The debate over whether to extend Bush-era tax cuts remained unresolved Tuesday, as President Obama and congressional leaders departed from a hour-long meeting on tax policies for the new year.
"The American people did not vote for gridlock," Obama said in a press conference following the meeting. "Today we had the beginning of a new dialogue that I hope...will help break through the noise and produce real gains."
Republican leaders want to extend tax cuts for all Americans, including the wealthy. President Obama has long-insisted on preserving tax relief for middle-class Americans only.
However, in one sign of action, Obama said he appointed Treasury Secretary Tim Geithner and budget director Jack Lew to work with congressional Republicans and Democrats to come up with a deal on taxes in the next couple of days.
If no agreement is reached before Congress breaks for the holidays, taxes on all Americans would increase, a new year shocker that would increase pressure on Washington to act.
Immediately following the meeting, congressional Republicans said the discussion with President Barack Obama was a positive one in which both sides agreed to spend more time working together and finding common ground on tax and other tough issues.
Considering it's still unclear what your tax obligations may be next year, should you avoid dividend payers?