WBRZ - Baton Rouge

WASHINGTON - Will he stand tough, or offer a compromise?

Democrats and Republicans are waiting to see what kind of tone President Barack Obama will set as he talks today about the approaching "fiscal cliff" and the need to work out a deal with Congress to avoid automatic tax hikes and spending cuts.

Republicans warn that a bitter fight could threaten Obama's second-term agenda.

Obama has been pushing for a plan that would mean higher tax rates for upper-income earners, but Republicans have resisted.