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Democratic officials: Fiscal 'cliff' deal reached

The Obama administration sealed a New Year's Eve accord with Senate Republicans to neutralize across-the-board tax increases and spending cuts in government programs that took effect at midnight, according to administration and Senate Democratic officials.

 

Without legislation, economists in and out of government had warned of a possible new recession and spike in unemployment if the economy were allowed to fall over the so-called fiscal cliff of tax increases and spending cuts. (AP)