Though more big battles lie ahead in Washington, Wall Street is following the lead of financial markets around the world in giving a thumbs-up to the deal that kept the federal government from going completely over the so-called fiscal cliff.
"House Speaker John Boehner couldn't hold back when he spotted Senate Majority Leader Harry Reid in the White House lobby last Friday. ... 'Go f— yourself,' Boehner sniped as he pointed his finger at Reid, according to multiple sources present."
We're sorry to start the first work day of 2013 on a negative note, but here goes:
Though the House voted 257-167 late Tuesday to OK legislation that kept the federal government from going over the so-called fiscal cliff — and stopped income taxes from rising for about 99 percent of Americans — lawmakers didn't reach agreement on other very divisive issues.
The budget compromise bill that is meant to allow the U.S. government to avoid higher tax rates and austere budget cuts has tax rates as its central issue, with discussions about more spending cuts, and the federal debt limit, put off until the coming weeks.
In covering this debate, much has been made of income tax rates and where exactly they should be raised. But one fact has gotten far less notice. Starting today, payroll taxes are going up two percentage points for nearly all American workers. NPR's John Ydstie joins us to talk about it. And John, this means lower take-home pay for a lot of workers starting very soon.