Without congressional action, the fiscal cliff arrives for Americans with the new year.

The potential financial disaster comes as Republicans and Democrats prepare for the lame-duck session of Congress and an attempt to reach a bipartisan agreement that could prevent the country from falling back into a recession, economists have said.

Lawmakers have had three years to address the issue – brought on by a combination of automatic tax increases and spending cuts – but waited until the 11th hour after a presidential election mired in party gridlock.