Pres. Obama may return to D.C. to tackle Fiscal Cliff

Posted at 6:25 AM, Dec 26, 2012
and last updated 2012-12-26 06:26:44-05

Pres. Obama News Conference

By CNN Staff

(CNN) — President Barack Obama might end his Hawaiian vacation Wednesday to make a late-hour bid to reach a fiscal cliff deal before the year ends.

“We are likely to leave as soon as tomorrow,” a White House official said Tuesday.

House and Senate members are expected to reconvene Thursday.

Obama and Republicans have been at loggerheads over how to prevent automatic tax increases for everyone and deep spending cuts that will be triggered in the new year without an agreement.

With neither side showing any sign of blinking, the battlefield will probably shift to the Senate this week after GOP disarray in the House stymied any progress before Christmas.

According to multiple Democratic and Republican sources, no weekend conversations occurred between the White House and Senate leaders from either party or their aides.

The main dispute continues to be over taxes, specifically the demand by Obama and Democrats to extend most of the tax cuts passed under President George W. Bush while allowing higher rates of the 1990s to return on top income brackets.

Republicans oppose any kind of increase in tax rates, and House Speaker John Boehner suffered the political indignity last week of offering a compromise that his colleagues refused to support.