White House and Republicans reach fiscal cliff deal
January 1 , 2013
The White House and Republicans reached a deal on Monday night to prevent automatic tax rises and spending cuts from kicking in.
Vice-President Joe Biden briefed Senate Democrats behind closed doors after the Republicans and the White House agreed to a plan.
The Senate is due to vote later today, with the House to consider a bill later.
Tuesday is a public holiday in the United States so the immediate effects will not be felt.
According to analysts, the $600 billion worth of automatic tax increases and spending cuts could lead the U.S. economy into recession.
The automatic cuts were set to take place because Congress failed to reach a deal on deficit reduction after a deadlock over the U.S. debt ceiling in mid-2011.
If a bill is passed by both the Senate and the House over the new year holiday, the impact is expected to be minimal.