Congress is in Washington looking to vote for a last minute deal if one is made.
January 1st is the day when the fiscal cliff hits unless Obama and Congress can agree to changes to taxes and spending. If no deal can be made then there will be an automatic increase in taxes for most taxpayers as the Bush tax cuts expire. There will also be automatic spending cuts across federal spending budgets. The cost to individuals in higher taxes and the effects on the economy are expected to be significant possibly sending the economy into a recession. Higher taxes on people including many small businesses will mean less money to spend cutting consumption and negatively effecting consumer confidence. This will lead to less spending causing businesses to cut back including the elimination many jobs. Expections are that unemployment rates will rise to over 9%. Also, GDP rates will decline as much as 3 points meaning the economy will be negative and will be in a recession.