And the House Adjourns
By last night, Speaker Boehner’s Plan B fell apart. The first step of the plan, the Spending Reduction Act, passed the House. It would replace most of the sequester spending cuts scheduled to take effect on Jan. 2 with other cuts. But after that vote, the House immediately went into recess, and it was later announced the major part of Plan B, Permanent Tax Relief for Families and Small Business Act, would not come up for a vote because it didn’t have the votes to pass. Some Republicans had objections to the plan because it would raise the income tax rate for wealthy Americans relative to current income tax rates.
Earlier this morning, Speaker Boehner said it was now time for the White House and the Senate to decide how to move forward. Unless the Congress and the White House act, income tax rates will rise for every taxpayer in addition to the death, capital gains and dividends taxes.
Congress is not expected to return to address the fiscal cliff until Dec. 27.