'Fiscal' negotiations go down to the wire
Mike Emanuel reports from Capitol Hill
- Duration 3:58
- Date Dec 31, 2012
Mike Emanuel reports from Capitol Hill
Also in this playlist...
This transcript is automatically generated
Good evening I'm Brett -- when the giant crystal ball makes its last moves in Times Square tonight.
-- thirteen will officially be here and so will the deadline for a deal here in Washington.
Politicians self imposed fiscal cliff.
The effort to make the consequences.
So unattractive for missing that they're both sides would have to come to agreement.
At this hour there is no legislation to vote on yet and there's every indication that officially.
It's over that -- we go.
Some things are settled.
While others are still in flocks.
And that's where it starts to get technical.
So let's bring in fox team coverage tonight to straighten it all -- chief White House correspondent.
Ed Henry looks at messaging and movement from President Obama today but first chief congressional correspondent Mike Emanuel on what seems to have been settled.
And how and what is still very much up in the air at this late hour I'm like.
Hi Brett we're hearing from Republican senators that there are optimistic and hopeful that a -- can happen sometime.
Perhaps later tonight senator Mitch McConnell emailed his colleagues earlier in the day and said he thought the deal was done until the White House call this morning saying the sequestered cuts.
Should be turned off.
Since then he's been trying to find a way to -- down a couple of months of those cuts but says tax issues should move forward.
We'll continue to work on bombing smarter ways to cut spending.
But let's not let that hold -- protecting Americans.
And the tax hike that will take place we can do this.
We must do this.
Though it is down to the wire.
It's December the 31.
January 1 is tomorrow 2013.
Taxes go up.
A frustrated senator John -- says the senate should -- acted months ago to keep the US economy from going off the fiscal cliff I just find it really hard.
22 to sit and listen to people come up now and wring their hands and talk about gee -- you know.
I really hope we can get something done here on the last day as we put two people together.
The two people were senate Republican leader Mitch McConnell and vice president Joseph Biden who worked the phones late last night in early this morning after talks between McConnell and majority leader Harry Reid stalled.
Discussions continued today on a plan to -- no class families from.
Tax increase tomorrow.
There -- a number of issues in which two sides are still a part.
And negotiations are continuing as I speak to.
The agreement would set the threshold for extending the bush tax cuts at 400000 dollars for individuals and 450000.
Dollars for families.
It would set the tax rate on upper income people at 39 point 6% the rate under former President Bill Clinton.
As states would be taxed at 40% above five million dollars for individuals and ten million dollars for a married couple.
Unemployment benefits would be extended a year.
As with the Medicare doc fix it it would permanently fix the Alternative Minimum Tax a big concern for many Republicans is there are no new spending cuts.
History has away a repeat itself.
Somehow or -- -- never gets the message.
And here we are thirty years later on the -- of another crisis -- New Year's Eve still addicted to spending money.
Last Friday speaker Boehner told his senate colleagues to -- if they could find a bipartisan deal in the house would consider except or amend their plan.
With time running out house lawmakers were left working on on related issues in feeling like this process is broken.
The American people are looking at congress with disdain and rightfully so.
With the deadline on the fiscal -- only hours away we failed to reach a reasonable compromise to move the economy forward and ward off painful tax hikes on the middle class.
Even if the deal gets done there are no guarantees Republicans in the house will like it but strong -- bipartisan support in the senate.
May help -- we'll head back for breaking details Mike -- up on the hill Marc thanks.