WASHINGTON (AP) -- President Obama Monday said he's hopeful that a deal will be reached today to avoid a tax increase on middle class families.
In a televised address to the nation, Mr. Obama said both houses of Congress have been meeting in an attempt to avoid the hike set to go into effect at midnight. The agreement would not only make sure taxes don't go up on middle class families, it would also extend tax credits to families with children, extend credits for college tuition and extend unemployment insurance, he said.
"We're hopeful Congress can get it done, but it's not done," Mr. Obama said.
The contours of a deal to avert the 'fiscal cliff' emerged Monday, with Democrats and Republicans agreeing to raise tax rates on family income over $450,000 a year, increase the estate tax rate and extend unemployment benefits for one year, officials familiar with the negotiations said.
But with a midnight deadline rapidly approaching, both sides were at an impasse over whether to put off automatic, across-the-board spending cuts set to take effect on Jan. 1, and if so, how to pay for that. Democrats want to put off the cuts for one year and offset the so-called sequester with unspecified revenue.
Officials emphasized that negotiations were continuing and the emerging deal was not yet final. President Barack Obama was to speak about the status of the negotiations from the White House Monday afternoon.
The proposal in the works would raise the tax rates on family income over $450,000 from 35 percent to 39.6 percent, the same level as under former President Bill Clinton. Also, estates would be taxed at 40 percent after the first $5 million for an individual and $10 million for a couple, up from 35 percent to 40 percent.
Unemployment benefits would be extended for one year. Without the extension, 2 million people would lose benefits beginning in early January.
A Republican official familiar with the plans confirmed the details described to The Associated Press.
The officials requested anonymity in order to discuss the internal negotiations.
-- With providencejournal.com reports
-- The original version of this report was published at 1:34 p.m.