With the fiscal cliff cutoff rapidly closing, members of Congress are apparently rapidly approaching a combined deal with input from both Republicans and Democrats, but heavily tilted in favor of the White House, according to the Washington Post's Ezra Klein. From @ezraklein, 5 things to expect:
39.6 percent tax rate for individual income over $400k / family income over $450k. Alternative minimum tax patched permanently.
Dividends and capital gains taxes at 20 percent on the $400k/$450k levels. PEP at $250k. Pease at $300k.
Status of automatic sequestering is still unclear: the President wants to offset with new revenue (taxes) and spending cuts. Republicans still want all spending cuts.
UI and business cuts will remain extended through 2013. Stimulus tax cuts (such as the expanded earned income tax credit, child tax credit, college credit, etc.) will continue for the next 5 years. Medicare cuts will be stopped with offsets. The payroll tax holiday will expire.
Estate tax will be set at a $10 million exemption, but at a 40 percent rate.
The deal raises, in total, around $600 billion in revenue.
The deal does raise less than what Republican Speaker of the House John Boehner offered, but contains no spending cuts to entitlements. The White House is apparently remaining firm that all spending cuts must be offset by new revenue increases. The debt ceiling will not be raised as part of the deal, allowing Republicans another attempt to refocus on the issue in two months after the resolution of the fiscal cliff.
The President is expected to speak at 1:30 PM EST on the status of negotiations. See the live feed below, with updates: