Fiscal cliff talks to resume Thursday

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December 26, 2012, 5:51 pm
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(NECN/NBC News: Jennifer Johnson) - President Barack Obama will be leaving the warmth of Hawaii and return to stormy Washington 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.

"Basically what they said is we are not going to let the rich pay one dime more," said Rep. Elijah Cummings (D-Md). "There's something awfully wrong with that picture and I think the American public is seeing that."

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

"I'd be for no one having a tax increase, but I know I'm not in the majority in the United States Senate, so we've got to sit down and hammer something out," Sen. Kay Bailey Hutchinson (R-Texas) said.

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. Meanwhile, $110 billion in spending cuts will hit many federal agencies, and analysts predict fewer companies will hire. Analysts 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, Obama will likely turn to his ally Senate Majority Leader Harry Reid to try and craft some kind of deal.

Tags: barack Obama, Senate, Harry Reid, Democrats, Republicans, Jennifer Johnson, fiscal cliff, fiscal cliff negotiations, House of Representative, Elijah Cummings, Kay Bailey Hutchinson
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