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Fiscal Cliff Averted

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In a flurry of New Year's Day negotiating, Congress stepped back from the fiscal cliff with bi-partisan legislation that keeps Bush-era tax cuts in place for 99 percent of Americans. But the deal did not include spending cuts that Republicans had demanded and critics say it does nothing to address the nation's deeper, long-term fiscal problems, such as spending on entitlement programs. Guest host Sara Terry looks at what yesterday's deal accomplished and what's still ahead. Also, 150 years ago, Abraham Lincoln signed one of the most important documents in US history. We look back at the Emancipation Proclamation.

Banner image: US Senate Minority Leader McConnell speaks to reporters on his way to the US Capitol in Washington, DC. Photo by Mary F. Calvert/Reuters

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