CHICOPEE, Mass. (WWLP) - The "Fiscal Cliff" is the biggest cloud looming over the President's administration.
This cliff is the combination of expiring Bush-era tax cuts and across-the-board spending cuts to the Pentagon and domestic programs.
That could total 800 billion dollars next year.
Economists say this threatens to push the economy back into recession if the President and Republicans can't forge a deal.
This creates a foreseeable problem that will have to end in compromise or else it could be disastrous.
According to John Baick, Professor at WNEU, "It's going to be really bad, the next couple of months are as bad a moment that any president has seen in terms of you see the problem, you see the danger, how can you get your way out of this?"
Obama stands by his promise to raise tax rates on upper bracket earners. However, Republicans have left the door open for other forms of new revenue as part of a deal to tackle the spiraling national debt.