Fiscal cliff: Obama visits Northern Virginia family
Both sides say they want a compromise, although the administration's hand in bargaining is strengthened by polls showing public support for Obama's position on taxes, as well as by his re-election last month.
The president is also working to rally the public to his side and has a trip scheduled to Detroit next week.
In a concession, Republican leaders have agreed to back increased tax revenue. Yet despite defections from within the rank and file, they have so far balked at Obama's demand that rates go up on income over $200,000 for individuals and $250,000 for couples.
They have also called for spending cuts and measures to slow the growth of government benefit programs.
Earlier this week, they called for curbing the growth in Social Security cost-of-living increases, as well as delaying Medicare eligibility from 65 to 67, beginning in a decade.
Obama has said he will back spending cuts, including savings in Medicare, as part of a deal that includes the tax proposal that was a key part of his re-election bid.
Once Republicans yield on taxes, he told the Business Roundtable, "We can probably solve this in about a week; it's not that tough." Republicans argue that they can raise about $800 billion in additional government revenue over a decade by closing loopholes and narrowing tax deductions on the wealthy, rather than raising income tax rates.
They argue the rate increase would impose a particularly harmful impact on the economy and job creation at a time when the country is still struggling to recover fully from the deepest recession in decades.
Would you like to contribute to this story? Join the discussion.
RecommendedRecent Facebook Activity
Only On 7
"Katie" weekdays at 4pm on ABC7 followed by Leon Harris and Alison Starling on ABC7 News at 5. Click here to find out more about "Katie!"