“Cliff” deal unlikely before Christmas

CNBC.com reports that Senate Majority leader Harry Reid has said an offer on spending cuts from Democrats isn’t in the offing and a resolution to the “fiscal cliff” negotiations is unlikely before Christmas.

Read: Cliff hanger: talks stall in Washington

Expressing frustration with the talks, House Majority leader John Boehner’s office said, “We continue to wait for the president to identify the spending cuts he’s willing to make as part of the ‘balanced’ approach he promised the American people.”

Read: Fiscal cliff could raise cross-border taxes

Many Republicans agree that Obama and the Democrats hold most of the political leverage, given the president’s re-election last month after a campaign in which he said the wealthy should pay more in taxes. Obama wants to boost the tax rate on individuals earning more than $200,000 a year and for couples with annual income above $250,000.

If anything, the president has toughened his demands in recent days, insisting not only that tax rates must rise, but also that Congress give him and future presidents the authority to raise the government’s borrowing limit without prior approval by lawmakers.

Read: Yield curves and recessions

In related news, Financial-Planning.com says 33% of Americans are following fiscal news closely, meaning this latest development will potentially worry several of your clients. In its article, it defines the term “fiscal cliff” and offers some snippets of text that could be used in client emails.