Political brinksmanship still threatens US economy

WASHINGTON (AP) — Even if U.S. lawmakers avoid the so-called fiscal cliff, higher taxes and brinksmanship in Washington are likely to continue damaging the fragile economy well into 2013.

In the early hours of the new year, the Senate passed emergency legislation to prevent deep spending cuts and even bigger tax hikes from taking effect. But the measure ran into fierce opposition Tuesday from House Republicans, leaving unclear whether a final agreement could be reached before the current Congress ends Thursday.

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