For the last 10 days, talks between the lawmakers over fiscal cliff have been stalled but they are hopeful that progress on the matter is possible and they will be able to avoid tax increases and cut to govt. spending before the January 1, deadline.
Cutting the budget deficit into half could potentially throw the country back into recession, and with the negotiations stalled, no further developments are seen over avoiding going over the fiscal cliff. "Unfortunately, for the last 10 days, with the House and Congress gone for the Thanksgiving recess ... much progress hasn't been made," Dick Durbin, the No. 2 Senate Democrat, told ABC's "This Week" program.
Mean while several GOP leaders, have decided to pull back from the no-tax increase pledge made to lobbyistand his group for Tax Reforms.
The negotiations will resume on a serious note from this week, as the conservatives and the Democrats continue their efforts to convince public and financial markets that they are ready to compromise if that’s what it takes to save the country from a recession.
Durbin said that the Republicans should do more than just showing willingness towards the elimination of deductions for high income Americans, because it’s not the only thing that will raise enough revenues to reduce the deficit.
"Let the [highest tax] rates go up to 39 [percent]. Let us also take a look at the deductions. Let's make sure that revenue is an integral part of deficit reduction," Durbin said.
While House Speaker,, has signaled cooperation over a short term plan to avert the issue for the time being, Republican Senator, , said that a more comprehensive plan should be called for, and both parties must demonstrate ‘political courage’ to reach $4trillion deficit reduction deal before the beginning of 2013.
"Kicking the can down the road — setting up a process for token deficit reduction today with the promise of more reforms later — is misguided and irresponsible and shows a total lack of courage," Corker wrote in an editorial in the Washington Post.
Besides income tax breaks, that have perhaps attracted most attention during the on-going talks, Senate Finance Committee Chairman, Senator, one of the most vocal players in the issue, told a newspaper in Montana, that he also wants to preserve ‘estate tax breaks’ to allow farmers to pass down their land to their children.