Last-ditch deal averts fiscal cliff

Jan 1 2013

The White House and Republican politicians have reached a deal to avert the America's "fiscal cliff" crisis, a Democratic aide has said.

The measure would extend George Bush-era tax cuts for family incomes below 450,000 dollars a year (£278,000) and briefly avert across-the-board spending cuts poised to strike the Pentagon and domestic agencies this week.

Vice President Joe Biden was at the Capitol to sell the agreement to Senate Democrats.