Senate Passes Fiscal Cliff Compromise

While the rest of us celebrated the New Year, the Senate passed a "compromise" fiscal cliff bill at about 2AM this morning.  Eight Senators voted against the bill and three did not vote.

The Senate approved a bipartisan agreement early Tuesday morning to let income taxes rise sharply for the first time in two decades, fulfilling President Obama’s promise to raise taxes on the rich and avoiding the worst effects of the “fiscal cliff.” The agreement, brokered by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.), passed 89 to 8 in a highly unusual New Year’s morning vote. It now heads to the House, where leaders have not guaranteed passage but top officials believe it could win passage in the next few days. The agreement primarily targets taxpayers who earn more than $450,000 per year, raising their rates for wages and investment profits. At the same time, the deal would protect more than 100 million households earning less than $250,000 a year from income tax increases scheduled to take effect Jan. 1.

House Majority Leader John Boehner has promised to bring the bill to the floor of his chamber by the end of the week.