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This Friday, Dec. 28, 2012, file photo shows the Capitol dome on Capitol Hill in Washington. The brinkmanship in Washington over taxes and spending is likely to continue damaging the fragile economy well into 2013. The political standoff has already taken an economic toll, creating uncertainty about the future and discouraging consumers from spending and businesses from hiring and investing.

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Political brinksmanship still threatens US economy

Lawmakers managed to avoid driving the United States over the so-called fiscal cliff with a late-night vote Tuesday. But higher taxes and brinksmanship in Washington are likely to sap strength from the fragile economy well into 2013.

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