Is Plunge Over Fiscal Cliff Imminent? Maybe Not
By: Michael C. Fehn
Updated: December 31, 2012
UPDATE: WASHINGTON (AP) -- Democrats and Republicans say signs of progress are emerging in urgent negotiations to avert the looming `fiscal cliff' ahead of a midnight deadline.
A person familiar with the negotiations says Democrats have offered to extend tax cuts for families making up to $450,000 a year and individuals making up to $400,000. President Barack Obama originally wanted the tax cuts to be extended only for families making up to $250,000 a year.
Unless an agreement is reached and approved by Congress by the start of New Year's Day, more than $500 billion in 2013 tax increases will begin to take effect and $109 billion will be carved from defense and domestic programs
The person familiar with the talks requested anonymity in order to discuss the internal negotiations.
PREVIOUSLY: WASHINGTON (AP) -- Taxes on the wealthy and Republican demands for budget cuts to pay for Democratic spending proposals were separating the two parties as the deadline for avoiding the "fiscal cliff" has drawn to within hours.
Senate Minority Leader Mitch McConnell spoke late Sunday with Vice President Joe Biden, a former Senate colleague, in hopes of settling remaining differences. That followed weekend bargaining between McConnell and Senate Majority Leader Harry Reid that left several issues unresolved.
Unless an agreement is reached and approved by Congress by midnight Monday, more than $500 billion in 2013 tax increases will begin to take effect and more than $100 billion will be carved from defense and domestic programs. Economists warn that the combined impact -- the so-called fiscal cliff -- could rekindle recession.
A person familiar with the negotiations says Democrats have offered to extend tax cuts for families making up to $450,000 a year and individuals making up to $400,000. President Barack Obama originally wanted the tax cuts to be extended only for families making up to $250,000 a year.
Unless an agreement is reached and approved by Congress by the start of New Year's Day, more than $500 billion in 2013 tax increases will begin to take effect and $109 billion will be carved from defense and domestic programs
The person familiar with the talks requested anonymity in order to discuss the internal negotiations.
PREVIOUSLY: WASHINGTON (AP) -- Taxes on the wealthy and Republican demands for budget cuts to pay for Democratic spending proposals were separating the two parties as the deadline for avoiding the "fiscal cliff" has drawn to within hours.
Senate Minority Leader Mitch McConnell spoke late Sunday with Vice President Joe Biden, a former Senate colleague, in hopes of settling remaining differences. That followed weekend bargaining between McConnell and Senate Majority Leader Harry Reid that left several issues unresolved.
Unless an agreement is reached and approved by Congress by midnight Monday, more than $500 billion in 2013 tax increases will begin to take effect and more than $100 billion will be carved from defense and domestic programs. Economists warn that the combined impact -- the so-called fiscal cliff -- could rekindle recession.
