As House decides 'fiscal cliff' bill, most workers still get tax hike


The U.S. Senate has passed legislation to block the impact of across-the-board tax increases and spending cuts that make up the so-called "fiscal cliff," according to the Associated Press.

The Senate voted 89-8 to pass the compromise measure early New Year's Day. A House vote is expected before Wednesday.

Minnesota's two U.S. Senators, Al Franken and Amy Klobuchar, both voted in favor of the bill, as reported by Minnesota Public Radio.

The deal ensures that about 12,200 unemployed workers in Minnesota who have already used up their state benefits will continue to receive unemployment insurance benefits under a federal program that expired Dec. 29.

The new deal also means current income tax rates will stay the same for middle-class wage earners, and rise for individuals who make over $400,000 and couples that make over $450,000. Democrats pushed for tax increases for those making $250,000 and above.

Despite the compromise, most of the nation's 160 million workers will still see smaller paychecks. That's because the payroll tax rate -- rolled back 2 percent in 2011 -- is increasing from 4.2 percent to 6.2 percent. As CNN reports, monthly paychecks will have $50 less for those earning $30,000 annually, and will shave off $189.50 for those with incomes totaling $113,700.

Next Up

Xcel Energy Center

Fiala's goal gives Wild victory over first-place Golden Knights

Kaapo Kahkonen made 26 saves in the 2-0 victory.


Gov. Tim Walz to announce COVID vaccine next steps on Tuesday

Minnesota is nearing the 70% vaccinated target for over-65s.

Screen Shot 2021-03-08 at 2.44.41 PM

Charges: Minnesota man killed his father with hammer, knife

The 44-year-old admitted to killing his father, court documents say.

P.J. Fleck, Gophers football

Staying home: Gopher football lands 6'7'' football recruit

The offensive lineman is a star player in southwest Minnesota.

Ambulance hospital emergency

Teen worker dies after being shocked at Vikings apartment site

Aaron Welle, 18, of Holdingford, died from his injuries.

teacher, coronavirus, covid-19, school, classroom

90% of MN schools now offer in-person learning, 55% of teachers vaccinated

Gov. Tim Walz had set March 8 as the date for when schools would be expected to offer in-person learning.

Screen Shot 2021-03-08 at 8.12.13 AM

Catholic school employee allegedly had 'inappropriate physical contact' with student

The employee is currently on leave pending an MPD investigation.

covid-19, vaccine

CDC: Fully vaccinated people can be together indoors without masks

The CDC on Monday released new guidance for fully vaccinated people.

covid saliva test

MDH to open new COVID testing site in Carver Co. amid B117 variant outbreak

It comes amid an outbreak among younger people in the southwest metro county.

radio station, microphone

KFAN's Paul Allen recounts 'harrowing' fatigue from COVID-19

Paul Allen said he experienced extreme fatigue after testing positive.

Screen Shot 2021-03-08 at 9.41.43 AM

Derailed train in Plymouth was carrying molten sulfur

No unusual air quality readings have been reported in the area.