US House of Representatives clears 'fiscal cliff' bill
02 Jan 2013
The US House of Representatives late on Tuesday night passed a bipartisan bill ending a showdown over income taxes and deep federal spending cuts over the US ''fiscal cliff''.
The bill, which was earlier passed by the Senate (89 to 8 votes) in the wee hours of the New Year, was passed by 257 against 167 votes in the House of Representatives, ending months of uncertainty over the US fiscal deficit that has reached flash point at $16.4 trillion.
The bill sailed through in the Republican-majority House overcoming resistance with some of the Republican leaders proposing amendments to the bill already passed by the Senate.
The Republicans later gave up as they failed to muster enough support for their proposals.
The bill passed by the Congress permanently extends the Bush-era income-tax rates on individual incomes up to $400,000 and family income up to $450,000 besides fixing estate tax rate at 40 per cent, up from 35 per cent, and exempting inheritances below $5 million.
The bill provides for an extension of unemployment benefits for another year and extends the 2009 stimulus provisions, including the earned income-tax credit, child tax credit and college tax credit for five years.
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