The Senate voted early Tuesday morning 89-8 in favor of the scaled-down bipartisan package that would halt historic tax hikes for many Americans and postpone automatic spending cuts for two months. The bill will now go to the House, which is expected to be back in session at noon today.
The outlines of the deal Mr. McConnell and Mr. Biden worked out included raising tax rates for individuals making more than $400,000 and families with incomes more than $450,000, and extended unemployment benefits for the long-term jobless. It also continued a number of programs from Mr. Obama’s 2009 stimulus law, including tax credits for college tuition and for green-energy programs.
The deal included no net spending cuts, however, which left conservative Republicans complaining. Meanwhile, liberal Democrats balked at not holding firm on tax increases for families making more than $250,000 — a stance on which Mr. Obama campaigned.
Regardless of their income, all taxpayers will still see at least some tax increases with the expiration of the payroll tax holiday, which was worth about $1,000 to the average family in 2012. […]