News Summary: Tax fight could cost families $1,600

AP News
Posted: Jul 24, 2012 5:09 PM
News Summary: Tax fight could cost families $1,600

HIKES LOOM: The White House said 114 million families would see average tax increases of $1,600 next year if current tax cuts expire in January.

STALEMATE: Republicans want to renew all the tax cuts for one year, while President Barack Obama and Democrats want an extension only for households earning below $250,000.

FISCAL CLIFF: Republican leaders use the term "fiscal cliff" to describe tax increases and spending cuts that will automatically take effect in 2013 unless lawmakers compromise on them. Last week, a leading Democrat said the party is willing to let all tax cuts expire to pressure Republicans.