REALITY CHECK: The White House and many congressional Republicans are setting their sights on a more modest deal that would extend current tax rates for most Americans, raise rates for top earners and leave vexing issues for the new year.
CLIFF AVOIDANCE: A growing number of Senate Republicans were calling on their House colleagues to yield on their opposition to letting top tax rates increase on income over $250,000 for couples, while extending Bush-era tax cuts for everyone else. That would leave other fiscal issues unsolved until 2013, including an increase in the nation's borrowing limit.
TROUBLE AHEAD: A narrow deal, involving only an increase in top marginal rates for top income earners would guarantee a second round of negotiations and brinkmanship over the debt ceiling.
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