Obama: 'Tax hike could have sent US into recession'

Thanks to the votes of Democrats and Republicans in Congress, I will sign a law that raises taxes on the wealthiest two per cent of Americans, while preventing a middle class tax hike that could have sent the economy back into recession, and obviously had a severe impact on families all across America.

– President Barack Obama

Advertisement

Obama hails US budget deal

Barack Obama has hailed a deal to avoid a "fiscal cliff" of stark tax hikes and spending cuts. The US House of Representatives backed the bill by 257 votes to 167.