Obama says "fiscal cliff" deal "within sight" but "not done"
US President Barack Obama said here on Monday that an agreement to avert the "fiscal cliff," particularly the impending tax hikes for middle-class Americans, was "within sight" but "not done" yet.
"Today it appears that an agreement to prevent this New Year's tax hike is within sight, but it is not done. There are still issues left to resolve, but we're hopeful that Congress can get it done," Obama said at the White House.
He noted that the potential plan would make sure that tax won't go up on middle-class families, and extend unemployment benefits for the jobless.
The president stressed that the United States still has more work to do to reduce its deficit and put its economy on the long- term growth trajectory.
He said his preference would have been to solve the budgetary problems in the context of a larger agreement, but "that was obviously a little too much to hope for at this time."
Obama's remarks came as US lawmakers were trying to pitch up a budget deal that both the Senate and House would approve to avert the "fiscal cliff" -- a combination of massive tax hikes and broad spending cuts due to kick in on Tuesday.
Only hours before the deadline, Senate Majority Leader Harry Reid said earlier on Monday that there were still issues to be resolved before a legislation can be brought to Senate floor for a vote.
Sources familiar with the talks said that a tentative "fiscal cliff" deal was emerging as Democrats and Republicans in the Senate narrowed their differences.
The "fiscal cliff," with an estimated total amount of more than $600 billion, may drag the US economy back into recession, economists have warned.