President Barack Obama will send Congress a proposal for a scaled-back agreement to avoid some of the fiscal cliff, according to Republican and Democratic sources.
The president cut short his Christmas vacation in Hawaii and the U.S. Senate reconvened, with the deadline for going over the fiscal cliff of automatic tax hikes and spending cuts just four days away.
The House remains on Christmas break, but members say they could be called back on 48 hours' notice if needed.
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