December 23, 2012
Lieberman fears country may go over 'fiscal cliff'
AP Photo
This Nov. 2, 2011 file photo shows the state-owned Ford driven by Lt. Gov. Timothy P. Murray sitting on a flatbed truck at the Massachusetts State Police barracks in Holden, Mass. While the looming fiscal cliff dominates political conversation in Washington, some Republicans and business groups see signs of a "regulatory cliff" they say could be just as damaging to the economy. For months, federal agencies and the White House have sidetracked dozens of major regulations that cover everything from power plant pollution to workplace safety to implementation of a landmark law cracking down on Wall Street. In recent weeks, the Environmental Protection Agency has proposed rules to scale back mercury emission limits for new power plants and deal with runoff from logging roads. The National Highway Traffic Safety Administration, meanwhile, has proposed long-delayed regulations requiring auto makers to include event data recorders _ better known as "black boxes" _ in all new cars and light trucks beginning in 2014. Data collected by the recorders is increasingly showing up in lawsuits, criminal cases and high-profile accidents. Massachusetts Lt. Gov. Timothy Murray initially said he wasn't speeding and that he was wearing his seatbelt when he crashed a government-owned car last year. But the Ford Crown Victoria's data recorder told a different story: It showed the car was traveling over 100 mph and Murray wasn't belted in.
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Predicted Lieberman: "We're going to spend New Year's Eve here I believe."

Obama already has scaled back his ambitions for a sweeping budget bargain. Before leaving the capital on Friday, he called for a limited measure that extend George W. Bush-era tax cuts for most people and stave off federal spending cuts. The president also urged Congress to extend jobless benefits for the long-term unemployed that would otherwise be cut off for 2 million people at the end of the year.

"The truth of the matter is, if we do fall off the cliff after the president is inaugurated, he'll come back, propose just what he proposed ... in leaving Washington and we'll end up adopting it, but why should we put the markets in such turmoil and the people misunderstanding or lack of confidence," said Sen. Johnny Isakson, R-Ga. "Why not go ahead and act now?

Obama's announcement late Friday suggested that a smaller deal may rest in the Senate, given the failure of Boehner's option in the House.

"The ball is now clearly with the Senate," said Lieberman.

He said Senate Majority Leader Harry Reid, D-Nev., and GOP leader Mitch McConnell of Kentucky "have the ability to put this together again and pass something. It won't be a big, grand bargain to take care of the total debt, but they can do some things that will avoid the worst consequences going over the fiscal cliff."

Sen. Kay Bailey Hutchison said she expects "it is going to be a patch because in four days we can't solve everything."

It was only a week ago when news emerged that Obama and Boehner had significantly narrowed their differences. Both were offering a cut in taxes for most Americans, an increase for a relative few and cuts of roughly $1 trillion in spending over a year. Also included was a scaling back of future cost-of-living increases for Social Security recipients - a concession on the president's part as much as agreeing to higher tax rates was for the speaker.

Lieberman was on CNN's "State of the Union," while Barrasso and Conrad appeared on "Fox News Sunday." Klobuchar and Isakson were on "Fox News Sunday," while Hutchison was on CBS' "Face the Nation."

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Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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