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Bill to avert 'fiscal cliff' heads to House

  • Sen. Mike Johanns, R-Neb., left, walks with Senate Minority Leader Mitch McConnell from Kentucky, to the Senate floor for a vote on the 'fiscal cliff,' on Capitol Hill Tuesday, Jan. 1, 2013 in Washington. The Senate passed legislation early New Year's Day to neutralize a fiscal cliff combination of across-the-board tax increases and spending cuts that kicked in at midnight. (AP Photo/Alex Brandon)

WASHINGTON — Emergency legislation to avoid the economy-threatening "fiscal cliff" ran into vehement New Year's Day opposition from House Republicans, casting doubt on the divided government's ability to prevent widespread tax increases and painful, across-the-board federal spending cuts.

"I do not support the bill. We are looking, though, for the best path forward," House Majority Leader Eric Cantor, R-Va., declared after a closed-door meeting of his party's rank and file.

While Speaker John Boehner took no public position, an attempt to add spending cuts was all but certain before the leadership called for a final House vote on the measure that cleared the Senate hours earlier in a pre-dawn vote of 89-8.

Any change in the legislation would require the Senate to re-pass the measure before it could go to President Barack Obama for his signature, and his aides met at the White House to review the bill's prospects.

There was no immediate response to the House Republicans from Senate Majority Leader Harry Reid, D-Nev., or from Sen. Mitch McConnell of Kentucky, the Republican leader who negotiated the final bill with Vice President Joe Biden.

It wasn't the first time that the tea party-infused House Republican majority has rebelled against the party establishment since the GOP took control of the chamber 24 months ago. But with the two-year term set to end Thursday at noon, it was likely the last. And as was true in earlier cases of a threatened default and government shutdown, the brinkmanship came on a matter of economic urgency, leaving the party open to a public backlash if tax increases do take effect on tens of millions.

Economists have warned that without action by Congress, the tax increases and spending cuts that technically took effect with the turn of the new year at midnight could send the economy into recession.

The Senate-passed bill was designed to prevent that while providing for tax increases at upper incomes, as Obama campaigned for in his successful bid for a second term.

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