Fiscal Cliff Looms Large, Talks Stall

The U.S. Senate reconvenes this morning with just a few hours left to avert the “fiscal cliff” crisis. There is still no sign of an agreement to extend the Bush tax cuts. The sticking point is President Obama’s demand that the tax cuts for wealthier Americans be eliminated. Congressional Democrats are offering to impose the tax hike on people earning more than $450,000 a year; that’s $200,000 more than the president’s income threshold.