Obama signs fiscal cliff bill

The deal, approved late on Tuesday, averted devastating tax hikes and spending cuts that could have plunged US into recession

US President Barack Obama on Wednesday signed into law the fiscal cliff bill that extends lower tax rates permanently on annual household incomes under $4,50,000 and postpones automatic spending cuts for two months.

"We received the bill late this afternoon, and it was immediately processed.  A copy was delivered to the President for review. He then directed the bill be signed by autopen," a senior White House official said.

An autopen or signing machine is a device used for automatic signature.

Called the "American Taxpayer Relief Act of 2012," the bill makes permanent the temporary rates on taxable income at or below $400,000 for individual filers and $450,000 for married individuals filing jointly.

It also permanently indexes the Alternative Minimum Tax exemption amount to the Consumer Price Index and extends emergency unemployment compensation benefits and Federal funding for unemployed workers for one year.

Among other things, it continues current law Medicare payment rates for physicians' services furnished through December 31, 2013 and provides a postponement of the Budget Control Act's sequester for two months.