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US fiscal cliff: Barack Obama urges House to back deal | US fiscal cliff: Barack Obama urges House to back deal |
(35 minutes later) | |
US President Barack Obama has urged the House of Representatives to back a Senate-approved deal to prevent sweeping tax rises and spending cuts known as the "fiscal cliff". | US President Barack Obama has urged the House of Representatives to back a Senate-approved deal to prevent sweeping tax rises and spending cuts known as the "fiscal cliff". |
These came into effect at midnight when George W Bush-era tax cuts expired, although few effects will be felt immediately as Tuesday is a US holiday. | These came into effect at midnight when George W Bush-era tax cuts expired, although few effects will be felt immediately as Tuesday is a US holiday. |
House Republicans were to meet at 13:00 (18:00 GMT) to discuss their strategy. | |
There is pressure for a vote before financial markets reopen on Wednesday. | There is pressure for a vote before financial markets reopen on Wednesday. |
However, the speaker of the Republican-led House, John Boehner, has not endorsed the Senate deal and there is expected to be some opposition from Republican representatives. | However, the speaker of the Republican-led House, John Boehner, has not endorsed the Senate deal and there is expected to be some opposition from Republican representatives. |
Mr Boehner has pledged either a vote or the tabling of an alternative measure. The House has now reconvened. | Mr Boehner has pledged either a vote or the tabling of an alternative measure. The House has now reconvened. |
'Without delay' | 'Without delay' |
The Senate-backed bill, which raises taxes for the wealthy, was passed in the early hours of Tuesday by 89 votes to eight after lengthy talks between Vice-President Joe Biden and Senate Republicans. | The Senate-backed bill, which raises taxes for the wealthy, was passed in the early hours of Tuesday by 89 votes to eight after lengthy talks between Vice-President Joe Biden and Senate Republicans. |
Spending cuts have been delayed for two months to allow a wider agreement. | Spending cuts have been delayed for two months to allow a wider agreement. |
In hailing the Senate vote, President Obama stressed the urgency of a House approval. | In hailing the Senate vote, President Obama stressed the urgency of a House approval. |
He said in a statement: "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." | He said in a statement: "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." |
He said: "Leaders from both parties in the Senate came together to reach an agreement that passed with overwhelming bipartisan support that protects 98% of Americans and 97% of small business owners from a middle class tax hike." | He said: "Leaders from both parties in the Senate came together to reach an agreement that passed with overwhelming bipartisan support that protects 98% of Americans and 97% of small business owners from a middle class tax hike." |
Mr Boehner and other top Republican leaders said in their statement: "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." | Mr Boehner and other top Republican leaders said in their statement: "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." |
On Tuesday, one senior Republican aide told Reuters news agency that the party's House members were meeting at 13:00 local time to discuss a "path forward". Mr Biden is also meeting House Democrats. | |
The BBC's Zoe Conway in Washington says that, with some Republicans expressing their unhappiness with the tax increases, the passage of the Senate's bill is far from guaranteed. | The BBC's Zoe Conway in Washington says that, with some Republicans expressing their unhappiness with the tax increases, the passage of the Senate's bill is far from guaranteed. |
Representative Tim Huelskamp told CNN he would be voting no, saying the legislation would damage small businesses. | Representative Tim Huelskamp told CNN he would be voting no, saying the legislation would damage small businesses. |
However, fellow Republican House member Tom Cole told MSNBC that the Senate deal should be accepted. | However, fellow Republican House member Tom Cole told MSNBC that the Senate deal should be accepted. |
"We know the essential details and I think putting to bed this thing before the markets [open on Wednesday] is really a pretty important thing to do," he said. | "We know the essential details and I think putting to bed this thing before the markets [open on Wednesday] is really a pretty important thing to do," he said. |
As the House reconvened on Tuesday, a number of representatives from both parties expressed concerns about the deal. | As the House reconvened on Tuesday, a number of representatives from both parties expressed concerns about the deal. |
The Virginia Democrat, Jim Moran Jr, said it was "a bad deal for America" that simply set up further fiscal cliffs to overcome in the coming months. | The Virginia Democrat, Jim Moran Jr, said it was "a bad deal for America" that simply set up further fiscal cliffs to overcome in the coming months. |
The current House can legislate until Wednesday, when it is replaced by a new chamber chosen during last November's election. | The current House can legislate until Wednesday, when it is replaced by a new chamber chosen during last November's election. |
Analysts warn that if the full effects of the fiscal cliff were allowed to take hold, the resulting reduction in consumer spending could spark a new recession. | Analysts warn that if the full effects of the fiscal cliff were allowed to take hold, the resulting reduction in consumer spending could spark a new recession. |
The 1 January deadline triggers tax increases of about $536bn and spending cuts of $109bn from domestic and military programmes. | The 1 January deadline triggers tax increases of about $536bn and spending cuts of $109bn from domestic and military programmes. |
The compromise deal reached on Monday seeks to avoid this by extending the tax cuts for Americans earning under $400,000 (£246,000) - up from the $250,000 level Democrats had originally sought. | The compromise deal reached on Monday seeks to avoid this by extending the tax cuts for Americans earning under $400,000 (£246,000) - up from the $250,000 level Democrats had originally sought. |
In addition to the income tax rates and spending cuts, the package includes: | In addition to the income tax rates and spending cuts, the package includes: |
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