House Democratic Caucus Chairman Rep. John Larson addresses the press in the US Capitol after last minute talks between Senate leaders stalled. \n(All images courtesy of AFP/Getty Images)
Failure to reach a deal brings the prospect that America could plunge off the so-called 'fiscal cliff' at midnight on Monday.
The deadline will automatically trigger a series of fiscal measures that experts have said could plunge the US back into a recession.
If no deal is made, 88 percent of Americans will see their taxes rise on 1 January.
A wave of deep spending cuts will see two million long-term unemployed people lose their benefits.