WASHINGTON (WUSA) -- Congress didn't make its deadline but the deal is enough to bring us back from the so-called fiscal cliff.
The House passed the Senate's bill late Tuesday night 257-167. It is a political victory for the President that comes one day after the fiscal cliff deadline. But this compromise doesn't resolve all the issues related to tax hikes and spending cuts.
The deal will work retroactively to extend the Bush Era tax rates for most Americans. It is what he campaigned on: to raise taxes on the wealthiest.
The late night deal raises taxes on the wealthiest Americans earning $400,000 and families earning $450,000. Democratic congressman Jim Moran voted down the bill because it sets up three more fiscal showdowns including having to debate raising the $16.4 trillon federal borrowing limit so the government can keep paying its bills.
The bill includes an extension of unemployment benefits for about two million Americans.
"Under this new law, more than 98 percent of Americans,
and 97 percent of small businesses will not see their income taxes go up," said President Obama.
The bill also delays spending cuts for two months so the new Congress can address the issue.