Edge of Fiscal Cliff nearing
President Obama is expected to send to Congress on Thursday a proposal for a scaled-back agreement to avoid some of the so-called “fiscal cliff.”
The president returned to the White House from a vacation in Hawaii on Thursday morning. He got back with just a few days left to reach a budget deal. If he and lawmakers don’t reach an agreement by the end of the year, sharp tax hikes and deep spending cuts will automatically kick into effect.
The president wants to raise taxes on families that earn $250,000 or more a year, but Republicans say any increases will hurt the economy.
The Democratic-controlled U.S. Senate reconvened on Thursday, but the Republican-controlled House remains on Christmas break. Members were warned they could be called back on 48 hours notice.
The president talked by phone on Wednesday night to the top Republican and Democratic leaders in the House and Senate. Democratic Majority Leader Harry Reid says it looks like our country will go over the “cliff.”