What major challenges still face the US?

President Barack Obama signed into law the ‘fiscal cliff' bill on Wednesday 2 January 2013 designed to prevent the country rolling out sharp spending cuts and sweeping tax rises.

The headline changes included raising tax rates to 39.6% from 35% on individuals making at least $400,000 and couples with combined incomes of more than $450,000. The agreement also extended unemployment insurance benefits for over two million people and allowed the 2% payroll tax cut to expire on 31 December. Known as the American Taxpayer Relief Act of 2012, the legislation, which also included billions in tax breaks for US businesses, lifted confidence across global markets. But, for many, the deal has only provided a short-term fix to the country's economic challenges, as decis...