The U.S. Senate passed legislation early New Year's Day to neutralize a fiscal cliff combination of across-the-board tax increases and spending cuts that started at midnight. The pre-dawn vote was 89-8, according to a report of the Associated Press. Senate passage set the stage for a final showdown in the House of Representatives, where a vote was expected later Tuesday or perhaps Wednesday. "It shouldn't have taken this long to come to an agreement, and this shouldn't be the model for how we do things around here," said Senate Republican leader Mitch McConnell, who negotiated the agreement with Vice President Joe Biden, a former senator. Under the deal, taxes would remain steady for the middle class and rise at incomes over $400,000 for individuals and $450,000 for couples - levels higher than President Barack Obama had campaigned for in his successful drive for a second term in office.
