"Fiscal cliff" looms days after the election - MyFoxAustin.com | KTBC Fox 7 | News, Weather, Sports

"Fiscal cliff" looms days after the election

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The President has won another four years, but is there a new mandate?

House Republicans also won on Tuesday, so with the so-called fiscal cliff rapidly approaching, the fundamentals haven't really changed.

President Obama returned to the White House on Thursday -- the first family about to settle in for another term, but there won't be much time to celebrate.

The fiscal cliff is rapidly approaching just down the street at the Capitol and the government could start hemorrhaging cash at the end of the year.

"The fiscal cliff is $440 billion worth of taxes and $200 billion of spending cuts,  that's four percent of GDP at a time when we're growing at one and a half, two percent growth rate. So going over the full fiscal cliff is a recipe for recession. There's no question about it," explained former congressional budget office director Douglas Holtz-Eakin.

But after Tuesday, does the President really have a mandate now to raise taxes on the wealthy -- something he has pushed for years?

Sen. Harry Reid says, "This was really the message the American people sent from all over and that is they're tired of this partisan gridlock."

Republicans point to the impact higher taxes will have on hiring with the unemployment rate still almost eight percent.  But House Speaker John Boehner is showing a willingness to -- in the parlance of Washington -- raise revenue if it involves simplifying the tax system -- not just raising rates.

"For purposes of forging a bipartisan agreement that begins to solve the problem, we're willing to accept new revenue, under the right conditions," he said.

But something of a warning shot Thursday from the markets -- which fell in a big way.

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