By Tracey Boles | Express.co.uk
Barack Obama has summoned Congressional leaders to the White House in a last-ditch bid to resolve a looming “fiscal cliff” of tax rises and spending cuts.
President Obama has dispatched Senate majority leader Harry Reid, a Democrat, and minority leader Mitch McConnell, a Republican, on a mission to come up with a bill to break the political deadlock.
Any legislation is set to be discussed by US law makers today. The term fiscal cliff refers to £371billion-worth of automatic Government spending cuts and steep tax rises due to hit the US economy on January 1.
Should no compromise be reached, Americans will see their tax bills go up by an average of more than £2,000 next year after tax cuts expire on New Year’s Eve. The Treasury is believed to recognise the threat to the British economy but has no contingency plans should US leaders fail to reach agreement by Tuesday.