Tax The Rich, Or Face The Cliff?

(NBCNC) - Republicans have proposed raising the eligibility age for Medicare and reducing cost of living increases in Social Security as part of a deal to avoid the fiscal cliff.

President Obama, meanwhile, is putting more public pressure on Republicans to cut a deal.

He's running a video on YouTube, a reminder of who won the election.

The president also took to Twitter to ask for support.

What if there's no deal?

Car and truck production and vehicle sales that are accelerating could crash, if middle class taxes rise warned Ford CEO Alan Mulally.

"The most important thing about this fiscal cliff is it could result in less discretionary income
for the consumer, which could really have an impact on the economy," Mulally points out.

On January 1st defense spending would be slashed as part of the so-called "sequestration".

Defense contractors have warned they'll be forced to cut jobs in response.

The new Republican plan would raise the eligibility age from 65 to 67 for Medicare, lower cost of living hikes in Social Security and $800 billion in new revenue by closing tax loopholes.

That's half of what President Obama is demanding, and none from hiking tax rate hikes on the rich.