Senate Rings in New Year with Approval of Fiscal Cliff Deal January 1, 2013 The U.S. Senate passed a bipartisan deal just two hours after the New Year deadline to prevent the US economy from going over the now infamous, so-called ‘Fiscal Cliff’. The deal passed the Democratic-controlled Senate by an 89-8 vote, and maintains tax cuts for individuals earning less than $400,000 and couples earning less than $450,000. “While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay,” President Barack Obama said in a statement released by the White House this morning. “There’s more work to do to reduce our deficits, and I’m willing to do it. But tonight’s agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans.” The vote now goes to the House and House Speaker John Boehner, who has yet to indicate what he’ll do with it. As soon as this deal is resolved (whether it passes the House or is rejected), KatzAbsoch will begin the process of evaluating all outcomes for our clients and making official recommendations. Stay tuned! UPDATE The House will vote tonight, Tuesday, January 1st. UPDATE The House approved the bill by a 257 to 67 margin. KatzAbosch CPAs are currently evaluating the bill and all its ramifications. Expect word soon from our Tax Director, Michael J. Agetstein, CPA, PFS.