Markets Brace for 'Fiscal Cliff' Deadline
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Investors awoke Monday to find the fiscal cliff still unresolved with literary hours until the deadline. Still there is hope of a last minute breakthrough, keeping a lid on market losses.
Negotiations between Senate Majority Leader Harry Reid (D) and Senate Minority Leader Mitch McConnell (R) over the weekend reached an impasse and they failed to meet a goal of a mid-Sunday afternoon deal. McConnell turned to Vice President Joe Biden to restart talks and the two talked into the night.
Despite no deal being reached, there appears to be movement on the definition of 'being rich', which would see tax rates headed higher. President Obama originally called for tax hikes on families making $250,000 or more. Republicans have proposed a $550,000 threshold. Democrats have since moved up to $450,000.
While positive movement was seen on taxing the rich, there are many other sticking points and, according to Mr. Reid, "there is significant distance between the two sides."
One of those sticking points relates to social security and the term "Chained CPI." Basically, Republicans are calling for a slowing of the growth of Social Security cost-of-living increases.
If a bipartisan bill is not struck in time, Mr. Reid is expected to bring up a vote on President Obama's backup proposal which would extend current tax rates for those making less than $250,000 and extend unemployment benefits. The backup bill is expected to have enough votes to pass the Senate but could fail in the Republican-controlled House.
Negotiations between Senate Majority Leader Harry Reid (D) and Senate Minority Leader Mitch McConnell (R) over the weekend reached an impasse and they failed to meet a goal of a mid-Sunday afternoon deal. McConnell turned to Vice President Joe Biden to restart talks and the two talked into the night.
Despite no deal being reached, there appears to be movement on the definition of 'being rich', which would see tax rates headed higher. President Obama originally called for tax hikes on families making $250,000 or more. Republicans have proposed a $550,000 threshold. Democrats have since moved up to $450,000.
While positive movement was seen on taxing the rich, there are many other sticking points and, according to Mr. Reid, "there is significant distance between the two sides."
One of those sticking points relates to social security and the term "Chained CPI." Basically, Republicans are calling for a slowing of the growth of Social Security cost-of-living increases.
If a bipartisan bill is not struck in time, Mr. Reid is expected to bring up a vote on President Obama's backup proposal which would extend current tax rates for those making less than $250,000 and extend unemployment benefits. The backup bill is expected to have enough votes to pass the Senate but could fail in the Republican-controlled House.
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