US President Barack Obama and lawmakers are launching a last-chance round of budget talks. There are just a few days left before the New Year’s deadline to reach a deal or watch the economy go off what’s been term the "fiscal cliff."
Obama will meet congressional leaders from both parties at the White House on Friday. The two political parties remain far apart, particularly over plans to increase taxes on the wealthiest Americans to help close the U.S. budget deficit. The issue has been Obama’s first test of muscle after his re-election in November.
At stake are Bush-era tax cuts and a reversion to the higher rates in place during the Clinton administration in the 1990s. Nearly all Americans and businesses including the military would be affected.
Meanwhile in order to be ready to legislate if an agreement takes shape, the Republican-dominated House of Representatives will convene for a session on Sunday.