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Fiscal Cliff Deal to Have Immediate Effects on Economy

Congress has come to a compromise in the face of the fiscal cliff. The House approved a Senate bill on Tuesday night that raises taxes on those making over $400,000, reformed the alternative minimum tax, and did not extend the payroll tax holiday. Had no deal been reached, more drastic automatic cuts to spending, and tax increases on all Americans would’ve kicked in. Brian Peterson, Professor of Economics at Central College, says that decisions on spending cuts have been pushed back by 2 months as part of the deal, essentially creating another fiscal cliff down the road.