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HindustanTimes Fri,29 Aug 2014

US starts to tide over fiscal cliff as Senate clears deal

Agencies  Washington, January 01, 2013
First Published: 20:59 IST(1/1/2013) | Last Updated: 00:59 IST(2/1/2013)

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.

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After weeks of debate 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. US President Barack Obama in a statement urged the House to “pass it without delay.” http://www.hindustantimes.com/Images/Popup/2013/1/02_01_13-buss19b.jpg

But the measure did little to rein in annual budget deficits that have helped push the US debt to $16.4 trillion.

However, with the New Year’s Day holiday, there was no real world impact and members were thankful that financial markets were closed, giving them a second chance to return to try to head off the fiscal cliff.

“If we do nothing  the threat of a recession is very real. Passing this agreement does not mean negotiations halt  far from it. We can all agree there is more work to be done “ majority leader Harry Reid, a Democrat, told the Senate.

AFP and Reuters


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