"Fiscal cliff" deal reached between White House, lawmakers: source

WASHINGTON Mon Dec 31, 2012 9:42pm EST

A man walks past the U.S. Capitol Building in Washington December 17, 2012. REUTERS/Joshua Roberts

A man walks past the U.S. Capitol Building in Washington December 17, 2012.

Credit: Reuters/Joshua Roberts

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WASHINGTON (Reuters) - The White House and congressional lawmakers have reached a deal to avoid the "fiscal cliff" that would delay harsh spending cuts by two months, Obama administration officials said on Monday.

President Barack Obama called Democratic Senate Majority Leader Harry Reid and House of Representatives Minority Leader Nancy Pelosi, who both signed off on the deal, one source said.

The agreement includes a balance of spending cuts and revenue increases to pay for the delay in the automatic spending cuts that would go into effect without a deal by lawmakers.

Of those spending cuts, 50 percent would come from defense and 50 percent from non-defense areas, the sources said. The White House viewed that as a victory, one source said, and sees it as a model for future deficit reduction pacts.

Vice President Joe Biden traveled to Capitol Hill to discuss the deal.

(Reporting by Jeff Mason and Mark Felsenthal; Editing by Peter Cooney)

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Comments (13)
Stu_ell wrote:
Kick the ball into the long grass along with the debt ceiling debacle.

It’s the fashionable thing to do.

Dec 31, 2012 9:33pm EST  --  Report as abuse
Stu_ell wrote:
Welcome to the USA, where leaders lack leadership.

Has the Republican party been sabotaged by giant lizard men? Or are they really this dumb?

Wolves in sheep’s clothing as they hide behind the constitution, the bible and libertarian ideals. This is the worst congress in 200 years.

It took bicentennial depths of ring wing extremism to bounce the American people into re-electing Obama, but boy do these clowns have that in spades.

Stand up and be counted, and boot the self defeating kamikaze party OUT of congress.

Dec 31, 2012 9:42pm EST  --  Report as abuse
Chard69 wrote:
The GOP created the deficit under Dubya’s watch — let THEM pay for it, with their own damn money. Assess an extra 10% tax on all registered Republicans. They preach individual responsibility; they can practice it now.

Dec 31, 2012 9:46pm EST  --  Report as abuse
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