Fiscal cliff differences remain unresolved as 2012 year-end approaches

Washington National Tax Services

Congress is set to recess for Christmas without a "fiscal cliff" agreement to avoid scheduled tax increases and spending reductions that will take effect in 2013. Prospects are uncertain for reaching by year-end a compromise addressing the expiration of 2001 and 2003 tax rates and several other year-end issues that would resolve differences in current proposals offered by President Barack Obama and House Speaker John Boehner (R-OH). If no action is taken in coming days by President Obama and the current Congress, the 113th Congress will be sworn into office on January 3, 2013, and debate over resolving fiscal cliff tax and spending differences likely will be the first order of business for the new Congress.

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