Washington technically dodged the fiscal cliff at the last second with the House passing the fiscal cliff bill 257 to 167. But, instead of cutting spending and raising revenue - the deal increases spending , and cuts revenue.
The fiscal cliff bill also puts off for two months $1.2 trillion in spending cuts that were supposed to take effect today. And because this deal extended most of the Bush tax cuts, the Congressional Budget Office says it will increase deficits by about $4 trillion over the next ten years.
It took more than 500 days for Congress and the President to get to a deal on avoiding the fiscal cliff. In the days and weeks ahead, raising the debt limit and dealing with sequestration will be next battle line.
Is there any hope for a deal now that will avoid an American financial crisis?
OutFront tonight: Founder & Co-CIO, PIMCO Bill Gross.
While we wait for the President to sign the Fiscal Cliff bill into law - he's already drawing lines in the sand for the next ugly battle over the nation's debt ceiling.
"While I will negotiate over many things, I will not have another debate with this Congress over whether or not they should pay the bills that they've already racked up through the laws that they passed," President Barack Obama said.
But is that more rhetoric than reality?
OutFront Tonight: CNN Contributor Reihan Salam, who also writes for the National Review, Political Analyst Roland Martin, and John Avlon, columnist at Newsweek and the Daily Beast.
The House approved the Senate fiscal cliff bill late Tuesday - 257 votes in favor to 167 against.
The package (PDF) puts off budget cuts for two months and preserves Bush-era income tax cuts for individuals earning less than $400,000 or couples earning less than $450,000.
President Barack Obama delivered a statement at the White House, saying he will sign the legislation.
"This law is just one step in a broader effort in strengthening our economy," Obama said.
OutFront tonight: One man responsible for wrangling Republican votes in the House - Deputy whip, Congressman Tom Cole (R-OK), who serves on both the Budget and Appropriations Committees.
Arizona Republican Congressman David Schweikert tells CNN's Ali Velshi he will vote no on the Senate fiscal deal.
A fiscal measure that was passed overwhelmingly 89 to 8 in the Senate Tuesday faces a snag in the House. House Majority Leader Eric Cantor says he does not support the Senate bill.
So what will the Republican Conference do? CNN has learned that the House will vote on the Senate bill to avert the fiscal cliff.
OutFront tonight: One man responsible for wrangling Republican votes - Deputy whip, Congressman Tom Cole (R-OK), who serves on both the Budget and Appropriations Committees.