Washington D.C. – Efforts to prevent the U.S. from falling off the ‘fiscal cliff’ remain stalled as lawmakers struggle to find common ground. The looming deadline of December 31st adds pressure to the ongoing discussions between the White House and Congress.

Key Sticking Points

The primary obstacles revolve around disagreements on how to address the budget deficit. Democrats are pushing for tax increases on wealthier Americans, while Republicans advocate for spending cuts and entitlement reform.

Potential Consequences

If no agreement is reached, automatic tax increases and across-the-board spending cuts will take effect. Economists warn that this could trigger another recession.

• Tax increases would affect most Americans.
• Defense and non-defense spending would be significantly reduced.
• Consumer confidence could decline.

Both sides acknowledge the urgency of the situation but remain far apart on key policy issues. The coming days will be crucial in determining whether a compromise can be reached to avoid the fiscal cliff.