The fiscal cliff stalemate continues on Capitol Hill.
Two hours after the New Year was rung in the Senate overwhelmingly passed a plan preventing middle class taxes from going up, but the House still hasn't acted.
Under the Senate plan taxes will increase for people making over $400,000 a year and couples making over $450,000.
It also extends some unemployment benefits and delays across the board spending cuts to the military and federal agencies for another two months.
President Obama praised the compromise and some House Republicans are urging colleagues to approve the plan.
"We need to take this deal right now, and we will live to fight another day and its coming on the spending front," said Oklahoma Representative Tom Cole.
House members were called back to work at noon, a rare new year's day session.
Vice President Joe Biden is bargaining with House members, just as he did in the Senate.
The job of convincing House Republicans to accept the deal now rests with Speaker John Boehner.
Many Republicans are still unhappy the Senate plan doesn't cut spending enough.
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