It's the final day for congress to negotiate a deal to avoid or minimize the fiscal cliff automatic tax increases and spending cuts. Monday, president Obama held a press conference where he expressed optimism that a deal will be done in time.
The president says the potential agreement will help families with children, those who pay tuition, reward companies who use clean energy and save unemployment benefits for millions of Americans.
Both sides have given ground but lawmakers still remain at odds over what income brackets should get an extension of Bush era tax cuts.
There are disagreements over spending cuts too. The GOP wants more than the president has offered, but any deal talked about right now doesn't include preventing automatic spending cuts affecting most government agencies including the military.
In this video we bring you the current debate, and explain the consequences of an unresolved fiscal cliff.