US 'fiscal cliff' deal: What has been agreed
A look at what has and has not been agreed under a new package of sharp tax increases and spending cuts aimed at preventing the US from going over the 'fiscal cliff':
Agreed
- Income tax cuts end for individuals earning more than $400,000 (£245,000) year and couples earning more than $450,000 (£275,000).
- Inheritance tax rises from 35% to 40% after first $5m for individuals and $10m for a couple.
- Rises in capital taxes from 15% to 20%.
- Extension of tax credits for low and middle-income families.
Not agreed
- A far-reaching deal on longer term spending cuts.
- A deal to increase the debt limit which was reached on Monday.
America's budget crisis has been averted, but not solved
America's financial crisis has been averted, not solved. We've had the fiscal cliff. Now get ready for the debt abyss.
What is America's 'fiscal cliff'?
Democrats and Republicans have so far failed to agree on an alternative plan to the tax increases and spending cuts scheduled for January 1.