US Congress passes controversial tax deal

The US Congress has approved a contentious tax and benefits deal agreed between President Barack Obama and the Republicans.

It is a high stakes gamble.

The 642 billion-euro plan may well boost the US economy by creating jobs, but this could be at the cost of deepening the national debt.

Obama must now compromise with the Republicans in the wake of the November mid-terms.

It is being seen as a victory for the Republicans. They have fought long and hard to keep taxes low – critics say because the wealthy stand to benefit the most.

The bill will extend tax cuts for two years for millions of Americans.

It will renew jobless benefits and will provide a variety of other tax breaks for those in work.

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