Despite deal, taxes will rise for most


WASHINGTON (AP) — While the tax package that Congress passed New Year's Day will protect 99 percent of Americans from an income tax increase, most of them will still end up paying more federal taxes in 2013.


That's because the legislation did nothing to prevent a temporary reduction in the Social Security payroll tax from expiring. In 2012, that 2-percentage-point cut in the payroll tax was worth about $1,000 to a worker making $50,000 a year.


The Tax Policy Center, a nonpartisan Washington research group, estimates that 77 percent of American households will face higher federal taxes in 2013 under the agreement negotiated between President Barack Obama and Senate Republicans. High-income families will feel the biggest tax increases, but many middle- and low-income families will pay higher taxes too.


Households making between $40,000 and $50,000 will face an average tax increase of $579 in 2013, according to the Tax Policy Center's analysis. Households making between $50,000 and $75,000 will face an average tax increase of $822.


"For most people, it's just the payroll tax," said Roberton Williams, a senior fellow at the Tax Policy Center.


The tax increases could be a lot higher. A huge package of tax cuts first enacted under President George W. Bush was scheduled to expire Tuesday as part of the "fiscal cliff." The Bush-era tax cuts lowered taxes for families at every income level, reduced investment taxes and the estate tax, and enhanced a number of tax credits, including a $1,000-per-child credit.


The package passed Tuesday by the Senate and House extends most the Bush-era tax cuts for individuals making less than $400,000 and married couples making less than $450,000.


Obama said the deal "protects 98 percent of Americans and 97 percent of small business owners from a middle-class tax hike. While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country."


The income threshold covers more than 99 percent of all households, exceeding Obama's claim, according to the Tax Policy Center. However, the increase in payroll taxes will hit nearly every wage earner.


Social Security is financed by a 12.4 percent tax on wages up to $113,700, with employers paying half and workers paying the other half. Obama and Congress reduced the share paid by workers from 6.2 percent to 4.2 percent for 2011 and 2012, saving a typical family about $1,000 a year.


Obama pushed hard to enact the payroll tax cut for 2011 and to extend it through 2012. But it was never fully embraced by either party, and this time around, there was general agreement to let it expire.


The new tax package would increase the income tax rate from 35 percent to 39.6 percent on income above $400,000 for individuals and $450,000 for married couples. Investment taxes would increase for people who fall in the new top tax bracket.


High-income families will also pay higher taxes this year as part of Obama's 2010 health care law. As part of that law, a new 3.8 percent tax is being imposed on investment income for individuals making more than $200,000 a year and couples making more than $250,000.


Together, the new tax package and Obama's health care law will produce significant tax increases for many high-income families.


For 2013, households making between $500,000 and $1 million would get an average tax increase of $14,812, according to the Tax Policy Center analysis. Households making more than $1 million would get an average tax increase of $170,341.


"If you're rich, you're almost certain to get a big tax increase," Williams said.


___


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Deal moves US away from fiscal cliff - for nowWASHINGTON (AP) -- An emergency deal reached after weeks of rancorous negotiations will keep the U.S. from driving off the so-called fiscal cliff, but higher taxes and continued political bickering in Washington threaten to shake the fragile U.



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How to Sync All Your Calendars Onto One Smartphone






It’s a simple request: I just want my online calendars to sync with my smartphone… is that too much to ask? It took some initial research and finesse, but I’ve discovered the best ways to get your Yahoo and Google calendars to appear on either an Android or Apple IOS mobile device.


Google Calendar on Android Phone
When you first set up your Android phone, you had to create or enter your Google account info, so the phone already has the login info for your Google Calendar. Now you can go to your phone’s Settings, choose Accounts, click the Google account and then make sure “Sync Calendar” is checked. Then go to the Calendar App on your Android phone and it should be there.






For multiple calendars, hit the Settings button and then Calendars to customize which Google calendars you see.


Yahoo Calendar on Android Phone
Although it seems like it should be easy to add the Yahoo Calendar to your Android, I never got mine to sync. Theoretically, you would open the Android calendar on your phone, hit the Settings option, and Add Account. But depending on the flavor of Android I tried, I either couldn’t add a Yahoo account or when I did, it didn’t sync. It could just be me, but I found a lot of people online with the same issue. So I tried one of the most recommended apps to solve the problem – Smoothsync for Yahoo. It costs just under three dollars, and once you install it, you can sync all your Yahoo calendars into the native Android calendar. Ah, sweet relief.fbc19  uyl ep96 large How to Sync All Your Calendars Onto One Smartphone


[Related: New Tricks for New (and Old) Androids]


Yahoo Calendar on iPhone
On your IOS device, hit Settings. If you haven’t added your Yahoo Account yet, do so by going to Mail, Contacts, Calendars. Choose “Add Account.” Once you’ve input your Yahoo login info, the next screen gives you the option to Sync Mail, Contacts, and Calendars. Make sure calendars is on. Hit the Home button, open the IOS calendar. Hit the Calendars button on the top corner and you will see all your calendars listed under Yahoo. If you only have one Yahoo calendar, make sure you check to have it show in your IOS Cal. Also, many people have multiple Yahoo calendars: a family calendar, a work calendar, a soccer team calendar for the kids, and a personal calendar. You can customize which of these Yahoo Calendars show up by checking or unchecking them in this screen.


Google Calendar on iPhone
It’s a little more complicated, but you can also put a Google or Gmail calendar on the iPhone. Here’s how:


If you only have your one personal Google calendar to sync, you do things the same way as with Yahoo: Go to Settings on your IOS device, add your Google account (if you haven’t done so yet) by going to Mail, Contacts, Calendars. Choose “Add Account.”


Once you’ve input your Google login info, the next screen gives you the option to Sync Mail, Contacts, and Calendars. Make sure Calendars is on. Hit the Home button, then open the IOS calendar. Hit the Calendars button on the top corner and you will see your calendar listed under Google. You can track those Google dates in the IOS calendar and multiple Yahoo calendars at the same time.


But if you want multiple Google calendars, you need an app for that. Google does let you do this through their mobile site, but that’s basically just a website without the power of notifications and all the extras you like from your calendars. So I suggest getting the CalenMob app. It’s free with ads or $ 5 ad-free. It syncs all your Google calendars to the app (not the native IOS calendar) and adds in notification options, SMS functions and email alert options. It also syncs simultaneously to your Yahoo calendars.


[Related: True/False: Never Sell Your Old Phone]


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FDA Approves 39 New Drugs in 2012






Both pharmaceutical companies and officials at the U.S. Food and Drug Administration have been busy — the drug companies compiling statistics from clinical research trials and the FDA going through its vetting process to ensure the safety and efficacy of proposed new medications. The most recently approved medication, Sirturo, was developed for the treatment of multi-drug resistant tuberculosis, MDR-TB, an infection rarely seen in the United States but prevalent in China, Eastern Europe, Russia and India.


FDA 2012 Approval Numbers






In the last 20 years, the greatest number of new approvals occurred in 1996 when 53 new medications were added to the marketplace. In 1997, 39 new drugs met FDA approval. Approvals slowed for some years until 2004 when 36 approvals were awarded by the FDA, then slowed again until the 39 approvals in 2012.


Newest Tuberculosis-Fighting Drug Fast-Tracked by FDA for Approval


Johnson & Johnson’s drug Sirturo, or bedaquiline, intended for the treatment of drug-resistant strains of tuberculosis, received a speedy go-ahead to market, a process used by the FDA when preliminary clinical research demonstrates positive results.


Tuberculosis, caused by bacteria that most often affects the lungs, is rarely seen in the United States but is rampant in other areas of the world. As many as 1.4 million people die worldwide annually from the illness, with approximately 150,000 of those deaths from MDR-TB.


Sirturo, the first new anti-tuberculosis drug to market in more than 40 years, is not without its concerns. Designed to be used in conjunction with the older anti-tuberculosis medications, Sirturo carries a boxed warning on its label that it can interfere with the heart’s electrical system, something that could result in fatal arrhythmia .


Bedaquiline is not intended as a first line of defense against tuberculosis infection, but rather when all other available treatments have been ineffective. Left unabated, the tuberculosis could lead to death and at that point in the illness health care providers would need to weight the possible side effects of a medication that could save the person’s life by clearing the infection.


New Medications Approved by FDA in 2012


The FDA provides a listing of new and generic drugs the agency approved in 2012. Drugs in the listing include Eliquis, a blood thinner for people with atrial fibrillation not related to a heart valve problem; Juxtapid, an anti-cholesterol medication for people with an uncommon genetic disorder affecting LDL cholesterol levels; and Iclusig, another medication that received fast-track approval, for the treatment of two rare types of leukemia. Thirty-six other drugs also received approval.


Bottom Line


The discovery and clinical research that are behind each new drug is often long, arduous and expensive. MedCityNews.com reported that major pharmaceutical companies took a big financial hit in 2012 due to patents expiring on many large money-making medications, with cheaper generic drugs taking up the slack to the tune of $ 21 billion for U.S. drug makers and $ 10 billion for European drug makers.


As difficult as it can be to feel sympathy for the drug companies, the truth is manufacturing and distributing medications is a business. If profits fall too much, it is difficult to fund the discovery and research phases for potential new cures.


Everyone, from infants to baby boomers to centenarians, benefits from the continued science of pharmacy.


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Israeli-Palestinian clashes erupt in West Bank






TAMOUN, West Bank (AP) — An arrest raid by undercover Israeli soldiers disguised as vegetable vendors ignited rare clashes in the northern West Bank on Tuesday, residents said, leaving at 10 Palestinians wounded.


Israeli army raids into Palestinian areas to seize activists and militants are fairly common. The raids are normally coordinated with Palestinian security forces, and suspects are usually apprehended without violence.






The clashes began early Tuesday after Israeli forces disguised as merchants in a vegetable truck arrested one man. Regular army forces then entered the town, prompting youths to hurl rocks to try to prevent more arrests.


Israeli forces fired tear gas, rubber bullets and live ammunition as youths set tires and bins on fire to block the passage of military vehicles. In several hours of clashes, dozens of masked youths hid behind makeshift barriers, hurling rocks and firebombs at soldiers.


Faris Bisharat, a resident of Tamoun, said 10 men were wounded, some by live fire. Bisharat said the wanted men belong to Islamic Jihad, a violent group sworn to Israel’s destruction. It wasn’t clear how many men Israeli forces sought to arrest. There were no immediate details on how seriously the 10 were hurt.


The Israeli military said it arrested a “terrorist affiliated with the Islamic Jihad terror group.” It said two soldiers were injured during the raid.


The fighting, which broke out in several parts of the town of some 8,000 people, were a rare, angry response. It was also unusual for Israeli forces to use live fire toward Palestinian demonstrators. Israel says it uses live fire only in extremely dangerous situations.


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Jon Stewart to host Grammy’s MusiCares tribute






LOS ANGELES (AP) — Jon Stewart is hosting the MusiCares salute to Bruce Springsteen.


The Recording Academy also announced Wednesday that Elton John, Neil Young, Mumford & Sons, Sting, Mavis Staples and Kenny Chesney will be among more than a dozen performers who will help pay tribute to Springsteen during the Feb. 8 benefit concert, held in Los Angeles two days before the Grammy Awards.






Springsteen is MusiCare’s person of the year, an award given to a performer who is notable both artistically and philanthropically. The sold-out concert will benefit MusiCare’s emergency financial assistance and addiction recovery programs.


Other performers scheduled to appear include Juanes, Tim McGraw and Faith Hill, Jackson Browne and Alabama Shakes.


Stewart is the host of Comedy Central’s “The Daily Show With Jon Stewart.”


___


Online:


http://grammy.com


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UPDATE 7-Tennis-Auckland Classic women’s singles round 1 results






Jan 1 (Infostrada Sports) – Results from the Auckland Classic Women’s Singles Round 1 matches on Tuesday


2-Julia Goerges (Germany) beat Anastasija Sevastova (Latvia) 6-3 6-4






Marina Erakovic (New Zealand) beat Stephanie Dubois (Canada) 6-2 6-1


1-Agnieszka Radwanska (Poland) beat Greta Arn (Hungary) 6-2 6-2


8-Mona Barthel (Germany) beat Grace Min (U.S.) 6-1 6-3


6-Yaroslava Shvedova (Kazakhstan) beat Lara Arruabarrena Vecino (Spain) 6-3 6-2


Romina Oprandi (Switzerland) beat Nudnida Luangnam (Thailand) 6-0 6-2


Heather Watson (Britain) beat 5-Sorana Cirstea (Romania) 6-3 (Cirstea retired)


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No surprise: YouTube, Angry Birds, Instagram and Facebook among 2012′s top apps









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ESPN’s Hannah Storm returns 3 weeks after accident






NEW YORK (AP) — ESPN anchor Hannah Storm returns to the air New Year’s Day, exactly three weeks after she was seriously burned in a propane gas grill accident at her home.


Storm suffered second-degree burns on her chest and hands, and first-degree burns to her face and neck. She lost her eyebrows and eyelashes, and roughly half her hair.






Storm will host ABC’s telecast of the 2013 Rose Parade on Tuesday. Her left hand will be bandaged and she said viewers might notice a difference in her hair texture where extensions have been added.


“I’m a little nervous about things I used to take for granted,” she said by phone this weekend from Pasadena, Calif. “Little things like putting on makeup and even turning pages on my script.”


The award-winning sportscaster and producer was preparing dinner outside her home in Connecticut on the night of Dec. 11 when she noticed the flame on the grill had gone out. She turned off the gas and when she reignited it “there was an explosion and a wall of fire came at me.”


“It was like you see in a movie, it happened in a split-second,” she said. “A neighbor said he thought a tree had fallen through the roof, it was that loud. It blew the doors off the grill.”


With her left hand, she tore off her burning shirt. She tried to use another part of her shirt to extinguish the flames that engulfed her head and chest, while yelling for help. Her 15-year-old daughter, Hannah, called 911 and a computer technician who was working in the house grabbed some ice as Storm tried to cool the burns.


Soon, police and rescue teams arrived at the house. Storm’s husband, NBC sportscaster Dan Hicks, also had returned home with another of the couple’s three daughters. As her mother was being treated, the younger Hannah calmly said something that, days later, her mom could laugh about.


“OK, Mommy, I’m going to do my homework now,” she said.


Storm was taken by ambulance to the Trauma and Burn Center at Westchester Medical Center and was treated for 24 hours.


“I didn’t see my face until the next day and you wonder how it’s going to look,” she said. “I was pretty shocked. But my overarching thought was I’ve covered events with military members who have been through a lot worse than me, and they’ve come through. I kept thinking, ‘I can do this. I’m fortunate.’”


Other than going to Christmas Eve Mass, Storm hadn’t been outside until her trip to California. ESPN reworked its anchor schedule while she was recovering, and NBC and the Golf Channel rearranged their staffing while Hicks attended to his wife.


Storm is set to host her fifth Rose Parade, with some changes. She’s left-handed, and taking notes is almost impossible. Dressing and showering are challenges, too.


Storm said that long before her accident, she’d been inspired by Iraq War veteran, actor and “Dancing With the Stars” winner J.R. Martinez, the grand marshal at last year’s parade. He was severely burned in a land mine accident while serving overseas.


One attraction of this year’s parade that she was eager to see — the Nurses’ Float, and she hoped to use that moment on air to thank everyone who had taken care of her.


Storm wants to anchor “SportsCenter” in Bristol, Conn., next Sunday. After that, the Notre Dame alum is ready to go in person to watch the No. 1 Irish play Alabama in the national championship game at Miami. She said the school reached out after hearing about her injuries and had been very supportive.


“More than anything, I feel gratitude,” she said. “Something like this really makes you appreciate everything you have, even the chance to wake up on New Year’s Day and do your job.”


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Eleven Ways to Avoid Answering a Question: A Year in Review






When my grandfather was alive, each of his children and grandchildren was responsible for reporting to him about the world in which they worked. He loved knowledge; he always had. As the only scientist in the family, I was in charge of “science.” This never quite seemed fair and yet I did what I could until the day he asked me to explain dark matter. I am a broadly trained scientist. I have worked on bacteria, birds, plants, insects and a great deal else. But, when pressed, late in the evening, dark matter was beyond my comfort zone. I faltered. Sometimes with my grandfather, faltering could be propped up with grandstanding, but on this particular day there was no such doing. He knew I was guessing. His shoulders slumped and he announced softly, “I don’t think I am ever going to learn everything.” My ignorance was the BS that broke the camel’s back.


In part because of my grandfather I have always felt a responsibility to answer questions people ask about science. This year, I decided I would make this responsibility more conscious. I would try to focus much of my writing on answering questions that came up in my daily life, questions that I am responsible for because I am a scientist. It was a sort of New Year’s resolution. My other resolution was to write shorter articles.1–Sitting around enjoying a glass of wine with my family and our friends Ari Lit and Michelle Trautwein, Ari asked, Hey dude, why do we drink alcohol? Do monkeys drink alcohol? This led me to think about the big story of alcohol and, in as much, to write a whole series about our complex relationship with the yeasts that, as waste, produce our favorite drinks. It ended up becoming a forty thousand word online series, about alcohol, civilization and yeast. So much for the resolution to write short articles. Also, I forgot to check on the monkeys.2–My favorite questions tend to come from kids and earnest parents. This year at my daughter’s school, every third student and then every other students and then, jeez, almost every student seemed to have lice. Parents asked me, “what should we do about lice?” This was a follow-up to an article I had written years prior in response to a similar query. I was able to tell the story of how the louse problem (or success, depending on your perspective) came to be, over the last million years. But I failed to really answer what a parent should do if their kid gets lice. It turns out parents whose kids have lice don’t want to hear about ancient hominids and their lice. Go figure.Image 1. Picture of the louse species, Pthirus pubis, descended from an interaction between a human ancestor and a gorilla ancestor and that is all I am saying. Photo courtesy of the CDC. 3-In the last chapter of my book The Wild Life of Our Bodies I argue for a more serious gardening of nature in the places we live. Reading this, someone wondered about the ways in which we garden evolution itself. She emailed asking, Could we favor the evolution of good species in our houses? I wasn’t sure and am still not, but the question prompted me to reconsider the ways in which we have gardened evolution historically. I wrote the Garden of Our Neglect about this history. I then started to consider how we might favor the presence (if not evolution) of beneficial species on our bodies and in our homes. This led me to propose the Ecological Theory of Disease and to write Letting Biodiversity Get Under Our Skin, and How Clean Living is Bad for You. I also wrote an article about what our body might be doing to favor beneficial species in Your Appendix Could Save Your Life. None of these articles really told anyone which species to plant much less engender in their invisible gardens of indoor life.4-Another night with friends, we sat around talking about paleo diets. Ari asked who we should count as our ancestors, which ancestors should we consider if we were to eat ancestral diets? This debate inspired the piece Were Our Ancient Ancestors Vegetarians and then How to Eat Like a Chimpanzee. Later when Ari tried an essentially all nut and fruit super-fiber diet I found myself writing about the Hidden Truth about Calories. With these articles, I learned about diet, but I also learned that people can get very angry when it comes to discussing food. I never really answered Ari’s question.5-At one evening talk associated with the Museum of Life and Science in Durham, NC, someone asked me why her armpits smell sweet when she lives in the desert. She asked me that question in Durham, not in a desert, so I felt compelled to take her word for it rather than sniff around the story, but I did begin to wonder about what we do and don’t know about the microbial smells produced on our bodies and those of, for example, dogs, so I wrote Why Sick People Smell Bad. The article was fun, but I still don’t know why the woman had sweet pits; perhaps it is just her nature.6-My daughter (who sometimes seems to channel the pure inquisitivness of my grandfather) asked me “Why are our bodies warm and not cold?” This is the kind of question she asks so as to avoid going to bed. It led me to write the article How Killer Fungus May Have Made us Hot Blooded. The article offers a partial, possible, speculative answer to her question, which is her favorite kind of answer because it means she can stay up later as she asks follow-up questions.7–My son has started asking, “papa, who took your hair?” I told him, as I told my daughter when she was smaller, that the squirrels took it for their nest. This just seemed to make him afraid of squirrels so I decided to figure out the real answer, the result was a story in New Scientist (unfortunately pay-walled) about the mystery of baldness and its evolution. Balding, it turns out, is fascinating, but why we bald is still largely unresolved. Back to the squirrels.8–I sometimes introduce talks about social insects by mentioning the similarities between insect and human societies and the idea that insect societies can allow us to learn about our own. In response (and during election season), someone recently asked “who would the ants vote for?” The closest I could get to an answer was to discuss how other animals (mostly honey bees) choose their leaders. I figured out that we know far less about leaders in other societies, including those of ants, than I had thought.9–Piotr Naskrecki visited my house and found, in my basement, a species of camel cricket apparently native to Japan. He also found, to my wife’s dismay, two species of “interesting roaches.” This spurred me to ask other people about their camel crickets, which caused me to have to answer how a Japanese camel cricket has come to take over our basements? I don’t really have an answer yet, though if you check out the website there are ways for you to help me find one.10–For a number of years now, people have been offering me story ideas. “Man, you should totally write about…” Its often difficult to follow up on such ideas, but this year I tried. When my family and I were living in Parma, Italy Donato Grosso asked me if I knew about the species of crab living under Rome. “That,” he said, “would be a good story.” It was. It became “new species of crab living in Rome.” A visit to Girona, Spain where a friend had built a niche in his house for animals to colonize got me wondering about the niches in our cities that we have built for wild species. Pera said, “you should write about it.” I did, in the form of a story about the most common bird in the world, the house sparrow. There were no questions here, but even without a question to answer I seem to have written something slightly different from what Donato or Pera might have imagined.11-Finally, I have started to try to answer the question I have heard most often throughout my career, including from my grandfather, “what do I do about the ants in my kitchen?” Answering this question has required figuring out what the heck is going on with ants in kitchens and backyards and so I wrote one article about a backyard discovery made by English majors, another about a discovery made by an eight year old and another still about how little we seem to know about the most common ant species in eastern North America. I also recruited Eleanor Spicer to write Dr. Eleanor’s Book of Common Ants. None of these answered the question about what to do about the ants in your kitchen, though maybe the distraction bought me some time.Image 2. Camponotus pennsylvannicus, a common backyard (and occasionally kitchen) ant. Photo by Alex (the great) Wild.In short, although I’ve written something like 200,000 words this year, very few seem to have directly answered the questions I was asked. So much for my New Year’s resolution, though maybe part of the problem is that we still know so little about so many fields that it is nearly impossible to make it to the end of a story without encountering the unknown. Perhaps I can try to write shorter answers, answers short enough that I don’t get to what we don’t know. History is not on my side. I seem incapable of writing short articles (one of my shortest articles this year was repeatedly described as “long form”). Also, I come from a long history of “long form” people. My grandfather’s stories went long and, well, his father was apparently worse. When asked to comment on the history of the Episcopal church in his town, Greenville, Mississippi, my great grandfather wrote that he could not write about the history of the Episcopal church in Greenville without commenting on the history of the Episcopal church more generally. And he could not, he said, write about the Lutheran church in general without commenting upon the history of religion. And so he began. My people. It seems we start at the very beginning and answer a question similar too but not identical too the one we were asked. In this light, if my granddad were still around, I’d tell him now that, yes, I can explain dark matter now, but before I do I need to explain the big bang, which, ironically is what I do in my first article of 2013. So stay tuned and send me your questions. But don’t be surprised if, in commenting upon the history of your question, I need to comment on a broader church, the history of life or even the universe.Go ahead and post your science questions you think should be answered in 2013 here…   






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House faces test on ‘fiscal cliff’ deal


Vice President Joe Biden gives two thumbs up following a Senate Democratic caucus meeting about the fiscal cliff …The Republican-held House of Representatives faced a tough vote Tuesday on a last-minute “fiscal cliff” compromise to cut taxes on all but the richest Americans and stall some painful spending cuts.  The deal, cut in secret weekend talks and passed by the Senate by a lopsided 89-9 margin shortly after 2 a.m. New Year's Day, could face stiff opposition from conservatives who hoped it would contain more spending cuts and liberals who wanted to raise more taxes.


Financial markets were closed for the holiday, but lawmakers were keenly aware of the potential impact of failing to address the so-called cliff, which some experts warned could plunge the still-fragile economy into a new recession.


Vice President Joe Biden, who took the lead for Democrats in negotiating the deal over the weekend with Republican Senate Minority Leader Mitch McConnell, was scheduled to join House Democrats at a behind-closed-doors meeting at 12:15 p.m. Biden paid a similar call on Senate Democrats late Monday.


House Republicans were also slated to huddle behind the scenes to discuss what to do about the Senate-passed measure. The anti-tax Club for Growth warned lawmakers to oppose the compromise because “this bill raises taxes immediately with the promise of cutting spending later.”


Under the compromise arrangement approved by the Senate, 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. It would also prevent cuts in payments to doctors who treat Medicare patients and spare tens of millions of Americans who otherwise would have been hit with the Alternative Minimum Tax.


The middle class will still see its taxes go up: The final deal did not include an extension of the payroll tax holiday. And the overall package will deepen the deficit by an estimated $3.9 trillion dollars by extending the overwhelming majority of the Bush tax cuts. Many Democrats had opposed those measures in 2001 and 2003. Obama agreed to extend them in 2010.


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 ultimately caved to Republican pressure and signed on to just a two-month delay while broader deficit-reduction talks continue.


That would put the next major battle over spending 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. Biden sent that message to Democrats in Congress, two senators said.


“This agreement is the right thing to do for our country and the House should pass it without delay,” President Barack Obama said in a written statement shortly after the Senate vote.


There were signs that the 2016 presidential race shaped the outcome in the Senate. Republican Senator Marco Rubio, widely thought to have his eye on his party’s nomination, voted no. Republican Senator Rand Paul, who could take up the libertarian mantle of his father Ron Paul, did as well. Observers were watching to see how Republican Rep. Paul Ryan, the Budget Committee chairman and his party's failed vice presidential nominee in 2012, would vote Tuesday.


In remarks just before the Senate adopted the compromise, McConnell repeatedly called the agreement “imperfect” but said it beat allowing income tax rates rise across the board.


“I know I can speak for my entire conference when I say we don’t think taxes should be going up on anyone, but we all knew that if we did nothing they’d be going up on everyone today,” he said. “We weren’t going to let that happen.”


“Our most important priority was to protect middle-class families. This legislation does that,” Democratic Senate Majority Leader Harry Reid said. But Reid cautioned that “passing this agreement does not mean negotiations halt. Far from it.”


The House’s Republican leaders, including Speaker John Boehner, hinted in an unusual joint statement that they might amend anything that clears the Senate – a step that could kill the deal.


“Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members -- and the American people -- have been able to review the legislation,” they said.



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