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Senate Talks Resume On Eve Of “Fiscal Cliff”

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(Photo by Drew Angerer/Getty Images)

(Photo by Drew Angerer/Getty Images)

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WASHINGTON (AP/CBS Charlotte) — Senate leaders met in Washington yesterday, in an effort to come to an agreement over the fiscal cliff.

The fiscal cliff stems from the expiration of the Bush administration’s 2001 and 2003 tax cuts.

After a day of “negotiating,” leaders of the Senate decided to delay voting until today. If an agreement cannot be reached, Americans will wake up on New Year’s Day to the biggest tax hike in the past 60 years.

In hopes of avoiding the fiscal cliff, a plethora of proposals have been put on the table, however, Democrats and Republicans have been unable to compromise.

Democrats are worried about a “chained CPI,” which is a re-calculation of how Social Security benefits grow over the years.

A person familiar with the negotiations says Democrats have offered to extend tax cuts for families making up to $450,000 a year and individuals making up to $400,000. President Barack Obama originally wanted the tax cuts to be extended only for families making up to $250,000 a year.

Unless an agreement is reached and approved by Congress by the start of New Year’s Day, more than $500 billion in 2013 tax increases will begin to take effect and $109 billion will be carved from defense and domestic programs.

The person familiar with the talks requested anonymity in order to discuss the internal negotiations.

(TM and © Copyright 2012 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2012 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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