Lawmakers and President Barack Obama are hurrying back to Washington on Thursday in what appears to be another attempt to avoid going off the fiscal cliff. In order to do that, Congress and the White House must agree on how to handle expiring tax provisions and across-the-board spending cuts, among other short-term issues that will impact the federal budget.
According to a recent Gallup poll, roughly half of the country is skeptical that a deal will happen before the January 1 deadline. Democrats continue to argue that allowing tax rates to expire on families making $250,000 combined and individuals making $200,000 or more will improve the economy. Republicans, however, want taxes to remain at current rates and focus more on entitlement spending cuts.
If no deal is reached, taxes will pop $2,400 for families making, on average, incomes of $50,000 to $75,000 and a CBO report says the country could lose up to 3.4 million jobs.