Isabel Hardman Isabel Hardman

Fiscal cliff: what happens next?

Last night Congress agreed on a deal to avert the fiscal cliff. If you’re a little hazy on the detail of what that cliff actually was, it’s well worth reading Jonathan’s excellent briefing, while below are the details of last night’s drama, and what we can expect in the weeks and months ahead:

What happened last night?

Congress agreed on legislation which will avert the ‘fiscal cliff’, with a 257-167 vote just after 11pm in the House of Representatives. Out of 236 Republicans, 151, including Majority leader Eric Cantor, voted against the Bill. The Senate had approved the measure the night before by 89 votes to 8.

The US Treasury has also confirmed that the government had hit its $16.4 trillion debt ceiling. Using ‘extraordinary measures’, the Treasury can keep the government running for the next two months.

What does the deal include?

The deal will raise taxes by $41 for every $1 cut from the Budget, according to the Congressional Budget Office.

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