President Obama and Senate Democrats both won re-election on the promise to raise taxes on the rich. Speaker John Boehner and House Republicans won back control of their chamber campaigning on the promise to never raise taxes.
Washington is still sharply split along the same lines as it was before Tuesday and the outcome is perhaps the worst-case scenario for a quick resolution to the fiscal cliff awaiting Congress in the lame-duck session.
In a phone interview with Press TV's U.S. Desk on Wednesday, Richard K. Vedder, a senior Fellow of the Independent Institute said, "I think that in the final analysis, Americans will find a solution that will probably be a compromise between what President Obama wants and what the Republicans want."
"It will probably involve some increases in taxes for upper income Americans but it probably will also involve somewhat larger expenditure, of reductions, than the President wants but I am not certain of that," he continued.
Vedder concluded that "given the seriousness of the issue and the fact that this cannot be postponed indefinitely, I suspect that some compromise will ultimately result, will happen."