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Vice President Biden arrived at the Capitol just after 9 p.m. to explain the details of the pact he negotiated with Senate Minority Leader Mitch McConnell (R-Ky.). A Senate vote on the package could be held by the midnight deadline, Democratic aides said. The Republican-controlled House will begin considering the bill on Tuesday, with a final vote expected in the next day or two.
With end of payroll tax holiday, 2013 bill will rise regardless of “fiscal cliff” resolution.
The revelations about the pending deal came after Obama had said a pact was “within sight,” and House Republican leaders announced they would hold no votes Monday night, making it appear that that the nation would go over the fiscal cliff for at least a day. The two sides have been negotiating frantically to avert the automatic spending cuts and tax increases set to kick in on Tuesday, which many economists believe would push the nation back into a recession.
Around 9:15 p.m., Biden emerged from the office of Senate Majority Leader Harry M. Reid (D-Nev.) and walked with the Senate leader into a corridor, past a bank of television cameras broadcating the images live.
"Happy New Year!" the vice president said to awaiting reporters. "Don't you love spending New Year's Eve here?"
Biden then proceeded into a conference room for a meeting with his former Senate colleagues expected to last at least an hour.
Regardless of the emerging agreement, many Americans are all but certain to face a broad hike in taxes starting Tuesday because of the expiration of the payroll tax cut, which was enacted in 2011 as a temporary measure to boost economic growth. The increased payroll taxes, combined with hikes affecting the very wealthy, would effectively mark the end of a prolonged period of declining taxation that has become a defining characteristic of the American economy.
The pact came after a day of intensive negotiations and political battles between the two sides, with Obama urging lawmakers to “stop taxes going up for middle-class families, starting tomorrow,” and calling on them to remain focused on the needs of the American people rather than politics.
In what the White House billed as an event with middle-class Americans, Obama said the potential agreement would prevent federal income taxes from rising on middle-class families, extend tax credits for children and college tuition, provide tax breaks to clean-energy companies and extend unemployment insurance for 2 milwashlion Americans.
Source: Washingtonpost
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