US prevents default

The US House of Representatives has prevented a tax rise for the middle class and the poor. Tax benefits will be removed for individuals with incomes of over $400,000 and families with over $450,000. An automatic sequester was postponed by 2 months.

US Vice President Joe Biden and leader of the Republican Party Mitch McConnell reached an agreement before the New Year to increase taxes.

The budget may be reduced by $1.2 trillion in early 2013. President Barack Obama will soon sign the bill.