Taxes, Congress | featured news

Senate leaders groped for a last-minute compromise Saturday to avoid middle-class tax increases and possibly prevent deep spending cuts at the dawn of the new year as President Barack Obama warned that failure could mean a "self-inflicted wound to the economy."

Lawmakers say Congress probably could resolve the so-called "fiscal cliff" if Republican leaders let Democrats provide most of the votes....

With only a week left before a deadline for the United States to go over a "fiscal cliff," lawmakers played a waiting game on Monday in the hope that someone will produce a plan to avoid harsh budget cuts and higher taxes for most Americans from New Year's Day.

Efforts to avoid the looming U.S. "fiscal cliff" were thrown into disarray on Friday with finger-pointing lawmakers fleeing Washington for Christmas vacations even as the year-end deadline for action edged ever closer.

The GOP-controlled House is moving ahead Thursday on a bill that would raise taxes on people earning over $1 million a year, sparing most workers from a tax hike but leaving in place painful budget cuts to the military and domestic agencies as "fiscal cliff" talks appear stalled.

Politico is reporting that one of its sources claims John Boehner has placed tax increases for the wealthy on the table. He has been adamant that Republicans would never agree to a tax increase for anyone. President Obama has said that there would be no agreement to end the chance of falling over the “fiscal cliff”, without increasing taxes on the wealthiest 2 percent.

Voters looking for signs of progress toward a deal to resolve the "fiscal cliff" got none on Thursday, as congressional leaders appeared as far apart as ever.

Negotiations are expected to continue Thursday on the "fiscal cliff" with Republicans at a growing public opinion disadvantage and approval ratings for President Barack Obama rising to levels not seen since the killing of Osama bin Laden.

House Republican leaders are pressing President Barack Obama to come up with plan they can accept for spending cuts and tax revenue to avoid the so-called "fiscal cliff" of automatic tax hikes and budget reductions.

Some of the best Republican arguments against President Barack Obama's proposals to avoid a "fiscal cliff" come from the president himself, in comments he made months or years before his re-election. Stung by the GOP's midterm election gains in 2010, Obama took stands that differ from his current positions on raising tax rates, adjusting Social Security and other topics now dominating Washington as a Dec. 31 deadline nears.