Talks intensified Friday as congressional leaders and President Obama worked to avert a combination of tax hikes and budget cuts scheduled to go into effect Tuesday that economists fear could send the economy into recession.
Amid harsh words Thursday from Senate Majority Leader Harry Reid, D-Nev., and House Speaker John A. Boehner, R-Ohio, Boehner said he would call the House back into session Sunday night. The Senate is already in session.
The fiscal cliff, shorthand for Jan. 1, 2013, when the terms of the Budget Control Act of 2011 are scheduled to go into effect, includes a series of across-the-board spending cuts and tax increases.
"Even if we go over the fiscal cliff, Congress could act early next year to reach a compromise and make any agreement retroactive to the beginning of the year," said Jones. "However, this would not be the ideal scenario for most taxpayers, businesses or investors — most of whom would prefer some degree of certainty heading into 2013."