Fiscal Cliff Looms Large, Will It Be Averted?

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The looming fiscal cliff Congress and President Obama wish to avoid is not too far off.

And Nebraska's Senators are obviously concerned about it.

"The impact on our economy would be a bad deal if we go over the fiscal cliff," Senator Mike Johanns--R, told 1011 News Tuesday.

"I think none of us at the moment can tell whether we're gonna go over the cliff or not," outgoing Senator Ben Nelson--D told 1011 News as well.

As it stands, come January 1st, 2013, 600 billion dollars in spending cuts and tax increases will kick in unless a deal is made between both parties in Washington.

The prevailing belief is that if a deal is not reached, the US could slip back into a recession when the cuts and increases kick in.

In short, President Obama wants to extend tax cuts for the middle class, but raise taxes on the wealthiest.

Republicans counter, saying raising taxes on the wealthiest will hurt small business and cost jobs.

For now, both parties work on trying to come up with a compromise, but it's too early to tell if a deal can be reached.

For more details, click on the report above.