'Fiscal Cliff' Negotiations: Will There Be a Deal?

President Obama is in Hawaii and Congress has left Washington as drastic budget cuts loom.
2:00 | 12/24/12

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Transcript for 'Fiscal Cliff' Negotiations: Will There Be a Deal?
We're going turn now to the looming fiscal cliff. Eight days until we head over it, when just about everyone's taxes will go up. Rather than moving together, the two sides seem to be literally moving further apart. The president in hawaii for the holiday, congress left the capital with no deal in sight. Jon karl is in washington. They needed to get it done before new year's to see this thing get done. Has the time to have that happen already passed? Well, it's getting -- there's not much hope out there. I gotta tell you. Just over a week left, josh. And the speaker of the house and the president did not even speak over the weekend. The last time they had a conversation was a brief phone conversation on friday. No signs of progress on anything since then. There wasn't much before, as you know. Now the white house is looking at a fallback plan. Just a stop-gap bill they're hoping congress would do that would delay the tax increases on people making over $250,000 from going into effect. It would extend unemployment benefits and delay spending cuts going into effect on january 1st. Even accomplishing that will be difficult. Congress comes back two days after christmas. That gives them four dice come to an agreement and pass something. Not an easy task. So we know what it means for the average men. What happens in washington if we go over the cliff? The biggest question here is, big tax increases for everybody. The automatic spending cuts to the pentagon have huge ramifications. And most economists would say if this happens, there's major risk that the economy goes back into recession. Jon karl, not the news we wanted to hear. Thank you.

This transcript has been automatically generated and may not be 100% accurate.

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