of "fairness," "redistribution of wealth," "patriotism," or even as punishment, the GOP does not feel we exist to satiate the government's never-ending desire for more money to spend. Thats it.
@joe,
Two words: "47%."
(Ok, maybe one word.)
Either way, you get the drift.