Tentative ‘fiscal cliff’ deal reached in Senate

New cheap nike nfl jerseys free shipping Racing to beat a midnight deadline, Vice President Joe Biden arrived on Capitol Hill Monday night to sell wary Democratic senators on an 11th-hour deal to avert income tax hikes on all but a sliver of the richest Americans.

Grinning broadly, Biden ignored reporters questions on whether he and Republican Senate Minority Leader Mitch McConnell had finally forged a compromise to avoid the "fiscal cliff" that threatened the still-fragile economy with a new recession. "Happy new year," he replied.

But a Democratic Senate aide told Yahoo News that "the White House and Republicans have a deal," while a source familiar with the negotiations said President Barack Obama had discussed the compromise with Democratic Senate Majority Leader Harry Reid and Democratic House Minority Leader Nancy Pelosi and "they both signed off."

Discount nhl jerseys The apparent agreement set up a Senate vote late Monday or possibly in the wee hours of Tuesday. The House of Representatives was due back at noon on Tuesday to take it up.

Under the compromise arrangement, taxes would rise on income above $400,000 for individuals and $450,000 for households, while exemptions and deductions the wealthiest Americans use to reduce their tax bill would face new limits. The accord would also raise the taxes paid on large inheritances from 35% to 40% for estates over $5 million. And it would extend by one year unemployment benefits for some two million Americans.

Biden, a 36-year Senate veteran, worked out the agreement with McConnell after talks between Obama and Republican House Speaker John Boehner collapsed.

Wholesale mlb jerseys But with time running short, the country appeared on track to go over the cliff at midnight -- though quick congressional action, and the fact that financial markets were to be closed on New Year's Day, were expected to limit the damage.

“Today, it appears that an agreement to prevent this New Year's tax hike is within sight, but it's not done,” Obama said in hastily announced midday remarks at the White House. “There are still issues left to resolve, but we're hopeful that Congress can get it done – but it’s not done.”

"One thing we can count on with respect to this Congress is that if there is even one second left before you have to do what you’re supposed to do, they will use that last second," he said.

Obama’s remarks – by turns scolding, triumphant, and mocking of Congress – came after talks between McConnell and Biden appeared to seal the breakthrough deal.

NBA new material Miami Heat jersey Efforts to modify the first installment of $1.2 trillion in cuts to domestic and defense programs over 10 years -- the other portion of the “fiscal cliff,” known as sequestration -- had proved a sticking point late in the game. Democrats had sought a year-long freeze but appeared to have caved to Republican pressure and signed on to just a two-month delay. That would put the next battle over those cuts right around the time that the White House and its Republican foes are battling it out over whether to raise the country's debt limit. Republicans have vowed to push for more spending cuts, equivalent to the amount of new borrowing. Obama has vowed not to negotiate as he did in 2011, when a bruising fight threatened the first-ever default on America's obligations and resulted in the first-ever downgrade of the country's credit rating.

Experts had warned that the fiscal cliff's tax increases and spending cuts, NCAA college football jerseys free shipping taken together, could plunge the still-fragile economy into a new recession.

“I can report that we’ve reached an agreement on all of the tax issues,” McConnell said on the Senate floor. “We are very, very close to an agreement.”

The Kentucky Republican later briefed Republicans on the details of the deal. Lawmakers emerged from that closed-door session offered hopeful appraisals that, after clearing a few last-minute hurdles, they could vote on New Year’s Eve or with 2013 just hours old.

“Tonight, I hope,” Republican Senator Bob Corker of Tennessee told reporters. “It may be at 1, 2, 3, 4 in the morning. Oh, I guess that’s technically tomorrow.”

Republican Senators said negotiators were still working on a way to forestall two months of the “sequester” spending cuts, about $20 billion worth. And some expressed disquiet that the tentative compromise ran high on tax increases and low on spending cuts – cheap kids and youth jerseys wholesale while warning that failure to act, triggering some $600 billion in income tax increases on all Americans who pay it and draconian spending cuts, was the worse option.

McConnell earlier had called for a vote on the tax component of the deal.

“Let me be clear: We’ll continue to work on finding smarter ways to cut spending, but let’s not let that hold up protecting Americans from the tax hike,” McConnell urged. “Let’s pass the tax relief portion now. Let’s take what’s been agreed to and get moving.”