US fiscal deal puts off spending cuts for two months
The compromise US fiscal agreement that could be voted on before midnight (0500 GMT Tuesday) includes a two-month delay in across-the-board spending cuts, CNN reported late Monday.
Vice President Joe Biden arrived on Capitol Hill to meet with fellow Democrats, who hold the majority in the Senate, and bring them on board with the last-minute deal. Republicans have already indicated their support for the compromise, dpa reported.
Without the delay in spending cuts, all expenditures ranging from social programmes to defence would face a 10-per-cent cut in 2013, dealing a 110-billion blow to the economy.
The other part of the fiscal cliff deal, agreed to earlier in the day, apparently calls for tax cuts to expire on individuals earning more than 400,000 dollars a year and families earning more than 450,000 dollars, according to media reports.
That represented a concession by Republicans, who wanted to keep all tax cuts in place even for the nation's wealthiest; and by Democrats, who wanted taxes to go up above a 200,000-250,000-dollar threshold.