IN CASE YOU MISSED IT, CONgress APPROVES "FISCAL FIX" BAND AID, PUTS OFF DISASTER FOR NOW WHILE SETTING UP FUTURE REAL FISCAL FIGHTS.

READ MORE HERE.

WHITE HOUSE AND SENATE AVOID "FISCAL CLIFF", BUT WILL HOUSE BITE OR BARF?

Fiscal-Cliff Focus Moves to House

WASHINGTON—The fiscal-cliff deal is now in the hands of the House, which convenes New Year's Day to consider a budget agreement that would boost income-tax rates for the first time in 20 years—but only for those with the highest incomes—maintain unemployment benefits, and limit the spending cuts that were looming as part of the cliff.

The Senate cleared the package 89-8 more than two hours into the New Year on Tuesday after President Barack Obama and Senate leaders finalized its contents.

The House convenes at noon Tuesday and its next steps are uncertain. Supporters of the compromise hope the big bipartisan vote of approval in the Senate would help propel the measure through the House and onto Mr. Obama's desk for his signature by Thursday.

Conservative Republicans, however, are dismayed the compromise raises tax rates and doesn't include more cuts in federal spending. House Speaker John Boehner (R., Ohio) has raised the possibility the House could amend the bill and send it back to the Senate.

House Republican leaders have made no decisions about how quickly to act, not wanting to get out ahead of their rank-and-file lawmakers, who want time to review the deal. Democrats are expected to deliver enough votes to help secure passage, assuming Mr. Boehner takes up the same package that cleared the Senate.

The delay in approval meant that the U.S. technically went over the fiscal cliff at midnight, but with U.S. markets closed Tuesday, the impact of missing the deadline could be minimal. What damage the wrangling has caused—to the 2013 tax-filing season and consumer confidence—is already assured.

The compromise was prepared for the Senate floor after Vice President Joe Biden, who brokered the deal with Senate Minority Leader Mitch McConnell (R., Ky.) traveled to the Capitol for a New Year's Eve meeting with Senate Democrats, including many who harbored reservations about the deal.

"This shouldn't be the model for how to do things around here," Mr. McConnell said on the Senate floor shortly before the vote. "But I think we can say we've done some good for the country. We've taken care of the revenue side of this debate."

One of the most strident opponents to the bill was Democratic Sen. Tom Harkin of Iowa. Speaking on the Senate floor shortly before the vote occurred, he railed against the compromise saying it benefited the wealthiest Americans at the expense of those who could afford it least.

"Maybe now we are all believers of trickle-down economics. Not I," Mr. Harkin said, declaring he would vote against the legislation.

In addition to Mr. Harkin, seven other lawmakers voted against the bill. They were: Democratic Sens. Tom Carper of Delaware and Michael Bennet of Colorado and Republican Sens. Charles Grassley of Iowa, Mike Lee of Utah, Rand Paul of Kentucky, Marco Rubio of Florida and Richard Shelby of Alabama.

Major elements of the compromise would:

Permanently raise tax rates to 39.6% on income over $400,000 for individuals and $450,000 for jointly filing couples.

Raise taxes on capital gains and dividends for those households, from the current 15% to Clinton-era levels of roughly 20%.

Limit the value of personal exemptions as well as the value of itemized deductions, two restrictions that would kick in at $250,000 for individuals and $300,000 for married couples filing jointly. Those limits disappeared in 2010.

Set the estate tax rate at 40% on estates over $5 million, up from the 35% that applies now to those over $5.12 million. That isn't as high as the 45% rate Mr. Obama sought with a $3.5 million exemption.

Delay for two months part of the $110 billion in spending cuts that otherwise would have taken place in early January—cuts that would be replaced by tax increases and cuts in other programs.

It continues an existing pay freeze for members of Congress for the current fiscal year, but doesn't extend the pay freeze for federal government workers.

The bill also included a measure preventing a sharp increase in the price of milk that was feared early in the new year, and extending some other agricultural programs through September. The last five-year farm bill expired at the end of last September as lawmakers were unable to reach a deal on the sweeping legislation.

Left out of the bill were any disaster-relief funds to help assist the recovery effort from the devastation caused by Superstorm Sandy across the Eastern U.S. in October. The Senate passed a bill last week providing $60 billion in emergency relief, but the House has yet to act to bring forward similar legislation.

The wider deal doesn't do much to control the U.S.'s long-term budget woes, which are driven largely by entitlement spending, especially on health care, left untouched in this agreement. And depending on the budget math and the ultimate fate of the spending cuts, it may not do much for the short-run deficit either.

By waiting until the last minute, and by cutting a deal on a much smaller scale than either side once envisioned, Washington also deferred many of its thorniest questions, though perhaps for only a few weeks. In late February of early March, the Treasury Department will run out of extraordinary measures to deal with the government's borrowing limit—which it otherwise would have reached on Monday—and Congress would need to approve an increase.

The delay in the spending cuts will run out about the same time. In effect, Congress has delayed the fiscal cliff by erecting a new and potentially more dangerous one.

Mr. Biden, asked about the outlook for the compromise, told reporters that his long experience on the Hill taught him two things. "You shouldn't predict how the Senate is going to vote before they vote—you won't make a lot of money," he said. "And you surely shouldn't predict how the House is going to vote. But I feel very, very good."

Asked what pitch he made to liberals who were skeptical of the deal, Mr. Biden said he told them, "This is Joe Biden and I'm your buddy."

The changes in tax rates that were agreed to between Messrs. Biden and McConnell would raise roughly $600 billion in new revenue over 10 years. While that would represent the largest tax increase in decades, it would be less than 20% of the revenue that would have come in if policy makers allowed all the current tax breaks to expire on New Year's Eve.

The Biden-McConnell deal is a classic compromise that included something for everyone to love—and hate. The key question is whether the positive components and the pressure of the Jan. 1 deadline are enough to neutralize the parts that raise objections. If not, attacks from the left and right could combine to topple the deal.

For Republicans, the bill includes the bitter medicine of the first income-tax rate increase since 1993, a violation of the anti-tax orthodoxy that has defined their party. On the other hand, it would codify the Bush-era lower income-tax rates for most Americans as permanent law, ending the recurring battles over how long they will endure.

For Democrats, the bill's tax increase makes good on their party's marquee promise in the 2012 election to raise taxes on upper-income Americans and not the middle class. But many Democrats, especially liberals, were infuriated that the bill set the income threshold as high as $450,000.

Heading into a meeting with Mr. Biden and Senate Democrats, Sen. Clare McCaskill of Missouri said, "Nobody's happy—that means it's probably a compromise."

But Sen. Barbara Boxer (D., Calif.) said that Mr. Biden at the meeting told Democrats that the compromise advanced Democratic Party principles. "He told us we can stand proud and tall that a lot of our values were protected," said Ms. Boxer.

"There are many, many reasons people don't like the proposal but there is very close to unanimity that it's better than going over the cliff," Sen. Charles Schumer (D., N.Y.) said after the meeting. "There are disagreements on this provision, that provision and other provisions are large and wide but the number of people who believe we should go over the cliff rather than vote for this is very small."

One sticking point in the talks had been automatic spending cuts, known as the sequester, set to take effect in coming days.

Republicans had insisted the cuts of $24 billion be offset with savings in other areas. The White House wanted some of the offset to be in the form of tax increases, not just other spending cuts.

The deal pays for delaying the sequester with a mix of new taxes and spending cuts, according to several congressional aides.

Of that $24 billion cost, $12 billion would come from a shift in the rules affecting workplace-based 401(k) plans. The change would allow plan holders to roll their 401(k) assets into a Roth IRA plan, which would require them to pay taxes up front on any gains in their plan. The benefit for investors would be that disbursements from Roth plans in retirement are tax free.

In effect, the move provides more up-front revenue to the Treasury, but potentially at the cost of revenue over the long term—as taxes paid when individuals make withdrawals from their 401(k) plans would likely be far greater.

Other elements of the deal could be costly. It calls for a permanent fix to the alternative minimum tax, a one-year extension of unemployment insurance benefits, and a five-year extension of other tax breaks. Among them are tax credits for families of modest means, including one for college tuition, and an expanded earned income tax credit, which provides cash to working poor families who don't earn enough to pay income taxes. It also would block a scheduled cut in Medicare payments to doctors for one year.

The deal taking shape also would include tax breaks adopted by the Senate Finance Committee earlier this year, aides with knowledge of the talks said. Among them was a one-year extension of the tax credit, with slight modifications that would allow wind-farm developers to claim the credit for projects that begin construction by Jan. 1, 2014.

Some Democrats and liberal activists said they believe the White House gave up too much, weakening Democrats' position heading into next round of budget talks with Republicans. "It's not a good deal if it gives more tax cuts to 2% and sets the stage for more hostage taking," Richard Trumka, president of the AFL-CIO, said in a Twitter message.

Opposition to the deal also came quickly from conservatives. Heritage Action, a conservative political group, urged senators to vote against the bill and said it would be a "key vote" in its ratings of lawmakers.

"This kick-the-can approach, necessitated by a president who refuses to stop campaigning and start seriously addressing our nation's fiscal problems, is not an adequate solution to America's coming fiscal crisis, which is a result of overspending, not under-taxing," the group said in a written statement.

U. S. HOUSE VOTES TO REPEAL OBAMAROMNEY CARE FOR THE 33RD TIME. LARGELY SYMBOLIC ONLY, IF YOU ASK ME BECAUSE THE SENATE WILL IGNORE VOTE OR POTUS BARACK OBAMA WILL VETO ACTIONS! WATCH VIDEO.

ANYONE Who Believes That Government (CONgress) Can CONSTITUTIONALLY Force Us To Buy A Commodity, Such As Health Insurance, At The Pain Of A Penalty, Belongs In A COMMUNIST Country As A Comrade!

Yes, you heard me: If there is anyone out there who thinks that CONgress has the power to FORCE consumers to buy healthcare, or any other consumer item, at the pain of monetary penalty, that someone needs to IMMEDIATELY move to a COMMUNIST country, and become a COMRADE.

Having said that, permit me to say this: I have a cure for the healthcare debacle>

The cure is: CONgress needs to give each one of us THE EXACT SAME insurance coverage each of their members have; EXACT SAME ONE! NO ifs, ands or buts.

After that, we promise not to bother the CONs anymore.

So, who's with me?!

BY the wa: I can't wait for the U. S. Supreme Court to strike down OBAMACARE's mandate to buy insurance or face the GESTAPO!

Breaking News: CONgress Passes Payroll Tax Extension And Aid To Jobless, POTUS Barack Obama Promises To Sign Bill Into Law.

CNN has the breaking news, so check it out at CNN.com.

Both Houses In CONgress Pass Payroll Tax Measure, POTUS Barack Obama Expected To Sign Into Law As Issue Continues To Be "Kicked Down The Road"!

CNN.com has the juicy stuff.

Breaking News: U. S. House Votes Down Two Month Payroll Tax Extension Passed By Senate. The Children's Playground In CONgress Remains Open.

POLITICO Breaking News
-------------------------------------------------
The House voted 229-193 Tuesday to reject the Senate-passed two-month payroll tax extension and demand a House-Senate conference to hammer out differences between the chambers on a tax break that is set to expire at the end of this year. House Republicans prefer a one-year extension of the tax cut, but Senate Majority Leader Harry Reid has said he will not re-start negotiations until the House passes a two-month extension of the tax cut that the Senate approved by an overwhelming majority on Saturday.

For more, go to Politico.com

Babies At The Playground In CONgress Agree On Spending Bill, Averting A Disastrous Government Shutdown -- For Now.

Read more here, if you have the stomach.

CLARENCE PAGE: The Supercommittee Was Doomed From The Beginning. I AGRRE!

The supercommittee was doomed from the beginning
By CLARENCE PAGE

An old joke says that a camel is a horse designed by committee. That’s more than I can say for the congressional “supercommittee.” It was supposed to come up with a proposal to cut the deficit. It didn’t even produce a camel. Just a lot of the stuff horses and camels leave behind.

The failure was enough to make me long for the days of the “smoke-filled room,” although without the smoke. The original smoke-filled room of legend was in Chicago’s Blackstone Hotel, where a small group of powerful senators gathered to arrange the nomination of Republican Warren G. Harding for president in 1920. I’m not saying he was the best choice they could have made (he wasn’t), but at least they got it made.

The difference is that the old elitists knew how to cut a deal. In the smoke-free rooms of today’s politically polarized Washington, the art of compromise seems for now to be all but lost.

The supercommittee was created to break a deadlock between Democrats and Republicans over raising the national debt ceiling, a matter that used to be a pretty routine. But today’s divided Congress agreed to raise the debt ceiling only after referring the larger deficit problem and its thorny tax issues to a new Joint Select Committee on Deficit Reduction, popularly known as the supercommittee.

The 12-member supercommittee, evenly divided between the parties and two houses of Congress, apparently received its catchy nickname from lawmakers who wanted to make it sound like something more than an excuse to avoid making tough decisions.

In short, it was doomed from the start. It was long on partisans and lacking independent dealmakers.

Worse, the supercommittee’s much-vaunted “trigger” isn’t much of a trigger. Nothing concentrates the mind like a firm deadline. But the supercommittee’s Nov. 23 deadline to avoid automatic across-the-board budget cuts was not much of an incentive in the Washington sense. The actual cuts would not into effect until 2013, after a new Congress and, if President Barack Obama’s luck runs out, a new president. In Washington, that’s a lifetime away. The supercommittee faced no fear of a government shutdown or default. Why hurry?

After the supercommittee’s super-collapse, the blamestorm began. Each party blamed the other, and Republicans blamed Obama for lack of “leadership.” He stayed away from negotiations partly at the request of Democratic committee members. Yet, if Obama had been more engaged, would it have made a difference? If his effort failed, he would bear some of the blame anyway, and Republicans had little wish to help him succeed.

President Obama vows he will veto any effort to circumvent the trigger’s automatic cuts with anything less than a full deficit-reduction package. He’s still pushing the “balanced” approach he proposed months ago, a mix of taxes and cuts, which polls show most voters prefer to the Republicans’ all-cuts, no-new-taxes approach.

That’s the approach upon which activist Grover Norquist, the head of Americans for Tax Reform, insists. He threatens to serve any Republican who breaks his anti-tax pledge with two of an incumbent’s least favorite words, “primary challenge,” and other efforts to unseat them. Expressing a view widely shared by Democrats, supercommittee member Sen. John Kerry of Massachusetts called Norquist the “13th member of this committee without being there.”

Of course, Norquist, smiling innocently, humbly insisted in a CBS “60 Minutes” interview Sunday that it was “the voters,” not him, who were holding Republican feet to the fire. We’ll see.

Nobody likes taxes. But for a government that works, delivers the services we want and balances its budgets, polls indicate that.

Breaking News: Massachusetts Democrat Representative Barney Frank, Nemesis Of Republicans EVERYWHERE And Unabashed Liberal, Declines To Seek Re-election To CONgress.

POLITICO Breaking News
-------------------------------------------------
Massachusetts Rep. Barney Frank, the ranking member of the House Financial Services Committee, will not seek reelection in 2012, his office has confirmed. Frank is a 16-term Democrat who last year helped pass the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Frank's spokesman, Harry Gural, said in a statement that Frank will hold a conference at 1 p.m. at Newton City Hall in Newton, Mass., to "formally announce and answer questions about his decision not to run for reelelection in 2012."

Gural said neither the congressman nor his staff will answer questions before the afternoon press conference.

For more information... http://www.politico.com

Kentucky's General ASSembly Is Set To Redraw CONgressional Boundaries. Be On The Lookout For UNDEMOCRATIC Political Shenanigans And Maps That Look Like Salamanders.

Read more here, and check out the latest proposals below:

So what happens if both houses don't agree to a proper and reasonable map?

Did You Miss CBS' "60 Minutes" Again? At Least Watch Jack Abramoff's Washington, D. C.'s "Culture Of Corruption". Yes, There's A Reason I Call It CONgress! Watch Video.

Quick Breaking News: U. S. Senate Rejects House Stop Gap Funding Bill. I Guess The Playground Is Open Again For CONgress.

POLITICO Breaking News
-------------------------------------------------
The Democratic Senate on Friday blocked the House Republican funding bill on a 59-36 vote, intensifying a fight between the two bodies ahead of a Sept. 30 deadline to keep the government operating. The fight centers around disaster relief funding for the Federal Emergency Management Agency, whose coffers will dry up by early next week without additional aid. Republicans want that money to be partially offset with spending cuts to programs considered Democratic priorities. The bill - passed by the House early this morning on a 219-203 vote -- would keep the government funded through Nov. 18.

With Its Poll Numbers In The Toilet, CONgress Tries To Put On A Smiley Face To FOOL Us. But, Like The Rock Band "The WHO", "We Won't Get Fooled -- Again".

Congress puts on smiley face in bid to curry public favor
By David Lightman

WASHINGTON — Sniping and snide remarks are out on Capitol Hill. Being nice — and seeking common ground, or at least appearing to — is suddenly in.

Since returning from their summer recess earlier this month, lawmakers have heeded the strong message from an infuriated public: Stop squabbling, fix the economy and act like adults.

While this new era of good feeling doesn't necessarily mean compromise on big economic issues is imminent, this much is clear:

"I think the polling data got their attention," said John Pitney, a professor of politics at Claremont McKenna College in California and the author of "The Art of Political Warfare."

The data show that Congress' approval ratings remain dismal. A Sept. 8-11 Gallup poll found only 15 percent of the public approved of how Congress was doing its job, while 82 percent disapproved. The margin of error was 4 percentage points.

Nothing frightens politicians like numbers that low, especially when the economy remains sluggish, consumer confidence is bleak and businesses are reluctant to hire.

"I think GOP leaders, at least, see that jobs and the economy are going into the tank," said Burdett Loomis, a professor of political science at the University of Kansas and the author of several books about Congress.

"They see the possibility that obstructing the Obama proposals, or at least appearing not to negotiate in good faith, might cost them politically."

They know well how fast an angry public can turn on a political party; last year, Republicans took control of the House of Representatives as 87 GOP freshmen won seats. And with the nation's unemployment rate at 9.1 percent and the economy barely growing, incumbents of both parties see themselves as vulnerable.

Republican pollster Bill McInturff found that public disgust with the summer debt-ceiling debacle had eroded confidence in the economy and the federal government profoundly, on a scale similar to the 9/11 terrorist attacks and Hurricane Katrina. That, McInturff warned in an analysis earlier this month, could lead to "unstable and unpredictable political outcomes" in next year's elections.

Still, the outlook remains murky on the fate of this fall's two major initiatives: President Barack Obama's $447 billion jobs initiative and the bipartisan supercommittee's effort to cut budget deficits by at least $1.2 trillion over the next 10 years.

Friday, House Republican leaders sent their House GOP colleagues a long memo detailing their views of the jobs plan. "We believe there are areas of common agreement, and areas worthy of further conversation where agreement — assuming there are good faith discussions — may be possible," they said.

Rank-and-file members of both parties, though, are only cautiously optimistic.

"We really don't know what's going to happen," said Sen. Ben Nelson, D-Neb., a key moderate.

But at least the rhetoric is far less hostile than it was during July and early August, when lawmakers from the two parties clashed bitterly over raising the debt ceiling.

Most notably, House Majority Leader Eric Cantor, R-Va., who stalked out of bipartisan debt deal talks in June and later engaged in a heated exchange with Obama, has softened his tone.

"The rancor in this town over the last six months or so has proven that (bitter debate) doesn't necessarily produce the kind of result we want," Cantor said earlier this week. "Let us all try and take a breather, and focus on what we can do together, try and lower the volume of rancor here and see if we can get along."

The change in tone could signal a change in substance as well.

Last month, a dispute over Federal Aviation Administration funding led to a partial shutdown of agency operations. This week, the Senate overwhelmingly approved extending the programs through January. The House already approved it, so it goes next to Obama for his signature.

Next week, Congress plans to consider a measure to fund the government through Nov. 18. The current fiscal year ends Sept. 30. Unless new spending is approved, agencies could shut down. Disputes over funding nearly caused a shutdown last spring. This time, the only major disagreement involves paying for disaster aid. Partisan brinksmanship appears unlikely. Lawmakers hope to pass the legislation by next Friday and recess the week of Sept. 26.

The bigger challenges, though, will be thornier.

Obama is expected to detail his long-term debt-reduction program Monday, and he's expected to call for higher taxes. The supercommittee plans to hear testimony on tax policy Thursday at its next public meeting.

House Speaker John Boehner, R-Ohio, in an address Thursday to the Economic Club of Washington, issued a no-higher-tax warning. While revamping the tax code could be a goal, he said, "Tax increases, however, are not a viable option for the joint committee. It's a very simple equation. Tax increases destroy jobs."

He cushioned his rhetoric, however, with a call for comity.

"Some of the president's proposals offer opportunities for common ground," he said. Later, responding to questions, he talked of how he personally likes Obama.

Republican leaders also warned against higher taxes in the president's jobs package, which Congress could act on next month. Obama has proposed cutting Social Security taxes sharply for employees and most employers, while raising $400 billion by limiting itemized deductions for wealthier taxpayers over the next 10 years.

"We don't question the president's sincerity when he says he has crafted the right prescription for economic recovery," House Republican leaders said in Friday's memo. But, they added, "To be clear, we don't agree with portions of President Obama's proposal, and Republicans have a different vision for the steps that need to be taken to help our economy get back to creating jobs."

The leaders listed areas where "it will be harder to find common ground," notably the tax increases. But they also listed several "areas of potential common agreement and areas worthy of further discussion," including infrastructure spending, payroll tax cuts, changes in the unemployment system and free-trade agreements.

Higher taxes are not acceptable, Republicans say.

"I don't see how the bill gets to the finish line as he is proposing it," said Sen. Mike Johanns, R-Neb.

It's unclear where common ground may be found; few offer specifics. But there is a genuine hope that compromise is possible — eventually.

"This is Washington," Boehner said. The supercommittee is to submit its recommendations by Nov. 23, and the speaker said with a chuckle that he expected those proposals "closer to Nov. 23 than Nov. 22."

The politicians know that the public is watching.

"People have been complaining about the tone of the debate in Congress since the beginning," said Sen. John Cornyn, R-Texas. "But now we have the social media, and it's pervasive. It's hard to escape from it."

Read more: http://www.mcclatchydc.com/2011/09/16/124366/congress-puts-on-smiley-face-in.html#ixzz1YDMVL2hP

Watch POTUS Barack Obama's "America Jobs Act" Joint Address To CONgress LIVE Here.

Nancy Pelosi Appoints James Clyburn, Xavier Becerra And Chris Van Hollen To Debt "Super Committee", Completing All Appointments. Watch Video.

Breaking News: John Boehner Appoints Dave Camp, Fred Upton, And Jeb Hensarling As Members Of GOP House Debt "Super Committee". Mitch McConnell Previously Appointed Jon Kyl, Pat Toomey And Rob Portment To GOP Senate "Super Committee" And I Missed It. Up Next, Nancy PelOSI!

-------------------------------------------------
Speaker John Boehner has appointed Ways and Means Chairman Dave Camp (R-Mich.), Energy and Commerce Chairman Fred Upton (R-Mich.) and Republican Conference Chairman Jeb Hensarling (R-Texas) as the House GOP members of the deficit reduction "super committee." Hensarling will be co-chairman of the committee. Senate Minority Leader Mitch McConnell also announced Wednesday the Senate Republican members: Jon Kyl of Arizona, Pat Toomey of Pennsylvania and Rob Portman of Ohio.

On Tuesday, Senate Majority Leader Harry Reid announced the Senate Democratic members of the committee: Patty Murray of Washington, John Kerry of Massachusetts and Max Baucus of Montana. Murray will be the other co-chair.

House Minority Leader Nancy Pelosi has yet to name the House Democratic members of the committee.

Breaking News: Harry Reid Picks Patty Murray, Max Baucus And John Kerry To Serve On Senate Debt "Super Committee". Who Will Mitch McConnell Pick? Stay Tuned.

Senate Majority Leader Harry Reid plans to tap Sen. Patty Murray (D-Wash.) to serve as the co-chair of the deficit reduction super committee. His other two picks will be Sens. Max Baucus (D-Mont.) and John Kerry (D-Mass.), according to Democratic sources.

For more, check out our friends at Politico(.com).

Following The Lead Of World Street And Deciding Not To Be FOOLED By The Debt Ceiling "Compromise", Standard And Poor's (S & P) Downgrades America's Credit Rating!

Check the story out here, and watch the news video below:

U. S. Senate Joins House In Passing Bill To Extend The Debt Limit, And POTUS Barack Obama Has Signed Bill Into Law, Thereby Ensuring That The American Ideals -- And God Given Right - Of Borrowing To Live Beyond Our Means, Continues UNABATED. Watch Videos.

Update: The President has now signed the bill into law. As David Gary would say: blow the feast trumpet! Watch video: