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What if US economy goes over 'fiscal cliff'?

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    Jim Angle reports from Washington

  • Duration 2:43
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As we told you earlier -- Obama is rejecting a counteroffer from house Republicans to try to get the country off the fiscal cliff so the stalemate continues.

What happens if we wake up on January 2 and the economy has fallen off the fiscal cliff.

Here's chief national correspondent Jim Angle.

Today yeah.

Offer made clear Republicans want to avoid going over the fiscal -- which some Democrats speculated might happen.

To their benefit.

I think it's exactly the way they White House and and many democratic.

Members and leadership believe.

We just go over the cliff.

All those tax rates will go up will then enact tax cuts for the 98%.

And that will get congratulations.

From the American people.

-- or adding back tax cuts for incomes under 250098%.

Of income would -- some three point seven trillion dollars over ten years.

That would only say -- 800 billion or so we're raising rates on the higher end job.

Democrats complained the Republicans didn't pay for the bush tax cuts.

But no one on the democratic side is talking about -- offsetting savings now to extend -- several Democrats have contemplated going over the cliff in recent days.

Perhaps in hopes of gaining.

If the Republicans will not -- that didn't agree with -- we will reach a point at the end of this year where all the tax cuts expire.

We'll start over next year a former Republican senate -- however says it would be hard to blame one party.

I think they realize that both sides will be culpable if we go over the cliff.

House bigger John -- is going over the cliff is far too dangerous to the economy.

Nevertheless even Treasury Secretary Geithner suggested on FOX News Sunday the Republicans might need more time to figure out their positions they're trying to figure out.

How to find a way.

To support things that.

They know they're gonna have to do that can be very hard for -- the new Republican -- however -- -- new -- all that -- also another reason some Democrats might want to let the fiscal would have happened.

They might try to separate out any changes to entitlements such as Medicare.

Which the president has agreed to consider and many on the left vigorously oppose.

The thing that is driving this horrendous deficits debt problems.

Are the federal health care programs.

Medicare Medicaid.

Tri care and related.

Medical health program.

Future deficits only make tax cuts even more contentious any bill that harm -- increases the deficit requires sixty votes in the senate.

And these days anything with the word tax and it.

Makes it hard to round up sixty votes Brett definitely Jim thank you --

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