WASHINGTON (AP) — Democrats are going all-in in a fiscal game of chicken, saying they’ll let everyone’s income taxes rise on Jan. 1 and slash defense spending amid 8-plus percent unemployment if Republicans continue to balk at raising taxes just on those making more than $250,000 a year.

The brave face is being adopted as President Barack Obama and Congress come to grips with the possibility that gridlock and stalemate will result in the government careening off a fiscal cliff in January with automatic tax increases, spending cuts and an approaching exhaustion of borrowing ability.