Monday, December 31, 2012

Fiscal Cliff Deal Growing More Likely, Would Raise $715 Billion In Revenue

Fiscal Cliff Deal 
The preliminary deal being negotiated by Senate Minority Leader Mitch McConnell (R-Ky.) and Vice President Joe Biden would achieve $715 billion in debt reduction, almost entirely through revenue hikes.

The details for the deal, which are still being tinkered with, were passed along to The Huffington Post by a source with direct knowledge of the talks. While progressive lawmakers and pundits have bemoaned some of the provisions, some top Hill aides seemed increasingly bullish on the prospect of closing a deal before the day was through.

Under the framework, the Bush-era tax cuts would be extended permanently for individuals at $400,000 and joint filers at $450,000. A second Senate Democratic source familiar with the state of play confirmed those details. The top rate on ordinary income would go back to 39.6 percent and raise an estimated $370 billion in revenue over 10 years.

The same thresholds would be applied for capital gains and dividends, with the top rates in that case going up to 20 percent -- a concession to Republicans (the rate on dividends was set to return to 39.6 percent) but not far from the president's position during the campaign. POST

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