Man flicking through bundle of $100 bills
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US cancels vote on Boehner's fiscal cliff 'Plan B'

US Republicans have cancelled a tax vote in Congress, less than two weeks before a deadline for budget reform.

Republican House speaker John Boehner proposed the bill, which would have raised taxes on high earners. But right-leaning Republicans rejected it.

Analysts say the rejection has weakened Mr Boehner's position in negotiations with the White House.

Politicians need to agree fiscal rules by 1 January, or steep tax rises and deep spending cuts will take effect.

Ben Wright reports from Washington.

  • 21 Dec 2012
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