Fiscal cliff deadline looms as talks on a deal continue - live updates With only hours remaining until midnight, can America's political system avert the fiscal cliff of tax hikes and sweeping budget cuts before 2013 is ushered in? Congress reconvenes this morning after hopes of a deal between the Democratic and Republican leaders in the Senate over the weekend, came to naught. The talks faltered after Republicans threw up a string of objections - leading the Republican Senate minority leader Mitch McConnell to open a new line of dialogue with vice president Joe Biden. Harry Reid, the Senate majority leader, left the field yesterday evening, telling journalists "Talk to Joe Biden and McConnell" as his farewell remark. Congress went home for the night soon after. But there was some progress, based on reports leaking out of the two caucuses. The New York Times reported: On some of the biggest sticking points, the two sides are now inches apart. Barely a week after House Republicans refused to vote to allow taxes to rise on incomes over $1m, Senate Republicans proposed allowing tax rates to rise on incomes over $450,000 for singles and $550,000 for couples. Democrats countered with a proposal to extend expiring Bush-era tax cuts up to $360,000 for singles, $450,000 for couples. For both sides, that meant major movement. Mr Obama has been holding firm at a $250,000 threshold. Despite that shift, Republicans first insisted that a new measure of inflation, known as "chained CPI," be used to calculate future - and slower - increases in social security payments. Democrats rejected that but the Republicans produced a new objection, based on the putative deal's delay of the severe budget cuts that form one half of the feared fiscal cliff. President Obama weighed in via an appearance on NBC's Meet The Press on Sunday morning, blaming Republicans intransigence for their failure to reach a deal: We have been talking to the Republicans ever since the election was over. They have had trouble saying yes to a number of repeated offers. We'll be bringing you all the action or inaction as the clock ticks down. It could be a late night.