A U.S. bipartisan Senate deal, backed by President Barack Obama to stave off the most threatening “fiscal cliff” of tax hikes has approved in the House of Representatives.
Obama’s move to change US tax code in form of the “fiscal cliff” deal passed late on Tuesday on White House despite Republican earlier calls to be the more spending cuts amendment.
A 257-167 vote in the House of Representatives made final approval over fiscal cliff bill with promise to offer secured taxation policies in the short term.
The compromise was on Obama’s immediate signature on the bill that included George W Bush-era tax cuts on about $46 billion making for all Americans and spending cuts, but left part for debt reduction.
This is the hardest victory of Obama after return on his term and has urged the House to pass the bill “without delay”.
“The one thing that I think hopefully in the New Year we’ll focus on is seeing if we can put a package like this together with a little bit less drama, a little bit less brinksmanship, not scare the heck out of folks quite as much,” President Obama told reporters outside the White House.
Moving towards making US Tax System fairer, Obama added that the deficit is “still too high” , but he warned not to negotiate with Republicans in Congress over another increase in the US debt ceiling in the coming months, reports said.
Beside extension on the tax cuts for Americans, the compromise includes rise in inheritances taxes, capital taxes and one year extension through 2013 for unemployment, while 5 years for claim research and development tax credit.