Obama to meet with Republicans, Democrats to try and reach deal - Fox 2 News Headlines

Democrats and Republicans will try to put the election behind them this week as Congress tries to come up with a deal to cut the federal debt and raise taxes.

President Obama will meet with business, labor and congressional leaders on both sides of the aisles to try to reach a deal on the so-called "fiscal cliff" that is coming at the end of the year.

SEE: Markets plunge on US policy gridlock fears

Both sides say they want a deal, but seem to be holding to some of the same positions that caused the crisis in the first place.

"No Republican will vote for higher tax rates," Sen. Lindsey Graham (R-SC) said. "We will generate revenue from eliminating deductions and loopholes, but we will insist our democratic friends reform entitlements - something we've never done and that's where the big money's at."

"There's money to be gained by closing some of these loopholes and applying them to deficit reduction," David Axelrod said. "So I think there are a lot of ways to skin this cat - so long as everybody comes with a positive, constructive attitude toward the task."

If the two sides can not reach a deal by Jan. 1, we will face billions in tax increases and spending cuts that many economists believe will lead to a new recession.