It is a major setback for House Speaker John Boehner who was hoping to squeeze concessions out of the Democrats once the plan had been approved.
If no agreement is reached by the New Year on budget reform draconian tax rises and spending cuts will be automatically triggered. The 600 billion dollar package (455 billion euros) could push the economy into recession.
President Barack Obama has promised to go on working with Congress before the "fiscal cliff" deadline but he wants more tax hikes for more better-off Americans than the Republican will accept. The stalemate continues.
Source: Euronews
