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| Version 1 | Version 2 |
|---|---|
| US fiscal cliff: Obama cuts short holiday to reach deal | US fiscal cliff: Obama cuts short holiday to reach deal |
| (about 4 hours later) | |
| US President Barack Obama has cut short his holidays in Hawaii and is flying to Washington to try to reach a deal to avoid the so-called "fiscal cliff". | US President Barack Obama has cut short his holidays in Hawaii and is flying to Washington to try to reach a deal to avoid the so-called "fiscal cliff". |
| Unless a compromise is found, tax increases and huge spending cuts come into force on 1 January, threatening to tip the US back into recession. | Unless a compromise is found, tax increases and huge spending cuts come into force on 1 January, threatening to tip the US back into recession. |
| However, Democrats and Republicans are still at loggerheads over the issue. | However, Democrats and Republicans are still at loggerheads over the issue. |
| Meanwhile, the US Treasury is to take extraordinary measures to delay reaching a 31 December borrowing limit. | Meanwhile, the US Treasury is to take extraordinary measures to delay reaching a 31 December borrowing limit. |
| In a letter to Congress, Treasury Secretary Timothy Geithner said it would take accounting measures to save about $200bn to prevent reaching the $16.4tn borrowing limit. | In a letter to Congress, Treasury Secretary Timothy Geithner said it would take accounting measures to save about $200bn to prevent reaching the $16.4tn borrowing limit. |
| He said this would prevent the government from reaching the borrowing limit for about another two months. | He said this would prevent the government from reaching the borrowing limit for about another two months. |
| This $16.4tn is the amount the government is allowed to borrow to finance its operations. | This $16.4tn is the amount the government is allowed to borrow to finance its operations. |
| 'Silent corridors' | 'Silent corridors' |
| Mr Obama is expected to meet Republican leaders again to try to negotiate a solution, although no new date has been announced. | |
| Failure to do so could damage the US and global markets, and threatens to send the US economy into recession. | Failure to do so could damage the US and global markets, and threatens to send the US economy into recession. |
| The two sides remain far apart on the fiscal cliff's $600bn in tax rises and spending cuts, but analysts say a short-term deal may be agreed that will postpone the cuts until spring. | The two sides remain far apart on the fiscal cliff's $600bn in tax rises and spending cuts, but analysts say a short-term deal may be agreed that will postpone the cuts until spring. |
| On Wednesday, the Republican House of Representatives Speaker John Boehner called on the Democrat-led Senate to come up with legislation on how it would avoid the cliff, and pass it to the House for consideration. | On Wednesday, the Republican House of Representatives Speaker John Boehner called on the Democrat-led Senate to come up with legislation on how it would avoid the cliff, and pass it to the House for consideration. |
| However, a senior administration official said it was up to Republican leaders not to stand in the way of an agreement. | However, a senior administration official said it was up to Republican leaders not to stand in the way of an agreement. |
| Despite this, there is little sense of urgency in the capital - the corridors of Congress are silent, the BBC's Zoe Conway in Washington reports. | Despite this, there is little sense of urgency in the capital - the corridors of Congress are silent, the BBC's Zoe Conway in Washington reports. |