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Senate Majority Leader Harry Reid, D-Nev., retreats to a closed-door meeting with fellow Democrats as he and Senate Minority Leader Mitch McConnell, R-Ky., work to negotiate a legislative path to avoid the so-called "fiscal cliff," at the Capitol in Washington, Sunday, Dec. 30, 2012. Senate and House leaders rushed to assemble a last-ditch agreement to stave off middle-class tax increases and possibly delay steep spending cuts in an urgent attempt to find common ground after weeks of gridlock. (AP Photo/J. Scott Applewhite)
Senate Minority Leader Mitch McConnell of Kentucky, center, arrives at his office in the Capitol as he and Senate Majority Leader Harry Reid of Neveda, try to negotiate a legislative solution to avoid the so-called "fiscal cliff" in Washington, Sunday, Dec. 30, 2012. (AP Photo/J. Scott Applewhite)
Clouds roil over the White House in Washington on the morning of Sunday, Dec. 30, 2012, as Washington has less than 48 hours to avert the fiscal cliff, a series of tax increases and spending cuts set to take hold on Jan. 1. Republican and Democratic negotiators in the Senate were hoping to reach a deal to avoid going over the cliff on Sunday. (AP Photo/Jacquelyn Martin)
Senate Minority Leader Mitch McConnell of Kentucky, arrives at his office in the Capitol as he and Senate Majority Leader Harry Reid of Neveda try to negotiate a legislative solution to avoid the so-called "fiscal cliff," in Washington, Sunday, Dec. 30, 2012. (AP Photo/J. Scott Applewhite)
WASHINGTON — The deal in Congress to avert the “fiscal cliff” was proving elusive Sunday as a deadline to avert tax hikes on virtually every American worker and block sweeping spending cuts set to strike the Defense Department and other federal agencies grew perilously near. …