Washington (Reuters) - the United States senate leaders made a deal, in order to avoid "wealth cliff", it is far from any "big deal" deficit reduction measures.
However, if the United States house of representatives of the approval, it can help the country's recession, although enough to avoid deflation policy will continue to stay in the local economic growth may remain in a sorehead pace.
The United States senate approved the last minutes of trading day morning, reduction of us $60 billion in the scheduled taxes and government spending cuts, economists generally believe that tip the economy into a recession.
The deal will be permanent tax rates, families with an income of over $450000, but in other people's strength, maintain current low interest rates.
It will make permanent alternative minimum tax "patch", it is set to expire, protection is tax, if they are rich in middle-income americans.
National defence and the national defence spending cuts to just put off two months.
Economists said, if emerging packing into law, this will mean that at least a temporary economic probation. "This makes our present economic recession," Menzie qin said, the United States at the university of wisconsin-madison economists.
In New York, Deutsche Bank, Deutsche Bank) economists Brett said, Ryan, profile processing show that about a third of the plan of the austerity policy may occur.
This is in contact with the Wall Street and the rest of the world's many financial institutions have been looking forward to, it shows that 2013 is likely to remain around 1.9% economic growth forecasts.
On December 1, 1, according to the then President George w. bush in 2001 and 2003 for low rate overdue. If the house of representatives and the senate agree - at this point, there are still a considerable doubt - new interest rates will extend back.
Otherwise, along with other tax increases plan, average every family will pay an estimated 3500 tax, according to the tax policy centre, a Washington think-tank. Budget experts predict that spending cuts as a family, the economy suffered a crushing defeat.
Plan in the senate bill regulations will avoid cut unemployment benefit, and according to the federal health insurance plan of payments to doctors.
Tightening the bite of
Wall Street and other economists consensus, Deutsche Bank, Deutsche Bank) prediction enough fiscal drag suppress in 2013 growth to about 1.9%. Ryan said, in on the processing of detail seems to support this prediction.
This is far superior to the U.S. congressional budget office forecast of 0.5% contraction, if the financial cliff caught, but it will fall in what is need rapid healing of the labor market, it is still fresh from 2007 -, recession.
"We will continue to earlier this year financial drag, is a controversial fiscal debate predicted an important economic slowdown," Nomura securities (Nomura) economists in a research report said.
In particular, analysts believe that financial markets may continue to stay in fear and trembling, until congress to improve the national debt limit of $16.4 trillion, the us Treasury has confirmed Monday reached.
Although the bush tax cuts will become permanent project budget deal for many americans, 2 years to pay tax holiday economy an additional power, will set in. Tax policy center estimates, which can push about 700 yuan of the average family tax bill "next year.
Cut costs suspension set up a smaller fiscal year can still be enough to make the economy into a recession cliff, qin said.
He warned that ongoing concerns about the possibility of a recession, keep the enterprise investment, it will hinder economic growth.
"You keep uncertainty," qin said.



Other News:
Analysis: Economy would dodge bullet for now under fiscal deal
Four killed when Russian airliner crash lands
Desperate for weapons, Syrian rebels make their own, fix tanks
21 missing Pakistani policemen found shot dead
State Department made ＂grievous mistake＂ over Benghazi: Senate report
Tribune to leave bankruptcy after 4 years
Budget struggle raising anxiety for health care
Last-minute fiscal cliff talks in Senate