Can our federal government avoid the fiscal cliff that lies ahead, when the Bush tax cuts end, and a number of domestic and military cuts are slated to go into effect? The talks between the Democrats and Republicans have slowed, but compromise is still possible before Dec. 31.

According to Wall Street, fiscal cliff talks are stuck in low gear. Some Republican and Democratic lawmakers seem willing to compromise, but major issues on the massive tax increases and government spending cuts need to be resolved. Members of both major parties need to adopt positions that combine some tax increases with some social program cuts to avoid crippling our economy.

Sen. Bob Corker, R-Tenn., stated in a recent opinion piece that both sides should show “political courage” by increasing revenues and cutting entitlement spending by the end of December. To obtain such a result, it will require bipartisan compromising on both sides of the political aisle. To get that started, just this week several Republican members of Congress who had taken the Grover Norquist pledge not to increase any taxes, announced jointly that they would no longer be bound by that pledge.

In general, Democrats don’t want social program spending eliminated, and Republicans feel job creation will suffer if income tax rates are raised on wealthier taxpayers. A short-term plan is desirable that could be followed by comprehensive tax and spending reforms for the long term, which could be finalized in mid-to-late 2013.

There are three major reforms that have to be worked out to avoid a fiscal cliff or a possible double-dip recession next year. These issues are general health care reforms including Medicare and Medicaid, Social Security, and taxes and entitlements.

The Affordable Care Act, nicknamed “Obamacare,” is going into effect, without most people, or even many experts knowing for sure how to implement it, or knowing what its effects will be on individuals or on the economy. The act needs to be scrutinized and some changes will need to be put on the table in order to ensure that it will work well.

The Affordable Care Act was hastily prepared, with many potentially costly (and possibly unnecessary) add-ons put into the 2,030-page document. Work needs to be done to assure that programs are not more costly than intended, and that the implementation does not force small companies out of business.

Medicare and Medicaid will need changes, if they are to survive. One major reform to the government’s health insurance program for the elderly is likely to be means testing. Under means testing, wealthier people would pay more for their coverage.

Changes are also needed for Social Security’s long-term survival. Many people feel major changes are coming besides extending retirement age to 67. It’s still unclear how the cash shortage will be resolved before 2024. Yet Sen. Richard Durbin, D-Illinois, said “only minor changes may be needed to keep it solvent for a long time.”

Tax and entitlement reforms should be instituted by lawmakers through bipartisan compromise. Republicans want to cut social program spending that they believe waste government funds. Instead of raising taxes, they want tax loopholes closed. However, some Republican politicians would be willing to negotiate that issue. Democrats are reluctant to cut social programs, because they believe that government needs to help people who are not doing well. Some Democrats are willing to negotiate on some social programs.

Both sides need to give a little to get to a solution. We have too much to lose with a fiscal cliff scenario. Leadership is a lonely job, but President Obama has to advance his agenda for the next term to let people know the things he will do. We have not had a real plan or federal budget for too long. To get things properly accepted, he too must re-connect with all his constituents, regardless of which side they were on.

Let us hope that a growing number of Republicans care more about America than obstruction. They must be willing to soften their positions, by compromising, rather than adhering to an anti-tax agreement pledge made in the past.

President Obama and Republican House Speaker John Boehner should agree to a short-term plan to avert the fiscal cliff by Dec. 31 and to a long-term comprehensive tax reform and spending cut plan, to be enacted before the end of 2013.

It is the most sensible way to prevent another recession from occurring.

— Bernard Featherman is a business columnist for the Journal Tribune and former president of the Biddeford-Saco Chamber of Commerce.