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At the very last minute after months of high pitched debate and political wrangling, Congress managed to pass legislation to avert the so-called fiscal cliff. The legislation raises tax rates for high earners, blocks a middle class tax increase but doesn’t begin to address the country’s deficit. At best it’s a stop gap measure: decisions on major spending cuts were postponed for two months and the country’s borrowing limit still needs to be raised. In this hour we talk about the specific compromise provisions Congress came up with, what these may mean for tax payers and the economy, and the immense political and fiscal challenges ahead.
French President Hollande meets with President Obama in Washington to seek additional U.S. support in the fight against ISIS in Syria, and NATO holds an emergency meeting over the downed Russian fighter jet: An update on international military strategy in Syria.