With all the talk about the so-called fiscal cliff, President Obama announced on Tuesday that an agreement has been made - just in time.
The President said leaders from both parties in the U.S. Senate came together to reach an agreement that passed with bipartisan support. Obama said this resolution to the fiscal cliff dilemma protects 98 percent of Americans and 97 percent of small business owners from a middle class tax hike.
But at the same, the Congressional Budget Office said Tuesday the legislation passed by the Senate to avoid the fiscal cliff would add nearly $4 trillion to the federal deficit over the next 10 years by extending low tax rates for most Americans.
Obama said neither party got everything they were looking for in the deal but he said this agreement is the right thing to do for our country.
In contrast with the statements from the Congressional Budget Office, Obama said the recent agreement ensures that as a country we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans.