A deal to push out the fiscal cliff was approved by the Senate overwhelmingly late on Monday night.
The deal precludes higher taxes for those earning less than $400,000, or $450,000 for married couples. Itemized deductions will be capped for those earning more than $250,000, $300,000 for married couples. Unemployment insurance will be extended for a year affecting 2 million people. The Alternative Minimum Tax will now be inflation adjusted, saving tens of millions of Americans tax dollars. Child care, tuition and R&D benefits will be renewed. Medicare payments to doctors will continue. Milk prices will not spike.
Not addressed is the debt ceiling, which will be a monstrous issue in February, and the sequestration, which will occur in two months. The latter item will result in huge spending cuts for defense and social programs.
The biggest issue is that none of the above can become law unless the House of Represetatives votes for the deal. Since the proposals do not address spending at all, there could be pushback.