Obama will return Wednesday to D.C. to tackle fiscal cliff

Averting the fiscal cliff
Averting the fiscal cliff

    JUST WATCHED

    Averting the fiscal cliff

MUST WATCH

Averting the fiscal cliff 07:35

Story highlights

  • Obama leaving Hawaii on Wednesday, will be at the White House on Thursday
  • Members of Congress expected to return on Thursday
  • Observers will watch for Senate to take action after House vote fizzled last week
  • Obama, Republicans don't agree on how to prevent automatic tax increases

President Barack Obama is ending his Hawaiian vacation Wednesday to make a late-hour bid to reach a fiscal-cliff deal before the year ends.

He will leave Honolulu Wednesday night and should be back in Washington on Thursday, the White House said. First lady Michelle Obama and their daughters will remain in Hawaii.

House and Senate members are expected to reconvene Thursday.

Obama and Republicans have been at loggerheads over how to prevent automatic tax increases for everyone and deep spending cuts that will be triggered in the new year without an agreement.

With neither side showing any sign of blinking, the battlefield will probably shift to the Senate this week after GOP disarray in the House stymied any progress before Christmas.

Small businesses fear fiscal cliff
Small businesses fear fiscal cliff

    JUST WATCHED

    Small businesses fear fiscal cliff

MUST WATCH

Small businesses fear fiscal cliff 02:12
GOP Rep.: I want fiscal cliff averted
GOP Rep.: I want fiscal cliff averted

    JUST WATCHED

    GOP Rep.: I want fiscal cliff averted

MUST WATCH

GOP Rep.: I want fiscal cliff averted 03:35

According to multiple Democratic and Republican sources, no weekend conversations occurred between the White House and Senate leaders from either party or their aides.

The main dispute continues to be over taxes, specifically the demand by Obama and Democrats to extend most of the tax cuts passed under President George W. Bush while allowing higher rates of the 1990s to return on top income brackets.

Republicans oppose any kind of increase in tax rates, and House Speaker John Boehner suffered the political indignity last week of offering a compromise that his colleagues refused to support.

CNNMoney: Financial planners on how to protect yourself

        CNN Recommends

      • pkg clancy north korea nuclear dreams_00002004.jpg

        North Korea nuclear dream video

        As "We are the World" plays, a video shows what looks like a nuclear attack on the U.S. Jim Clancy reports on a bizarre video from North Korea.
      • Photos: Faces of the world

        Photojournalist Alison Wright travelled the world to capture its many faces in her latest book, "Face to Face: Portraits of the Human Spirit."
      • pkg rivers uk football match fixing_00005026.jpg

        How to fix a soccer match

        Europol claims 380 soccer matches, including top level ones, were fixed - as the scandal widens, CNN's Dan Rivers looks at how it's done.
      • No Eiffel Towers, Statues of Liberties, Mt. Rushmores, Taj Mahals, Aussie koalas or Chairman Maos.

        15 biggest souvenir-buying no-no's

        It's an essential part of any trip, an activity we all take part in. Yet almost none of us are any good at it. Souvenir buying is too often an obligatory slog.