UPDATE: Senate leaders pessimistic on deal to avert fall from ‘fiscal cliff’
The top Senate negotiators on the effort to prevent the government from going over the “fiscal cliff” offered a pessimistic assessment Sunday, barely 24 hours before a deadline to avert tax hikes on virtually every American worker. But negotiations continued, with Vice President Joe Biden taking on a new role.
With the two sides differing on the income threshold for higher tax rates and how to deal with inheritance taxes, among other issues, talks between Senate Majority Leader Harry Reid, D-Nev., and Senate Republican leader Mitch McConnell appeared to have broken down. A McConnell spokesman said the Kentucky Republican reached out to Biden, a longtime friend, in hopes of breaking the impasse.
Republicans withdrew a long-discussed proposal to slow future cost-of-living increases for Social Security recipients as part of a compromise to avoid the cliff. Democrats said that proposal had put a damper on the talks, and Republican senators emerging from a closed-door GOP meeting said it is no longer part of the equation.