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gether will be far smaller than what they initially envisioned as an alternative to purposefully distasteful tax increases and spending cuts.
• Instead, their compromise, if they do indeed cut a deal, will put off some big decisions about tax and entitlement changes and leave other deadlines in place that will likely lead to similar moments of brinkmanship, some in just a matter of weeks.
• Republican and Democratic negotiators in the Senate were hoping for an accord as early as Sunday on what threshold to set for increased tax rates, whether to keep current inheritance tax rates and exemptions and how to pay for jobless benefits and avoid cuts in Medicare payments to doctors.
• An agreement would halt automatic across-the-board tax increases for virtually every American and perhaps temporarily put off some steep spending cuts in defense and domestic programs.
• Gone, however, is the talk of a grand bargain that would tackle broad spending and revenue demands and set the nation on a course to lower deficits. Obama and Republican House Speaker John Boehner were once a couple hundred billion dollars apart from a deal that would have reduced the deficit by more than $2 trillion over 10 years.
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If US falls off 'fiscal cliff,' economy could get soft landing -- or dizzy dive onto the rocks
• WASHINGTON (AP) -- Efforts to save the nation from going over a year-end "fiscal cliff" were still in disarray as lawmakers returned to the Capitol to confront the tax-and-spend crisis. A tone-setting quotation was Democratic Sen. Harry Reid's assertion that the House under Republican Speaker John Boehner had been "operating with a dictatorship."
• President Barack Obama flew back to Washington from Hawaii after telephoning congressional leaders from his Christmas vacation perch. Once back, he set up a meeting with leaders of both parties at the White House late Friday to make a fresh attempt to find a solution before Monday night's deadline.
• A look at why it's so hard for Republicans and Democrats to compromise on urgent matters of taxes and spending, and what happens if they fail to meet their deadline:
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• NEW YEAR'S HEADACHE
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