Congress: Facing The Fiscal Cliff

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Wednesday, September 12, 2012 - 8:03am

Can lawmakers reach a deal to avoid tax hikes and massive defense spending cuts?

Democratic and Republican lawmakers stood together to remember 9/11 Tuesday, but they're so far apart on a budget deal they need to make in order to avoid the so called "fiscal cliff, the top Republican said they might fail.

"I'm not confident at all," House Speaker John Boehner told reporters.

If the fight over taxing the rich and spending isn't settled by January everyone's taxes will increase and deep cuts in defense and social services will be automatically triggered.

Moody's Investor Services warned Tuesday that if the current budget negotiations fail, they expect to lower the rating of U.S. Treasury Bills, much like rival Standard and Poors did last year when Congress gridlocked

Led by Mitt Romney, Republicans are focused on defense cuts, charging President Obama is to blame, even though Republicans agreed to make the cuts automatic if no budget deal is reached.

Democrats are pushing to increase taxes on the wealthiest Americans.

That would avoiding the Pentagon cuts, the Moody's downgrade and the fiscal cliff.

They it's Republicans who are giving up and adjourning next week.

"It's like you're facing a catastrophe and saying 'You know we just don't have time to address that. We have to go home and campaign," complained Connecticut's Representative John Larson.

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