US President Barack Obama acknowledged the new "fiscal cliff" law as one step in the broader effort to strengthen the US economy and increase opportunity.
He said: "The fact is the deficit is still too high and we are still investing too little in the things that we need for the economy to grow as fast as it should."
America's financial crisis has been averted, not solved. We've had the fiscal cliff. Now get ready for the debt abyss.
Democrats and Republicans have so far failed to agree on an alternative plan to the tax increases and spending cuts scheduled for January 1.