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Fiscal Cliff Deal Vote Likely in Senate













The so-called "fiscal cliff" came tonight -- but now there is a specific deal on the table to try to soften it after the fact, according to congressional sources.


Senate Majority Leader Harry Reid, D-Nev., said the deal -- brokered by Vice President Joe Biden and Senate Minority Leader Mitch McConnell -- would get a vote in the Senate tonight. The House would not vote before Tuesday, having adjourned for the evening before word of the agreement spread.


"I feel really very, very good about this vote," Biden told reporters leaving the meeting with Senate Democrats, "but having been in the Senate for as long as I have there's two things you shouldn't do: You shouldn't predict how the Senate is going to vote before they vote....[and] you surely shouldn't predict about how the House is going to vote."


The proposal would extend Bush-era tax cuts permanently for people making less than $400,000 per year and households making less than $450,000, the sources said.


The steep "sequester" budget cuts scheduled to go into effect with the New Year would be postponed two months, said sources. They said half the money would come from cuts elsewhere, and the other half from new revenue.


The deal also would affect taxes on investment income and estates, and extend unemployment benefits for a year, the congressional sources added.


"The end is in sight," said a Democratic aide with Senate Majority Leader Harry Reid's office. "If everyone cooperates, it's possible things can move pretty quickly."


After the Biden meeting, Sen. Charles Schumer, D-N.Y., said there was "strong" support for the plan among Senate Democrats.


"There is a feeling that it's not that this proposal is regarded as great or as loved in any way, but it's a lot better than going off the cliff," he said.


Sen. Dianne Feinstein, D-Calif., called the compromise the "best" that could be done.


Even with progress in the Senate tonight, the "cliff" deadline will pass without action by the House, where Republican leaders said they would "consider" the deal starting tomorrow.






Chip Somodevilla/Getty Images











'Fiscal Cliff': Lawmakers Scramble for Last-Minute Deal Watch Video









"Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members -- and the American people -- have been able to review the legislation," said House Speaker John Boehner, Majority Leader Eric Cantor, Majority Whip Kevin McCarthy, and Republican Conference Chair Cathy McMorris Rodgers in a statement.


The failure of a deal to pass Congress by Jan. 1 technically triggers an income tax hike on all Americans and automatic spending cuts, though lawmakers could still prevent a tax hike by making retroactive any legislation that passes in the weeks ahead, experts said.


The deal at hand will not entirely solve the problem of the "fiscal cliff," however. In fact, it could set up a new showdown over the same spending cuts in just two months that would be amplified by a brewing fight over how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.


Earlier, during a midday news conference, Obama said he was optimistic about compromise in the short-term.


"It appears that an agreement to prevent this New Year's tax hike is within sight, but it's not done," he said. "There are still issues left to resolve, but we're hopeful that Congress can get it done."


In addition to extending current tax rates for households making $450,000 or less, the latest plan would raise the estate tax from 35 to 40 percent for estates larger than $5 million; and prevent the alternative minimum tax from hammering millions of middle-class workers, according to sources familiar with the talks.


Capital gains taxes would rise to 20 percent from 15, according to a senior White House official.


The deal would also extend for one year unemployment insurance benefits set to expire Tuesday, and avert a steep cut to Medicare payments for doctors, congressional sources said.


"I can report that we've reached an agreement on the all the tax issues," said Senate Minority Leader Mitch McConnell in an afternoon speech on the Senate floor.


At the time, McConnell said that federal spending cuts remained a sticking point. That hurdle later appeared to be cleared by postponing the debate two more months, though it is unclear whether House Republicans will go along.


"In order to get the sequester moved, you're going to have to have real, concrete spending cuts," said Rep. Mike Rogers, R-Mich. Without that, he said, "I don't know how it passes the House."


Some Republicans also said Obama unduly complicated progress toward an agreement by seeming to take a victory lap on taxes at his campaign-style event at the White House.


"Keep in mind that just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans," Obama said, raising the ire of several Republicans. "Obviously, the agreement that's currently discussed would raise those rates, and raise them permanently."


Those words drew a sharp retort from Republican Sen. John McCain.


Rather than staging a "cheerleading rally," McCain said, the president should have been negotiating the finishing touches of the deal.


"He comes out and calls people together and has a group standing behind him, laughs and jokes and ridicules Republicans. Why?" said McCain.


Several Democrats also voiced disappointment with the president and the emerging deal.






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Senate negotiators yet to reach ‘fiscal cliff’ deal as clock winds down



With a New Year’s Eve deadline hours away, Democrats abandoned their earlier demand to raise tax rates on household income over $250,000 a year, as President Obama vowed during the recent presidential campaign.


They also relented on the politically sensitive issue of the estate tax, promising to stage a vote in the Senate that would guarantee that taxes on inherited estates remain at their current low levels, a key GOP demand.

Still, McConnell (R-Ky.) was holding out to set the income threshold for tax increases even higher, at $550,000, according to people close to the talks in both parties. And he was protesting a Democratic proposal to raise taxes on investment profits for households with income above $250,000.

The two sides were also sharply at odds over automatic spending cuts set to decimate budgets at the Pentagon and other federal agencies next month. Democrats were seeking to delay the cuts, known as the “sequester,” until 2015, without identifying other savings to compensate. They were also pressing to extend unemployment benefits, farm subsidies and Medicare payments to doctors, again without offsetting cuts as Republicans demand.

Unless the two sides can reach agreement, historic tax hikes are set to hit virtually every American on Jan. 1, potentially driving the nation back into recession. An impasse would also throw the coming tax filing season into chaos, as nearly 30 million unsuspecting taxpayers would be required to pay the costly alternative minimum tax for the first time.

As Biden and McConnell traded phone calls deep into the night, lawmakers waited anxiously for news. Though members of both parties received lengthy briefings from their respective leaders about the status of the talks, senators were just as likely to predict that the nation was on the verge of a self-inflicted economic crisis as they were to predict that salvation was at hand.

“I think we’re going over the cliff,” Sen. Lindsey O. Graham (R-S.C.) wrote on Twitter in the middle of the day.

“The two parties are so close that they can’t afford to walk away,” Sen. Mike Johanns (R-Neb.) countered hours later. “I continue to be optimistic.”

Biden, a veteran dealmaker who served in the Senate for 36 years, entered the talks Sunday at McConnell’s request after the Republican leader said he had grown “frustrated” by the pace of negotiations with Senate Majority Leader Harry M. Reid (D-Nev.).

Personal relations between the two Senate leaders have deteriorated after two years of draining battles over the budget. On Sunday, their antagonism produced a confusing day when talks seemed to be collapsing even as the two sides were moving closer to agreement on several fundamental issues.

Reid blamed McConnell for the impasse, saying Republicans were insisting on a change in the way inflation is measured that would serve to reduce Social Security benefits — a red flag for Democrats. Early in the day, Democratic aides described McConnell’s continued insistence on the change, known as “chained CPI,” as a ”major setback.”

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Swimmer Hackett sues lawyers over pre-nup: report






SYDNEY: Australian swimming great Grant Hackett is suing his lawyers over a costly pre-nuptial agreement after his marriage ended with a drunken rampage, reports said.

After five years together, Hackett and Candice Alley split in May. He had trashed his apartment the previous October in an alcohol-fuelled blowout, prompting his wife to call the police.

Police photographs of the damage were published after which Hackett was dumped as an ambassador for a children's anti-violence charity. He had upended a piano and furniture, smashed a door and put holes in the walls.

The 1,500m freestyle champion at both the 2000 and 2004 Olympics and dominant force in the event for a decade accused his former solicitors of drawing up a "defective" pre-nuptial agreement.

"As a result of the breaches... the Plaintiff (Hackett) has suffered loss including legal costs," legal documents lodged by Hackett in the Supreme Court of Victoria said, according to News Limited newspapers.

"The Plaintiff's loss is continuing."

The newspapers said Hackett's personal fortune was estimated at some A$8 million (US$8.3 million) and he was seeking a finding of negligence against his solicitors along with compensation.

In June, Hackett said he was working to restore his reputation and did not blame alcohol for his actions.

"I will be defined by my actions moving forward and I hope people take the time to judge me on that and I'm very, very determined to turn that around," he said.

"I was drunk, I think the alcohol exaggerated or exacerbated the emotions of that night and made it worse. But I don't blame that, I blame myself."

- AFP/al



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Bengal to observe social security fortnight from tomorrow

KOLKATA: A social security fortnight would be observed in West Bengal from January 1 to January 15 next year to popularise various social security schemes for the unorganised sector initiated by the West Bengal government.

"We want to make people aware of various welfare schemes introduced for the marginal and backward people of society engaged in different occupations in the unorganised sector," state labour minister Purnendu Bose said announcing the programme on Monday.

Organised by the labour department, the fortnight would help people get detailed information on the schemes.

Bose said for instance the fortning would help people gather information on how provident fund and health security schemes for workers in the unorganised sector and social security schemes for construction and transport workers became more attractive.

At present there are about one crore workers in the unorganised sector in the state and many of them have already registered themselves under these welfare schemes, Bose said.

"If a beneficiary enlists his name at the age of 18 years and contributes Rs 25 against the state government's contribution of Rs 30 per month, at the age of 60 he will get Rs 2.5 lakh under the state-Assisted scheme of Provident Fund for Unorganised Workers (SASPFUW)", the minister said.

While nearly 22 lakh workers were registered under this scheme (SASPFUW) during the 34-year rule of the LF Government, in the last 18 months the state government had registered nearly ten lakh unorganised sector workers registered under the scheme, he said.

The minister said that out of 7.30 lakh total number of workers enrolled under Building and Other Construction Workers Act (BOCWA) as on November 30, 2012, a total of 4.58 lakh were enrolled only during the last 18 months of the present government for various benefits.

While the erstwhile LF government spent Rs 1.56 crore in six years, the Mamata Banerjee government spent Rs 23.14 crore in only 18 months, the minister claimed.

Similarly, under the schemes for transport workers, a total of 43,857 workers were enrolled during last 18 months rule of the present government for various benefits, which was against a total enrolled workers of 89,554 since the beginning of LF government in 1977, he said.

Apart from this, Bose said the Trinamool Congress government has doubled the hospitalisation benefits for unorganised sector workers, while for the first time their government introduced Rs 50,000 in case of natural death and Rs 1,50,000 for accidental death.

Besides, the state government has been able to reduce the mandays loss due to strike drastically, while almost all the jute mills and tea gardens are now open during their rule, barring closure in only two cases each, the minister said.

The unorganised workers registered under those schemes would get 'Samajik Mukti Card', the minister said adding that this smart card would help them to avail various benefits and ensure their social security.

Requesting all unorganised workers to register their names immediately under these schemes, Bose said how registration of names under various schemes had already increased in last 18 months of their government.

On the occasion awareness camps are being organised at gram panchayat, block, sub-division and district levels.

In all these camps, registration of beneficiaries as well as distribution of benefits under different schemes would be done, he added.

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How to Banish That New Year's Eve Hangover


For those of us who enjoy the occasional cocktail, the holiday season would be incomplete without certain treats of the liquid variety. Some look forward to the creamy charms of rum-laced eggnog; others anticipate cupfuls of high-octane punch or mugs of warm, spiced wine.

No matter what's in your glass, raising one as the year winds down is tradition. What could be more festive? The problem is, one drink leads to two, then the party gets going and a third is generously poured. Soon, the music fades and the morning arrives—and with it, the dreaded hangover. (Explore a human-body interactive.)

Whether it's a pounding headache, a queasy stomach, sweating, or just general misery, the damage has been done. So now it's time to remedy the situation. What's the quickest way to banish the pain? It depends who you ask.

Doctors typically recommend water for hydration and ibuprofen to reduce inflammation. Taking B vitamins is also good, according to anesthesiologist Jason Burke, because they help the body metabolize alcohol and produce energy.

Burke should know a thing or two about veisalgia, the medical term for hangover. At his Las Vegas clinic Hangover Heaven, Burke treats thousands of people suffering from the effects of drinking to excess with hydrating fluids and medications approved by the U.S. Food and Drug Administration.

"No two hangovers are the same," he said, adding that the unfavorable condition costs society billions of dollars-mostly from lost productivity and people taking sick days from work.

Hot Peppers for Hangovers?

So what's the advice from the nonmedical community? Suggestions range from greasy breakfasts to vanilla milkshakes to spending time in a steamy sauna. A friend insists hot peppers are the only way to combat a hangover's wrath. Another swears by the palliative effects of a bloody mary. In fact, many people just have another drink, following the old "hair of the dog that bit you" strategy.

Whether such "cures" actually get rid of a hangover is debatable, but one thing's for sure: the sorry state is universal. The only people immune to hangovers are the ones who avoid alcohol altogether.

So for those who do indulge, even if it's just once in awhile, see our interactive featuring cures from around the world (also above). As New Year's Eve looms with its attendant excuse to imbibe, perhaps it would be wise to stock your refrigerator with one of these antidotes. Pickled herring, anyone?


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Hillary Clinton Hospitalized With Blood Clot


gty hillary clinton jt 121209 wblog Hillary Clinton Hospitalized With Blood Clot

(MICHAL CIZEK/AFP/Getty Images)


By DANA HUGHES and DEAN SCHABNER


Secretary Hillary Clinton was hospitalized today after a doctors doing a follow-up exam discovered a blood clot had formed, stemming from the concussion she sustained several weeks ago.


She is being treated with anti-coagulants and is at NewYork-Presbyterian Hospital so that they can monitor the medication over the next 48 hours, Deputy Assistant Secretary Philippe Reines said.


Her doctors will continue to assess her condition, including other issues associated with her concussion. They will determine if any further action is required, Reines said.


Clinton, 65, originally fell ill from a stomach virus following a whirlwind trip to Europe at the beginning of the month, which caused such severe dehydration that she fainted and fell at home, suffering a concussion. No ambulance was called and she was not hospitalized, according to a state department official.


The stomach virus had caused Clinton to cancel a planned trip to North Africa and the United Arab Emirates, and also her scheduled testimony before Congress at hearings on the attack on the U.S. consulate in Benghazi, Libya.


According to a U.S. official, the secretary had two teams of doctors, including specialists, examine her after the fall.  They also ran tests to rule out more serious ailments beyond the virus and the concussion. During the course of the week after her concussion, Clinton was on an IV drip and being monitored by a nurse, while also recovering from the pain caused by the fall.


Medical experts consulted by ABC News said that it was impossible to know for sure the true nature or severity of Clinton’s condition, given the sparse information provided by the State Department. However, most noted that the information available could indicate that Clinton had a deep venous thrombosis,which is a clot in the large veins in the legs.


“A concussion (traumatic brain injury) in itself increases risk of this clot. Likely the concussion has increased her bed rest,” said Dr. Brian D. Greenwald, Medical Director JFK Jonson Rehabilitation Center for Head Injuries. “Immobility is also a risk for DVT. Long flights are also a risk factor for DVT but the recent concussion is the most likely cause.


“Anticoagulants are the treatment,” he said. “If DVT goes untreated it can lead to pulmonary embolism (PE). PE is a clot traveling from veins in legs to lungs which is life threatening. Many people die each year from this.


“Now that she is being treated with blood thinners her risks of PE are decreased,” he said. “Blood thinners carry risk of bleeding but are common and can be safely used.”


Dr. Allen Sills, associate professor of Neurological Surgery at Vanderbilt University Medical Center, said it was most likely that the clot was not located in Clinton’s brain, since she is being treated with anticoagulants.


“This is certainly not a common occurrence after a concussion, and is most likely related to either inactivity or some other injury suffered in the fall,” he said.


Dr. Neil Martin, the head of Neurovascular Surgery at the University of California, Los Angeles, Medical Center, said blood thinners are often given for blood clots in the legs, and it is “very unusual” for anticoagulants to be given for blood clots in the head.


But he cautioned about speculating too much about Clinton’s condition before more information is available.


“If we don’t know where it is, there is the possibility of several different indications,” he said. “I don’t know if there is any connection between what she’s got now and the concussion. All I can tell you is, at this point, it’s almost impossible to speculate unless we know what’s going on there.”

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Senators trade proposals into night to avoid ‘fiscal cliff’



As the clock ticked toward a Jan. 1 deadline, the halls of the Capitol were dark and silent. The House and the Senate are shuttered until Sunday afternoon, in part to avoid distractions as the talks over averting sharp tax increases for most American taxpayers entered their final hours.


While Senate Majority Leader Harry M. Reid (D-Nev.) monitored developments by telephone, Minority Leader Mitch McConnell (R-Ky.) arrived at the Capitol shortly after noon. Asked whether he and Reid would be able to strike a deal, McConnell smiled and replied: “I hope so.”

As nightfall approached, top Democratic and Republican aides continued shuttling paperwork with the latest proposals back and forth between the two leaders’ offices, about 60 steps apart.

Under negotiation is a deal that would extend George W. Bush-era tax cuts for nearly all taxpayers but increase rates on top earners. It also would extend unemployment benefits set to expire in January for 2 million people and prevent about 30 million Americans from having to pay the alternative minimum tax for the first time.

McConnell left the Capitol shortly before 7 p.m, revealing few details. “We’ve been in discussions all day, and they continue,” he said. He added, “We’ve been trading paper all day and talks continue into the evening.”

Reid and McConnell have set a deadline of about 3 p.m. on Sunday for cinching a deal. That’s when they’re planning to convene caucus meetings of their respective members in separate rooms just off the Senate floor. At that point, the leaders will brief their rank and file on whether there has been significant progress and will determine whether there is enough support to press ahead with a proposal.

“They both know the clock ends Sunday,” said Sen. Mark Begich (D-Alaska).

If all goes according to plan, the leaders would roll out the legislation Sunday night and hold a vote by at least midday Monday, giving the House the rest of New Year’s Eve to consider the measure.

In the House, Speaker John A. Boehner (R-Ohio) huddled Saturday with his senior staff for two hours but remained on the periphery of the negotiations. Passage in the unpredictable chamber is anything but certain. Boehner told President Obama and congressional leaders Friday that he could commit only to considering a Senate-passed bill and suggested that the House may amend that bill and send it back to the Senate.

House consideration of the measure could become another white-knuckle moment. Boehner would like the eventual deal to be passed by a bipartisan coalition that is roughly equally divided between Republicans and Democrats, GOP aides said. Republicans have not supported tax increases since 1990, and conservative activists were already criticizing any deal to raise taxes on the wealthy.

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IMF, EU push for less drastic deficit cuts






PARIS: The International Monetary Fund and European Commission officials have encouraged France and its eurozone partners not to fixate on deficit reduction targets if it would exacerbate the bloc's debt crisis.

The head of an IMF mission in France, Edward Gardner, urged officials in Paris last week to consider their 2013 budget targets "in a broader European context."

The IMF and the EU Commission expect the French public deficit to amount to 3.5 per cent of gross domestic product (GDP) next year.

They do not believe France can reach its 3.0 per cent goal, the eurozone limit, without additional measures that could aggravate an already tenuous economic situation.

"The credibility of the medium term orientation policy" was more important than a specific deficit target, Gardner told reporters.

Loosening the criteria would "be more effective, more credible in a coordinated fashion" across the 17-nation eurozone, he suggested.

In Portugal the public deficit fell at the end of the third quarter to 5.6 per cent of GDP from 6.7 per cent at the same point a year earlier, while neighbouring Spain has promised to slash its deficit to 3.0 per cent by 2014 from a blowout shortfall equal to 9.4 per cent of output last year.

Germany expects its budget to be in balance this year, two years ahead of schedule, but IMF head Christine Lagarde has suggested that Berlin ease up a bit in its drive for healthy finances.

"Germany ... and others ... can allow themselves to go a little more slowly than others in the push to straighten out their public finances," Lagarde told the German weekly Die Zeit in comments published last week.

Her call echoed other European voices that are now arguing for greater emphasis on growth rather than austerity measures.

"The IMF is beginning to understand that the French situation has become dangerous," economist Marc Touati at the ACDefi consulting group said. Unemployment is climbing and the economy is still struggling, he pointed out.

The IMF was "trying to prepare public opinion" for missed government targets, Touati suggested.

"This is not really a new position," Frederique Cerisier at the French bank BNP Paribas said of Lagarde's recent remarks. She acknowledged however that some international institutions were "placing added emphasis" on the need to cut deficits more gradually.

On Tuesday, the EU's 'fiscal compact,' a hard-won step towards tighter economic coordination agreed as part of efforts to tame the debilitating debt crisis, takes effect.

Finalised in March, 25 of the 27 EU member states accepted a 'balanced budget rule' in the compact to ensure that governments would no longer run the massive budget deficits which drove the debt crisis and nearly sank the euro.

But as the European debt crisis drags on and economies flounder, the idea of allowing governments more time to straighten out their finances has gained ground.

European Economic Affairs Commissioner Ollie Rehn said last week that France needed more reforms rather than more austerity.

"Once you have a credible medium-term budget strategy, backed up by reforms, you can have a slower adjustment," he told French daily Le Monde.

If a 3.0-per cent French deficit remains a valid reference, "what needs to be taken into account above all is the structural budget adjustment effort which France is making with remarkable intensity," the EU official said.

French officials nevertheless seem determined to stick by their targets. They insist that the public deficit will be brought down to 3.0 per cent of GDP next year from 4.5 per cent in 2012, based on a 2013 growth estimate of 0.8 per cent that economists consider overly optimistic.

Friday's third-quarter growth figures gave them little comfort: official statistics revised growth over that period down from 0.2 to 0.1 per cent.

French Finance Minister Pierre Moscovici wrote in the German business daily Handelsblatt that France had a duty to reverse years of budget deficits.

"In the past 30 years, France has not been able to pass a balanced budget. State debt rose to an unacceptable 1.7 trillion euros ($2.2 trillion) in 2011. It is our duty to reverse this," Moscovici said.

On Friday he reaffirmed the goverment's 2013 growth target.

Cerisier at BNP Paribas warned that France, which is now benefitting from exceptionally low borrowing rates, must be careful how it communicates to markets, if it wants to maintain its credibility.

But, she added: "The fact that we can begin to discuss all that is proof that countries have become more credible with respect to their economic targets."

- AFP/ck



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July blasts in Valley a terror strike: Cops

SRINAGAR: The Jammu & Kashmir police have claimed that two Lashkar-e-Taiba terrorists killed in an encounter on Friday in Pulwama were responsible for a blast on a bus that had killed four tourists in Anantnag in July. The claim contradicts their statement that ruled out a terror angle to the blast then and had said that an LPG cylinder inside the bus had exploded and killed the four women from Mumbai.

ADG S M Sahai said the two terrorists had thrown a grenade at the bus."... it seemed to be a gas cylinder blast at that time. However, after forensic examinations, it was termed as a grenade attack," he said.

The surviving tourists had then said "something" was tossed into the bus, which was followed by the explosion. Doctors at Srinagar's Sher-e-Kashmir Institute of Medical Sciences had said that none of the victims had burn injuries, which a cylinder explosion can cause. "It could be splinter injuries of a grenade," a doctor had said.

Separately, separatist leader Mirwaiz Umar Farooq blamed security forces for firing on people after the Pulwama encounter. The separatists have called a bandh on Monday to protest the firing.

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