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There will be a resolution to the fiscal cliff standoff in the lame duck session

Bloomberg News, 11-11-12, p. http://www.businessweek.com/news/2012-11-11/lawmakers-in-both-parties-see-resolution-to-u-dot-s-dot-fiscal-cliff#p1
Top lawmakers in both political parties today predicted a resolution to the standoff on the U.S. fiscal cliff that threatens to yield $607 billion in tax increases and automatic spending cuts in January. They said details of a debt-cutting deal may come later.

Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat, said he thinks lawmakers can reach a “framework agreement” directing tax and spending panels in Congress to craft a broad deal next year that cuts soaring budget deficits. At the same time, he said, they could agree now to a smaller package of spending cuts and some tax-code changes before the year is over.

If the legislative panels don’t act, all sides would have to agree to a fallback plan that would be more acceptable than the automatic approach that is sparking economic uncertainty, Conrad said on “Fox News Sunday.”

I absolutely believe there is room for agreement,” Conrad said.

Senator Bob Corker, a Tennessee Republican, said he agrees there is little chance of the automatic policies occurring, and said Republicans are open to some tax increases if Democrats would be willing to embrace a broad reform of the Medicare health insurance system for the elderly to yield big cost savings. Short of a broad-based deal, he said at the very least any extension of current policies shouldn’t be the type of several-months stop-gap that has marked the deadlocked fiscal policy debate.

I hope we’ll at least go substantially down the road toward solving the problem,” said Corker, who also appeared on the “Fox News Sunday” show.

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