Fiscal Cliff Talks: Obama Heads Back to Washington

The president cuts his vacation short to try to hammer out a last-minute deal with Republicans.
1:46 | 12/26/12

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Transcript for Fiscal Cliff Talks: Obama Heads Back to Washington
President Obama's -- his vacation short and heading -- Washington DC to try to stop the country. From going over the fiscal cliff the president. Said Friday that he is a hopeless optimist but he has only seven days left to strike a deal with Republicans. He sees them on Bradley has the latest. President Obama spent part of its Christmas Day greeting and thinking service members thank you for the extraordinary work. Knowing that the military is facing some of the steepest cuts -- the country goes over the fiscal cliff on New Year's Day. The president is giving it one last shot cutting short his vacation in Hawaii and returning to Washington tomorrow to try to hammer out a last minute deal with congressional Republicans. But if there's no breakthrough every American will be hit with higher taxes a school teacher with two kids and a salary of 43000 dollars for example. Will face a tax hike of more than 3000 dollars. The super rich like LeBron James who makes roughly 53 million a year -- see his taxes go up more than 2.4 million next year. I want us to not go over the cliff because I think if we do it hurts our economy and it hurts our country middle class people shouldn't have their taxes go up an average of 2000 dollars a year. And we also should start making some meaningful reform on the -- going over the fiscal cliff. Means more than higher taxes federal workers are at risk of being -- and unemployment benefits for some two million people would expire. Not to mention many economists say the nation will fall back into a recession. There -- reports senate majority leader Harry Reid is now working on a smaller deal -- the comprehensive one the president negotiated with house speaker John Boehner. The package reportedly would prevent tax increases on middle class families and cut some spending programs but it's not clear if such a plant -- pass. -- Bradley ABC news Washington.

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

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