Fiscal cliff deal in danger of unraveling amid House GOP opposition

Last Updated: Wed, Jan 02, 2013 05:20 hrs

A deal to reverse the effects of America's fall over the 'fiscal cliff' is again in danger after Republicans in the House of Representatives rebelled over the lack of spending cuts.

Republican leaders said that there was 'universal concern' in the party that the compromise, which was overwhelmingly passed in the Senate did not balance new taxes with fresh cuts.

Eric Cantor, the number two Republican in the House, said he could not support the legislation without amendments to add new spending cuts, the Telegraph reports.

According to the report, during a tense closed-door meeting, Republican leaders presented their members with the choice of adding spending cut amendments to the Senate's bill or else proceeding with a simple up-or-down vote.

Adding the amendments would mean sending the bill back to the Senate for a fresh vote and reopening the negotiations that politicians, investors and taxpayers believed had been completed late on Monday, the report said.

Economists fear that if no compromise is reached then the 'cliff', 600 billion dollars, combination of new taxes and government spending cuts, could trigger a new recession.

John Boehner, the Republican Speaker of the House, released a statement describing the widespread dissent among his members and the hostility to the Senate bill, the report added.

According to the report, he said that the lack of spending cuts in the Senate bill was a universal concern among members in the meeting, without revealing whether he personally supported the legislation.

The revolt among Republicans in the House threatened to destroy the consensus reached in the Senate, where the compromise bill was supported by both parties, the report said.

The Senate bill, which was designed by both parties' Senate leaders and mediated by Joe Biden, the vice president, would raise taxes on all households earning more than 450,000 dollars, the report added. (ANI)

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