President Obama addressed the nation today regarding the status of negotiations on the fiscal cliff. According to Obama, a deal is “within sight but it’s not done”.
The current negotiations include:
- Raising taxes on households that make more than $450,000 per year and individuals who make more than $400,000
- A permanent patch to the Alternative Minimum Tax
- A raise in the estate tax rate
- An extension of unemployment benefits for a year
- extending several middle-class tax cuts for five years; and
- a temporary fix to Medicare reimbursement rates.
Even if an agreement is reached, it is unclear whether both the House and the Senate will act before the midnight deadline tonight to pass a bill.