THE Republican-led US House is set to vote on a package of spending cuts and tax rises party leaders say will keep the US away from the "fiscal cliff".
The vote includes tax rises on earnings above $US1million ($F1.77m) on Speaker John Boehner's so-called "Plan B" option.
It comes as talks with the White House appear to have stalled, with President Barack Obama seeking a lower threshold.
A deal must be reached by January 1, or a combination of steep tax rises and sharp spending cuts will take effect.
Analysts in the US and overseas have expressed concern that failure to reach a deal could take the US into recession.
A vote is expected by the late afternoon on Thursday, but could stretch on into the evening.
House Majority Leader Eric Cantor said on Thursday: "We, as Republicans, have taken concrete actions to avoid the fiscal cliff."
He and Mr Boehner say the bill as proposed would ensure permanent tax cuts for 99.8 per cent of Americans.