With just one day to go before the US economy falls over the edge of the so-called ‘fiscal cliff‘, no deal is yet in sight. Senators in the US congress will continue to work on finding a compromise deal on Monday, but it is looking increasingly likely that they will fail.
If no deal is reached then a series of tax rises and spending cuts set to come into force on 1 January 2013 could plunge the American economy back into recession.
President Obama has blamed Republicans, who are resisting any plan which includes tax rises, for the failure to reach a deal. He claimed that their ‘overriding theme’ was to protect tax breaks for the rich.