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Congress Misses Fiscal Cliff Deadline, Possible Deal Reached in Senate

Vice President Joe Biden, center, with Majority Leader Harry Reid of Nevada, and Majority Whip Dick Durbin of Illinois, head to a Senate Democratic caucus meeting about the fiscal cliff, on Capitol Hill Monday, Dec. 31, 2012 in Washington.

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Cindy Saine

December 31, 2012

CAPITOL HILL — White House and Senate Democratic officials say they have reached a deal with congressional Republicans after two days of marathon negotiations aimed at averting the so-called "fiscal cliff" that would institute tax hikes at the beginning of the year.

Vice President Joe Biden met with Senate Democrats at the Capitol late Monday as the news of a possible deal emerged.

Reports say the deal would delay the fiscal cliff deadline by two months and extend Bush-era tax cuts for households making less than $450,000.

The Senate called a recess late Monday, virtually ensuring no vote before the midnight deadline to avert the fiscal cliff. House members earlier left the Capitol without taking any action. They planned to reconvene at noon Washington time on Tuesday.

Senate Republican leader Mitch McConnell said earlier that members of both parties had agreed on all tax issues. At the White House, President Barack Obama said negotiators still had work to do to reach an accord on whether to delay significant, mandated government spending cuts. Analysts say that absent a compromise, the $500 billion in austerity measures eventually could plunge the U.S. economy into another recession.

Lawmakers and analysts say there is plenty of blame to go around for a situation that frustrates ordinary Americans.

Retiring Republican Congressman Steven LaTourette of Ohio said he still believes the U.S. system of government is the best in the world, but he faulted all sides for not trying to find common ground.

"Because no one, from the White House to either house of Congress has the political courage to do what everybody in town knows needs to be done, and that is to come up with a big deal that actually solves the nation's debt problem, supplies sufficient revenues to operate the government, while at the same time trimming spending," he said.

Democratic Congresswoman Gwen Moore of Wisconsin said the deal might have looked better to Democrats under the pressure of the midnight deadline than it will look later after taxes automatically go up on everyone. "And so, it may not be such a great deal, if they force us over the cliff. So we will have to wait and see," she said.

Steve Dennis of Roll Call congressional news agency says tax hikes have been the major stumbling block. "They have had two years to deal with this. I think the reality is that the Republican leadership had to be seen by their members and by Republicans and outside groups as doing absolutely everything they could, up until the end, to block any tax increase," he said.

New York resident Sarah Cunningham is frustrated by Congress' repeated inability to tackle problems. "I can't for the life of me figure out why they can't make things work. It doesn't make a benefit to anyone. It seems like a family squabbling within itself rather than getting to the real point," she said.

Virginia resident Jay Miller believes the legislation will have to be taken up by the new Congress, which will be sworn in January 3.

"There is more interest in having things go over the cliff than not. And with the new Congress being sworn in later this week, it will have to be sorted out then," he said.

Economists have warned that failure to avert the combination of tax hikes and spending cuts could plunge the U.S. back into recession. But most experts say that if Congress is able to take action quickly, any potential damage would be minimized, especially if it comes before the stock markets reopen after the New Year's Day holiday.

VIDEO: Related report by Michael Bowman

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Congress Misses Fiscal Cliff Deadline, Possible Deal Reached in Senate

<h1>Congress Misses Fiscal Cliff Deadline, Possible Deal Reached in Senate</h1><img src="http://www.voanews.com/App_Themes/VOA_en-US/img/colorLogo.gif"/>White House and Senate Democratic officials say they have reached a deal with congressional Republicans after two days of marathon negotiations aimed at averting the so-called "fiscal cliff" that would institute tax hikes at the beginning of the year.<br /> <br /> Vice President Joe Biden met with Senate Democrats at the Capitol late Monday as the news of a possible deal emerged.<br /> <br /> Reports say the deal would delay the fiscal cliff deadline by two months and extend Bush-era tax cuts for households making less than $450,000.<br /> <br /> The Senate called a recess late Monday, virtually ensuring no vote before the midnight deadline to avert the fiscal cliff. House members earlier left the Capitol without taking any action. They planned to reconvene at noon Washington time on Tuesday.<br /> <br /> Senate Republican leader Mitch McConnell said earlier that members of both parties had agreed on all tax issues. At the White House, President Barack Obama said negotiators still had work to do to reach an accord on whether to delay significant, mandated government spending cuts. Analysts say that absent a compromise, the $500 billion in austerity measures eventually could plunge the U.S. economy into another recession.<br /> <br /> Lawmakers and analysts say there is plenty of blame to go around for a situation that frustrates ordinary Americans.<br /> <br /> Retiring Republican Congressman Steven LaTourette of Ohio said he still believes the U.S. system of government is the best in the world, but he faulted all sides for not trying to find common ground.<br /> <br /> "Because no one, from the White House to either house of Congress has the political courage to do what everybody in town knows needs to be done, and that is to come up with a big deal that actually solves the nation's debt problem, supplies sufficient revenues to operate the government, while at the same time trimming spending," he said.<br /> <br /> Democratic Congresswoman Gwen Moore of Wisconsin said the deal might have looked better to Democrats under the pressure of the midnight deadline than it will look later after taxes automatically go up on everyone. "And so, it may not be such a great deal, if they force us over the cliff.  So we will have to wait and see," she said.<br /> <br /> Steve Dennis of Roll Call congressional news agency says tax hikes have been the major stumbling block. "They have had two years to deal with this.  I think the reality is that the Republican leadership had to be seen by their members and by Republicans and outside groups as doing absolutely everything they could, up until the end, to block any tax increase," he said.<br /> <br /> New York resident Sarah Cunningham is frustrated by Congress' repeated inability to tackle problems. "I can't for the life of me figure out why they can't make things work. It doesn't make a benefit to anyone. It seems like a family squabbling within itself rather than getting to the real point," she said.<br /> <br /> Virginia resident Jay Miller believes the legislation will have to be taken up by the new Congress, which will be sworn in January 3.<br /> <br /> "There is more interest in having things go over the cliff than not. And with the new Congress being sworn in later this week, it will have to be sorted out then," he said.<br /> <br /> Economists have warned that failure to avert the combination of tax hikes and spending cuts could plunge the U.S. back into recession.  But most experts say that if Congress is able to take action quickly, any potential damage would be minimized, especially if it comes before the stock markets reopen after the New Year's Day holiday. <p>  </p> <p>  </p> <strong>VIDEO: Related report by Michael Bowman </strong> <div><div id="v7b37e42d2dc44a89a5f6ed79f811f23c" class="mediaplayer videoplayer"> <div id="v7b37e42d2dc44a89a5f6ed79f811f23c_swfFlash"> <link id="v7b37e42d2dc44a89a5f6ed79f811f23c_h5t_DynamicLink2" HrefTemplate="~/css{0}/jquery.ui.cssx" rel="stylesheet" type="text/css" /> <div class="playerUI1 big Video j_fullscreen_container j_player j_html5" id="v7b37e42d2dc44a89a5f6ed79f811f23c_h5t" style="width:640px"> <div class="can-play"> <div class="videoInner j_media-block"> <video id="v7b37e42d2dc44a89a5f6ed79f811f23c_h5t_h5pHtml5" poster="http://gdb.voanews.com/6E3DACC2-EB28-4029-9C50-5BF38B6ECBFA_.jpg" width="640px" height="392px"> <source src="http://cdnbakmi.kaltura.com/p/1175831/sp/117583100/serveFlavor/entryId/1_u9gvs7fm/flavorId/1_h4fl45mj/name/a.mp4" type="video/mp4"> </source> </video> <img title="please wait" class="j_waiting waiting" src="../../img/loading.gif" alt="Loading" /> <div class="j_title media-title" style="display:none"> <span id="v7b37e42d2dc44a89a5f6ed79f811f23c_h5t_spaMediaTitle" class="j_title-text">United States Careens Towards Fiscal Cliff</span> <button class="j_title-close" type="button" title="Hide">✖</button> </div> </div> <div class="playerButtons j_playerButtons j_mediaWidth"> <div class="playerButtonsInner">  <button type="button" class="j_play play" title="Play"><span>▶</span></button> <button type="button" class="j_pause pause" style="display:none" title=""><span>||</span></button> <button type="button" class="j_stop stop" title="Pause"><span>■</span></button>  <div class="playprogressbar_container j_mediaWidth" data-wplus="-235"> <div class="j_play_loader progressbar_loader"></div> <div class="j_play_slider progressbar_slider" style=""></div> </div>  <div class="times"> <span class="j_elapsed time-elapsed">12:00:00</span> / <span class="j_total time-total">-:--:--</span> </div> <div class="right-controls">  <div class="j_all_volume_controls all_volume_controls"> <div class="j_volume_container volumeprogressbar_container"> <div class="j_volume_slider volume_slider" style=""></div> </div> <button type="button" class="j_mute mute loud"> <span class="mute" title="">🔇</span> <span class="unmute" title="">🔉</span> </button> </div>  <a id="v7b37e42d2dc44a89a5f6ed79f811f23c_h5t_hylFullscreen" class="j_fullscreen fullscreen" title="" href="/flashembed.aspx?t=vid&id=1575054&w=100%&skin=embededfullscreen" href="/flashembed.aspx?t=vid&id=1575054&w=100%&skin=embededfullscreen" target="_blank"><span>⎚</span></a> <a id="v7b37e42d2dc44a89a5f6ed79f811f23c_h5t_hylShare" class="share" onclick="return openSharePopup('http://www.voanews.com/emailtofriend/video/1575054.html?isflashembed=true')" href="http://www.voanews.com/emailtofriend/video/1575054.html?isflashembed=true" target="_blank" href="http://www.voanews.com/emailtofriend/video/1575054.html?isflashembed=true" target="_blank"><img src="../../img/player_ico_share_darkbg.png" alt="Share" /></a> </div> </div> </div> <button id="v7b37e42d2dc44a89a5f6ed79f811f23c_h5t_Button1" type="button" class="j_play playBig" title="Play"><span>▶</span></button> </div> <div class="cannot-play j_errorContainer"> </div> </div> <script type="text/javascript"> //height correcture of the video by buttons var oVid = $("#v7b37e42d2dc44a89a5f6ed79f811f23c_h5t video"); 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