Lawmakers have reportedly struck a deal on a couple of key issues in their efforts to ward off the perils of the looming “fiscal cliff.” Sources say that both parties have agreed on an income threshold for the expiration of Bush-era tax cuts for America’s wealthiest: $400,000 for individuals and $450,000 for families.

An agreement on estate tax has been reached as well, which was initially supposed to increase from 35 percent to 55 percent at the turn of the New Year. Now, a compromise of 40 percent has been set, with tax exemptions for the first $5 million.

Senate Majority Leader Mitch McConnell and Vice President Joe Biden have been duking it out over the past 24-hours and these compromises indicate a positive foot forward in continuing negotiations.

If no deal is reached, taxes will automatically skyrocket on New Year’s Day, which will lead to massive spending cuts as a means to keep a shaken economy from falling to pieces.