Obama: Fiscal cliff deal 'within sight'

(CNN) -- An agreement to avert the "fiscal cliff" of automatic tax increases and spending cuts appears to be "within sight," President Barack Obama said Monday.

"There are still issued left to resolve, but we are hopeful Congress can get it done," Obama said.

The deal that was taking shape included an agreement to raise the income tax rate on top earners to what it was during President Bill Clinton's last term in office, according to sources close to the process.

A GOP source told CNN negotiators are "very close" to a deal. The sticking point is $24 billion in spending cuts being sought by Republicans, according to the source.

"It's like looking under the cushions at this point," the source said. "If we can't find that at this point, we should pack this place up."

But one leading Senate Democrat warned the deal could run into trouble -- not only from House Republicans who have long opposed any tax increase, but also from liberals in the Senate who oppose allowing more high-income households to escape a tax increase.

"No deal is better than a bad deal, and this looks like a very bad deal the way this is shaping up," Sen. Tom Harkin, D-Iowa, said.

President Barack Obama was expected to discuss the issue in public remarks at the White House.

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