Republicans scrapped their “Plan B” after U.S. President Barack Obama warned he would veto the House of Representatives Republican alternative plan for tax pro-posal designed to avert January 1 tax hikes. The plan does not do enough to balance spending cuts and tax increases, Obama said. The Republicans tax bill called for an ex-tension of low tax rates, except on income of $1 m and above. The White House has said earlier, Obama would accept a deal that puts the threshold for income tax hikes at $400,000, a higher threshold than his initial offer. Less than two weeks before the “fiscal cliff” (a series of automatic tax hikes and budget cuts that could trigger another recession in the U.S.) comes into effect, financial markets have to remain patient and wait for a last minute deal.