As soon as the republicans let go of their demands to put some additional spending cuts in place, the House of Representatives has voted in favor of the proposal to avoid “fiscal cliff” measures from hurting American Economy beyond few hours.
The number of votes cast in favor of the proposal was 257 as against 167 cast in opposition. Prior to the actual voting, the House of Representatives was opposing the said proposal.
The proposal is going to save 98% Americans from paying higher taxes while avoiding $110Bn spending cuts on domestic as well as military spending.
However, most Americans will still have to bear with payroll tax increase after the tax break allowed till 2011 end. Other problems for US economy to which it may have to find answers are the “debt ceiling” and “continued budget resolution”.