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House of Representatives approves budget deal

House of Representatives approves budget deal
The U.S. House of Representatives on Tuesday approved the appointments Monday by the White House and Republicans have taken over the state finances. The Senate was previously agreed with the budget deal. This is to prevent the United States beyond the 'budget precipice' glide, without which the agreements have been the case.

Tuesday, 1 January, there occurred a number of automatic spending cuts and tax increases in operation with a volume of $ 600 billion. Now that the U.S. Congress has approved measures to these so-called "fiscal cliff" to undo the damage to the economy are limited.

The financial markets and businesses were shut Tuesday for the New Year. Asian stock markets reacted positively to the forward agreement.

'First step'
President Barack Obama welcomed the compromise reached far. The budget agreement is only the first step to the economy of the United States stronger. The budget deficit is still too large, it sounded immediately after the ballot in the House.

"When I became president, I promised to do something about the tax system," Obama began his speech. "That promise today we met." With the budget deal are families who earn more than $ 450,000, pay more tax. The large middle class in the country is thereby spared.

"I want everyone in the House and Senate thank. We have prevented the U.S. into recession may come 'says Obama. But the U.S. president also warned of further budgetary wrangling between Democrats and Republicans. He wished less drama in the negotiations. A wish that is not unfounded, because within two months, new negotiations are dimmers. The Democrats took or their tax increase for the rich inside, the Republicans remains fierce advocate for savings. This will also provide for discussion in February.

$ 450,000
257 Delegates eventually voted for the proposal, 167 people voted against, ten abstained from the vote. Families with incomes above $ 450,000 will pay more tax. This means that the high incomes for the first time since the era of President Bill Clinton again more tax to pay, namely 39.6 percent.

But the agreement is always a compromise: there is now two months delay for the automatic saving - also on some social programs and defense related - on 1 January would come into effect. It was in the course of the night still feared that the Republicans have a new amendment to come would come to some savings immediately obtain, making the text back to the Senate should have. The Republicans found themselves before the session is no support for an alternative plan.

For & against
John Boehner, the Republican Speaker of the House, voted for the law, just like Paul Ryan, the running mate of the defeated Republican presidential candidate Mitt Romney. Republican leader Eric Cantor voted against, like many members of the Tea Party, the right wing of the Republicans.

Even some Democrats there were discontent. During the election campaign, Obama still need to be to increase taxes on incomes from $ 250,000, and not from $ 450,000.

President Obama flew after the vote immediately returned to Hawaii, where he had interrupted his vacation because of the budget consultation.

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