Washington technically dodged the fiscal cliff at the last second with the House passing the fiscal cliff bill 257 to 167. But, instead of cutting spending and raising revenue - the deal increases spending , and cuts revenue.
The fiscal cliff bill also puts off for two months $1.2 trillion in spending cuts that were supposed to take effect today. And because this deal extended most of the Bush tax cuts, the Congressional Budget Office says it will increase deficits by about $4 trillion over the next ten years.
It took more than 500 days for Congress and the President to get to a deal on avoiding the fiscal cliff. In the days and weeks ahead, raising the debt limit and dealing with sequestration will be next battle line.
Is there any hope for a deal now that will avoid an American financial crisis?
OutFront tonight: Founder & Co-CIO, PIMCO Bill Gross.
At the Abu Dhabi's Al Dhafra festival, you can win a 100 luxury cars and $12 million - all you need is a camel. Erin Burnett has the story in tonight Camel Report.
While we wait for the President to sign the Fiscal Cliff bill into law - he's already drawing lines in the sand for the next ugly battle over the nation's debt ceiling.
"While I will negotiate over many things, I will not have another debate with this Congress over whether or not they should pay the bills that they've already racked up through the laws that they passed," President Barack Obama said.
But is that more rhetoric than reality?
OutFront Tonight: CNN Contributor Reihan Salam, who also writes for the National Review, Political Analyst Roland Martin, and John Avlon, columnist at Newsweek and the Daily Beast.
#OutFront update: John Boehner (R-OH) is re-elected to the U.S. House of Representatives.
Is the House Speaker in the hot seat? A message loud and clear was made to John Boehner this week: Do not take your party's support for granted. One-hundred-fifty-one Republicans broke ranks with Boehner and voted against the fiscal cliff deal brokered by the Obama administration and the Senate.
Those Republicans included some powerful figures including majority leader Eric Cantor and Majority Whip Kevin McCarthy, the second and third highest-ranking Republicans in the House.
As a new Congress is sworn in Thursday, John Boehner faces a crucial vote on whether he gets to keep his job. Will there be another revolt against him?
OutFront tonight: Rep. James Lankford (R) Oklahoma.
On Tuesday, the House decided not take up a vote on a $60 billion Sandy relief measure that was approved by the Senate and supported by President Obama.
New York lawmakers from both sides of the aisle erupted in anger over House Speaker John Boehner closing out the 112th Congress without taking up the relief bill. FULL POST