Agreement within reach on ‘fiscal cliff’ deal, officials say

President Obama and Senate leaders were on the verge of an agreement Friday that would let taxes rise on the wealthiest households while protecting the vast majority of Americans from historic tax hikes set to hit in January.

The development marked a breakthrough after weeks of paralysis. After meeting with Obama at the White House, Senate Majority Leader Harry M. Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) said they would work through the weekend in hopes of drafting a “fiscal cliff” package they could present to their colleagues on Sunday afternoon.

As the Senate began haggling over critical details, the emerging deal faced an uncertain fate in the House, where Speaker John A. Boehner (R-Ohio) failed just one week ago to persuade his adamantly anti-tax caucus to let taxes rise even for millionaires.

Still, on Friday, Obama pronounced himself “modestly optimistic” at a brief news conference at the White House. The ordinarily dour McConnell said he was “hopeful and optimistic.” And Reid immediately began preparing Senate Democrats for what could be a difficult vote.

“Whatever we come up with is going to be imperfect. Some people aren’t going to like it. Some people will like it less,” Reid said on the Senate floor before dozens of silent and attentive senators from both parties. But “we’re going to do the best we can for . . . the country that’s waiting for us to make a decision.”

According to people briefed on the talks, the developing package would protect nearly 30 million taxpayers from paying the alternative minimum tax for the first time and keep unemployment benefits flowing to 2 million people who otherwise would be cut off in January.

The deal also would likely halt a steep cut in Medicare reimbursements set to hit doctors in January and preserve popular tax breaks for both businesses and individuals, such as those for research and college tuition.

But the two sides were still at odds over a crucial issue: how to define the wealthy. Obama has proposed letting tax rates rise on income over $250,000 a year. Senate Republicans have in recent days expressed interest in a compromise that would lift that threshold to $400,000 a year, an offer Obama made to Boehner before the speaker abruptly broke off negotiations last week.

In addition to its political appeal, the $400,000 threshold has practical benefits, Republican aides said: It would limit tax increases to the very top tax bracket rather than the top two brackets. And it would avoid a quirk of the tax code that would cause rates to rise more dramatically for those earning between $250,000 and $400,000 than for households with much larger incomes.

The two sides also had yet to agree on another politically sensitive issue: how to tax inherited estates. Republicans — and many Senate Democrats from states with large family farms — want to maintain the current tax structure, which exempts estates worth up to $5 million and taxes those above that level at 35 percent. Obama has proposed a $3.5 million exemption and a tax rate of 45 percent, a proposal that is far more acceptable to liberal Democrats.

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Philippines seeks unity after birth control law signed

MANILA: President Benigno Aquino's government called for reconciliation on Saturday after a "divisive" birth control act was signed into law despite bitter opposition from the influential Catholic church.

Making sex education and contraceptives more widely available to the poor, the landmark legislation takes effect in mid-January, Aquino's spokeswoman Abigail Valte said.

"The passage into law of the Responsible Parenthood Act closes a highly divisive chapter of our history -- a chapter borne of the convictions of those who argued for, or against this Act," Valte said in a statement.

"At the same time, it opens the possibility of cooperation and reconciliation... engagement and dialogue characterised not by animosity, but by our collective desire to better the welfare of the Filipino people."

Both chambers of parliament passed the final version of the act on December 19 after an acrimonious debate pitting non-government organisations and women's groups against the country's dominant church and its lay organisations.

Aquino, who was once threatened with excommunication by church leaders for pushing the bill, signed the act two days later and said it gives couples the tools and information needed to plan the size of their families.

Proponents say it will help moderate the nation's rapid population growth, reduce poverty and bring down its high maternal mortality rate.

Church leaders in the Catholic-majority nation have vowed that the fight is not over.

Groups allied with the church are expected to challenge the law in the Supreme Court, while the church itself plans to ask its flock to oust the supporters of the birth control law in next year's general election.

The Philippines has one of Asia's highest birth rates, with the United Nations estimating that half of the country's 3.4 million pregnancies each year are unplanned.

The government's Commission on Women said that maternal mortality also remains high, with 162 deaths for every 100,000 live births, while 10 women die every day from pregnancy or childbirth-related complications.

- AFP/ck

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Telangana observes bandh to protest Centre's indecision on statehood

HYDERABAD: A bandh is being observed in Telangana region with statehood supporters staging demonstrations at various places in Andhra Pradesh on Saturday.

The shutdown has been called by TRS to protest the Centre's "indecision" on granting statehood to Telangana. BJP and Telangana Joint Action Committees are supporting the bandh, which comes a day after the all-party meeting on Telangana in New Delhi.

Educational institutions at many places remained closed and examinations of Kakatiya and Osmania Universities were postponed.

Shops and business establishments downed their shutters and Road Transport Corp (RTC) buses were off the road at different places in Telangana, which comprises 10 districts.

Pro-Telangana supporters held protests accusing the Centre of failing to arrive at a decision on carving out a separate state.

The bandh was peaceful so far and elaborate security arrangements have been made to deal with any untoward incident, police said.

After the meeting of political parties on Friday, home minister Sushilkumar Shinde said a decision on the long- pending Telangana issue will be announced within a month.

However, the TRS, which is spearheading the statehood agitation, was not satisfied with the announcement.

"They have said this over a hundred times. They have not fulfilled their promises. They have cheated the people of Telangana again," TRS chief K Chandrashekar Rao had told reporters after coming out of the meeting chaired by Shinde.

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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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Epic Journey: Did Moses' Exodus Really Happen?

In the Bible, he is called Moses. In the Koran, he is the prophet Musa.

Religious scholars have long questioned whether of the story of a prophet leading God's chosen people in a great exodus out of Egypt and the freedom it brought them afterwards was real, but the similarities between a pharaoh's ancient hymn and a psalm of David might hold the link to his existence.

Tune in to Part 2 of Christiane Amanpour's ABC News special, "Back to the Beginning," which explores the history of the Bible from Genesis to Jesus, on Friday, Dec. 28 at 9 p.m. ET on ABC.

Christian scripture says Moses was content to grow old with his family in the vast deserted wilderness of Midian, and 40 years passed until the Bible says God spoke to him through the Burning Bush and told him to lead his people, the Israelites, out of Egypt. According to tradition, that miraculous bush can still be seen today enclosed within the ancient walls of St. Catherine's Monastery, located not far from Moses' hometown.

But there was another figure in the ancient world who gave up everything to answer the call from what he believed was the one and only true God.

Archaeologists discovered the remains of the ancient city of Amarna in the 1800s. Egyptologist Rawya Ismail, who has been studying the ruins for years, believes, as other archaeologists do, that Pharaoh Akhenaten built the city as a tribute to Aten, the sun.

G.Sioen/De Agostini/Getty Images

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She said it was a bold and unusual step for the pharaoh to leave the luxurious trappings of palace life in Luxor for the inhospitable landscape of Amarna, but it might have been his only choice as the priests from the existing religious establishment gained power.

"The very powerful Amun-Ra priests that he couldn't stand against gained control of the whole country," Ismail said. "The idea was to find a place that had never been used by any other gods -- to be virgin is what he called it -- so he chose this place."

All over the walls inside the city's beautiful tombs are examples of Akhanaten's radical message of monotheism. There is the Hymn to the Aten, which translates, in part, to: "The earth comes into being by your hand, as you made it. When you dawn, they live. When you set, they die. You yourself are lifetime, one lives by you."

PHOTOS: Christiane Amanpour's Journey 'Back to the Beginning'

Some attribute the writing of the hymn to Akhanaten himself, but it bears a striking resemblance to a passage that can be found in the Hebrew Bible: Psalm 104.

"If you compare the hymns from A to Z, you'll find mirror images to it in many of the holy books," Ismail said. "And if you compare certain parts of it, you'll find it almost exactly -- a typical translation for some of the [psalms] of David."

Psalm 104, written a few hundred years later, references a Lord that ruled over Israel and a passage compares him to the sun.

"You hide your face, they are troubled," part of it reads. "You take away your breath, they die, And return to dust. You send forth your breath, they are created, And you renew the face of the earth."

Like the psalm, the Hymn to Aten extols the virtues of the one true God.

"A lot of people think that [the Hymn to Aten] was the source of the [psalms] of David," Ismail said. "Putting Egypt on the trade route, a lot of people traveled from Egypt and came back to Egypt, it wasn't like a country living in isolation."

Ismail believes it is possible that the message from the heretic pharaoh has some connection to the story of Moses and the Exodus, as outlined in the Hebrew Bible.

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As ‘fiscal cliff’ deadline nears, OPM updates furlough guidelines

With talks on averting the “fiscal cliff” apparently stalled, the Office of Personnel Management posted new guidance to federal workers for administrative furloughs on its Web site Thursday afternoon.

“We wanted to take some prudent steps to keep federal employees informed in case of an order for sequestration,” said Thomas Richards, OPM’s communications director.

He added that the guidelines were not issued as “a reaction to any specific action” involving the talks between President Obama and congressional leaders.

“It’s nothing more than that,” Richards said.

Nonetheless, after months of the White House expressing confidence that the standoff would be resolved before a crisis hit and that furloughs would be unnecessary, the guidance reflects the reality that little time remains on the calendar to avert the automatic cuts that will be triggered by a failure to reach a deal by the year’s end.

Obama returned to Washington from Hawaii on Thursday in an effort to keep the talks alive. As the deadline approaches, federal workers have grown increasingly worried about the potential threat to their jobs.

The guidance notes that “agencies are responsible for identifying the employees affected by administrative furloughs based on budget conditions, funding sources, mission priorities (including the need to perform emergency work involving the safety of human life or protection of property), and other factors.”

Employees will be given a minimum 60-day notice before any furlough of longer than 22 days takes place, according to the document. A 30-day notice will be given for shorter furloughs.

The guidance also specifies that employees may not take other forms of paid time off, including annual or sick leave, in lieu of being furloughed. Nor is an employee allowed to volunteer to do his or her job for free, unless otherwise authorized by law.

The guidelines are updated from a previous version issued in April by OPM in response to the possibility of a government shutdown at the time.

“The policy folks are diving down deep into the weeds,” Richards said. “We wanted to make sure the guidelines were up to date to reflect the possibility of sequestration.”

Richards said the OPM will soon post answers to frequently asked questions on the agency’s Web site (opm.gov/furlough).

“It will be questions like, ‘Do I need to show up for work on January 2nd? Yes, you do,’ ” Richards said.

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Yachting: Wild Oats XI wins Sydney to Hobart race in record time

HOBART, Australia: Supermaxi Wild Oats XI smashed its own record time by nearly 17 minutes in Australia's Sydney to Hobart ocean yacht race, taking line honours on Friday ahead of Ragamuffin-Loyal.

Thousands of onlookers cheered at Hobart's Constitution Dock as the favourite came home in one day, 18 hours, 23 minutes and 12 seconds for its sixth victory over the prestigious 628 nautical mile bluewater classic.

Wild Oats XI also won every year from 2005 to 2008 and in 2010.

"It was close, we only just made it but it's a great result for the whole team," skipper Mark Richards said after crossing the finish line.

"This boat is a great machine and we're very proud of it. Getting the record is a big thing and it's very satisfying."

Ragamuffin-Loyal, which beat Wild Oats by just three minutes last year and is skippered by 85-year-old Syd Fischer, finished four-and-a-half hours later with gear damage hampering a bid for back-to-back wins.

"A lot of things just went wrong," said Fischer. "But it's a good boat, well built, strong and it goes fast. We'll make modifications for next year."

Lahana was running third in a tight battle with Black Jack, ahead of Loki in fifth. Jazz leads the handicap standings, which takes into account the dimensions of each boat in the fleet, ahead of Calm and Secret Men's Business.

The previous record was one day, 18 hours, 40 minutes and 10 seconds, set in 2005, and Richards had his 100-foot yacht well ahead of that pace late Thursday as they powered down Tasmania's east coast.

But a northeasterly tailwind gave way to a weaker westerly that dramatically slowed progress.

Wild Oats' crew had all but given up on breaking the record after rounding Tasman Island in the middle of the night and it was touch and go as they sailed up Hobart's Derwent River.

But the unfurling of a bigger headsail ultimately made the difference to tack home surrounded by a flotilla of smaller vessels.

"It was a very tricky night, the breeze died on us. It was very testing and we had to make a lot of sail changes, but it's all part of the Sydney-Hobart," said Richards.

"The crew have been together a long time and when the going gets tough they just get tougher."

Wild Oats XI led the 76-vessel fleet from the starting gun in Sydney Harbour on Wednesday in a famously unforgiving race that takes crews across the notorious Bass Strait.

As well as dealing with the tough conditions, the boat hit an unknown object that damaged a daggerboard beneath the hull.

Catastrophic conditions claimed six lives and sank five yachts in 1998, and vessels are routinely unable to complete the race.

However, there have so far only been two retirements this year - Living Doll and Primitive Cool.

The 2013 event was marred by the controversial expulsion of supermaxi Wild Thing, the 2003 line honours winner, which was among the top three favourites.

Officials banned it just hours before the start, citing incomplete documentation of major modifications that extended the vessel to 100 feet. Skipper Grant Wharington continued to protest Friday.

He claimed the man who banned his yacht, race director Tim Cox, did not know enough about boat-building and had "egg on his face".

Cox rejected the criticism and told Wharington to "lay off the personal insults", according to Sydney's Daily Telegraph.

- AFP/de

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Militant killed in gunfight in Kashmir

SRINAGAR: A separatist guerrilla has been killed and a police personnel injured in an ongoing gunfight in Kashmir's Pulwama district, police said on Friday.

A team of district police, 55 Rashtriya Rifles and 182 battalion of CRPF ( Central Reserve Police Force) launched a search operation at Budgam in Asthana Mohalla of Pulwama on Friday morning following information about the presence of militants there, a police official said.

The militants opened fire on the security forces during the search, triggering a gunfight in which a militant was killed.

"One constable also sustained injuries in the gun battle that is still on," the official added. The militants are reportedly hiding in a house.

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White House Says It Has No New Fiscal Cliff Plan

The White House said today it has no plans to offer new proposals to avoid the fiscal cliff which looms over the country's economy just five days from now, but will meet Friday with Congressional leaders in a last ditch effort to forge a deal.

Republicans and Democrats made no conciliatory gestures in public today, despite the urgency.

The White House said President Obama would meet Friday with Democratic and Republican leaders. But a spokesman for House Speaker John Boehner said the Republican "will continue to stress that the House has already passed legislation to avert the entire fiscal cliff and now the Senate must act."

The White House announced the meeting after Senate Minority Leader Mitch McConnell, R-Ky., called the budget situation "a mess" and urged the president to present a fresh proposal.

"I told the president I would be happy to look at whatever he proposes, but the truth is we're coming up against a hard deadline here, and as I said, this is a conversation we should have had months ago," McConnell said of his phone call with Obama Wednesday night.

McConnell added, "Republicans aren't about to write a blank check for anything Senate Democrats put forward just because we find ourselves at the edge of the cliff."

"That having been said, we'll see what the president has to propose," the Republican Senate leader said.

But a senior White House official told ABC News, "There is no White House bill."

That statement, however, may have wiggle room. Earlier today White House spokesman Jay Carney said, "I don't have any meetings to announce," but a short time later, Friday's meeting was made public.

It's unclear if the two sides are playing a game of political chicken or whether the administration is braced for the fiscal cliff.

Earlier today, fiscal cliff, Senate Majority Leader Harry Reid lashed out at Republicans in a scathing speech that targeted House Republicans and particularly Boehner.

Charles Dharapak/AP Photo

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Reid, D-Nev., spoke on the floor of the Senate as the president returned to Washington early from an Hawaiian vacation in what appears to be a dwindling hope for a deal.

The House of Representatives will meet for legislative business Sunday evening, leaving the door cracked open ever so slightly to the possibility of a last-minute agreement.

But on a conference call with Republican House members Thursday afternoon, Boehner kept to the Republican hard line that if the Senate wants a deal it should amend bills already passed by the House.

That was the exact opposite of what Reid said in the morning, that Republicans should accept a bill passed by Democratic led Senate.

Related: What the average American should know about capital gains and the fiscal cliff.

"We are here in Washington working while the members of the House of Representatives are out watching movies and watching their kids play soccer and basketball and doing all kinds of things. They should be here," Reid said. "I can't imagine their consciences."

House Republicans have balked at a White House deal to raise taxes on couples earning more than $250,000 and even rejected Boehner's proposal that would limit the tax increases to people earning more than $1 million.

"It's obvious what's going on," Reid said while referring to Boehner. "He's waiting until Jan. 3 to get reelected to speaker because he has so many people over there that won't follow what he wants. John Boehner seems to care more about keeping his speakership than keeping the nation on a firm financial footing."

Related: Starbucks enters fiscal cliff fray.

Reid said the House is "being operated with a dictatorship of the speaker" and suggested today that the Republicans should agree to accept the original Senate bill pass in July. Reid's comments, however, made it clear he did not expect that to happen.

"It looks like" the nation will go over the fiscal cliff in just five days, he declared.

"It's not too late for the speaker to take up the Senate-passed bill, but that time is even winding down," Reid said. "So I say to the speaker, take the escape hatch that we've left you. Put the economic fate of the nation ahead of your own fate as Speaker of the House."

Boehner's spokesman Michael Steel reacted to Reid's tirade in an email, writing, "Senator Reid should talk less and legislate more. The House has already passed legislation to avoid the entire fiscal cliff. Senate Democrats have not."

Boehner has said it is now up to the Senate to come up with a deal.

Obama, who landed in Washington late this morning, made a round of calls over the last 24 hours to Reid, Boehner, Senate Minority Leader Mitch McConnell, R-Ky., and House Minority Leader Nancy Pelosi, D-Calif.

Related: Obama pushes fiscal cliff resolution.

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Hawaii’s lieutenant governor is named to the U.S. Senate

Hawaii Gov. Neil Abercrombie (D) selected Lt. Gov. Brian Schatz on Wednesday to fill the vacancy created by the death last week of veteran U.S. Sen. Daniel K. Inouye (D).

With the “fiscal cliff” five days away and critical decisions facing the Senate, the White House said Schatz would fly to Washington on Wednesday evening with President Obama. Schatz said he would be in place to be sworn in Thursday.

Abercrombie chose Schatz, 40, a former state Democratic Party chairman and state lawmaker, over U.S. Rep. Colleen W. Hanabusa (D), whom Inouye had indicated shortly before his death would be his preference to replace him.

“No one and nothing is pre­ordained,” Abercrombie told reporters in Hono­lulu. He said Inouye’s views were taken into account but so were those of grass-roots activists and his own analysis of what was best for the state.

He said Schatz, a native of Michigan, was best positioned to help Hawaii begin to rebuild its congressional seniority.

He called Schatz “intelligent, forceful, insightful, committed.”

Schatz will be joined in the Senate next month by Rep. Mazie K. Hirono (D), who was elected in November to replace retiring Sen. Daniel K. Akaka (D).

The pair of newcomers will replace one of the nation’s most stable lawmaking teams: A modest World War II hero, Inouye had represented the Aloha State in the Senate since 1963, becoming president pro tempore of the chamber and chairman of the powerful Appropriations Committee. Akaka has served in the Senate since 1980.

Schatz will hold the job for two years until Hawaii voters choose a replacement to fill out the final two years of Inouye’s term.

Schatz, who will be one of the Senate’s youngest members, told reporters that he is planning to stand for election in 2014 to complete Inouye’s term and then to run for reelection in 2016.

“No one can fill Senator Daniel K. Inouye’s shoes — but together, all of us, we can try to walk in his footsteps,” Schatz said, indicating he would focus on retaining federal funding for the state and addressing climate change.

The selection of Schatz was something of a surprise, given Inouye’s wishes and the esteem with which he is held in the state. But Abercrombie is close to Schatz and indicated that he was hesitant to choose Hanabusa and force a new special election to fill her House seat.

Jennifer Sabas, Inouye’s chief of staff, indicated in a statement that Hanabusa’s selection was ­Inouye’s “final wish.”

“While we are very disappointed that it was not honored, it was the governor’s decision to make. We wish Brian Schatz the best of luck,” she said.

Rising Democratic star Tulsi Gabbard, 31, an Iraq war veteran and former Hono­lulu City Council member who was elected to the House in November, had some strong supporters nationally, including Newark Mayor Cory Booker, who endorsed her for the Senate seat via Twitter.

The appointment of Schatz came at a particularly critical time, with Democratic leaders anticipating a potentially close vote in the coming days on a tax plan designed to avert the most serious economic impacts of the year-end fiscal cliff.

In the absence of a broad, bipartisan deficit-reduction package, Obama has called on Congress to at least pass a bill to extend tax breaks for the middle class and potentially forestall automatic budget cuts set to hit in January.

Democrats hope that Republicans will agree to forgo a filibuster and allow an up-or-down vote on a temporary fix, requiring only a bare majority to pass. If the GOP requires a 60-vote threshold for the bill, as has increasingly become standard in the Senate, Democrats hope that a handful of Republicans would join Democrats in supporting the measure and send it to the House.

Either way, Democrats will need every vote they can muster if the legislation is brought to the floor. A bill passed by the Senate in July to extend tax rates first enacted under President George W. Bush for those making less than $250,000 a year was adopted by a narrow 51 to 48 margin.

All Republicans opposed the measure, along with Sens. James Webb (D-Va.) and Joseph I. Lieberman (I-Conn.).

With tax hikes set to hit virtually every American in a matter of days, a similar measure could pick up additional support this time around. But the possibility of a squeaker vote led Senate Majority Leader Harry M. Reid (D-Nev.) to take the unusual step of urging Abercrombie to fill the Hawaii seat quickly.

“It is critically important to ensure that the people of Hawaii are fully represented in the pivotal decisions the Senate will be making before the end of the year,” Reid said in a statement Saturday.

Hawaii law required that Abercrombie choose a replacement from a list of three finalists selected by the state Democratic Party.

The party’s central committee met Wednesday — several days earlier than had been planned before Reid’s request for speed — to hear two-minute speeches from most of the 14 candidates who had formally asked the party to consider them for the role.

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