Fiscal cliff deal passed by US Senate
The US Senate approves legislation to avert the fiscal cliff – a combination of tax hikes and spending cuts – that was due to begin in the new year.
After an 89-8 vote in the Senate, the measure now moves to the Republican-controlled House of Representatives, which is expected to consider it later on Tuesday.
Many Republican House members have already voiced misgivings about the deal’s tax hikes on the wealthy and its lack of spending cuts. It is likely to need substantial support from House Democrats in order to pass.
The House is due to reconvene on Tuesday to take up the measure. However, House Speaker John Boehner said earlier that decisions had not been made on whether he will allow amendments to the bill or hold a straight up-or-down vote.
Without a deal on the fiscal cliff, some $600bn worth of automatic tax hikes and spending cuts will be triggered in the first days of 2013, threatening a new US recession.
“We don’t think taxes should be going up on anyone but we all knew if we did nothing, they’d be going up on everyone today,” said Senate Republican leader Mitch McConnell, who negotiated the eleventh-hour deal with Vice President Joe Biden.
“This shouldn’t be the model for how we do things around here, but I think can say that we’ve done some good for the country,” McConnell said in remarks just before the vote.
Read more: What is the fiscal cliff? Your key questions answered
Deal should ‘pass without delay’
US President Barack Obama called on Tuesday for the House of Representatives to follow the Senate’s lead and pass a “fiscal cliff” deal to extend tax cuts for middle-class Americans and raise tax rates on top earners.
“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 Senate voted overwhelmingly to approve the legislation.
“There’s more work to do to reduce our deficits, and I’m willing to do it. But tonight’s agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans,” Obama said.