US Senate Leaders Plan Sunday Vote to Avoid 'Fiscal Cliff'
U.S. Senate leaders have given themselves a deadline of Sunday afternoon to reach a deal that could lead to avoiding the so-called fiscal cliff, possibly plunging the country into another recession.
Even if the Democratic-controlled Senate votes for a deal, the Republican-led House of Representatives would also have to approve the measure by late Sunday. Passage of a deal there is far from certain.
However, if Congress can agree on legislation, the president could sign the measure Monday, which would avoid having automatic tax increases on nearly all Americans kick in Tuesday, along with major budget cuts, and the loss of unemployment benefits for millions of Americans.
Neither side has publicly given any indication a deal can be reached anytime soon.
President Barack Obama will appear on a popular Sunday morning TV public affairs program to keep the pressure on Congress. He has proposed cutting the federal deficit, in part by raising taxes on Americans making more than $250,000 a year. Republicans have called for a threshold of $1 million.
Republicans have campaigned for huge spending cuts in government social programs, something Democrats strongly oppose. Democrats want to shrink the defense budget, which Republicans reject.
The president said Friday he is "modestly optimistic" a deal can be reached with Congress.
Also, U.S. Treasury Secretary Timothy Geithner says the nation's debt ceiling will reach its $16.4 trillion limit Monday, New Year's Eve. The ceiling is a limit on how much money the government can borrow to avoid defaulting on its debt. Geithner says Treasury officials will take what he calls "extraordinary measures" under the law to avoid default.
Source: Voice of America
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