Stories you shouldn’t miss:
1. House Republicans blocked a bipartisan compromise that would have temporarily extended a tax cut for 160 million Americans, and as a result most Americans will have to start paying higher taxes on January 1. The hard-line GOP members, who have repeatedly stymied efforts to raise taxes on the wealthy, decided to vote for higher taxes on everyone else because Democrats would not go along with more budget cuts. The House Republican stance, however, has fractured the GOP because the majority of Republicans in the Senate voted for the compromise that would have avoided the January 1 tax hike. The Los Angeles Times reports that Senate Republicans apparently realize that it’s politically toxic to raise taxes on low and middle-income voters, while refusing to increase them on the wealthy.