This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

House Passes Fiscal Deal Late Tuesday

NEW YORK ( TheStreet) -- The House of Representatives late Tuesday passed legislation averting a so-called "fiscal cliff" and sent it to President Obama for his signature.

Passage had seemed uncertain earlier Tuesday, after House Republicans, including Rep. Eric Cantor of Virginia, had voiced opposition to the budget compromise that had been hammered out and passed by the Senate.

House leaders had suggested they might amend the legislation to include more spending cuts and then send it back to the Senate, a move that could have led to deadlock.

But the bill passed the House 257 to 167, and among the yes votes were 85 Republicans, The New York Times reported. Sixteen Democrats joined 151 Republicans to vote against the legislation, the Times said.

Passage of the deal, which prevents automatic tax hikes for most Americans and a host of spending cuts, ends a nail-biting period when it wasn't clear politicians icould bridge their differences on fiscal policy.

Economists and financial market participants had expressed concern the tax increases and spending cuts that would have kicked in without a deal could have thrown the still-fragile U.S. economy into recession.

Once it receives Obama's signature, the legislation will increase taxes for individuals with annual incomes of more than $400,000 and couples making more than $450,000 a year but prevent rates from rising on the middle class. The tax rate for these groups will rise to 39.6% from 35%.

Estate taxes will also rise. They will be taxed at a top rate of 40%, an increase from the previous 35% top rate. The first $5 million of an estate's value will be exempt for individual estates, and the first $10 million will be exempt for family estates.

The measure would also block a host of automatic spending cuts for two months, extend unemployment benefits for the long-term unemployed and stop a 27% cut in fees for doctors treating Medicare patients, the AP said.
This article was written by a staff member of TheStreet.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.48 0.57%
FB $104.25 -1.10%
GOOG $743.96 -0.84%
TSLA $230.35 -0.54%
YHOO $33.81 2.60%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs