President Obama and Congress have about one week to strike a deal before the U.S. goes over the "fiscal cliff." (Creative Commons)

Sen. Joe Lieberman predicted, "We're going to spend New Year's Eve here, I believe." Sen. Kay Bailey Richardson, R-Texas, who does not expect much to come from the days of negotiation that lie ahead, predicted a small-scale patch would be the most likely scenario.

After the collapse Thursday of House Speaker John Boehner's proposal to allow tax rates to rise on millionaires, Lieberman suggested it has become "more likely" that higher taxes and budget cuts will kick in once the new year begins. 

SEE ALSO: Boehner Aims To Bounce Back After 'Plan B' Failure

The blame game on both sides has escalated with the deadline looming. More from the AP:

Wyoming Sen. Jon Barrasso, a member of the GOP leadership, predicted the new year would come without an agreement, and he faulted the White House.

"I believe the president is eager to go over the cliff for political purposes. He senses a victory at the bottom of the cliff," he said.

Democratic Sen. Kent Conrad of North Dakota, chairman of the Senate Budget Committee, was incredulous at Barrasso's assertion that 'there is only one person that can provide the leadership" on such a matter vital to the nation's interests. 

"There are 535 of us that can provide leadership. There are 435 in the House, 100 in the Senate and there is the president, all of us have a responsibility here," he said. "And, you know what is happening? What is happening is the same old tired blame game. He said/she said. I think the American people are tired of it. What they want to hear is 'What is the solution?'"

Congress and the president are currently on a holiday break, but will return to work on Thursday to reach a deal in the final five days of the year, CNN reported.

SEE ALSO: Obama Heads To Hawaii For Congressional Cool Down

The subject of tax cuts continues to be the biggest roadblock in forging a compromise. President Barack Obama wants to extend most  tax cuts passed during the George W. Bush administration, while returning rates for the wealthiest Americans to 1990s levels. Republicans have refused to budge on their stance against tax increases.

A pair of bills in Congress could help form the backbone of any potential last-minute fixes, according to Reuters:

Last spring, Republicans in the House passed a measure that would extend Bush-era tax cuts for everyone, reflecting the party's deep reluctance to increase taxes.

The Democratic-controlled Senate passed a bill in August, extending lower tax rates for everyone except the wealthiest Americans - a group defined at that point as households with a net income of $250,000 or above. Obama has since increased that to $400,000 a year, in an effort to win Republican support.

Analysts say Democrats might be able to get the backing of enough Republicans in both the House and Senate, especially if they are willing to raise the number to $500,000.  

Under that scenario, lawmakers might also put off spending cuts of $109 billion that would take effect from January and agree to Republican demands for cuts in entitlement programs such as Medicare and Medicaid, the government-run health insurance plans for seniors and the poor.

With only a few days remaining before Jan. 1, there is a good chance taxes will go up until leaders in Washington can reach an agreement. 

"We may go off the cliff on January 1, but we would correct that very quickly thereafter," Democratic Representative John Yarmuth told MSNBC.

Read more Neon Tommy stories on the "fiscal cliff" here. 

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