BR 1/2/13

The Senate and The White House had finalized the details with their deal to avert the fiscal cliff. The bill pretty much follows the framework from this afternoon from the McConnell-Biden talks, with key additional details. Tax rates will rise for good, to Clinton-era levels for families with income above $450,000 and individuals above $400,000. The estate tax will be set at 40 percent with a $5 million exemption. The sequester will be delayed for about two months. Half of the delay will be offset by discretionary cuts, split between defense and non-defense. The pay freeze on members of Congress, which Obama had lifted earlier this year, will be re-imposed.