Senate passes fiscal cliff bill
US: The White House and top Republicans struck a dramatic deal
to avert huge New Year tax hikes and postpone automatic spending cuts
that had threatened to send the US economy into recession.
After months of agonizing over the crisis, weeks of debate about a
possible solution, and days of intense, closed-door negotiations,
members of the US Senate voted overwhelmingly 89-8 early Tuesday to pass
a controversial bill that averts the so-called “fiscal cliff.”
It now goes to the House of Representatives, which could hold a vote
on the measure later New Year's Day. If agreed by Congress, it would
hand President Barack Obama a victory by hiking tax rates on households
earning over $450,000 a year, but exempt everyone else from a planned
tax increase on Tuesday.
“While neither Democrats nor Republicans got everything they wanted,
this agreement is the right thing to do for our country and the House
should pass it without delay,” Obama said in a statement after the vote.
The deal puts off $109 billion in budget cuts across the government
for two months, but in the process sets the stage for a new showdown
between Obama's Democrats and Republicans in dysfunctional Washington at
the end of February.
“There's more work to do to reduce our deficits, and I'm willing to
do it,” Obama said.
Vice President Joe Biden, who negotiated the deal with top Senate
Republican Mitch McConnell, trooped to Capitol Hill to sell it to In the
end, the deal was clinched a few hours before a midnight deadline.
The Senate vote came just after 2:00 am (0700 GMT), while the House
was not due back into session until Tuesday.
AFP |