New Congress Faces Old Tax Crisis

President Obama and Congress members must strike a deal on taxes and spending cuts.
3:00 | 11/07/12

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Transcript for New Congress Faces Old Tax Crisis
And on that topic, what happens next, as the country hurtles towards that fiscal cliff. 55 days from now. Abc's jonathan karl coverer es congress and says, if the election sent a message to washington, and what kind. Reporter: From speaker of the house john boehner, to the newly re-elected president, an 0 live branch. Mr. President, the republican majority here in the house stands ready to work with you. Reporter: They better work together. If they don't strike a deal to cut the deficit in 55 day, by law, we face the so-called fiscal cliff, taxmaggedon, a mix of tax increases and defense spending cuts that would likely plunge the economy back into recession. And give a big tax hike for virtual little every family in AMERICA STARTING JANUARY 1st. The president has insisted and campaigned on raising tax rates on the wealthy. House republicans campaigned on no tax increases and they won, too. Today, from boehner, a hint at a willingness to compromise. We want you to succeed. Let's challenge ourselves to find the common ground that haas eluded us. Let's rise above the dysfunction and do the right thing together for our country. Reporter: The newly elected congress looks almost exactly like the last one. The same partisan divisions, maybe even a little bit deeper, that led to failure last time. But diane, there may be a new dynamic, that looming crisis, forcing a compromise that just seemed impossible in the last

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