White House Revels in Fiscal Cliff 'Victory'

Jan 1, 2013 12:13pm

It’s hard to find anyone in Washington happy about the outcome of the “fiscal cliff” brinksmanship.

But inside the Obama White House, senior officials are elated by what they call a significant presidential achievement:  breaking longstanding Republican intransigence on taxes.

The deal passed by the Senate early this morning, with the endorsement of all but seven of the 47 Republicans, would raise $620 billion in new revenue, hiking tax rates on households earning more than $450,000 a year.

The income tax hike would be the first in two decades.

“Keep in mind that just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans,” President Obama said Monday. “Obviously, the agreement that’s currently being discussed would raise those rates and raise them permanently.”

The spin from the White House – casting the new revenue as a major victory – is at least partly aimed at grumbling liberals who have accused Obama of capitulating on a key campaign pledge: hiking tax rates on households making $250,000 or more.

“Anyone looking at these negotiations, especially given Obama’s previous behavior, can’t help but reach one main conclusion: Whenever the president says that there’s an issue on which he absolutely, positively won’t give ground, you can count on him, you know, giving way – and soon, too,” liberal economist Paul Krugman wrote today in the New York Times.

“The idea that you should only make promises and threats you intend to make good on doesn’t seem to be one that this particular president can grasp.”

Still, the White House believes the concessions Obama extracted from Republicans on taxes puts him in a stronger position for negotiating on the debt ceiling and “sequester” in the coming weeks.

The president now says any deal to offset the automatic “sequester” spending cuts will have to be balanced – including additional new tax revenue, not cuts alone.

But Republican leaders see the outcome, and the fiscal fights ahead, much differently.

GOPers are touting permanent extension of many of the Bush-era tax cuts as a victory in its own right. They also believe the resolution of the tax revenue debate will allow for greater focus on spending cuts and entitlement overhaul, essentially resetting the national dialogue.

“Frankly, we’ve denied [Obama], I think, his most important piece of leverage in any negotiation going forward,” Rep. Tom Cole, R-Okla., who sits on the House Budget Committee, said on MSNBC. “So I particularly like that part.

“The sequester is in front of us. The continuing resolution runs out the end of March and, obviously, the debt ceiling. All of those things honestly are Republican leverage, not Democratic,” he said.

“So I think there will be opportunities to deal with the spending issue next year.”

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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

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Singapore ushers in 2013 with fireworks display at Marina Bay

SINGAPORE: It was a celebration full of song, dance and a magnificent display of fireworks as Singapore ushered in 2013 at the Marina Bay countdown.

Spectators thronged the Marina Bay area to soak up the celebrations as the nation counted down to the New Year!

And with a slew of performances... there was something for everyone.

Whether it was grooving to the beats of regional acts like Korean Hip Hop group M.I.B.... or homegrown talents like Taufik Batisah and John Klass and his band The Professionals.

One of the highlights of the night was from award winning musical group Jersey Boys.

Grant Almirall, Cast of Jersey Boys, said: "It's an amazing opportunity to perform for Singapore. It's raining at the moment but it's a rain or shine event so we still will be performing anyway. Hopefully, the crowd will be cheered up and ready for us. So yeah, it's going to be awesome."

Right after that, spectators were treated to an eight-minute fireworks display at the stroke of midnight.

- CNA/de

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BMW cars to get LTE WiFi

BMW's new LTE WiFi hotspot snaps into the cradle dock in the console, giving everyone in the car a fast Internet connection.

(Credit:
BMW)

Audi and Ford include WiFi hotspots in some of their models, but BMW maintains its high-performance reputation by offering an accessory for WiFi at LTE data speeds, the first time a
car has boasted this type of connectivity.

BMW's LTE adapter snaps into any BMW equipped with a phone cradle dock in the console. Passengers will be able to connect their personal electronics, such as phones and
tablets, to the WiFi hotspot and get data at LTE speeds. However, this adapter does not offer any data connection to a car's own dashboard infotainment electronics.

The adapter includes an 8 digit connection code, preventing other drivers from tailgating so as to leach off the hotspot while on the road. It also supports Near Field Communications (NFC), letting people merely hold their compatible devices next to the adapter to initiate the WiFi connection.

Drivers will need to plug a SIM card for an LTE data network into the adapter. In Europe, it is common for a phone company to offer multiple SIM cards for a single account, which might be more difficult to obtain in the U.S. The advantage of making the adapter SIM card-dependent is that it can be used in multiple markets.

The WiFi hardware is actually included in the adapter, not in the car. The adapter comes with a built-in battery, so that it can be used outside of the car for about an hour, according to BMW. An available kit will let owners plug the adapter into a USB port, keeping it powered up. That kit should also make it useful in BMW models without the cradle dock. Its default WiFi range is about three yards, suitable for a car's cabin, but it can be switched to a 10 yard range for more general use.

No pricing or availability has been announced for the U.S.

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Time's Up: Sides Closing In on 'Fiscal Cliff' Deal

Congressional and White House negotiators are closing in on a deal to avert across-the-board tax hikes and spending cuts that take effect at midnight, as the nation teeters on the edge of the so-called fiscal cliff.

An emerging tentative agreement would extend current tax rates for households making $450,000 or less; extend the estate tax at its current level of 35 percent for estates larger than $5 million; and prevent the Alternative Minimum Tax from hammering millions of middle-class workers, sources said.

The deal would also extend unemployment benefits set to expire Tuesday and avert a steep cut to Medicare payments for doctors.

Both sides also seem willing to delay by three months automatic spending cuts to defense and domestic programs, the sources said, setting the stage for continued fiscal debate in the next few months tied to the debt ceiling.

Vice President Joe Biden and Senate Minority Leader Mitch McConnell, R-Ky., are leading the negotiations, sources said, holding several "good" conversations late into Sunday night and continuing a dialogue early this morning.

They are trying to broker an elusive compromise on taxes and spending that can win the support of bipartisan majorities in the Senate and House.

Even if a deal is reached between Biden and McConnell, members in both chambers would still need to review it and vote on it later today. Passage is far from guaranteed.

"This is one Democrat that doesn't agree with that at all," Iowa Democratic Sen. Tom Harkin said of the tentative deal. "No deal is better than a bad deal, and this looks like a very bad deal the way this is shaping up."

Failure of Congress to act on a tax measure by Tuesday morning would trigger income tax hikes on all Americans. The average family would pay an extra $3,446 in 2013 under the higher rates, according to the Tax Policy Center.

Regardless of the "cliff," virtually all workers are due to see less in their paychecks starting in January when the temporary 2 percent payroll tax cut will expire.

More than $1 trillion in automatic spending cuts to defense and domestic programs will also begin to take effect later this week unless Congress delays or replaces them.

"It is absolutely inexcusable that all of us find ourselves in this place at this time," Sen. Joe Manchin, D-W.Va., said Sunday night on the Senate floor.

"Something has gone terribly wrong when the biggest threat to our American economy is our American Congress," he said, echoing a frustration shared by many Americans.

Republican and Democratic Senate leaders wrangled all weekend over the outlines of a deal, but those talks eventually hit a brick wall on GOP insistence that Social Security savings be included in a deal.

"I want everyone to know I'm willing to get this done, but I need a dance partner," McConnell said Sunday, noting that he had directly reached out to Biden to break the impasse.

As part of any deficit reduction deal, the White House wants to raise income tax rates on people making more than $250,000 a year, a threshold on which President Obama campaigned for re-election.

Republicans, caving on outright opposition to any tax increases, want a higher income threshold for the tax hike of around $450,000, sources said. They also want to prevent the estate tax from rising above its current 35 percent rate on estates of $5.1 million or more.

"There is still significant distance between the two sides, but negotiations continue," Senate Majority Leader Harry Reid of Nevada said Sunday evening. "There is still time to reach an agreement, and we intend to continue negotiations."

Both sides say the cost of failure is high.

"If we are not able to reach an agreement, it will be dire," Sen. Jon Kyl, R-Ariz., said Sunday on ABC's "This Week." "Probably at least another million jobs lost, an unemployment rate over 9 percent, and putting us back into recession."

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Today on New Scientist: 28 December 2012

Best videos of 2012: Rare view of Challenger tragedy

Watch a rare amateur video of the Challenger explosion, our most-viewed video of the year

Strong jet stream super-charged US Christmas storms

Record snowfall and dozens of tornadoes snarled holiday travel as a powerful winter storm plowed across much of the US, while rainstorms battered the UK

2012 review: The year in life science

The year's biggest stories in life science, including James Cameron's descent into the Mariana trench and efforts to break into Antarctica's buried lakes

Superstorm lessons for adapting to climate change

As the post-Sandy rebuild gets under way, coastal cities around the world will be watching

Best videos of 2012: First MRI movie of childbirth

Watch a unique view of a baby's birth, at number 2 in our countdown of the year's top science videos

Fleadom or death: Reviving the glorious flea circus

The parasite-based sideshows were almost done for by the domestic vacuum cleaner - but they are bouncing back, finds Graham Lawton

Approval for gene-modified salmon spawns controversy

Apparently months late, US regulators have declared genetically engineered fish safe to farm and eat, but final approval could be some way off

Best videos of 2012: New aircraft flies inside out

Watch a novel flying machine use a unique mechanism to propel itself, at number 3 in our countdown of the top videos of the year

2012 review: The year in technology

The year's biggest stories in technology, including Kinect devices that may spot signs of autism and controlling a robot by the power of thought

Superdoodles: The science of scribbling

Far from being a distraction, doodling has an important purpose - and you can harness it

2013 Smart Guide: Wave goodbye to the mouse

The Leap, a 3D motion control device set to launch next year, will let you control your computer with touch-free hand and finger movements

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Switzerland freezes US$300m of Mubarak sons' assets: report

GENEVA: Swiss authorities have frozen US$300 million sitting in Credit Suisse accounts in Geneva held by the sons of deposed Egyptian president Hosni Mubarak, the newspaper Le Matin Dimanche reported on Sunday.

The funds are held in accounts belonging to Alaa and Gamal Mubarak, sons of the ex-president who are currently being held in an Egyptian prison.

The brothers are accused of using their position as scions of Egypt's longtime ruler to help themselves to villas, luxury cars and stakes in the country's key companies.

According to the newspaper, the funds were deposited at the Credit Suisse in 2005, which was after Switzerland tightened rules governing transactions by politically exposed depositors.

A Credit Suisse spokesman refused comment, citing the bank's secrecy policy.

The paper said Egypt-linked funds have also been frozen at the Swiss office of French banking giant BNP Paribas.

Switzerland has opened a probe targeting 14 people close to the Mubarak regime who are suspected of embezzling public funds and wide scale corruption.

Earlier this month, Swiss authorities refused to provide their Egyptian counterparts with access to their findings so far, citing concerns for the "institutional situation" in Cairo.

- AFP/jc

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Foursquare to show users' full names, share more data

Foursquare has begun notifying users of privacy policy updates that will begin making more user information and data public next month.

Beginning January 28, 2013, users' "full names" will be displayed across the check-in service and venue owners will have increased access to users' check-in data, the company announced in an e-mail sent to users late last night. It also published a document called "Privacy 101" to explain the new changes.

The service currently sometimes shows full names but often displays just users' first name and last initial -- except when looking up friends on the service.

"In the original versions of Foursquare, these distinctions made sense," Foursquare explained in its e-mail. "But we get emails every day saying that it's now confusing."

After the privacy policy changes take effect, all users' full names will be displayed everywhere across the service. However, users will still have control of the name displayed by altering their "full name" in their settings.

The policy changes will also give venue owners access to more recent data about user check-ins at the venue. Businesses on Foursquare currently have access to information about customers who checked in during the previous three hours; after January they will see more recent check-ins, although Foursquare didn't indicate how much more

"This is great for helping store owners identify their customers and give them more personal service or offers," Foursquare noted. "But a lot of businesses only have time to log in at the end of the day to look at it."

As with the "full name" setting, users can opt out of letting venue owners see their check-in information.

Foursquare's careful explanation of the new policies comes in the wake of an Instagram user revolt over new privacy policies that appeared to grant the Facebook-owned service perpetual rights to sell users' photographs without notifying or compensating the photographer. Instagram quickly backpedaled, with Instagram CEO Kevin Systrom apologizing for failing to clearly communicate the company's intentions.

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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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President Suggests Small 'Cliff' Deal Likely

With less than two days remaining for Congress to reach a budget agreement that would avoid the so-called “fiscal cliff,” President Obama today suggested that a small deal remains the best hope to avoid the perilous package of spending cuts and tax increases.

In an interview aired this morning on NBC’s “Meet the Press” the president said if Republicans agreed to raising taxes on top income earners it should be enough to avoid the triggers that would execute the $607 billion measure. Economists agree that going over the cliff would likely put the country back in recession.

“If we have raised some revenue by the wealthy paying a little bit more, that would be sufficient to turn off what’s called the sequester, these automatic spending cuts, and that also would have a better outcome for our economy long-term,” he said.

Saying the “pressure is on Congress to produce,” the president did not specify what income level his party would deem acceptable as the cutoff for those who would see their tax rates remain at current levels. The president has called for expiration of the “Bush-era” tax cuts to affect household earnings over $250,000 since the campaign, but has reportedly floated a $400,000 figure in past negotiations. Speaker John Boehner once offered a $1 million cut-off in his failed “Plan B” proposal, which failed to garner enough support among the House Republicans.

“It’s been very hard for Speaker Boehner and Republican Leader McConnell  to accept the fact that taxes on the wealthiest Americans should go up a little bit as part of an overall deficit reduction package,” the president said.

Domestic programs would lose $55 billion in funding should sequestration pass, including $2 billion to Medicare and unemployment benefits. The Pentagon would take a $55 billion loss as well, or 9 percent of their budget.

Repeating remarks he made Friday after a meeting with congressional leaders, Obama said that should negotiations fail he has asked Senate Majority Leader Harry Reid, D-Nev., to introduce a stripped- down proposal to Congress for a straight up-or-down vote – if it isn’t blocked.

“If all else fails, if Republicans do in fact decide to block so that taxes on the middle class do in fact go up on January 1, then we’ll come back with a new Congress on January 4, and the first bill that will be introduced on the floor will be to cut taxes on middle-class families,” he said of the worst case scenario. “I don’t think the average person is going to say, ‘Gosh, you know, that’s a really partisan agenda.’”

The interview was taped Saturday while Reid and his GOP counterpart Sen. Mitch McConnell of Kentucky scrambled to their offices for a solution behind closed doors. Press staking out Capitol Hill reported little public activity from the leaders or their surrogates. If negotiations are successful, the lawmakers could introduce a bill for vote this afternoon.

Republican leaders bit back at the president’s remarks. In a written statement Speaker Boehner said casting blame was “ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party. ”

“In an effort to get the president to agree to cut spending – which is the problem – I put revenues on the table last year, and I put them on the table again last month,” he wrote. “Republicans made every effort to reach the ‘balanced’ deficit agreement that the president promised the American people, while the president has continued to insist on a package skewed dramatically in favor of higher taxes that would destroy jobs.”

Senator McConnell’s office issued this response to the NBC appearance:

“While the President was taping those discordant remarks yesterday, Sen. McConnell was in the office working to bring Republicans and Democrats together on a solution. Discussions continue today.”

Regardless of outcome, talk of a comprehensive budget deal is gone and any bill would likely set up a series of smaller partisan roadblocks in the weeks and months to come. For example, if any hypothetical legislation managed to dodge tax increases for the middle class it would still not address the looming debt ceiling, which Treasury can avoid using accounting tricks for approximately two months.

A small deal may also not address the estate tax, another central point of the brinkmanship. Currently standing at 35 percent, Republicans want to leave that rate as-is after exempting the first $5 million in estate value. Meanwhile Democrats have called for a 45 percent tax after a $3.5 million exemption. Should negotiations fail, it would climb to 55 percent after a $1 million exemption after the New Year.

ABC’s Sunlen Miller and the Associated Press contributed to this report, which has been updated.

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