US President Barack Obama rushed back to Washington yesterday in a last-ditch effort to avoid the so-called “fiscal cliff,” even as key figures in any deal – House Republicans – stayed home.

Cutting short his own Christmas vacation in Hawaii, Obama arrived at the White House shortly before noon, ignoring questions about the looming financial crisis shouted by reporters as he strode inside.

He has returned to a sharply divided Washington, where the mood has soured on a possible plan to prevent hundreds of billions of dollars in tax hikes from hitting all Americans and deep automatic spending cuts from kicking in beginning January 1.

Lawmakers have stubbornly refused to compromise, and the Senate’s Democratic leader blamed Republicans for the breakdown.

With less than five days before a year-end deadline, Senate Majority Leader Harry Reid said “it looks like” the US economy will hurtle over the fiscal cliff because House Speaker John Boehner and Republican Minority Leader Mitch McConnell were stalling.

Reid said Boehner was running a “dictatorship” in the House by refusing to put to a vote a Senate-passed Bill which would prevent taxes from rising on all households making less than $250,000 per year. He also took Boehner to task for keeping his members on vacation instead of returning for a rare holiday week session.

“Without participation of Leader McConnell and Speaker Boehner, nothing can happen on the fiscal cliff – and so far they are radio silent,” a furious Reid said on the Senate floor.

“Take the escape hatch that we’ve left you” in the form of the Senate Bill, Reid advised Boehner. “Put the economic fate of the nation ahead of your own fate as Speaker of the House.”

Congress has shown no signs of nearing any accord, and Boehner last week punted to the Democrat-led Senate, asking Obama and Reid to draft legislation that could pass both chambers.

With Boehner remaining in his state of Ohio yesterday, his office shot back with a curt message.

“Senator Reid should talk less and legislate more,” Boehner spokesman Michael Steel said.

“The House has already passed legislation to avoid the entire fiscal cliff. Senate Democrats have not.”

Obama called Boehner, McConnell, Reid and House Democratic leader Nancy Pelosi late Wednesday to discuss the way forward, the White House said.

McConnell’s office said the senator was “happy to review what the president has in mind, but to date, the Senate Democrat majority has not put forward a plan. When they do, members on both sides of the aisle will review the legislation and make decisions on how best to proceed”.

Last week, Obama urged Congress to end the deadlock.

The situation has spooked markets, left Americans wondering whether they will pay thousands more in taxes next year, and worried the Pentagon, which fears defence cuts could undermine the military.

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