Last night the Democrats and Republicans agreed on a deal that would keep America away from the fiscal cliff.
In the vote, 172 Democrats and 85 Republicans favored the bill while 16 Democrats and 151 Republicans opposed it. The bill will raise taxes for those who make more, extends unemployment insurance and delays two months of automatic cuts in federal spending.
Just hours after the deal was reached, world markets rose and U.S. stocks are predicted to do the same. Everyone is not happy about the bill and still have several unanswered questions. According to CNN:
It doesn’t mention the $16.4 trillion debt ceiling that the United States reached Monday.
It also puts off the so-called sequester, cuts in federal spending that would have taken effect Wednesday and reduced the budgets of most agencies and programs by 8% to 10%.
While the deal gives Obama bragging rights for raising taxes on the wealthiest Americans, it also leaves him breaking a promise.
Obama had vowed to raise tax rates for the top-earning 2% of Americans, including those with household income above $250,000 and individuals earning more than $200,000.
Most Americans will not be affected because taxes will only go up on the top wealthiest percentage and Republicans are not happy. President Obama responded to criticism following the vote:
“While I will negotiate over many things, I will not have another debate with this Congress over whether or not they should pay the bills that they’ve already racked up through the laws that they’ve passed,” he said after the Tuesday night vote.
“We can’t not pay bills that we’ve already incurred. If Congress refuses to give the United States government the ability to pay these bills in time, the consequences for the entire global economy would be catastrophic — far worse than the impact of the fiscal cliff.”