AP Sources: 'Fiscal cliff' deal emerging - 13abc.com Toledo (OH) News, Weather and Sports

AP Sources: 'Fiscal cliff' deal emerging

Posted: Updated:

WASHINGTON (AP) - The contours of a deal to avert the 'fiscal cliff' emerged Monday, with Democrats and Republicans agreeing to raise tax rates on family income over $450,000 a year, increase the estate tax rate and extend unemployment benefits for one year, officials familiar with the negotiations said.

But with a midnight deadline rapidly approaching, both sides were at an impasse over whether to put off automatic, across-the-board spending cuts set to take effect on Jan. 1, and if so, how to pay for that. Democrats want to put off the cuts for one year and offset the so-called sequester with unspecified revenue.

Officials emphasized that negotiations were continuing and the emerging deal was not yet final. President Barack Obama was to speak about the status of the negotiations from the White House early Monday afternoon.

The proposal in the works would raise the tax rates on family income over $450,000 to 39.6 percent, the same level as under former President Bill Clinton. Also, estates would be taxed at 40 percent after the first $5 million, up from 35 percent to 40 percent. Unemployment benefits would be extended for one year.

A Republican official familiar with the plans confirmed the details described to The Associated Press.

The officials requested anonymity in order to discuss the internal negotiations.

Urgent talks were continuing Monday afternoon between the White House and congressional Republicans, with longtime negotiating partners Vice President Joe Biden and Senate Republican leader Mitch McConnell at the helm.

An agreement on the proposed deal would also shield Medicare doctors from a 27 percent cut in fees and extend tax credits for research and development, as well as renewable energy.

The deal would also extend for five years a series of tax credits meant to lessen the financial burden on poorer and middle-class families, including one credit that helps people pay for college.

The deal would achieve about $600 billion in new revenue, the officials said.

  • Top StoriesMore>>

  • Search crews come up empty handed after another day on the water

    Search crews come up empty handed after another day on the water

    Sunday, April 20 2014 9:46 PM EDT2014-04-21 01:46:17 GMT
    The search resumes today for two men who disappeared on Lake Erie. Bryan Huff and Andrew Rose were out with two women on Wednesday for a fishing trip. The four were out catching fish on the lake in Carroll Township and were presumably on the way in for night, but never returned. The two women, Amy Santus and Paige Widmer, were found dead in the water nearby the partially capsized boat. According to investigators both women were wearing life jackets and died from drowning. The Ohio Depar...
    The search resumes today for two men who disappeared on Lake Erie. Bryan Huff and Andrew Rose were out with two women on Wednesday for a fishing trip. The four were out catching fish on the lake in Carroll Township and were presumably on the way in for night, but never returned. The two women, Amy Santus and Paige Widmer, were found dead in the water nearby the partially capsized boat. According to investigators both women were wearing life jackets and died from drowning. The Ohio Depar...
  • Sleeping man injured when car crashes into bedroom

    Sleeping man injured when car crashes into bedroom

    Saturday, April 19 2014 9:12 PM EDT2014-04-20 01:12:40 GMT
    A man was injured by a car inside his own bedroom on Saturday afternoon. He was sleeping in the bedroom of his apartment on Brownstone around 5:30 p.m. when a Buick crashed through the wall.
    A man was injured by a car inside his own bedroom on Saturday afternoon. He was sleeping in the bedroom of his apartment on Brownstone around 5:30 p.m. when a Buick crashed through the wall.
  • 419 Day celebrated on social media

    419 Day celebrated on social media

    Saturday, April 19 2014 7:14 PM EDT2014-04-19 23:14:37 GMT
    Saturday was April 19 or 4-19 and locals thought this was the perfect day to celebrate businesses in the 419 area code in person and on social media.
    Saturday was April 19 or 4-19 and locals thought this was the perfect day to celebrate businesses in the 419 area code in person and on social media.

Area Events Calendar

See It, Shoot It, Send It!