Mark Wilson- Getty Images

US House of Representatives has passed fiscal cliff bill

POLITICIANS in the United States finally came to an agreement on tax hikes and government spending on Tuesday, avoiding the dreaded "fiscal cliff".

But President Barack Obama, in announcing the deal, said there were still major challenges ahead as the government moves to cut its deficit, rather than simply treading economic water.

"But we can't simply cut our way to tax prosperity," President Obama said.

"We can't not pay bills that we've already incurred."

The deal will avoid the trigger for automatic tax hikes and spending cuts, but the larger problem of the American deficit remains for negotiations next year.

"Hopefully, in the new year we can put a package together like this with a little less drama." President Obama said.



'Your son will be dead by the time he's a teenager'

'Your son will be dead by the time he's a teenager'

Devastating news for Northern Rivers family

Woman who kicked nurse 'too dangerous' to release: Police

premium_icon Woman who kicked nurse 'too dangerous' to release: Police

The 21-year-old should be kept in custody, court hears

Spiritual healer 'leader of socially harmful cult': Jury

Spiritual healer 'leader of socially harmful cult': Jury

Serge Benhayon sued Esther Mary Rockett over blogs and tweets

Local Partners