Will there be a 'Plan C' for 'fiscal cliff'?
What's next for negotiations?
- Duration 3:25
- Date Dec 26, 2012
What's next for negotiations?
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President Obama has been in Hawaii for some holiday are in our public and lawmakers are most likely hoping that that means he is rested and ready to make a deal on the fiscal cliff.
However as chief White House correspondent Ed Henry tells us Washington they just have to settle with a back up plan to the back up plan.
But Christmas tradition for President Obama he and First Lady Michelle Obama saying -- -- Marine Corps base Hawaii so many -- make sacrifices day in day out.
On behalf -- freedom.
On behalf of our security now the president is giving up some vacation time rushing back to Washington aboard Air Force One late tonight.
To deal with the looming fiscal -- After that read I the president will no doubt -- and coffee.
Starbucks has decided to get political -- -- Washington DC shops by having employees right come together on -- CEO Howard Schultz -- in an open letter quote my hope is that this simple message will serve as a holiday reminder from Starbucks of the spirit that is always bridge differences and that we all have the power to come together and make it different storing every season of the year.
-- the president is speaker John Boehner have not spoken in nearly a week and when house Republicans convened a conference call today it's all they were told as lawmakers will get 48 hours notice.
Did did when they need to come back into session.
The talks first stalled over the president's preferred option a plan -- A massive four trillion dollar debt deal with reforms to entitlement programs.
Obama compromising on the threshold for raising taxes moving from the income level of 250000.
Dollars to 400000.
Dollars wood bat hit a roadblock the focus shifted to plan -- Gators fall back.
It would have raised taxes only on those making at least a billion dollars but failed what he could not get enough Republican votes how we get their.
-- god only knows.
All eyes now turn to the senate which may be the key to a deal on plan C a scaled back bill the president says will focus on unemployment benefits.
And reverting back to the 250000.
Dollar level on taxes.
Best leaders of congress to work towards a package that prevents a tax hike on middle class Americans.
For tax unemployment insurance for two million Americans.
And lays the ground work.
For further work.
On both growth and deficit reduction that means taxes go up for some now while spending cuts on Medicare and other programs are kicked to another date.
But the president has offered so far simply won't do anything to solve our spending problem.
And begin to address our nation's -- -- Back in early December there was a poll by Gallup in early December saying.
That 58% of the public thought we'd be able to -- the fiscal -- new poll out today says.
It's dip down only 50% thinking that a clear sign that with time running out.
The public thinks.
We're headed for a big problem here.
-- before we leave you breaking news from Treasury Secretary Tim Geithner about the debt ceiling so are we about to go into default.
Yes and no lives secretary Geithner says today that will hit the debt ceiling on December 31 New Year's Eve.
But says that he's got some wiggle room they'll take what he called extraordinary measures.
-- some accounts around -- about 200 billion dollars but the bottom line is that only -- a couple of months so we will hit that debt ceiling.
Early next year for real that proves that even if we get through this fiscal -- situation we're headed for another major showdown early next year -- Ed Henry traveling with the president in Honolulu so.