Don’t Jump Yet—Congress May Avoid the Fiscal Cliff

Interest is mounting on Capitol Hill to avert a much-feared ‘fiscal cliff‘ at year end by postponing the scheduled expiration of trillions of dollars’ worth of tax cuts for six months in return for a commitment from lawmakers to reform entitlement programs and the tax code.

Senate Democrats and some Republican House leaders may be “kicking the can down the road,” but talks are intensifying with special interest groups to keep $8 trillion in combined tax increases and spending cuts from automatically kicking in beginning the first week of January.