Despite last minute deal, US misses fiscal cliff deadline

Despite last minute deal, US misses fiscal cliff deadline

 Despite a last minute deal reached
between the White House, Democrats and the Republicans
brokered by the US Vice President, Joe Biden, the US missed
the Monday midnight "fiscal cliff" deadline to avert sweeping
tax hikes.
 While the Senate was moving ahead with its plan to vote on
the deal, the Republican-majority House of Representatives
was unlikely to meet before Tuesday noon local time (late
Tuesday night IST) to vote on the "fiscal cliff" deal that
would extend tax rates on annual income under USD 450,000,
delay for two months part of the USD 110 billion in spending
cuts.
 In total, USD 600 billion in tax hikes and spending cuts
are scheduled to hit in the New Year.
 In theory, the fiscal cliff has hit the US, which among
other things, means across the board hike in income tax rates.
 But the Congressional leaders and White House hope that
they can neutralise it by passing the Bill before it can have
an adverse effect on the country's economy.
 The House Minority Leader, Nancy Pelosi, said she would
present the Bill to the House Democratic caucus once it is
passed by the Senate.
 "By waiting until the last minute, and reaching a deal on
a much smaller scale than either side once envisioned,
Washington also deferred many of its thorniest questions for
perhaps as little as a few weeks," 'The Wall Street Journal'
said.
 Earlier in the day both the Republican Leaders and US
President Barack Obama said they were very close to reaching a
deal.
 The Senate Minority Leader Mitch McConnell said both sides
were "very, very close" to an agreement.