Negotiations to avoid fiscal cliff continue - KTIV News 4 Sioux City IA: News, Weather and Sports

The clock is ticking and the deadline is just hours away before America goes over the so-called fiscal cliff.

Right now there is no deal between Republicans and Democrats, but late word is there has been some compromise over a major sticking point: Where to raise taxes on the wealthiest Americans.

Sources say Democrats have agreed to extend tax cuts for people making up to $400,000 higher than the $250,000 limit the president wanted.

Now the hope is that instead of a grand bargain, a smaller package gets passed with the real job being pushed off until the new year.

Without a deal, Americans will face over $530 billion in tax increases and $110 billion in spending cuts for the military and other federal agencies go into effect.