Last night the Senate approved on a compromise deal that averts the “fiscal cliff.” Supposedly, most tax provisions that were to expire are extended in the deal (including the deduction for state income tax, a permanent indexing for the AMT, and cancelled debt relief on a primary residence). The House will likely vote on the deal later today.
There will still be major battles ahead inc Congress, as this measure does nothing on spending. The debt ceiling will be reached within two months, and Republicans likely will demand major cuts in spending to allow for a debt ceiling increase.
I’ll have more on this tomorrow when I’m back working.