The House of Representatives finally approved a deal on the fiscal cliff Tuesday night, paving the way for President Barack Obama to sign a bill that will stave off tax hikes for most Americans. After a chaotic day of wrangling, the House voted 257-167 to approve the bill.
Most Republicans voted against the measure, which will raise tax rates for individuals and households earning more than $400,000 and $450,000, respectively, as well as increase tax rates on capital gains and dividends, raise taxes on estates above $5 million, and extend unemployment benefits and some stimulus tax credits.
The bill also delays the onset of automatic spending cuts by two months, and does nothing to deal with the issue of raising the debt ceiling, setting the stage for another round of major budget battles in the next Congress.
On Tuesday, House Republicans initially indicated that they would amend the bill to include spending cuts, but dropped that plan when it was clear that they did not have the votes to pass an amendment.
In a statement after the vote Tuesday, Obama said he will now sign the bill but warned it was “just a first step” toward solving the country’s budget issues.
Check out our full liveblog of the day’s developments below.
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