Senate passes package to avert fiscal cliff

STORY HIGHLIGHTS

• The measure now goes to the House where a vote could come Tuesday


• A statement from House leadership made no promises


• Under the Senate package, taxes would stay the same for most Americans


• It leaves a range of big issues unaddressed.

As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNN iReport to share your video.

(CNN) -- A full two hours after a midnight deadline, the Senate overwhelmingly passed a deal Tuesday to avert the feared fiscal cliff on a 89-8 vote.

The Senate package would put off budget cuts for two months and preserve Bush-era income tax cuts for individuals earning less than $400,000 or couples earning less than $450,000.

The measure now goes to the House where it faces an uncertain future in the Republican-controlled body.

"Glad it's over," said Senate Majority Leader Harry Reid, D-Nevada, after the vote. "We'll see if the Republicans in the House can become functional instead of dysfunctional."

A statement from House leadership made no promises.

"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," the statement said.

A vote could come as early as New Year's Day.

Sen. John Hoeven, R-North Dakota, was hopeful the House will approve the package as well.

"The vote was 89 to 8. Bipartisan vote. 89 votes," he said. "I think it sends a strong message and I think it will be approved by the House."

What the package proposes

Read the bill (pdf)

Under the Senate package:

-- Taxes would stay the same for most Americans. But it will rise for individuals making more than $400,000 and couples making more than $450,000. For them, it will go from the current 35% to the Clinton-era rate of 39.6%.

-- Itemized deductions would be capped at $250,000 for individuals and $300,000 for couples.

-- Taxes on inherited estates will go up to 40% from 35%.

-- Unemployment insurance would be extended for a year for 2 million people.

-- The alternative minimum tax -- a perennial issue -- would be permanently adjusted for inflation.

-- Child care, tuition and research and development tax credits would be renewed.

-- The "Doc Fix" -- reimbursements for doctors who take Medicare patients -- will continue, but it won't be paid for out of the Obama administration's signature health care law.

-- Prevents a spike in milk prices. Agriculture Secretary Tom Vilsack said milk prices would have doubled to $7 a gallon because a separate agriculture bill had expired.

What's not addressed

While the package provides some short-term certainty, it leaves a range of big issues unaddressed.

It doesn't mention the debt ceiling, and temporarily puts off for two months the so-called sequester -- a series of automatic cuts in federal spending that would have taken effect Wednesday. It would have reduced the budgets of most agencies and programs by 8% to 10%.

This means that, come late February, Congress will have to tackle both those thorny issues.

"We're going to have to deal with the sequester, that's true," said Sen. Max Baucus, D-Montana, "but look, this is better than nothing."

Reid said the agreement was a win for average Americans.

"I've said along that our most important priority was to protect the middle class families," he said. "This legislation does that."

And maybe a bit more.

According to the U.S. Census Bureau, median household income in 2011 was $50,054, which is well below the tax cut threshold approved by the Senate.

Senate Minority Leader Mitch McConnell, R-Kentucky, praised the effort, but said it shouldn't have taken so long to get an agreement.

"We don't think taxes should be going up on anyone but we all knew that if we did nothing they would be going up on everyone today," he said. "We weren't going to let that happen."

All eyes on the House

As lawmakers left the chamber around 2 a.m., there was no sentiment of celebration, more a sense of relief that the vote was done.

One of the last members to leave was 88-year-old retiring Hawaii Senator Daniel Akaka. He walked down the steps bent over his cane, assisted by an aide, but smiling.

Others rubbed their eyes from lack of sleep. It was the end to a very long, down-to-the wire day -- and all eyes now turn to the House.

GOP sources said House members saw little practical difference in settling the issue Monday night versus Tuesday.

But if tax-averse House Republicans approve the bill on Tuesday -- when taxes have technically gone up -- they can argue they've voted for a tax cut to bring rates back down, even after just a few hours, GOP sources said. That could bring some more Republicans on board, one source said.

Read more: Why your paycheck is getting smaller, no matter what

Concerns persist

Read more: What if there's no deal on fiscal cliff

The White House budget office noted in September that sequestration was designed during the 2011 standoff over raising the federal debt ceiling as "a mechanism to force Congress to act on further deficit reduction" -- a kind of doomsday device that was never meant to be triggered. But Congress failed to substitute other cuts by the end of 2012, forcing the government to wield what the budget office called "a blunt and indiscriminate instrument."

In its place, the Senate plan would use $12 billion in new tax revenue to replace half the expected deficit reduction from the sequester and leave another $12 billion in spending cuts, split half-and-half between defense and domestic programs.

Read more: Medicare patients may suffer if country goes over fiscal cliff

Conservative lobbyist Grover Norquist, whose Americans for Tax Reform pushes candidates to sign a pledge never to raise taxes, said the plan "right now, as explained" would preserve most of the Bush tax cuts and wouldn't violate his group's pledge.

"Take the 84% of your winnings off the table," Norquist told CNN. "We spent 12 years getting the Democrats to cede those tax cuts to the American people. Take them off the table. Then we go back and argue about making the tax cuts permanent for everyone."

But Robert Reich, who served as labor secretary in the Clinton administration, said the $450,000 threshold "means the lion's share of the burden of deficit reduction falls on the middle class, either in terms of higher taxes down the road or fewer government services." In addition, he said, the plan does nothing to raise the federal debt ceiling just as the federal government bumps up against its borrowing limit.

And that, Arizona GOP Sen. John McCain told CNN, is likely to be "a whole new field of battle."

"We just added 2.1 trillion in the last increase in the debt ceiling, and spending continues to go up," McCain said. "I think there's going to be a pretty big showdown the next time around when we go to the debt limit."

CNN's Matt Smith, Mike Pearson, Jessica Yellin, Dana Bash, Deirdre Walsh, Lisa Desjardins, Ted Barrett and Ashley Killough contributed to this report.

Read More..

Senate Approves 'Fiscal Cliff' Deal, Sends to House

Two hours after a midnight deadline for action, the Senate passed legislation early New Year's Day to avert the so-called "fiscal cliff" with an overwhelming vote of 89-8.

Senate passage set the stage for a final showdown in the House, where a vote could come as early as today.

"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," President Obama said in a statement shortly after the vote.

"There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans," he added.

The bill extends Bush-era tax cuts permanently for people making less than $400,000 per year and households making less than $450,000.

The steep "sequester" budget cuts scheduled to go into effect with the New Year would be postponed for two months.

The deal also would affect taxes on investment income and estates, and extend unemployment benefits for a year.
Officials also decided at the last minute to use the measure to prevent a $900 pay raise for lawmakers due to take effect this spring.

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

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.

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.

Capital gains taxes would rise to 20 percent from 15 percent.

The deal would also extend for one year unemployment insurance benefits set to expire today for two million people, and avert a steep cut to Medicare payments for doctors.

"Working though the night and throughout the day we've reached an agreement with Sen. McConnell," Senate Majority Leader Harry Reid, D-Nev., said early Tuesday morning prior to the vote.

"I've said all along our most important priority is protecting middle class Americans, this legislation does that," Reid added.

He said he is "disappointed" they were not able to make the grand bargain and that more work needs to be done in the future.

"But we tried, if we did nothing the threat of a recession is very real," Reid concluded.

Speaking after Reid, Senate Minority Leader Mitch McConnell, R-KY., called the deal an "imperfect solution" and noted this should not be the model on how things get done in the Senate.

McConnell also thanked Vice President Joe Biden, who visited Capitol Hill late Monday night and brokered the deal with McConnell.

The House Democratic leader Nancy Pelosi issued a statement saying that when legislation clears the Senate, "I will present it to the House Democratic caucus."

Read More..

2012 review: The year in health science

Read more: "2013 Smart Guide: 10 ideas that will shape the year"

The first half of 2012 will be remembered for the saga over whether or not to publish controversial research involving versions of the H5N1 bird flu virus engineered to spread more easily in mammals. In the end openness won out, and both contentious studies did finally see the light of day.

This was also the year that saw the battle to eradicate polio reach its crucial endgame – just as another problem, in the form of totally drug resistant tuberculosis, reared its head.

Away from infectious disease, 2012 brought us a theory on the link between Tutankhamun, epilepsy and the first monotheistic religion, and an insight into the perils of premature ageing in Italy's ominously named Triangle of Death. Here are 10 more of the year's memorable stories.

Babies are born dirty, with a gutful of bacteria
Far from being sterile, babies come complete with an army of bacteria. The finding could have implications for gut disorders and our health in general

Forensic failure: 'Miscarriages of justice will occur'
Our survey of UK forensic scientists reveals that many are concerned that closure of the Forensic Science Service will lead to miscarriages of justice

Scandal of an underfunded and undertreated cancer
Lung cancer in those who have never smoked is on the rise – but they face the same stigma as their smoking counterparts

Ovarian stem cells discovered in humans
Stem cells capable of forming new eggs could promise limitless eggs for IVF treatments, and the rejuvenation of older eggs

Paralysis breakthrough: spinal cord damage repaired
An implant helping paralysed people stand unaided suggests the spinal cord is able to recover function years after severe damage

A real fMRI high: My ecstasy brain scan
Graham Lawton reports the highs, lows and psychedelic purple doors involved in taking MDMA while having his brain scanned

You may carry cells from siblings, aunts and uncles
Male cells found in the umbilical cord blood of baby girls with older brothers suggests fetal cells cross between mother and baby more than once thought

Can we deter athletes who self-harm to win?
The Paralympics may encourage a debate on a dangerous practice – and potential ways to prevent it

First non-hormonal male 'pill' prevents pregnancy
A non-hormonal drug that temporarily reverses male fertility appears to have few side effects in mice

Mining MRSA genetic code halts superbug outbreak
Whole genome sequencing of an MRSA outbreak has identified the person who unwittingly spread the bacteria around a hospital, stopping further infection

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.

All comments should respect the New Scientist House Rules. If you think a particular comment breaks these rules then please use the "Report" link in that comment to report it to us.

If you are having a technical problem posting a comment, please contact technical support.

Read More..

S'pore rocked by spate of sex scandals in 2012

SINGAPORE: 2012 has been a year of sex scandals in Singapore.

In April, 44 men were charged with having sex with the same underage girl.

The number of men implicated in the online vice ring case swelled to 51 after some time.

The lack of details in the charges drew barbs.

"How is anybody going to know what he is charged for when you don't know who the girl is, you do not know what her age is? We just can't accept the word of the prosecution isn't it?" said lawyer Subhas Anandan.

"Well, we are going to ask the prosecution, the DPP, to give us further particulars. If they do not give us the further particulars, we will take it up in the High Court."

This was resolved later when certain details were disclosed to the defence.

As at mid-Dec 2012, more than 15 men have been dealt with.

The first was former principal of Pei Chun Public School, Lee Lip Hong. He pleaded guilty in April, and was sentenced to nine weeks' jail.

Following him was former executive director of the Singapore Environment Council, Howard Shaw, who was sentenced in July and aborted his appeal.

The saga is far from over as many have claimed trial, so there will be a spillover to 2013.

Outside of courts, the state of affairs was equally dramatic.

An apology came because of the indiscretion of the former Speaker of Parliament, Michael Palmer.

Mr Palmer's year-long affair with People Association's (PA) Laura Ong led to his resignation.

He said: "I have resigned to take full responsibility for a grave mistake that I have committed. I had a relationship with a member of the PA staff working in Pasir Ris-Punggol GRC. While the individual did not work with me directly, Punggol East used to be part of the GRC and continues to work with it. My conduct was improper and it was a serious error of judgement. I have resigned in order to avoid further embarrassment to the PAP and Parliament."

Former Hougang MP Yaw Shin Leong was also expelled from the opposition Workers' Party in February for alleged extra-marital affairs, nine months after he was elected.

Come January, three heavyweights will be jostling for the spotlight in courts.

Professor Tey Tsun Hang will start the ball rolling with his sex-for-grades trial on 10th January.

Then in January, ex-Civil Defence Force top gun, Peter Lim, be in court for corruption charges. His trial is slated to end in late February.

In late January, the sex-for-contracts case against former Central Narcotics Bureau chief Ng Boon Gay, will be mentioned again.

In September, Ng's corruption trial took Singapore by storm, as he and key prosecution witness Cecilia Sue, gave graphic accounts of their relationship.

The judiciary looks set to get busier in the new year, when City Harvest Church's six core members return to court, on accusations of misappropriating funds.

- CNA/xq

Read More..

Opinion: 12 lessons

What we learned in 2012

What we learned in 2012

What we learned in 2012

What we learned in 2012

What we learned in 2012

What we learned in 2012

What we learned in 2012

What we learned in 2012

What we learned in 2012

What we learned in 2012

STORY HIGHLIGHTS

• Dean Obeidallah: You are smarter today than 365 days ago


• Obeidallah: You probably learned a few Korean words like "Gangnam Style"


• He says we found out poultry can be a political tool and some people talk to chairs


• Obeidallah: The good news is that we'll soon forget the inane lessons of 2012

Editor's note: Dean Obeidallah, a former attorney, is a political comedian and frequent commentator on various TV networks including CNN. He is the editor of the politics blog "The Dean's Report" and co-director of the upcoming documentary, "The Muslims Are Coming!" Follow him on Twitter: @deanofcomedy

(CNN) -- You are smarter today than 365 days ago. You know more than you did at the end of 2011.

And here's the kicker, you may not even be aware of how much you learned this past year. It's analogous to how you're affected by the hit songs of boy bands. No matter how much you might try to avoid them, you can't, because these songs are everywhere. Consequently, the words are subtly drilled into your head and the next thing you know, you find yourself unconsciously singing along to the songs when they play on the radio.

So regardless if you were paying attention or not, there's a lot of new information from this past year trapped inside your brain. Here are just some of the things we collectively learned in 2012:

Dean Obeidallah

1. Mitt Romney had binders full of women

During the second presidential debate, Romney shared with us that when he was governor of Massachusetts, he had binders filled with information about women he was considering hiring. (When I was a teenager, I, too, had binders full of women. But mine I hid under my bed so my mom wouldn't find them.)

2. We picked up some Korean

We're not fluent yet, but thanks to the Korean pop singer PSY and his song "Gangnam Style," we all learned a few Korean words. And because of the song's ubiquitous music video -- which broke the record as the first video to get more than 1 billion views on YouTube -- some of us even have a vague idea of how to do his famous "horse dance."

3. Women love to read "porn"

The runaway hit book, "Fifty Shades of Grey," created a sensation across the country as women -- many over 30 years old -- bought this sexually provocative book, thus coining the term "mommy porn." In contrast, most men are waiting for the movie because we are more traditional in our "porn" tastes.

4. Poultry can be a political tool

Fast food chain Chick-fil-A went from just serving chicken to serving a political message as the head of the company announced publicly that he opposed marriage equality. Consequently, ordering a chicken sandwich at this chain came with a side dish of right-wing politics.

5. Some people talk to chairs

Clint Eastwood taught us at this year's Republican National Convention that you can have a full conversation on national television with your furniture. Hey, Clint made it OK for you to have a conversation with your couch or end table.

6. "James Bond" met the "The Real Housewives"

CIA Director David Petraeus resigned from his job because his extramarital affair was discovered. This is especially shocking because Petraeus' job as the nation's top spy chief was to keep secrets.

7. Cliffs are not just in nature

As we get closer to a precipitous "fiscal cliff" -- a term more overexposed than "Gangnam Style," it seems -- we have all learned that Congress has truly earned its low approval rating -- any lower and certain infectious diseases may become more popular than Congress.

8. What's the big deal with silver?

U.S. Olympian McKayla Maroney made it clear at the London Olympics that she was not impressed by winning the silver medal with her famous "I'm not impressed" face.

9. The way to reduce gun violence is more guns

At least this is what we were told by NRA's Vice President Wayne LaPierre in December as he called for armed guards to be placed in each of the roughly 100,000 public schools in the country.

10. Reality stars are not just for dysfunctional adults

Child star Alana "Honey Boo Boo" Thompson proved that children can be just as self-absorbed and horribly demanding as adult reality show stars.

11. Calendars are not always reliable

The fact you're reading this means that the Mayan apocalypse did not come to pass. That's good news. The bad news is that I now have to pay late fees on the credit cards I didn't pay because I thought there was a chance the Mayans were right.

12. America is the best democracy money can buy

This year's presidential election saw roughly $2 billion spent by the two campaigns and their supporters. That's more than the annual GDP of numerous countries.

You probably recalled more of these things than you guessed you would. While old acquaintances should not be forgot, the good news is that we will likely soon forget the details of the more inane lessons of 2012. Of course, the bad news is that they may be replaced by even more ridiculous ones in 2013.

Follow us on Twitter @CNNOpinion

Join us on Facebook/CNNOpinion

The opinions expressed in this commentary are solely those of Dean Obeidallah.

Read More..

Conn. gunman Adam Lanza's remains claimed: report

HARTFORD, Conn. The body of the man who killed 26 people at a Connecticut elementary school has been claimed for burial.

Connecticut Medical Examiner Wayne H. Carver II tells the Hartford Courant Adam Lanza's remains were claimed several days ago by someone who wanted to remain anonymous.

Lanza's burial site also is being kept secret, the newspaper reports.

A spokeswoman at Carver's office told The Associated Press she could not release details about the status of Lanza's remains.

The 20-year-old Lanza killed 20 first-graders and six educators at the Sandy Hook Elementary School on Dec. 14. He also killed his mother in their Newtown home before going on the rampage and then committing suicide.

A private funeral was held earlier this month in New Hampshire for his mother, Nancy Lanza.

17 Photos

Newtown, Conn., memorial vigil

Police have not offered a motive for the killings.

Carver has asked geneticists from the University of Connecticut to study Lanza's DNA for any mutations or other abnormalities that could shed light on his motivation for the shootings, the Courant says.

Read More..

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.”

Read More..

Getting sloshed: It's the way you walk

* Required fields

* First name

* Last name

* Country

* Email address

* Password
Password must contain only letters and numbers, and be at least 8 characters

* Confirm password

Read More..

Japan tunnel closed again after crash

TOKYO: A five-car crash closed a highway tunnel in Japan on Sunday, just one day after it was re-opened following a ceiling cave-in which killed nine people four weeks ago, police said.

One person was injured in the crash in the congested Sasago Tunnel, some 80 kilometres (50 miles) west of Tokyo.

Nine people died on December 2 when concrete panels suspended from the roof of the tunnel crashed down and crushed vehicles, setting several ablaze.

Highway authorities had reopened the unaffected westbound passageway of the tunnel to two-way traffic on Saturday, after removing similar ceiling panels.

- AFP/xq

Read More..

'Fiscal Cliff' countdown: Two more days

STORY HIGHLIGHTS

• Last minute negotiations are underway in Congress to avoid a ''fiscal cliff''


• Without a deal, an end of the year deadline triggers takes hikes and cuts in spending


• President Barack Obama is calling for a House and Senate vote, if negotiations fail


• "We'll let you know as soon as we have some news to make," the Senate minority leader says

As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNNiReport to share your video.

Washington (CNN) -- The Senate's top Democrat and Republican were working Sunday to forge a last minute compromise to stop the U.S. economy from going over a "fiscal cliff" that would trigger large tax increases and sweeping spending cuts in the new year.

At stake in the negotiations, according to a number of economists, is the fate of a still fragile U.S. economy that could be pushed back into a recession by the broad tax hikes and automatic $110 billion cuts to domestic and military spending spelled out by the "fiscal cliff" legislation.

Aides for Senate Majority Leader Harry Reid, D-Nevada, and Minority Leader Mitch McConnell, R-Kentucky, said no details on the negotiations were expected until at least early afternoon when the Senate convenes a session at 1 p.m. ET.

"We've been trading paper all day, and the talks continue into the evening," McConnell told reporters Saturday night. "We've been in discussions all day. We'll let you know as soon as we have some news to make."

Even so, it was unknown if Reid and McConnell could come up with a deal that would be acceptable to House Republicans, who refused just before Christmas to take up a compromise bill because it raised taxes and had no chance of passing the Senate.

President Barack Obama was widely expected during his scheduled appearance Sunday on NBC's "Meet the Press" to call for an immediate vote by Congress on a scaled back plan that would only extend middle class tax breaks and unemployment benefits, if the congressional negotiations fail.

The president's appearance on a political talk show is his first in three years, and clearly appears timed to put pressure on lawmakers to get a deal done or take a vote.

The principal dispute continues to be over taxes, specifically over Democrats' demand to extend tax cuts passed under President George W. Bush for families making less than $250,000 a year, while raising the rates on those making more than that.

The expectation is Republicans will try to raise that income threshold to $400,000 and push to keep estate taxes low; Democrats have said they might be open to one such scenario, but not both.

Obama and Democrats have leverage, based on the president's re-election last month and Democrats' gains in the House and Senate in the new Congress. In addition, polls consistently show majority support for Obama's position on taxes, and Democrats insist the House would pass the president's plan with Democrats joined by some Republicans if House Speaker John Boehner, R-Ohio, allowed a vote on it.

"We're now at a point where, in just a couple of days, the law says that every American's tax rates are going up. Every American's paycheck will get a lot smaller, and that would be the wrong thing for our economy," the president said in his weekly address broadcast Saturday.

On Friday, following a meeting with congressional leaders and top administration officials, Obama said he was "modestly optimistic" the Senate leaders would reach an agreement. At the same time, he conceded, "Nobody's going to get 100% of what they want."

However, conservative activist Grover Norquist has vowed to back primary challenges against Republicans who violate his widely signed pledge not to raise taxes. Even if a deal is reached, Norquist has predicted yet more budget showdowns every time the government needs additional money to operate.

The House will reconvene Sunday, and the chamber's Republicans will get together sometime early Sunday night, according to a note sent Saturday to legislators and staffers.

Republicans have opposed any increase in tax rates, and Boehner suffered a political setback by offering a compromise -- a $1 million threshold for the higher rates to kick in -- that his GOP House colleagues refused to support.

The saga has fueled disdain for politicians by many Americans. Such contempt is deserved, said Rep. Steven LaTourette, an Ohio Republican, who is retiring from Congress.

"I think America should be embarrassed by its leadership in D.C.," he told CNN on Friday. "The fact that we have been unable to do things, and instead worried about our next elections. ... I think it's sinful."

CNN's Jessica Yellin, Tom Cohen, Dana Bash, Deirdre Walsh, Lisa Desjardins and Kevin Liptak contributed to this report.

Read More..