White House, Senate GOP Reach Cliff Deal

Government has grabbed the first headline of 2013.  Failing to reach a deal before the end of 2012,  indications are that a deal has been reached between Obama and the Senate as the New Year begins. It remains unclear if the deal will pass in the House.

It is also unclear how ugly the deal is. As Carlyle Group co-founder David Rubenstein once said to me with regard to other legislation  "The devil is in the details."

No details have emerged but the headlines aren't pretty:

The agreement would raise taxes on "wealthy" Americans. 

It would let a 2% payroll-tax cut lapse--meaning almost everyone's paycheck will be at least 2% lower in 2013.

AND, it delays across-the-board spending cuts.

The details are likely worse.

The House is due back at noon Eastern time on Tuesday for a rare New Year’s Day session.

UPDATE: Senate is back in session.

UPDATE 2:

The Senate has passed the bill by a vote of 89 to 9. Now the bill goes to the House.