The Senate did its part, so will the House follow suit today and pass a fiscal cliff package?
So far, the answer is, we really don’t know.
House Majority Leader Eric Cantor’s office says there’s no decision yet on whether the House will vote today on the fiscal cliff deal passed by the Senate.
The deal, which passed the Democratic-controlled Senate in an overwhelming 89-8 vote in the middle of the night, would maintain tax cuts for individuals earning less than $400,000 and couples earning less than $450,000. Technically, it would reinstate cuts that expired at midnight.
Assuming the House agrees to what the Senate voted on last night, then the Bush-era tax cuts will be made permanent for almost all Americans. Only those with incomes of $400K and up will see an income tax increase.
But the other half of the Fiscal Cliff, the sequester (the mandatorys pending cuts agreed to in the debt ceiling fight) has only been delayed, giving DC more time to fight over it.
That means we’ve already scheduled a new Fiscal Cliff, and the bill agreed to last night has the date: March 1, 2013 (exactly two months from today). This is from page 154 of the bill (HT: @jesse_livermore)
What will be interesting timing-wise is when the Treasury says we will hit the hard debt ceiling.
The next two months will be non-stop debt ceiling/sequester, and it will all come to a head in late February/early March.