Workers could see more taxes withheld from their paychecks and federal agencies are likely to soon receive warning of possible furloughs if lawmakers fail to reach a deal to avert the cliff. The new Congress will be sworn in on Thursday and would inherit the problem if the current crop of lame-duck lawmakers can't find an answer before then.Sen. Dick Durbin, D-Ill., said the two sides remained at odds over the income threshold for higher tax rates and tax levels on large estates. Republicans said that Democratic demands for new money to prevent a cut in Medicare payments to doctors and renew jobless benefits for the long-term unemployed should be financed with cuts elsewhere in the budget. Republicans also balked at a Democratic proposal to use new tax revenues to shut off the across-the-board spending cuts, known as a sequester in Washington-speak.
Fiscal Cliff Deal Would Pale Against Expectations
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