Lawmakers strike 11th hour 'fiscal cliff' deal

Lawmakers on both sides of the aisle struck a deal on New Year's Day to hinder the harmful effects of the so-called fiscal cliff.

The 257-167 U.S. House of Representatives vote came late Tuesday, less than a day after the U.S. Senate approved the measure by a margin of 89 to 8.

The bill, dubbed the American Taxpayer Relief Act of 2012, extends middle-class tax cuts and credits for working families enacted during George W. Bush's administration. According to WhiteHouse.gov, its provisions include:

• raising the tax rate for individuals making more than $400,000 or couples making more than $450,000 to 39.6 percent from 35 percent;
• changing itemized deductions to be capped for individuals making $250,000 and for married couples making $300,000;
• inherited state taxes increasing to 40 percent from 35 percent;
• unemployment insurance extending for a year for 2 million people;
• an inflation adjustment of the alternative minimum tax; and
• a renewal of tax credits for child care, tuition and research and development.

"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country," President Barack Obama said in a statement. "This agreement will also grow the economy and shrink our deficits in a balanced way – by investing in our middle class and by asking the wealthy to pay a little more."

Both Missouri senators voted in favor of the bill. U.S. Sen. Roy Blunt, R-Mo., said the relief the bill gives to middle-class families is welcome.

"This bill permanently protects 99 percent of taxpayers from a tax increase, provides permanent tax relief and economic certainty for every American, and ensures the vast majority of farm families and small businesses in Missouri will not face the unfair death tax," Blunt said in a statement.

U.S. Rep. Billy Long, R-Mo., who voted against the bill, said he believed the legistlation would not avoid the issues surrounding the fiscal cliff.

"The problem is not that people are taxed too little; the problem is that Washington spends too much. We must get serious about our nation’s fiscal situation," Long said in a statement. "That means reforming the tax code to make it fairer, flatter and simpler, and having an honest discussion with the American people on entitlements and Washington’s reckless spending."