Fiscal cliff: Obama leaves vacation early to deal with negotiations

POSTED: Wednesday, December 26, 2012 - 8:30pm

UPDATED: Wednesday, December 26, 2012 - 8:34pm

President Obama will be leaving the warmth of Hawaii and return to stormy Washington on Thursday to try and stop the country from going over the fiscal cliff.

But right now there is no specific deal on the table. Democrats blame republicans for not agreeing last week to end tax cuts for the wealthiest Americans.

Republicans won't agree on ending cuts for people making over $250,000, but say there may be room for compromise.

If no deal is reached by the end of the year, Americans will see their income taxes go up and over 2 million people will lose their jobless benefits.

$110 billion in spending cuts will hit many federal agencies. Analysts also predict fewer companies will hire. They also fear that without a deal, Wall Street will struggle as worried consumers and businesses greatly reduce their spending.

With only the Senate returning Thursday, President Obama will likely turn to his ally, Senate Majority Leader Harry Reid to try and craft some kind of deal.

  

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