Fiscal Cliff averted: What does it mean for you?
ONEIDA COUNTY, N.Y. (WKTV) - America did not fall off the fiscal cliff.
After much heated debate and negotiations, the House approved a bill Tuesday night to prevent widespread tax increases and deep spending cuts, at least for now.
The approved plan maintains tax cuts for individuals earning less than $400,000 dollars and couples earning less than $450,000 a year.
It will raise taxes for those who make more.
"If the tax cuts had been cancelled by going over the fiscal cliff, the average person making $50,000 or $60,000 a year would be paying $2,000 a year extra in taxes," said John Zogby, founder of Zogby Polls.
However, the agreement puts off cuts in federal spending that would have taken effect Wednesday, reducing the budgets of most agencies and programs by 10 percent.
The agreement also doesn't address the $16.4 trillion debt ceiling the country hit on Monday.
"If you don't raise the debt ceiling that means you can't borrow any more money and if you can't borrow any more money you can't pay your bills," said Zogby.
All of these issues will need to be addressed again in two months and many are predicted another showdown in Washington.
Also something to keep in mind, even though the Bush tax cuts were extended by averting the fiscal cliff, the legislation does not prevent a Social Security pay roll tax cut enacted in 2011 from expiring.
For the average person making $50,000 a year, that means $50 a month withheld from a paycheck.