Deal Reached on Fiscal Cliff - InvestingChannel

Deal Reached on Fiscal Cliff

Late Monday, President Obama and Republicans reached a deal on the fiscal cliff, averting steep across-the-board tax increases and spending cuts.

Under the deal, individuals making over $400,000, or families making over $450,000 would be subject to higher tax rates. Others would maintain the Bush-era rates. Capital gains tax would rise from the current 15% to roughly 20%. In addition, the estate tax would move up from 35% to 40% for those over $5.12 million.

The deal also delays $110 billion in spending cuts for two months.

A vote in the Senate could come as early as tonight, while a vote in the House may not come until Tuesday.

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