President Obama pressed for a last-minute tax deal Saturday to avoid tax increases and budget cuts beginning Jan. 1.

The president said Congress is working on a deal, which he believes could be settled by both houses before the New Year's Day deadline.

Senators worked behind the scenes Saturday after Speaker John Boehner said the House would act on anything the Senate produces. An alternate bill by Republican Senator Mitch McConnell could spawn a compromise bill that would hit the floor Monday.

The agreement still rests on setting an income level for which taxes will increase, moving closer to the $400,000 range as opposed to Obama's proposed $250,000.

Even if the last-minute deal passes, the majority of the fiscal cliff fallout would still need to be addressed when Congress has to raise the debt limit in February.

Read the full story at the NY Times.

For more of Neon Tommy's coverage on the fiscal cliff click here.

Reach Executive Producer Amanda Martinez here.