WASHINGTON (CBS/AP) – Twenty-three hours past the deadline, a compromise to avoid the so-called fiscal cliff has passed the House.

The vote passed the House by a 257-167 margin. The Senate approved the bill in an early-morning, 89-8 vote, Tuesday, missing the midnight deadline.

The bill is now headed to the desk of President Obama, who said Tuesday night he would sign it.

Once President Obama signs the bill, it will postpone the sequestered spending cuts for two months, and sets up a new, smaller fiscal cliff to address those cuts.

The across-the-board tax hikes and massive spending cuts that make up the fiscal cliff will not go into effect as scheduled.

The legislation, which is supported by the White House, extend tax cuts for all individuals making less than $400,000 a year and for couples making below $450,000 annually.

But everyone will pay a higher Social Security tax this year.

Taxes will also go up on investment income and for those who inherit estates worth more than $5 million.

The president won extensions of unemployment insurance and several tax breaks for middle-and-lower-income families, including the higher child tax credit and a new tuition tax credit.

The bill will also block spending cuts for two months. But Congress is still faced with budget issues a few weeks from now, when relief from spending cuts expires and the government reaches its borrowing limit.

(TM and © Copyright 2012 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2012 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)


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