President Obama hopeful of a solution to “fiscal cliff”

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Ahead of the deadline of January 1, 2013, the White House said it would work in collaboration with the Congress with a view to strike a two-party deal.

The cliff looms as President Obama failed to get vote of the Republicans on a proposal that would raise taxes on the high earners.
The plan got rejected by the right-leaning Republicans.

Analysts suggest that the rejection has faded Mr Boehner’s position to negotiate with the Obama administration.

There’s a little chance that Mr Boehner’s plan would get passed by the Senate vote since the Senate is led by the Democrats and the House is led by the Republicans.
If the politicians fail to reach an agreement then the new fiscal rules will be in effect by the end of this year.

Analysts predict that if the “fiscal cliff” is triggered then US might go into recession.

 

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