Washington, Jan 1 (IANS) The US House of Representatives is set to take up a deal approved by the Senate a full two hours after the midnight deadline to avert the worst effects of the so-called feared fiscal cliff.
The House is meeting at noon to consider the compromise bill approved 89-8 by the Senate to avert the cliff — a mix of $6 billion in automatic general tax hikes and spending cuts, but it is not clear yet when it would vote on the measure before it goes to President Barack Obama.
The compromise deal to avert the full effects of the fiscal cliff that could spark a new recession with the resulting reduction in consumer spending came after lengthy talks between Vice President Joe Biden and Senate Republicans Monday night.
It extends the tax cuts approved during the presidency of George W. Bush for Americans earning under $400,000 and couples earning less than $450,000 — up from the $250,000 level Democrats had originally sought. Spending cuts too have been delayed for two months to allow a wider agreement.
The Bush era tax technically expired at midnight with the Congress failing to pass a bill in time, but few effects will be felt as Tuesday is a US public holiday. The current House can legislate until Wednesday, when it is replaced by a new legislature chosen in November.
Obama welcomed the Senate vote, saying “Leaders from both parties in the Senate came together to reach an agreement that passed with overwhelming bipartisan support today that protects 98 percent of Americans and 97 percent of small business owners from a middle class tax hike.”
“Glad it’s over,” said Democrat Senate Majority Leader Harry Reid shortly after the Senate vote. “We’ll see if the Republicans in the House can become functional instead of dysfunctional.”
But a statement from House leadership made no promises.
“Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members — and the American people — have been able to review the legislation,” the statement said.
(Arun Kumar can be contacted at arun.kumar@ians.in)
