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Calculating the reality of 'fiscal cliff' deal

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    Will most households end up paying higher taxes?

  • Duration 3:30
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Heard the phrase fiscal cliff thousands of times in 2012 and now an early 2013 the words deal bill and soon law.

The company be overused phrase fiscal cliff.

While some are touting it as a win politically for taxpayers the reality according to both sides is really more of a mixed back.

Chief congressional correspondent Mike Emanuel has the story.

I want to salute President Obama he campaigned on strengthening the middle class and I think all of us probably did.

And this is one way for us to fulfill that promise.

While the physical could deal was sold as providing tax relief for the middle class the nonpartisan Tax Policy Center estimates 77%.

Of American households wind up paying higher federal taxes and that's because the 2% payroll tax holiday is not part of the package.

It impacts almost every worker.

Even before that revelation the legislation was unpopular house Republicans.

And the speaker and majority leader did not make the final pitch that was left of the house ways and means chairman.

By making Republican tax cuts permanent were one step closer to comprehensive tax reform.

That will help strengthen our economy create more and higher paychecks for American workers.

Though many conservatives didn't like this package because it includes 620 billion dollars in new tax hikes with only fifteen billion dollars in spending cuts.

Which comes out to about one dollar and cuts for 41 dollars in taxes.

So the key to passing it was 172.

Of the 257 votes in favor.

Were from house Democrats delivered by a -- Steny Hoyer compromised that is not the art of perfection.

By its very definition of compromise contains elements that neither side likes.

But it also contains pieces.

Both sides.

Can embrace.

Among the pieces of the -- and permanent tax cut for individuals under 400000 dollars permanent tax cut for families under 450000.

Dollars permanent adjustment for the Alternative Minimum Tax.

Extending long term unemployment benefits.

And delays sequestration for two months speaker John Boehner voted for the package as did house budget chairman Paul Ryan while majority leader Eric Cantor and Republican whip Kevin McCarthy voted against it.

-- Boehner facing reelection tomorrow many frustrated conservatives are still saying he did his job.

The speaker showed leadership at a time in which Harry Reid went to went home and went to bed.

And left -- -- the vice president.

I at least.

Speaker Boehner was always straight honest with us -- allowed the regular process to occur.

At the White House last Friday Fox News has confirmed Boehner told Reid.

To go after himself twice.

After read it -- Boehner are running -- house like a dictatorship and being more concerned about saving his own job think cutting a deal.

Republican sources say it is likely that will only boost Boehner stock.

With conservatives -- And you clean that up a little bit like.

What about these signing this bill and the process here we're told after all the processing up here on Capitol Hill the bill arrived at the White House at 430 this afternoon.

We understand President Obama is going to electronically sign -- 157.

Page bill.

From Hawaii he is the first president to use the auto pen to sign legislation.

And this will be the third time he is doing it it has all been cleared by the White House Counsel's Office right.

Okay Mike Emanuel -- on Capitol Hill Mike thank you.

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