White House officials introduced a plan to address the fiscalcliff last week in private meetings with Democratic leaders, thoughthe White House itself is not ready to endorse it. The plan woulddelay defense spending cuts for six months, but would extend Bushtax cuts for a year only for those earning under $250,000 annually,according to Fortune. The plan comes as a response toRepublican proposals to extend all Bush tax cuts, which the GOPwill likely bring to vote next month.

Analysts project that the spending cuts and expiring tax breaksdue to take effect in January will drive the U.S. back intorecession, trimming four points off economic activity. Theadministration's proposal would put Republicans in conflict withtwo GOP priorities: protecting defense spending and protectinghigh-income earners.

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