Obama Still an 'Optimist' on Cliff Deal


gty barack obama ll 121221 wblog With Washington on Holiday, President Obama Still Optimist on Cliff Deal

Mandel Ngan/AFP/Getty Images


WASHINGTON D.C. – Ten days remain before the mandatory spending cuts and tax increases known as the “fiscal cliff” take effect, but President Obama said he is still a “hopeless optimist” that a federal budget deal can be reached before the year-end deadline that economists agree might plunge the country back into recession.


“Even though Democrats and Republicans are arguing about whether those rates should go up for the wealthiest individuals, all of us – every single one of us -agrees that tax rates shouldn’t go up for the other 98 percent of Americans, which includes 97 percent of small businesses,” he said.


He added that there was “no reason” not to move forward on that aspect, and that it was “within our capacity” to resolve.


The question of whether to raise taxes on incomes over $250,000 remains at an impasse, but is only one element of nuanced legislative wrangling that has left the parties at odds.


For ABC News’ breakdown of the rhetoric versus the reality, click here.


At the White House news conference this evening, the president confirmed he had spoken today to Senate Majority Leader Harry Reid, D-Nev., and House Speaker John Boehner, R-Ohio, although no details of the conversations were disclosed.


The talks came the same day Speaker Boehner admitted “God only knows” the solution to the gridlock, and a day after mounting pressure from within his own Republican Party forced him to pull his alternative proposal from a prospective House vote. That proposal, ”Plan B,” called for extending current tax rates for Americans making up to $1 million a year, a far wealthier threshold than Democrats have advocated.


Boehner acknowledged that even the conservative-leaning “Plan B” did not have the support necessary to pass in the Republican-dominated House, leaving a resolution to the fiscal cliff in doubt.


“In the next few days, I’ve asked leaders of Congress to work towards a package that prevents a tax hike on middle-class Americans, protects unemployment insurance for 2 million Americans, and lays the groundwork for further work on both growth and deficit reduction,” Obama said. ”That’s an achievable goal.  That can get done in 10 days.”


Complicating matters: The halls of Congress are silent tonight. The House of Representatives began its holiday recess Thursday and Senate followed this evening.


Meanwhile, the president has his own vacation to contend with. Tonight, he was embarking for Hawaii and what is typically several weeks of Christmas vacation.


However, during the press conference the president said he would see his congressional colleagues “next week” to continue negotiations, leaving uncertain how long Obama plans to remain in the Aloha State.


The president said he hoped the time off would give leaders “some perspective.”


“Everybody can cool off; everybody can drink some eggnog, have some Christmas cookies, sing some Christmas carols, enjoy the company of loved ones,” he said. “And then I’d ask every member of Congress, while they’re back home, to think about that.  Think about the obligations we have to the people who sent us here.


“This is not simply a contest between parties in terms of who looks good and who doesn’t,” he added later. “There are real-world consequences to what we do here.”


Obama concluded by reiterating that neither side could walk away with “100 percent” of its demands, and that it negotiations couldn’t remain “a contest between parties in terms of who looks good and who doesn’t.”


Boehner’s office reacted quickly to the remarks, continuing recent Republican statements that presidential leadership was at fault for the ongoing gridlock.


“Though the president has failed to offer any solution that passes the test of balance, we remain hopeful he is finally ready to get serious about averting the fiscal cliff,” Boehner said. “The House has already acted to stop all of the looming tax hikes and replace the automatic defense cuts. It is time for the Democratic-run Senate to act, and that is what the speaker told the president tonight.”


The speaker’s office said Boehner “will return to Washington following the holiday, ready to find a solution that can pass both houses of Congress.”


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SIA to spend S$95m upgrading B77-200ER cabins






SINGAPORE: Singapore Airlines said it will spend S$95 million refitting 10 Boeing 777-200ER aircraft with new long-haul cabin products.

The improvements include seats that fold down into full-flat beds in Business Class and larger entertainment screens for both Business and Economy.

A shift in seat layouts will allow every passenger in the Business Class direct access to the aisle.

The first refitted B77-200ER will operate between Singapore and Amsterdam from 13 January 2013. Subsequent refitted planes will fly to destinations in Europe, India, South Africa, Australia and New Zealand.

The refitted Boeing 200ER series will have a reduced seating capacity of 271 passengers, instead of 285 previously.

- CNA/ck



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Boehner's Plan B goes down without getting a vote






STORY HIGHLIGHTS


  • NEW: "The president will work with Congress to get this done," the White House says

  • The House Speaker says his Plan B wasn't voted on because it didn't have "sufficient support"

  • A bill to alter cuts did narrowly pass the House; the White House says it would veto

  • The fiscal cliff's tax hikes and spending cuts are set to take effect in January




Washington (CNN) -- House Speaker John Boehner's proposal to avert the looming fiscal cliff's automatic tax increases failed to curry enough Republican support Thursday night, after which Congress left for the holiday with no clear end in sight in the high-stakes debate.


Boehner said earlier Thursday that he was confident that his so-called Plan B -- which would extend tax cuts that are set to expire at year's end for most people while allowing rates to increase to 1990s levels on income over $1 million -- would pass the House, and in the process put pressure on President Barack Obama and the Democratic-controlled Senate. But his gambit seemed in doubt earlier Thursday as Republican leaders struggled to get most all their members to sign on -- even enlisting senators like Sen. Rob Portman, to work the House floor -- knowing the chamber's Democrats oppose it.


Then, around 8 p.m., House Majority Leader Eric Cantor announced that the measure would not go up for a vote as planned.


"The House did not take up the tax measure today because it did not have sufficient support from our members to pass," Boehner said in a statement. "Now it is up to the president to work with Senator (Harry) Reid on legislation to avert the fiscal cliff."


Democratic leaders already had signaled they oppose the so-called Plan B.


After Thursday night's unexpected reversal, Republican legislators walked past reporters through the halls of Congress, and most did not take questions. One who did -- Rep. Jeff Flake, an Arizonan who will move to the Senate next month -- said he was disappointed.


"It's too bad; I'd rather vote on it tonight," said Flake, who said he sides with Democrats in backing the extension of tax cuts except for household income of more than $250,000. "Get it done."




What this means next in the fiscal cliff talks is unclear. From here, scenarios range from intensified and ultimately successful talks in the coming days or entrenchment as the fiscal cliff becomes a reality next year, when a new Congress could enter negotiations with Obama.




The Plan B was significant because Republican leaders previously insisted they wouldn't raise rates on anyone, while Obama called tax rates for those earning more than $250,000 threshold to return to 1990s levels while extending tax cuts for everyone else.




Although the House didn't vote on Boehner's tax measure, most Republicans did vote together earlier Thursday as the House narrowly approved, 215-209, a related measure to alter automatic spending cuts set to kick in next year under the fiscal cliff, replacing cuts to the military with reductions elsewhere. The Congressional Budget Office said this would lead to $217.7 billion in cuts over the next decade, short of the $1.2 trillion in cuts that would go into effect in January if the fiscal cliff isn't averted.




Moments after that vote, the White House issued a statement indicating it would veto this bill. But that should be a moot point, since Senate Majority Leader Harry Reid has said he won't bring it up for a vote.


Republicans consider piggybacking spending cuts to 'Plan B'


"For weeks, the White House said that if I moved on rates, that they would make substantial concessions on spending cuts and entitlement reforms," House Speaker John Boehner said before his plan fell flat. "I did my part. They've done nothing."




While the Ohio congressman said Obama seems "unwilling to stand up to his own party on the big issues that face our country," Democrats say Republican leaders are buckling to their conservative base by backing off as negotiations seemed to be nearing a deal.


White House spokesman Jay Carney called the GOP alternatives "a major step backwards," claiming they'd lead to extended tax cuts of $50,000 for millionaires. Reid slammed the two Republican measures -- the one that passed and the one that wasn't brought up for a vote -- as "pointless political stunts."


The war of words notwithstanding, Boehner, Carney and Senate Democratic leaders all said they are ready to talk. Reid has said the Senate -- with many members attending a memorial service Friday and funeral in Hawaii on Sunday for Sen. Daniel Inouye -- will be back at work December 27. And after Thursday's session, Cantor's office said legislative business was finished for the week but the House could reconvene after Christmas if needed.


"I remain hopeful," Boehner said. "Our country has big challenges, and the president and I are going to have to work together to solve those challenges."


The path toward the fast-approaching fiscal cliff


The possibility of a fiscal cliff -- which economists warn will hit the American economy hard -- was set in motion two years ago, as a way to force action on mounting government debt. Negotiations between top Congressional Republicans and Democrats resumed after Obama's re-election last month as did the barbs from both sides.


Polling has consistently shown most Americans back the president, who insists wealthy Americans must pay more, rather than Boehner and his Republican colleagues, who have balked at tax rate hikes and demanded spending cuts and entitlement program reforms.


A new CNN/ORC International survey released Thursday showed that just over half of respondents believe Republicans should give up more in any solution and consider the party's policies too extreme.


CNN poll: Are GOP policies too extreme?


The two sides seemingly had made progress on forging a $2 trillion deficit reduction deal that included new revenue sought by Obama and spending cuts and entitlement changes desired by Boehner.


Senior administration officials said Obama and Boehner have not spoken since Monday, when the president made a counterproposal to a Republican offer over the weekend.


The president's offer set $400,000 as the household income threshold for a tax rate increase. It also included a new formula for the consumer price index applied to benefits for programs such as Social Security, Medicare and Medicaid to protect against inflation, much to the chagrin of some liberals.


The new calculation, called chained CPI, includes assumptions on consumer habits in response to rising prices, such as seeking cheaper alternatives, and would result in smaller benefit increases in future years. Statistics supplied by opponents say the change would mean Social Security recipients would get $6,000 less in benefits over the first 15 years of chained CPI.


Boehner essentially halted negotiations by introducing his Plan B on Tuesday. He described it as a fallback option to prevent a sweeping tax increase when tax cuts dating to President George W. Bush's administration expire in two weeks. The spending cut vote -- similar to one passed by the House last year that went nowhere in the Senate -- was added to the docket later Thursday, to appeal to conservative legislators upset about backing a tax increase without acting on spending and protecting the military budget.


The House speaker's reasoning was that the passage of Plan B and the spending bill would put the onus on Obama and Senate Democrats to accept them or offer a compromise.


For now, the Obama administration won't have to weigh in on the tax part of that scenario. As to the House-approved spending cuts bill, White House spokeswoman Amy Brundage dismissed the GOP alternative as "nothing more than a dangerous diversion" for eliminating federal funding by negatively impacting millions of seniors, disabled individuals and poor and at-risk children.


In a statement Thursday night, the White House didn't address Thursday's House proceedings but referenced its top priority -- ensuring that 98% of Americans don't see their taxes rise in January. The statement expressed confidence that there will be deal on the fiscal cliff but with no explanation of how, when or what such an agreement would look like.


"The president will work with Congress to get this done, and we are hopeful that we will be able to find a bipartisan solution quickly that protects the middle class and our economy," the White House said.


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CNN's Tom Cohen, Greg Botelho, Joe Sterling and Ted Barrett contributed to this report.






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N. Korea: We've detained a U.S citizen

PYONGYANG, North Korea North Korea said Friday it has detained an American citizen who has confessed to unspecified crimes.

State media said in a short dispatch that someone named Bae Jun Ho entered North Korea on Nov. 3 as a tourist but was detained because of crimes.

The North said the crimes were "proven through evidence," but didn't elaborate.

Pyongyang has detained and eventually released several Americans in recent years.

Some have been Christians accused of religious proselytizing.

Two journalists were also detained after crossing into the North from China while on a reporting trip, but were later released.

South Korean activists have told local media in Seoul that Bae is a Korean-American and was detained after entering North Korea to guide tourists. Bae operates a tourism company that specializes in North Korea, the reports said.

The North Korean dispatch said officials from the Swiss Embassy met Bae on Friday, but there were no other details about the meeting. The United States doesn't have diplomatic relations with Pyongyang, so American citizens are given aid by the Swiss.

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Fiscal Cliff 'Plan B' Is Dead: Now What?


Dec 20, 2012 11:00pm







The defeat of his Plan B — Republicans pulled it when it became clear it would be voted down — is a big defeat for Speaker of the House John Boehner.  It demonstrates definitively that there is no fiscal cliff deal that can pass the House on Republican votes alone.


Boehner could not even muster the votes to pass something that would only allow tax rates on those making more than $1 million to go up.


Boehner’s Plan B ran into opposition from conservative and tea party groups -including Heritage Action, Freedom Works and the Club for Growth – but it became impossible to pass it after Senate Democrats vowed not to take up the bill and the president threatened to veto it.  Conservative Republicans saw no reason to vote for a bill conservative activists opposed – especially if it had no hopes of going anywhere anyway.


Plan B is dead.


Now what?


House Republicans say it is now up to the Senate to act.  Senate Democrats say it is now up to Boehner to reach an agreement with President Obama.


Each side is saying the other must move.


The bottom line:  The only plausible solution is for President Obama and Speaker Boehner to do what they have failed repeatedly to do:  come up with a truly bi-partisan deal.


The prospects look grimmer than ever. It will be interesting to see if the markets react.



SHOWS: This Week







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Urban Byzantine monks gave in to temptation



































WHO ate all the pies? In 6th-century Jerusalem, the Byzantine monks were greedy gobblers - despite strict rules that they should eat mainly bread and water.












Most early Byzantine monasteries were located in remote deserts, but St Stephen's monastery thrived in Jerusalem. Wondering how urban living affected the monks, Lesley Gregoricka at the University of South Alabama in Mobile took bone samples from 55 skeletons buried under the monastery.












The ratios of various isotopes of carbon and nitrogen in the bones confirmed that the monks ate a lot of common cereals like wheat, as well as fruit and vegetables. But many bones were rich in the heavy isotope nitrogen-15, suggesting the monks ate lots of animal protein. That could mean meat, or dairy products such as cheese (Journal of Anthropological Archaeology, doi.org/jzt).












"The rules on issues such as poverty, chastity and obedience were certainly known and could not be easily ignored," says Peter Hatlie of the University of Dallas's Rome Program in Frattocchie, Italy. "Only fallen, weak, mad and demonic monks ate meat."


















































If you would like to reuse any content from New Scientist, either in print or online, please contact the syndication department first for permission. New Scientist does not own rights to photos, but there are a variety of licensing options available for use of articles and graphics we own the copyright to.









































































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Train service on NEL resumes after disruption






SINGAPORE: Services on the North East Line (NEL) have resumed after a disruption due to train fault.

SBS Transit said full operations resumed at 5.18pm on Thursday.

Earlier, a statement from SBS Transit said there was no service between Punggol and Little India.

Free bus rides were made available at designated bus stops near affected NEL stations.

SBS Transit has apologised for the inconvenience caused.

A caller to the MediaCorp hotline said a train had apparently broken down.

Another commuter said she had been stuck in the train for about 30 minutes.

- CNA/xq



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Obama to GOP: 'Take the deal'






STORY HIGHLIGHTS


  • White House threatens to veto Boehner's "plan B"

  • President Obama suggests Republicans are fixated on besting him personally

  • Speaker Boehner says the House will pass his fallback tax plan Thursday

  • Without a deal, everyone's taxes go up in the new year




Washington (CNN) -- After progress earlier this week in fiscal cliff negotiations, President Barack Obama and House Speaker John Boehner butted heads Wednesday, setting the stage for a showdown as the deadline looms for an agreement.


The negotiations had focused on a $2 trillion package of new revenue, spending cuts and entitlement changes the two sides have shaped into a broad deficit reduction plan.


Boehner on Tuesday proposed a "plan B," which would extend Bush-era tax cuts on income of up to $1 million. He described it as a fallback option to prevent a sweeping tax hike while negotiations continue on a broader plan.


But the White House on Wednesday threatened to veto "plan B," saying it would bring only "minimal" changes in projected budget deficits.


Obama told reporters earlier in the day that Republicans were focused too much on besting him personally rather than thinking about what's best for the country.










"Take the deal," Obama said to Republicans, referring to the broader proposal, adding that it would "reduce the deficit more than any other deficit reduction package" and would represent an achievement.


"They should be proud of it," Obama said. "But they keep on finding ways to say 'no' as opposed to finding ways to say 'yes.' "


His comments at a White House news conference came less than two weeks before the end of the year, when the nation's taxpayers would face automatic tax increases and deep spending cuts if no agreement is reached.


Economists say that failure to reach agreement could spark another recession.


Boehner issued his own statement Wednesday, saying the president had yet to make a proposal offering a balance between increased revenue and spending cuts.


In a 52-second appearance before reporters, Boehner said the House will pass his fallback plan Thursday limiting tax increases to income above $1 million.


While the plan represents a concession from Boehner's original vow to oppose any tax-rate increase, it sets a higher threshold than the $400,000 sought by Obama.


Once the House passes his plan, the president can either persuade Senate Democrats to accept it or "be responsible for the largest tax increase in American history," Boehner said before walking off without answering shouted questions.


The Obama administration and congressional Democrats said Boehner changed course because he was unable to muster Republican support for the larger deal being negotiated with Obama.


At his news conference, Obama alluded to last Friday's Connecticut school shootings in calling on Republicans to put aside political brinksmanship. "If there's one thing we should have after this week, it should be perspective about what's important," he said.


"Right now, what the country needs is for us to compromise," he continued. He characterized as "puzzling" the GOP refusal to accept his compromise.


Asked why an agreement was proving so elusive after both sides had made concessions, Obama said it might be that "it is very hard for them to say 'yes' to me."


"At some point they've got to take me out of it," Obama said of Republicans, adding they should instead focus on "doing something good for the country."


Boehner responded by arguing that Obama's proposal was not evenly balanced, with more new revenue instead of the spending cuts and entitlement reforms Republicans seek.


The Boehner plan B would leave intact government spending cuts, including those related to defense, which are required under a budget deal reached last year to raise the federal debt ceiling. The threat of cuts was intended to motivate Congress to reach a deal.


Opinion: Art that calls the fiscal cliff's bluff


But Obama said Wednesday that Boehner's proposal "defies logic" because it raises tax rates on some Americans, which Republicans say they do not want, and contains no spending cuts, which Republicans say they do want.


He also criticized the measure as a benefit for wealthy Americans, who would have lower tax rates on income up to $1 million.


The White House and congressional Democrats say plan B has no chance of passing; Obama said that bringing it up only wastes time.


Senior administration officials said Obama and Boehner have not spoken to each other since Monday. GOP leaders planned to vote Thursday on Boehner's proposal, as well as Obama's long-standing proposal to return to higher tax rates of the 1990s on income above $250,000 for families.


Obama on Monday raised the threshold for the higher tax rates to $400,000.


Conservative allies publicly supported Boehner's plan Wednesday.


Anti-tax crusader Grover Norquist provided political cover for Republicans who have signed his pledge against tax increases, saying he could support plan B.


Obama and Democrats argue that increased revenue, including higher tax rates on the wealthy, must be part of broader deficit reduction plan.


Obama made the tax proposal a theme of his re-election campaign, arguing that it would prevent a tax increase for middle-class Americans.


Polls show support for the Obama plan, and some Republicans have called for acceding to the president on the tax issue in order to focus on cuts to spending and entitlement programs.


Budget experts: Fiscal cliff deal could disappoint


Boehner and Republicans initially opposed any rise in tax rates but agreed to raising revenue by eliminating some deductions and loopholes. The offer of a plan with higher rates for millionaires represented a further concession, but Obama and Democrats say it would not suffice.


Senate Majority Leader Harry Reid of Nevada said Boehner's plan appeared to be a result of pressure from tea party conservatives opposing a wider deal.


"It would be a shame if Republicans abandoned productive negotiations due to pressure from the tea party, as they have time and again," Reid said this week.


Boehner's spokesman, Michael Steel, shot back that the plan B proposal gave Democrats what they wanted -- higher tax rates on millionaires.


What happens if the payroll tax cut expires


Obama's latest offer has generated protests from the liberal base of the Democratic Party because it includes cuts in entitlement programs such as Social Security, Medicare and Medicaid.


Justin Ruben, executive director of MoveOn, which backed Obama's presidential campaigns, said its members would consider any benefit cuts "a betrayal that sells out working and middle-class families."


In particular, liberals cited concessions that Obama made Monday in his counteroffer, including a new inflation formula applied to benefits called chained CPI.


Obama offers fiscal cliff tax concession


Chained CPI includes assumptions on consumer habits in response to rising prices, such as seeking cheaper alternatives, and would result in smaller benefit increases in future years.


Statistics supplied by opponents say the change would mean Social Security recipients would get $6,000 less in benefits over the first 15 years of chained CPI.


But White House spokesman Jay Carney said Obama's CPI proposal "would protect vulnerable communities, including the very elderly, when it comes to Social Security recipients." He called the president's acceptance of the chained CPI a signal of his willingness to compromise.


CNN's Dan Lothian, Dana Bash, Deirdre Walsh and Brianna Keilar contributed to this report.






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Senate GOP proposes much smaller Sandy aid package

WASHINGTONSenate Republicans on Wednesday proposed a $24 billion emergency aid package for Superstorm Sandy victims, less than half of what Democrats hope to pass by Christmas.

The GOP alternative bill would provide more than enough money to pay for immediate recovery efforts through the spring.

Republicans complain that the $60.4 billion Democratic bill being debated in the Senate is larded with money for projects unrelated to damage from the late October storm, which battered the Atlantic coastline from North Carolina to Maine.

The Republican version does not include $13 billion Democrats want for projects to protect against future storms, including fortification of mass transit systems in the Northeast and protecting vulnerable seaside areas by building jetties against storm surges.



49 Photos


Sandy's devastation on Staten Island



Republicans said however worthy such projects may be, they are not urgently needed and should be considered by Congress in the usual appropriations process next year, not through emergency spending.

"We want to take care of urgent needs now," said Indiana Sen. Dan Coats, ranking Republican on the Senate Appropriations homeland security subcommittee, who put forward the bill. "We can look at other needs down the road when we have more time to look at them."

The GOP bill also scraps spending from the Democratic bill that is not directly related to Sandy damages, such as the $150 million for the National Oceanic and Atmospheric Administration for declared fisheries disasters in 2012 that could go to New England states, Alaska, New York and Mississippi.

The aid will help states rebuild public infrastructure like roads and tunnels and help thousands of people displaced from their homes. Sandy was the most costly natural disaster since Hurricane Katrina in 2005 and one of the worst storms ever in the Northeast.

More than $2 billion in federal funds has been spent on relief efforts so far for 11 states and the District of Columbia. The Federal Emergency Management Agency's disaster relief fund still has about $4.8 billion, and officials have said that is enough to pay for recovery efforts into early spring.

Earlier this month, Govs. Chris Christie, R-N.J., Andrew Cuomo, D-N.Y., and Dannel Malloy, D-Conn., argued in an op-ed that "in times of crisis no region, state or single American should have to stand alone or be left to fend for themselves," pointing to the "hundreds of thousands of homes and businesses damaged or destroyed, thousands still left homeless or displaced, tens of billions of dollars in economic loss" as evidence that "It's time for Congress to stand with us."

The governors, while recognizing that "our nation faces significant fiscal challenges," strive to separate the disaster-relief needs of their region from the ongoing "fiscal cliff" negotiations consuming Capitol Hill, arguing that Congress must "not allow this much-needed aid to fall in to the ideological divide."

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