Jan 02, 2013
By Scott Walker
The United States has pulled back from the brink of the fiscal cliff. By a vote of 257-167, the US House of Representatives endorsed a bill that would avoid automatic tax increases and spending cuts that would have crippled the country’s weak recovery.
Under the new law, taxes will increase for Americans earning more than $400,000 a year. That’s seen as a major victory for US President Barack Obama, who campaigned on a theme that the rich weren’t paying their fair share.
Obama immediately signed the bill into law, saying it was only the first step on a long road to reduce government spending. The President says the US deficit is still too high, and not enough is being done to revive the economy.
There were concerns that, if the US were to sink back into recession, Canada would be dragged along with it.