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US House passes deal to avoid fiscal cliff

US House passes deal to avoid fiscal cliff

The US House of Representatives followed the Senate in approving a deal late Tuesday to reduce the tax hikes and postpone the spending cuts that kicked in with the new year, dpa reported.

The House voted 257-167 to approve the compromise bill less than 24 hours after the Senate approved it by a vote of 89 to 8.

The agreement allows tax cuts implemented under former president George W Bush to expire for individuals earning more than 400,000 dollars a year and families earning more than 450,000 dollars.

It also postpones across-the-board cuts of 10 per cent to public expenditure, including social programmes and defence, by two months.

There had been concerns that Congressional Republicans would request an amendment to apply some of the spending cuts immediately, which would have sent it back to the Senate for another round of approval. But the House approved the text as written.

Tags: US Congress