Senate passes bill to avert fiscal cliff tax hikes

WASHINGTON (AP) - The Senate has passed legislation to block the impact of across-the-board tax increases and spending cuts that make up the fiscal cliff.

The vote was an overwhelming 89-8 and came well after midnight on New Year's Day. A House vote is expected before Wednesday.

The White House-backed legislation would prevent middle-class taxes from rising, and raise rates on incomes over $400,000 for individuals and $450,000 for couples.

It also blocks spending cuts for two months, extends unemployment benefits for the long-term jobless, prevents a 27 percent cut in fees for doctors who treat Medicare patients and prevents a spike in milk prices.

A last-minute addition would also prevent a $900 pay raise for members of Congress from taking effect in March.

President Barack Obama said the "fiscal cliff" agreement reached by the Senate is "the right thing to do for our country" and is encouraging the House to "pass it without delay."

President Obama said the bill takes a balanced approach to shrinking the U.S. deficit by "investing in (the) middle class" while "asking the wealthy to pay a little more."