Racing the clock, the White House sealed a New Year's Eve accord with Senate Republicans late Monday to neutralize across-the-board tax increases and spending cuts in government programs due to take effect at midnight, according to administration and Democratic officials.
Vice President Biden traveled to Capitol Hill late Monday to meet with Senate Democrats, including those who have expressed skepticism about the proposed agreement struck with Republican leader Mitch McConnell.
"I feel very, very good. I think we'll get a very good vote tonight," Biden told reporters after a closed door briefing with Senate Democrats. Asked what was his selling point, Biden quipped, "Me."
The proposal would extend the George W. Bush-era tax cuts for family incomes below $450,000, rates that expire at midnight; the plan would also delay, for two months, across-the-board spending cuts to defense and domestic programs that are also part of the fiscal cliff, according to sources familiar with the negotiations. They spoke anonymously because they were not authorized to speak on the record.
The higher tax rates for upper-income Americans is estimated to raise $620 billion over the next 10 years. The full Democratic-run Senate must still approve the plan -- and so must the Republican-controlled House.
Democratic senators said they expected a post-midnight vote on the measure. The House is scheduled to reconvene on Tuesday, New Year's Day.
One set of taxes is set to go up in 2013: The proposed deal does not address the end of the payroll tax holiday on Tuesday. That tax will rise by 2%, back to its 2010 level.
The deal also stops scheduled pay increases for Congress set for spring 2013 and includes a nine-month extension of the farm bill, which had been delayed for months because of differences between the House and Senate versions of the legislation that sets U.S. agricultural policy every five years.
The agreement also does not address any increase in the nation's debt ceiling, which -- combined with the delay of automatic spending cuts -- sets up the distinct possibility of another cliff-like budget battle in February.
The omission of the debt ceiling dismayed some liberal Democrats, including Sens. Tom Harkin of Iowa and Sherrod Brown of Ohio. Their criticism prompted Biden's visit to Capitol Hill late Monday.
"We are where we are and we need to cast this vote," said Sen. Dianne Feinstein, D-Calif., following the meeting. She will support the measure but estimated as many as 10 Democrats could oppose it.
Biden played a critical role, Feinstein said. "I think it was very important," she said, noting that McConnell and Biden "have a long prior experience" working together. "That's the reason this is bipartisan."
Sen. Charles Schumer, D-N.Y., likewise predicted a "very strong vote" which he said would put pressure on the House to pass the measure.
House Democratic Leader Nancy Pelosi, D-Calif, did not exactly endorse the deal either, saying in a statement: "When a final agreement is reached and passed by the Senate, I will present it to the House Democratic Caucus."
The final details came together hours after President Obama said Congress was making progress on a short-term deal to avert the fiscal cliff.
As the day dragged on, negotiations narrowed to a Democratic offer to pay for the spending cuts for two months, estimated to cost $24 billion, a McConnell spokesman said. Republicans wanted additional cuts to make up for supplanting those cuts and sent Democrats a list outlining $130 billion of suggested cuts for Democrats to consider.