There are new signs today that lawmakers are open to a compromise that will prevent taxes from going up for millions of Americans in January. The Senate returns today with just five weeks left to hammer out a deal to avoid the fiscal cliff. Republican Senator Bob Corker says lawmakers need to show some political courage to prevent tax increases and spending cuts from taking effect January 1st. Republicans are hinting they may be open to a compromise that raises revenue, but many are still firm they won't let Bush-era tax cuts expire for the wealthiest Americans.
Democrats say just closing loopholes and cutting deductions is not enough to make a dent the nation's 16 trillion dollar deficit. And with the fiscal cliff looming, White House economists are now warning, shoppers concerned about a tax increase may not spend as much this holiday season. A new report says taxes could go up about $2000 a year for Americans making between $50,000 and $85,000.