Fiscal cliff deal: House OKs proposal despite GOP objections

 

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President Obama praised lawmakers and Vice President Joe Biden after the House of Representatives voted to pass a Senate measure to avert the most serious impacts of the so-called fiscal cliff.

By Michael O'Brien, NBC News

Updated at 6:58 a.m. ET: An agreement to stave off the harshest and most immediate consequences of the fiscal cliff won approval in the House late Tuesday. President Barack Obama said he would sign the law, the battle over which foreshadowed more fights with Congress over spending.

Following a day of hectic wrangling on Capitol Hill — where the prospects for passing the bipartisan, Senate legislation regarding the fiscal cliff hung in the balance for much of New Year's Day — the House voted 257 to 167 to pass the belated compromise measure over the objections of many conservative Republicans.

The legislation takes steps toward resolving the combination of automatic tax hikes and spending cuts that took effect at midnight on Jan. 1. It preserves tax rates as they were at the end of 2012, except for those individuals earning more than $400,000 and households earning over $450,000. It also allows taxes on capital gains and dividends to go up, and extends benefits of the unemployed. Additionally, the Senate bill delays the onset of the "sequester" — the swift, automatic spending cuts — for two months.

Fiscal cliff compromise leaves few satisfied

"Thanks to the votes of Democrats and Republicans in Congress I will sign a law that raises the taxes on the wealthiest of Americans," Obama said in remarks at the White House, "while preventing a middle-class tax hike."

The House vote laid bare some of the internal ideological divisions to plague the GOP over the past two years. More Republican congressmen (151) voted against the Senate bill than for it (85), meaning that Democrats' support was needed to advance the final deal. House Speaker John Boehner, R-Ohio, took the rare step of casting a vote, and did so in favor of the legislation. Rep. Paul Ryan, R-Wis., the former Republican vice presidential nominee, also supported the package. But Boehner's top two lieutenants, Majority Leader Eric Cantor, R-Va., and Majority Whip Kevin McCarthy, R-Calif., each opposed the deal.

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The House voted Monday to approve the Senate's fiscal cliff bill by a vote of 257-167. Richard Lui, Luke Russert and Mike Viqueira report on MSNBC.

"Now the focus turns to spending," Boehner said in a statement following the House vote. "The American people re-elected a Republican majority in the House, and we will use it in 2013 to hold the president accountable for the ‘balanced’ approach he promised, meaning significant spending cuts and reforms to the entitlement programs that are driving our country deeper and deeper into debt."

While the last-minute action on Capitol Hill essentially mitigates much of the risk posed to the U.S. economic recovery by the fiscal cliff, it hardly brings resolution to the bitter and often intractable fight in Washington over taxes and spending. The first half of 2013 will feature battles in Congress over raising the debt limit, continuing basic government funding and the expiration of this two-month delay in the sequester.

Bipartisan outrage after House skips vote on $60 billion Sandy aid bill

Obama nodded to those looming fights in his remarks Tuesday evening, renewing his call for "balance" in any solution in the coming year to address deficits and debts. But the president also sternly warned Congress against using the debt ceiling as a bargaining chip, as Republicans had in summer of 2011.

"While I'll negotiate over many things, I will not have another debate with this Congress over whether to pay the bills they have racked up," Obama said.

PhotoBlog: Deal done, Obama heads back to Hawaii with a weary wink

The fiscal cliff itself was the product of discord in Congress resolving those very issues. And the difficulty in attaining even this less ambitious piece of legislation — versus the kind of "grand bargain" Obama had first sought in talks with Republicans — offered a cautionary tale for the 113th Congress, in which the House and the Senate remain controlled by the same parties as during the past two years.

Squabbling

And even for much of Tuesday, House approval of the fiscal legislation — which was negotiated by Senate Minority Leader Mitch McConnell, R-Ky., and Vice President Joe Biden — was far from certain. GOP leaders were forced to cajole conservatives who complained the fallback deal contained insufficient spending cuts. Only after it became clear that Republicans wouldn't have the votes to amend the Senate proposal — which the upper chamber said it wouldn't even consider — did House Speaker John Boehner, R-Ohio, bring the bill to the floor.

The squabbling was familiar to any observers of Congress during the past two years. This divide almost resulted in a government shutdown and a default on the national debt in 2011. It again threatened Tuesday to allow the painful, across-the-board tax hikes and spending cuts to play out just as the U.S. economic recovery showed signs of accelerating.

PhotoBlog: See images of Congress working overtime to avoid fiscal cliff

And this deal just approved by Congress in the waning hours of 2013's first day all but ensures that much of the coming year will be dominated by similar battles in Washington. Republicans are hopeful they might be able to extract more spending cuts and entitlement reforms with the government up against other deadlines, like the one needed this spring to authorize more government borrowing.

That could complicate Obama's already-ambitious second term agenda. The president said just this past Sunday on NBC's "Meet the Press" that he will seek comprehensive immigration reform legislation and new laws to address gun violence.


FINAL VOTE RESULTS FOR ROLL CALL 659
(Republicans in roman; Democrats in italic; Independents underlined)
      H R 8      RECORDED VOTE      1-Jan-2013      10:57 PM
      QUESTION:  On Motion to Concur in the Senate Amendments
      BILL TITLE: To extend certain tax relief provisions enacted in 2001 and 2003, and to provide for expedited consideration of a bill providing for comprehensive tax reform, and for other purposes

	Ayes	Noes	PRES	NV
Republican	85	151		5
Democratic	172	16		3
Independent
TOTALS	257	167		8

---- AYES    257 ---

Ackerman Alexander Altmire Andrews Baca Baldwin Barber Barletta Bass (CA) Bass (NH) Benishek Berkley Berman Biggert Bilbray Bishop (GA) Bishop (NY) Boehner Bonamici Bono Mack Boren Boswell Brady (PA) Brady (TX) Braley (IA) Brown (FL) Buchanan Butterfield Calvert Camp Capps Capuano Carnahan Carney Carson (IN) Castor (FL) Chandler Chu Cicilline Clarke (MI) Clarke (NY) Clay Cleaver Clyburn Coble Cohen Cole Connolly (VA) Conyers Costa Costello Courtney Crenshaw Critz Crowley Cuellar Cummings Curson (MI) Davis (CA) Davis (IL) DeGette DelBene Denham Dent Deutch Diaz-Balart Dicks Dingell Doggett Dold Donnelly (IN) Doyle Dreier Edwards Ellison Emerson Engel Eshoo Farr Fattah Fitzpatrick Fortenberry Frank (MA) Frelinghuysen Fudge Gallegly

Garamendi Gerlach Gibson Gonzalez Green, Al Green, Gene Grijalva Grimm Gutierrez Hahn Hanabusa Hanna Hastings (FL) Hastings (WA) Hayworth Heck Heinrich Herger Herrera Beutler Higgins Himes Hinchey Hinojosa Hirono Hochul Holden Holt Honda Hoyer Israel Jackson Lee (TX) Johnson (GA) Johnson (IL) Johnson (OH) Johnson, E. B. Kaptur Keating Kelly Kildee Kind King (NY) Kinzinger (IL) Kissell Kline Kucinich Lance Langevin Larsen (WA) Larson (CT) LaTourette Latta Lee (CA) Levin Lipinski LoBiondo Loebsack Lofgren, Zoe Lowey Lucas Luetkemeyer Luján Lungren, Daniel E. Lynch Maloney Manzullo Marino Markey Matsui McCarthy (NY) McCollum McGovern McKeon McMorris Rodgers McNerney Meehan Meeks Michaud Miller (MI) Miller, Gary Miller, George Moore Murphy (CT) Murphy (PA) Nadler Napolitano Neal

Noem Olver Owens Pallone Pascrell Pastor (AZ) Payne Pelosi Perlmutter Peters Pingree (ME) Pitts Platts Polis Price (NC) Quigley Rahall Rangel Reed Reichert Reyes Ribble Richardson Richmond Rogers (KY) Rogers (MI) Ros-Lehtinen Ross (AR) Rothman (NJ) Roybal-Allard Royce Runyan Ruppersberger Rush Ryan (OH) Ryan (WI) Sánchez, Linda T. Sanchez, Loretta Sarbanes Schakowsky Schiff Schock Schwartz Scott, David Serrano Sessions Sewell Sherman Shimkus Shuler Shuster Simpson Sires Slaughter Smith (NJ) Smith (TX) Speier Stivers Sullivan Sutton Thompson (CA) Thompson (MS) Thompson (PA) Thornberry Tiberi Tierney Tonko Towns Tsongas Turner (NY) Upton Van Hollen Velázquez Walden Walz (MN) Wasserman Schultz Waters Watt Waxman Welch Wilson (FL) Womack Yarmuth Young (AK) Young (FL)

---- NOES    167 ---

Adams Aderholt Akin Amash Amodei Austria Bachmann Bachus Barrow Bartlett Barton (TX) Becerra Berg Bilirakis Bishop (UT) Black Blackburn Blumenauer Bonner Boustany Brooks Broun (GA) Bucshon Burgess Campbell Canseco Cantor Capito Carter Cassidy Chabot Chaffetz Coffman (CO) Conaway Cooper Cravaack Crawford Culberson DeFazio DeLauro DesJarlais Duffy Duncan (SC) Duncan (TN) Ellmers Farenthold Fincher Flake Fleischmann Fleming Flores Forbes Foxx Franks (AZ) Gardner Garrett

Gibbs Gingrey (GA) Gohmert Goodlatte Gosar Gowdy Granger Graves (GA) Griffin (AR) Griffith (VA) Guinta Guthrie Hall Harper Harris Hartzler Hensarling Huelskamp Huizenga (MI) Hultgren Hunter Hurt Issa Jenkins Johnson, Sam Jones Jordan King (IA) Kingston Labrador Lamborn Landry Lankford Latham Long Lummis Mack Marchant Massie Matheson McCarthy (CA) McCaul McClintock McDermott McHenry McIntyre McKinley Mica Miller (FL) Miller (NC) Moran Mulvaney Myrick Neugebauer Nugent Nunes

Nunnelee Olson Palazzo Paulsen Pearce Pence Peterson Petri Poe (TX) Pompeo Posey Price (GA) Quayle Rehberg Renacci Rigell Rivera Roby Roe (TN) Rogers (AL) Rohrabacher Rokita Rooney Roskam Ross (FL) Scalise Schilling Schmidt Schrader Schweikert Scott (SC) Scott (VA) Scott, Austin Sensenbrenner Smith (NE) Smith (WA) Southerland Stearns Stutzman Terry Tipton Turner (OH) Visclosky Walberg Walsh (IL) Webster West Westmoreland Whitfield Wilson (SC) Wittman Wolf Woodall Yoder Young (IN)

---- NOT VOTING    8 ---

Buerkle Burton (IN) Graves (MO)

Lewis (CA) Lewis (GA) Paul

Stark Woolsey

House Session, Part 3

Jan 1, 2013

U.S. House of Representatives

In an unusual New Year’s Day session, the House considered the rule and debated the “fiscal cliff” agreement (HR 8) passed by the Senate earlier that morning. The measure passed 257-167.
 

House Passes 'Fiscal Cliff' Bill; Now to President

Washington, DC
Tuesday, January 1, 2013

By a vote of 257-167 the House has passed HR 8, the Tax Relief Extension Act, which the Senate passed early Tuesday morning by a vote of 89 to 8. The bill will now be sent to the President for his signature. The so-called "fiscal cliff" agreement had been negotiated Monday between Senate Minority Leader Mitch McConnell (R-KY) and Vice President Joe Biden. The legislation keeps the Bush era tax cuts for individuals making less than $400,000 and couples making less that $450,000. It also makes permanent the fixes for the Alternative Minimum Tax and delays government spending cuts for two months.
In the House 85 Republicans and 172 Democrats voted for the bill, while 151 Republicans and 16 Democrats voted against the bill.
 

Updated: 12 min. ago

HOUSE PASSED SENATE FISCAL CLIFF BILL

Randi Weingarten ‏@rweingarten

Relieved House passed Senate Bill-shldnt wait until last minute tho-Can't continue 2 have every issue reach precipice of disaster b4 action 

  Alex Pratt ‏@alexdpratt

GOP infighting again, woo! #2012GOPprimariesonrepeat RT @BuzzFeedAndrew: Boehner, Ryan: yes. Rubio, Cantor: no. Very interesting.

Major Garrett ‏@MajorCBS

President Obama will react to the House vote at 11:20 p.m. in the Brady Briefing Room.

  David Corn ‏@DavidCornDC

Bill is passing. One consequence: Boehner's Rs will be out for blood with the next debt-ceiling fight. #cliffnotes

DebbieWilliams ‏@OHbamaMama

RT @zizii2: Paul Ryan voted yes? Hell just froze over

 

Katrina vandenHeuvel ‏@KatrinaNation

Paul Krugman-- How Prez stands ground on debt ceiling fight ahead will be 1 measure of deal/ Perspective on the Deal http://nyti.ms/UBc6gw 

7m Christian Democrats ‏@ChristianDems

Heb 13:3 Remember those in prison as if you were their fellow prisoners, and those who are mistreated as if you yourselves were suffering. 

  Grover Norquist ‏@GroverNorquist

Ds voting yes are reversing position of 2001,2003 and every year since.they opposed permanency...could have acted in 2009/10.

 

  Nancy Pelosi ‏@NancyPelosi

Tonight’s bipartisan vote is a victory for the middle class. Also a victory for President and VP who kept their promise to American people.

Frank Thorp V ‏@frankthorpNBC

Vote Breakdown: Yeas -> 85 GOP, 172 Dems. Nays -> 151 GOP, 16 Dems. Total 257 Yeas/167 Nays. #fiscalcliff 

 

House News ‏@USHouseNews

House approves sweeping tax deal http://bit.ly/Vs3WWb 

 

  House News ‏@USHouseNews

House votes to block salary hike for federal workers, members of Congress http://bit.ly/Z9Euud

  Rosa DeLauro ‏@rosadelauro

Reluctantly voted no on #ficsalcliff. Needed to do more to prioritize middle, working class. Had some good but not enough.

  The White House ‏@whitehouse

At 11:20pm ET, President Obama will deliver a statement from the Briefing Room. Watch live: http://wh.gov/live 

 

  Daily Kos ‏@dailykos

House passes fiscal cliff bill http://bit.ly/Z9EPNi 

 

  TheNewDeal ‏@TheNewDeal

RIP - The Failed Bush Tax Cuts for the Rich 2001 - 2013. #GoodRiddance #FiscalCliff #p2

 

  Luke Russert ‏@LukeRussert

Boehner aide on vote, "Yes vote was important bc it was best deal #GOP cld get and takes the tax issue off the table."

  Senate News ‏@SenateNews

An Array of Sweeteners in Senate's Fiscal Deal http://nyti.ms/VZybSJ 

  Senate News ‏@SenateNews

FreedomWorks against Senate deal http://bit.ly/XgsHKg

Despite last-minute deal, more political drama likely on the way

By Tom Curry, NBC News national affairs writer

After weeks of uncertainty, bluffing and posturing in Washington D.C., the Senate voted in the early hours of Tuesday morning to avoid the "fiscal cliff" of tax increases and spending cuts. However, the fiscal bargaining is far from over and more budget drama is likely on the way.

Drew Angerer / Getty Images

The Capitol dome illuminates at dusk on Capitol Hill on Dec. 31, 2012 in Washington, DC.

The deal brokered by Vice President Joe Biden and Senate Republican Leader Sen. Mitch McConnell of Kentucky would raise income taxes on single earners with annual incomes above $400,000 and married couples with incomes above $450,000.

The measure will now be turned over to the House, which needs to give its backing and will hold a session on Tuesday starting at noon.

House Speaker John Boehner -- the top Republican in Congress -- said the House would consider the Senate deal. But he left open the possibility of the House amending the Senate bill, which would spark another round of legislating.

"The House will honor its commitment to consider the Senate agreement if it is passed. Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members ... have been able to review the legislation," Boehner and other House Republican leaders said in a statement.

Next big fight

Although the Senate agreed at the last minute to avert broader tax increases, the very idea of a “deadline” has lost some of its meaning since each budget deal seems to be merely a prelude to another fixed date when some critically important action must be taken – next up: Congress will have to decide what to do about the "sequester" spending cuts which will come up again in February, as well as decide in March on whether to increase the federal borrowing limit.

 

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In a frantic rush of negotiations on New Year's Eve, the Senate moved the nation away from the fiscal cliff, voting on a compromise package that increases tax rates on those making above $400,000 a year. NBC's Kelly O'Donnell reports and NBC political director Chuck Todd offers analysis.

 
Congress is also set to embark on fundamental tax reform legislation in the New Year – as Obama himself seemed to acknowledge Monday when he said he’s intent on “doing some more work to reform our tax code so that wealthy individuals, the biggest corporations can’t take advantage of loopholes and deductions… that aren’t available to most Americans. So there’s still more work to be done in the tax code to make it fair….”

The indecision over taxes, spending, and borrowing has become chronic, in part a reflection of the fact that neither party controls both the executive and legislative branches. Ever since the Republicans won the House in 2010, the intermittent rounds of bargaining between GOP congressional leaders and Obama have run aground over the fundamentals: the future cost of the entitlement programs -- especially Medicare -- and who should bear the burden of paying for their growth.

The two sides’ clashing definitions of “fairness” make it hard for them to decide who should be paying a bigger tax bill.

And while tax revenues have been increasing – they’re up 10 percent in the first two months of fiscal year 2013 even under the current tax law -- the increase, even if it is sustained, won’t be enough to pay for future benefits that have been promised.

On the spending side, the growth in entitlement spending is largely driven by the demographics of an aging population. The ratio of tax-paying workers to retired beneficiaries was 3.3 workers for every beneficiary during Bill Clinton’s presidency, but it has been steadily sinking and will drop to 2-to-1 by 2030.

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As 2013 nears, Congress runs out of time to negotiate a deal to avoid going over the so-called fiscal cliff. NBC's Kelly O'Donnell reports.

The gap between what members of Congress profess to want to do (reduce future budget deficits and borrowing) and what they are actually willing to do is growing ever wider and more glaring, since spending curbs would fall on people who feel they have earned certain Medicare and Social Security benefits.

Failure to reach agreement on these basics is what led to the fiscal cliff that Congress and Obama face.

Domestic spending in the cross-hairs

As part of an accord with GOP leaders last year to raise the government’s borrowing limit, Obama signed the Budget Control Act. The law requires about $100 billion in spending reductions in 2013, out of a total of roughly $3.5 trillion in spending.

While an approximately 3 percent cut in spending might not seem drastic, the Budget Control Act exempts most entitlement spending from the cuts, so the reductions would be concentrated on military outlays and domestic discretionary spending programs ranging from air traffic control to immigration enforcement.

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NBC's Chuck Todd explains that a fiscal cliff deal has been difficult to reach because President Obama and Speaker Boehner don't want to appear to be caving to the other. 

Senate approves deal to avert fiscal cliff; vote goes to House

The law would make reductions – unless Congress delays or rescinds them – of about 10 percent in discretionary appropriations for defense programs and about 8 percent in non-defense programs in 2013.

If members of Congress seriously want deficit reduction, the Budget Control Act is certainly one way to get it: the Congressional Budget Office estimates that spending would actually go down. Federal spending would be a smaller share of national income in 2022 under the Budget Control Act (22.3 percent of gross domestic product) than they were in FY2012 (22.9 percent). And the budget deficit would fall from 7 percent of GDP in fiscal year 2012 to less than 1 percent of GDP by 2017.

Despite the impressive deficit reduction that would be achieved by going over the fiscal cliff, the members of Congress who have sought to avoid the fiscal cliff think the economy is too weak to tolerate the tighter fiscal policy that many of them voted for in 2011. Undoing the tax increases and spending cuts would boost economic growth by about 2¼ percent by the end of 2013, according to the Congressional Budget Office.

With many of the details of the agreement or a more far-reaching accord still up in the air, there are some benchmarks to judge the deal that may emerge:

• Does it last only one year or more than one year?
• Would it significantly reduce future budget deficits?
• Would it reduce federal debt, measured as a percentage of the nation’s income?
• Are its spending provisions enforceable and credible – or are they hazy promises that may not be carried out by future Congresses, by Obama, and by the next president?
• If the primary goal is deficit and debt reduction, is the agreement better or worse than the Budget Control Act?
• Is it likely to spur economic growth and will it do anything to address the chronic problem of the 23 million unemployed?

GOP seeks path forward in House for fiscal deal tonight

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Capitol Hill is full throttle ahead after missing the midnight deadline to avoid going over the so-called fiscal cliff. NBC's Kelly O'Donnell reports.

By Michael O'Brien, NBC News

Updated 8:15 p.m. — After hours of delay, the House was moving late Tuesday toward giving its approval to the bipartisan, Senate-passed legislation to handle the most severe consequences of the "fiscal cliff" that onset this morning.

The House was preparing to allow an up-or-down vote as soon as tonight on the new proposal, which passed the Senate 89-8 in a 1:53 a.m. vote. The proposal would allow taxes to rise on individual income over $400,000 and household income over $450,000, while staving off a series of automatic spending cuts — known as the "sequester" — for two months.

PhotoBlog: See images of Congress working overtime to avoid fiscal cliff

Though conservatives had spent the better part of New Year's Day threatening to torpedo the legislation, GOP leaders acknowledged that they likely couldn't gather enough votes to amend the Senate bill and send it back to the upper chamber. The House Rules Committee met late Tuesday to set the parameters for a debate in the House that could result in a vote on the Senate legislation as early as this evening.

The rejiggered strategy came amid complaints from House conservatives that the Senate-passed bill doesn't include enough cuts to spending.

"The lack of spending cuts in the Senate bill was a universal concern amongst members in today’s meeting," said Brendan Buck, a spokesman for House Speaker John Boehner, R-Ohio. "Conversations with members will continue throughout the afternoon on the path forward.”

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If Congress doesn't come to an agreement soon, they may have to start from scratch after the new Congress is sworn in later this week. NBC's Chuck Todd has more.

The starkest signal of the trouble this plan would have in the House came when House Majority Leader Eric Cantor, R-Va., told fellow Republicans in a closed-door meeting that he could not support the deal.

As of late afternoon Tuesday, the lower chamber was considering amending the legislation late Tuesday — a proposition considered a dealbreaker to Senate Democrats. Senate Majority Leader Harry Reid, D-Nev., adjourned the chamber until Wednesday at noon.

"I would be shocked if this bill didn't go back to the Senate," said Alabama Rep. Spencer Bachus, R. "I think we're there on more revenue, but, you know, there is more revenue but no spending cuts."

But Senate Democrats said that the legislation was essentially a take-it-or-leave-it proposition. If the House were to change the fiscal deal, Democrats in the Senate said they would not consider it.

"There is no time left to ping-pong proposals. The speaker was kept appraised throughout the negotiations," a Senate Democratic aide told NBC News. "If House Republicans mess with this agreement that got 88 votes in the Senate, they will be solely responsible for the largest tax hike in American history."
House Minority Leader Nancy Pelosi, D-Calif., meanwhile called for a "straight up-or-down vote" on the Senate proposal.

If there's no conclusion of the deal, the process to address the fiscal cliff would then restart on Jan. 3, the first day of the new Congress, and 60 full hours past the deadline at which the fiscal cliff first took effect.

The standoff over the fiscal cliff, itself the byproduct of past disagreements and impasses, was symptomatic of the 112th Congress, which had been defined by intractability fueled by sharp, ideological flanks in both parties.
As the nation prepared for the beginning of the 113th Congress on Thursday, little was poised to change. Though Democrats made slight gains in November's election, Republicans maintain control of the House; Democrats keep their grip on the Senate.

Republicans' threat to torpedo the Senate deal was additionally reminiscent of other battles from throughout the two years. While Senate Minority Leader Mitch McConnell, R-Ky., managed to reach an accord with Vice President Joe Biden and the Obama administration, the Tea Party-infused House judged it insufficiently conservative. All but seven Senate Republicans backed the proposal, and Biden had to spend two hours late on New Year's Eve convincing Democrats of the plan's merits, as it is.

But a familiar divide within the GOP pitting the establishment-minded dealmakers against the more ideologically directed and recently elected conservatives re-emerged on Tuesday. This divide almost resulted in a government shutdown and a default on the national debt in 2011. It again threatened Tuesday to allow the painful, across-the-board tax hikes and spending cuts to play out just as the U.S. economic recovery showed signs of accelerating.

NBC's Chuck Todd, Mike Viquiera and Frank Thorp contributed reporting.

Fiscal deal in flux as GOP seeks path forward in House

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NBC's Domenico Montanaro reports that there are still some hard sells to be made to the party's bases to avert the fiscal cliff, particularly conservative Republicans who are unhappy because they feel there are not enough spending cuts.

By Michael O'Brien, NBC News

The fate of legislation to remedy the fiscal cliff was in doubt late Tuesday after House Republicans balked at approving bipartisan, Senate-passed legislation to handle its most severe consequences.
Conservatives in the House voiced their disapproval of a new proposal, which passed the Senate 89-8 in a 1:53 a.m. vote, that would allow taxes to rise on individual income over $400,000 and household income over $450,000, while staving off a series of automatic spending cuts — known as the "sequester" — for two months.
Republicans were left late Tuesday to consider whether they had the votes to amend the legislation — considered a dealbreaker to Democrats in the Senate — or bring up the Senate bill for an up-or-down vote. The maneuver could allow the GOP to register its frustration with the deal while avoiding political fallout.

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Rep. Steven LaTourette, R-Ohio, explains why some House Republicans, including Majority Leader Eric Cantor, are not in favor of a Senate-backed fiscal bill.

The rejiggered strategy came amid complaints from House conservatives that the Senate-passed bill doesn't include enough cuts to spending.

• "The lack of spending cuts in the Senate bill was a universal concern amongst members in today’s meeting," said Brendan Buck, a spokesman for House Speaker John Boehner, R-Ohio. "Conversations with members will continue throughout the afternoon on the path forward.”

The starkest signal of the trouble this plan would have in the House came when House Majority Leader Eric Cantor, R-Va., told fellow Republicans in a closed-door meeting that he could not support the deal.

• As of late afternoon Tuesday, the lower chamber was considering amending the legislation late Tuesday — a proposition considered a dealbreaker to Senate Democrats. Senate Majority Leader Harry Reid, D-Nev., adjourned the chamber until Wednesday at noon.

"I would be shocked if this bill didn't go back to the Senate," said Alabama Rep. Spencer Bachus, R. "I think we're there on more revenue, but, you know, there is more revenue but no spending cuts."

• But Senate Democrats said that the legislation was essentially a take-it-or-leave-it proposition. If the House were to change the fiscal deal, Democrats in the Senate said they would not consider it.

Visit NBCNews.com for breaking news, world news, and news about the economy

NBC's Luke Russert explains why House Speaker John Boehner's Tuesday meeting with House Republicans is critical to the Senate-approved fiscal deal.

"There is no time left to ping-pong proposals. The speaker was kept appraised throughout the negotiations," a Senate Democratic aide told NBC News. "If House Republicans mess with this agreement that got 88 votes in the Senate, they will be solely responsible for the largest tax hike in American history."
House Minority Leader Nancy Pelosi, D-Calif., meanwhile called for a "straight up-or-down vote" on the Senate proposal.
The process to address the fiscal cliff would then restart on Jan. 3, the first day of the new Congress, and 60 full hours past the deadline at which the fiscal cliff first took effect.
The standoff over the fiscal cliff, itself the byproduct of past disagreements and impasses, was symptomatic of the 112th Congress, which had been defined by intractability fueled by sharp, ideological flanks in both parties.
As the nation prepared for the beginning of the 113th Congress on Thursday, little was poised to change. Though Democrats made slight gains in November's election, Republicans maintain control of the House; Democrats keep their grip on the Senate.
Republicans' threat to torpedo the Senate deal was additionally reminiscent of other battles from throughout the two years. While Senate Minority Leader Mitch McConnell, R-Ky., managed to reach an accord with Vice President Joe Biden and the Obama administration, the Tea Party-infused House judged it insufficiently conservative. All but seven Senate Republicans backed the proposal, and Biden had to spend two hours late on New Year's Eve convincing Democrats of the plan's merits, as it is.
But a familiar divide within the GOP pitting the establishment-minded dealmakers against the more ideologically directed and recently elected conservatives re-emerged on Tuesday. This divide almost resulted in a government shutdown and a default on the. national debt in 2011. It again threatened Tuesday to allow the painful, across-the-board tax hikes and spending cuts to play out just as the U.S. economic recovery showed signs of accelerating.
NBC's Chuck Todd, Mike Viquiera and Frank Thorp contributed reporting.