'Fiscal Cliff' Deal Passes House Despite GOP Holdouts

Some Republicans oppose last-minute deal because it adds billions of dollars to U.S. debt.
4:04 | 01/02/13

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:

{{nextVideo.title}}

{{nextVideo.description}}

Skip to this video now

Now Playing:

{{currentVideo.title}}

More information on this video
Enhanced full screen
Explore related content
Comments
Related Extras
Related Videos
Video Transcript
Transcript for 'Fiscal Cliff' Deal Passes House Despite GOP Holdouts
Let's get to the latest on the fiscal deal that almost wasn't. And abc's jon karl on how it all came together. Good morning, jon. Reporter: Good morning, george. It was a dramatic end. To a better, high-stakes debate. And late last night, it looked like it could fall apart. But jane boehner pushed ahead anyway. It went right down to the wire. But at long last, they finally did it. The motion is adopted. Reporter: Just minutes before the stroke of midnight, the president welcomed the news. This law is just one step in the broader effort to strengthen our economy and broaden opportunity for everybody. Reporter: But the bill almost went down in the face of feeted objections from many house republicans. There's no spending cuts. We're adding $4 billion a day to the debt. What we're really doing is raising taxes to give the president more money to spend. We think that's a bad idea. Reporter: Even eric cantor, the second-highest ranking republican in the house, was opposed to the deal struck by his colleagues in the senate. I do not support the bill. Reporter: But others said, like it or not, the bill was the only way to prevent a big tax increase for virtually every american worker. Republicans and the american people are getting something really important, permanent tax relief. Reporter: The bill will prevent an income tax relief on workers earning under $400,000 a year. But the bill leaves a lot left to do. In two months, the government will hit the limit of how much money it can borrow, unless congress raises the so-called debt ceiling. An automatic, across-the-board cuts to the pentagon and other agencies, are only to be delayed cliff on MARCH 1st. Congress has adjourned. And late last night, after midnight, the president left for hawaii to meet with his family. And hopefully, he thinks for a few days' vacation. You mentioned the breathing per feelings got raw at the last minute. Reporter: It got really nasty. Politico first reported on friday when the congressional leaders met here at the white house, speaker of the house john boehner told the democratic leader, harry reid, off, use uhhing language I can't use here on "good morning america." You can't even paraphrase. Let's look at what the deal means to you at home. Lots of paycheck changes right now. And bianna golodryga is at the smart screen to break it down. About 99% of americans protected from an increase. But most workers will take a hit. Payroll taxes going up. This affects everyone making $110,000 or less. So, this year, anyone making $110,000 will pay an extra $2,200 in taxes. People making $50,000 will pay an extra $1,000. And someone making $20,000 a year will pay more $400 a year. But the burden falling on the top 1%. Your typical hollywood movie star may be taking over $20 million in year. They'll pay $1 million in income taxes. We're talking about a lot of money. Jay-z and beyonce earned close to $80 million last year. They're going to pay an additional $4 million in income taxes. One of the surprises. This deal is going to increase the deficit over the next ten years. But financial markets like what they see. Markets like stability. They wanted some sort of resolve. That's why we saw the markets rally on monday, assuming we were going to have a deal. And overnight, they liked the news. Big rally expected on wall street. We have the fiscal cliff coming up in a couple of weeks. It's not over yet. Another one is coming on the debt limit. Thanks very much. Let's hope it's not a wild ride.

This transcript has been automatically generated and may not be 100% accurate.

{"id":18111919,"title":"'Fiscal Cliff' Deal Passes House Despite GOP Holdouts","duration":"4:04","description":"Some Republicans oppose last-minute deal because it adds billions of dollars to U.S. debt.","section":"GMA","mediaType":"Default"}