US Tax Rise Threat After Congress Stand-Off

US President Barack Obama has slammed members of congress for a Christmas stand-off which could land millions of Americans with a tax increase.

Mr Obama has demanded Republicans and Democrats put politics aside and solve the dispute before leaving Washington for their holidays.

But there is little sign of a deal and the row has become another grim reminder of the bad-tempered political gridlock that is now a feature of American politics.

The result could be 160m workers suffering a tax increase on January 1st and the long-term unemployed losing their benefits.

The White House has even installed a countdown clock to keep the pressure on those involved in negotiations.

Most members of Congress have already left Washington for the Christmas and New Year's holiday but could quickly return to vote on any agreement.

At the weekend, the Senate approved a measure to extend the payroll tax cut and jobless benefits for two months, giving bargainers time to agree to a more expensive year-long measure.

The House of Representatives is demanding the Senate returns now to negotiate a longer deal, one Mr Obama has already said he would veto.

Harry Reid, the Democratic Senate Majority leader, said: "We have a responsibility to assure middle-class families that their taxes will not go up while we work out our differences. We must pass this immediate extension first."

House Speaker John Boehner hit back: "All we're asking for is to get Senate members over here to work with us to resolve our differences so we can do what everybody wants to."

In a moment almost as comic as it was dramatic, Democrats tried to get the House to consider its plan during a ceremonial session. The acting speaker adjourned the chamber and walked out.

The number two House Democrat Steny Hoyer shouted: "Mr. Speaker, you're walking out. You're walking away just as so many Republicans have walked away from middle-class taxpayers." He was addressing an empty chair.

If legislation isn't passed by New Year's Day, around 160m Americans would see their payroll tax rise from 4.2% to 6.2%, costing a worker earning \$50,000 an extra \$20 a week.

Almost 2m people could also lose unemployment benefits.

The Obama campaign has taken to Twitter and Facebook to make their case.