text: Obama impatient as fiscal cliff nears - International | IOL | Breaking News | South Africa News | World News | Sport | Business | Entertainment | IOL.co.za
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  He then dispatched Senate Majority Leader Harry Reid, a Democrat, and Minority Leader Mitch McConnell, a Republican, on a mind-boggling mission: coming up with a bipartisan bill to break the "fiscal cliff" stalemate in the most partisan and gridlocked U.S. Congress of modern times - in about 48 hours.(File image) United States President Barack Obama. Credit: ReutersReid and McConnell, veteran tacticians known for their own long-running feud, have been down this road before.
  Their last joint venture didn't turn out so well. It was the deal in August 2011 to avoid a U.S. default that set the stage for the current mess. That effort, like this one, stemmed from a grand deficit-reduction scheme that turned into a bust.
  "Ordinary folks, they do their jobs, they meet deadlines, they sit down and they discuss things, and then things happen," Obama told reporters. "If there are disagreements, they sort though the disagreements. The notion that our elected leadership can't do the same thing is mind-boggling to them."
  CORE DISAGREEMENT The core disagreement between Republicans and Democrats is tough enough. It revolves around the low tax rates first put in place under Republican former President George W. Bush that expire at year's end. Republicans would extend them for everyone. Democrats would extend them for everyone except the wealthiest taxpayers.
  While members of the Senate, more than members of the House of Representatives, have expressed flexibility on taxes, it's far from a sure thing in a body that ordinarily requires not just a majority of the 100-member Senate to pass a bill, but a super-majority of 60 members.
  For Boehner, it's the regular order when considering revenue measures, which the U.S. Constitution says must originate in the House.
  SHIFT BLAME As some Democrats see it, it's a way to shift blame if the enterprise goes down in flames. House Republicans would be able to claim that since they had already done their part by passing a bill, the Senate should take the blame for plunging the nation off the "cliff."
  If Reid and McConnell succeed, there could be political ramifications for each side. For example, a deal containing any income tax hikes could complicate McConnell's own 2014 re-election effort in which small-government, anti-tax Tea Party activists are threatening to mount a challenge.
  It could be a sprint to the finish. One Democratic aide expected "negotiation for a day." If the aide is correct, the world would know by late on Saturday or early on Sunday if Washington's political dysfunction is about to reach a new, possibly devastating, low.
  Reid and McConnell have been through bitter fights before. The deficit reduction and debt limit deal that finally was secured last year was a brawl that ended only when the two leaders agreed to a complicated plan that secured about $1 trillion in savings, but really postponed until later a more meaningful plan to restore the country's fiscal health.
  In both instances, it was resistance from conservative House Republicans that complicated efforts, just as is the case now with the "fiscal cliff." -ReutersSHOW ALLInternationalAn MBA is no longer a 'golden ticket'Cosatu calls on SABC to rethink censorshipMulti-tool inventor's ideas still cut itKroondal mine strike may be overDisney vows to guard its rightsAdvertisementMOREBusinessInternationalPopularPersonal FinanceCompaniesStartupsMarketsIndicatorsInternationalOpinionFinancial toolsWEFBusinessInternationalPopularPersonal FinanceCompaniesStartupsMarketsIndicatorsInternationalOpinionFinancial toolsWEFINFOAbout IOLFront pageMarket indicatorsMovie guideNewspapersTV guideWeatherSITESBabyNet.co.zaGlamour.co.zaGQ.co.zaIlisolezweIsolezweIOL JobsIOL PropertyIOL SportzoneLoot.co.zaClassifiedsWomanOnlineSECTIONSNewsSportBusinessMotoringLifestyleTonightTravelScitechCape communityAbout IOLFront pageMarket indicatorsMovie guideNewspapersTV guideWeather