By Frank Gerace 6:06pm, December 31, 2012
Senator Chris Coons (D)There won't be a deal to steer away from the so-called "fiscal cliff," but Senator Coons says even with no agreement between Capitol Hill lawmakers by New Year's Day, damage to the economy can be limited.
Delaware's junior US Senator tells WDEL News terms being negotiated Monday involved tax hikes on income over 450 thousand dollars per year, which doesn't mean what some may think.
"It doesn't mean that taxes go up for households making more than that--it means that the tax rates go up on income above that, on the first 450 thousand of income. Those earning millions would still be at the lower current rate. It's a marginal- rate increase."
House members said Monday afternoon they wouldn't vote on a "fiscal cliff" deal, so automatic tax hikes and spending cuts will take effect at midnight Tuesday.
Coons last week said he views the "cliff" as more of a "slope," and that its negative economic consequences can be reduced if legislators can agree on a deal sometime in January, which Coons thinks is a possibility.
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