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The Cliff, And What’s Next

With Bob Oakes in for Tom Ashbrook

Hammering out a deal.  We’ve got the latest news and analysis from the fiscal cliff.

Sen. John Barrasso, left, R-Wyo., talks with Sen. Brian Schatz, D-Hawaii, who holds up his watch, near the Senate chambers after a vote on the fiscal cliff, on Capitol Hill Tuesday, Jan. 1, 2013 in Washington. (AP)

Sen. John Barrasso, left, R-Wyo., talks with Sen. Brian Schatz, D-Hawaii, who holds up his watch, near the Senate chambers after a vote on the fiscal cliff, on Capitol Hill Tuesday, Jan. 1, 2013 in Washington. (AP)

Move over Rose Bowl. Today’s big matchup is in the nation’s capital.

John Boehner and the Republicans take on Nancy Pelosi and the Democrats in the Fiscal Cliff bowl.  Late last night, the Senate scored a deal. For couples making less than $450,000 dollars a year, big sighs of relief on this first day of 2013.

But  it’s not a done deal. The ball’s now in the hands of the House.  It could get ugly. Is anyone bold enough to place a bet on how this one will play out?

This hour, On Point: Game on: The House readies to vote on the fiscal cliff deal.

-Karen Shiffman

Guests

Gail Chaddock, politics editor at the Christian Science Monitor.

John Harwood, chief Washington correspondent for CNBC and writer for the New York Times.

Lori Montgomery, covers economic policy for the Washington Post.

Jack Beatty, On Point news analyst.

From the Reading List

The Washington Post “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.”

NBC Politics “Although the Senate agreed at the last minute to avert broader tax increases, the very idea of a “deadline” has lost some of its meaning since each budget deal seems to be merely a prelude to another fixed date when some critically important action must be taken – next up: Congress will have to decide what to do about the “sequester” spending cuts which will come up again in February, as well as decide in March on whether to increase the federal borrowing limit.”

Politico “A rare bipartisan consensus is forming on Capitol Hill over the fiscal cliff deal: Nobody really likes it. Liberals are chafing at the thought of letting more wealthy earners escape higher rates. Conservatives are aghast at letting any tax hike take effect. Moderates in both parties say they can live with it but emphasize they’re not fans, either.”

 

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