Loading...
See More

Obama signs fiscal cliff legislation

Jan 03 2013 07:57 Reuters

President Barack Obama managed to stave off disaster in the nick of time. (AFP)

Related Articles

US stocks rocket after fiscal cliff deal

US averts fiscal cliff

US fiscal cliff facts

Talks stall as fiscal cliff looms

Investors agonise as fiscal cliff nears

Bigger fights loom after fiscal deal

 

Washington - President Barack Obama has signed into law a contentious compromise bill hammered out in Congress that narrowly averted the US 'fiscal cliff of tax hikes and drastic, immediate cuts in spending, the White House said early on Thursday. 

In a statement, the White House said that Obama late on Wednesday signed the "American Taxpayer Relief Act of 2012," raising taxes on households earning above $450 000 and delaying spending decisions for two months. 

Officials said the US president, who is on vacation in Hawaii, signed the measure electronically by autopen. 

The "fiscal cliff" crisis was finally averted on Tuesday as the House of Representatives, by a vote of 257 to 167, approved a stop-gap agreement passed one day earlier by the US Senate. 

The measure dodged across-the-board tax hikes and automatic spending cuts that had threatened to unleash economic turmoil and perhaps drive America back into recession. 

The hard-fought agreement, seen as a political victory for Obama, raised taxes on the very rich and delayed the threat of $109bn in automatic spending cuts for two months. 

The respite will prove temporary, however: The Democratic administration and the Republican-controlled House of Representatives face several clashes in the coming months on spending cuts and raising the government debt ceiling. 

Had the deal fallen apart, all Americans would have been hit by tax increases and spending cuts would have kicked in across government - a combined $500bn shock that could have rocked the fragile recovery. 

Relief was felt internationally and markets surged, although China's official news agency Xinhua warned: "People, or governments, can overspend for some time, but they simply cannot live on borrowed prosperity forever."



Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

barack obama  |  us economy  |  us fiscal cliff
NEXT ON FIN24X

 

Lastest Articles

Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
Energy saving tips that'll save you money, too Read More...
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
3 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...