WASHINGTON (AP) — The House will miss the midnight Monday deadline lawmakers set for voting to avoid the "fiscal cliff."

House Republicans notified lawmakers that the chamber will vote Monday evening on other bills. They say that will be their only votes of the day.

President Barack Obama and Senate Republican leader Mitch McConnell said Monday they are near a deal to avoid wide-ranging tax increases and spending cuts — the fiscal cliff — that take effect with the new year.

Both men said they were still bargaining over whether — and how — to avoid $109 billion in cuts to defense and domestic programs that take effect on Wednesday.

It remained unclear whether the Senate would vote Monday.

Congress could pass later legislation retroactively blocking the tax hikes and spending cuts.

Copyright © 2012 Associated Press

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WASHINGTON (AP) - President Barack Obama says a deal to avert across-the-board tax hikes and programs cuts is "within sight, but not done."

The president offered the update during a White House news briefing with a group of middle-income Americans standing with him. He said the last thing people want to hear on New Year's Eve is "another speech," but that he had to "talk about progress being made."

Obama said middle class families, businesses and the nation can't afford the kind of tax hikes that would go into effect tomorrow if there is no agreement. He called that possibility "a pressing concern on people's minds."

People aware of the talks say the potential agreement would extend tax cuts to households earning up to $450,000 but that divisions remain over spending cuts.

The president said the potential agreement would extend unemployment benefits for 2 million people. Obama said the deal would also include the extension of numerous tax credits including those for college tuition, families with children and clean energy.

Obama said he would have preferred "a grand bargain" to solve of the tax and spending problems but is hopeful Congress will approve the proposal being shaped.

Copyright © 2012 Associated Press

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By JULIE PACE and BEN FELLER
WASHINGTON (AP) - The contours of a deal to avert the `fiscal cliff' are emerging that would raise tax rates on couples making over $450,000 a year, raise the estate tax rate and extend unemployment benefits for one year.

That's according to officials familiar with the negotiations.

The deal in the works would return tax rates on families making over $450,000 to 39.6 percent. The tax on estates worth more than $5 million would increase to 40 percent. And unemployment benefits would continue for one year.

The officials say the White House and Republicans are at an impasse over what to do about automatic, across-the-board spending cuts set to begin taking effect on Jan. 1. Democrats want to put off the cuts for one year.

The officials requested anonymity in order to discuss the internal negotiations.

Copyright © 2012 Associated Press

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WASHINGTON (AP) - Senate Majority Leader Harry Reid says the two sides are still apart as they race against a midnight deadline for resolving their differences over the "fiscal cliff."

The Nevada Democrat says negotiations are continuing. But he cautioned that bargainers are running out of time and still have differences over some issues, though he did not say what still divides them.

Reid's remarks came Monday morning after the two sides narrowed their differences during an evening of bargaining between Senate Minority Leader Mitch McConnell and Vice President Joe Biden.

Without agreement by midnight, wide-ranging tax increases and budget-wide spending cuts - the so-called fiscal cliff - will begin taking effect. Though the impact of those changes would be felt gradually, economists have warned that they could cause recession if left intact.

Copyright © 2012 Associated Press

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