Obama Hails 'Cliff' Deal, Warns of Next Fiscal Fight

Minutes after the House of Representatives approved a bipartisan Senate deal to avert the "fiscal cliff" and preserve Bush-era tax cuts for all Americans making less than $400,000 per year, President Obama praised party leaders and wasted little time turning to the next fiscal fight.

"This is one step in the broader effort to strengthen our economy for everybody," Obama said.

Obama lamented that earlier attempts at a much larger fiscal deal that would have cut spending and dealt with entitlement reforms failed. He said he hoped future debates would be done with "a little less drama, a little less brinksmanship, and not scare folks quite as much."

But Obama drew a line in the sand on the debt ceiling, which is set to be reached by March.

"While I will negotiate over many things, I will not have another debate with this Congress over whether they should pay the bills for what they've racked up," Obama said. "We can't not pay bills that we've already incurred."

An hour after his remarks, Obama boarded Air Force One to return to his planned Hawaiian holiday vacation, reuniting with his family, who have been vacationing there since just before Christmas.

AP Photo/Charles Dharapak

'Fiscal Cliff' Negotiations: Congress Reaches Agreement Watch Video

House Republicans agreed to the up-or-down vote Tuesday evening, despite earlier talk of trying to amend the Senate bill with more spending cuts before taking a vote. The bill delays for two months tough decisions about automatic spending cuts that were set to kick in Wednesday.

A majority of the Republicans in the GOP-majority House voted against the fiscal cliff deal. About twice as many Democrats voted in favor of the deal compared to Republicans. One hundred fifty-one Republicans joined 16 Democrats to vote against the deal, while 172 Democrats carried the vote along with 85 Republicans.

The Senate passed the same bill by an 89-8 vote in the wee hours of New Year's Day. If House Republicans had tweaked the legislation, there would have been no clear path for its return to the Senate before a new Congress is sworn in Thursday.

The vote split Republican leaders in the House. House Speaker John Boehner, R-Ohio, voted yes, and so did the GOP's 2012 vice presidential candidate, Rep. Paul Ryan, R-Wis.

But House Majority Leader Eric Cantor, R-Va., the No. 2 Republican in the House, voted no. It was his opposition that had made passage of the bill seem unlikely earlier in the day.

The deal does little to address the nation's long-term debt woes and does not entirely solve the problem of the "fiscal cliff."

Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- sets up a new showdown on the same spending cuts in two months amplified by a brewing fight on 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.

"Now the focus turns to spending," said Boehner in a statement after the vote. "The American people re-elected a Republican majority in the House, and we will use it in 2013 to hold the president accountable for the 'balanced' approach he promised, meaning significant spending cuts and reforms to the entitlement programs that are driving our country deeper and deeper into debt."

Republicans hope that allowing the fiscal cliff compromise, which raised taxes without an equal amount of spending cuts, will settle the issue of tax rates for the coming debates on spending.

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Senate approves deal to avoid worst of ‘fiscal cliff’

The Senate approved a bipartisan agreement early Tuesday morning to let income taxes rise sharply for the first time in two decades, fulfilling President Obama’s promise to raise taxes on the rich and avoiding the worst effects of the “fiscal cliff.” The agreement, brokered by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.), passed 89 to 8 in a highly unusual New Year’s morning vote. It now heads to the House, where leaders have not guaranteed passage but top officials believe it could win passage in the next few days.

The agreement primarily targets taxpayers who earn more than $450,000 per year, raising their rates for wages and investment profits. At the same time, the deal would protect more than 100 million households earning less than $250,000 a year from income tax increases scheduled to take effect Jan. 1.

The deal came together barely three hours before the midnight deadline, after negotiators cleared two final hurdles involving the estate tax and automatic spending cuts set to affect the Pentagon and other federal agencies this week.

Republicans gave in on the spending cuts, known as sequestration, by agreeing to a two-month delay in budget reductions that would be paid for in part with new tax revenue, a condition they had resisted. And the White House made a major concession on the estate tax, agreeing to terms that would permit estates worth as much as $15 million to escape taxation by the end of the decade, Democrats said.

As Biden rushed to the Capitol to brief Senate Democrats on the deal, Majority Leader Harry M. Reid (D-Nev.) laid plans for a vote shortly after midnight, when taxes were set to rise for virtually every American.

“I think we’ll get a very good vote tonight,” a beaming Biden said as he emerged from the meeting with Democrats after nearly two hours. “But happy new year and I’ll see you all maybe tomorrow.”

About three hours later, just before 2 a.m., the gavel finally fell on a sweeping bipartisan vote designed to send a signal to the more unstable House that passage was imperative. Just three Democrats and five Republicans opposed the measure. The moment served as a rare bipartisan coda to what has been one of the most rancorous, partisan Congresses in recent history, as the 11 retiring senators received hugs and kisses from senators, bidding what is likely a final farewell as colleagues.

Now the measure heads to the House, where Speaker John A. Boehner (R-Ohio) pledged to bring it to a vote in the coming days.

Senior aides predicted the measure would pass the House with bipartisan support. But Boehner’s decision to delay the vote meant the nation would tumble over the cliff at least briefly.

In addition to dealing with the fiscal crisis, the measure would extend federal farm policies through September, averting an estimated doubling of milk prices. The deal also nixed a set pay raise for members of Congress.

During a midday event at the White House, Obama praised the emerging agreement even though it would raise only about $600 billion over the next decade by White House estimates — far less than the $1.6 trillion the president had initially sought to extract from the nation’s richest households.

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Japan's Sharp considering US$1.15b public offering: report

TOKYO: Embattled Japanese electronics firm Sharp is considering making a public share offering worth more than 100 billion yen ($1.15 billion) early this year, a report said Tuesday.

The public offering could take place in the spring with the firm hoping to use the funds to strengthen its mainstay liquid crystal display (LCD) business and improve its creditworthiness, the Yomiuri Shimbun newspaper said.

Sharp has started talks with major creditor banks and wants to include the capital increase scheme in a mid-term business plan to be announced as early as February, the mass-circulation daily said without naming its sources.

The cash-strapped company said in December it had struck a 9.9-billion-yen capital injection deal with US-based chipmaker Qualcomm as it moves to repair its tattered balance sheet.

The Qualcomm deal will see the pair jointly develop energy-efficient LCD panels for smartphones using the Japanese firm's technology, with the US company initially getting about 2.64 per cent of Sharp's stock.

Japan's battered electronics sector has suffered from a myriad of problems including a high yen, slowing demand in key export markets, fierce overseas competition and strategic mistakes that left its finances in ruins.

Sharp has suffered a series of credit rating downgrades and warned it expects to lose about $5.6 billion in the fiscal year to March 2013.

The Osaka-based maker of Aquos-brand electronics has announced thousands of job losses while cutting wages for employees -- from the factory floor to the boardroom -- and selling real estate to shore up its balance sheet.

Sharp said last year it had reached a capital injection deal worth about $800 million with Taiwan's Hon Hai Precision, which makes Apple gadgets in China, but the deal stalled as Sharp's share price nosedived.

-AFP/ac

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Indian Air Force to airlift 370 stranded passengers between Jammu, Leh

JAMMU: Indian Air Force will today airlift 370 passengers stranded between winter capital city Jammu and Leh belt of Ladakh region, officials said.

"IAF would be airlifting 370 stranded people between Jammu and Leh today," PRO, ministry of defence, S N Acharya told PTI.

IL-76 would ferry 120 people, mostly belonging to Kargil district of Ladakh region, from Jammu to Leh and 250 people from Leh to Jammu, Acharya said.

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Space Pictures This Week: Ice “Broccoli,” Solar Storm

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  Happy Trails

  Photograph by Alex Cherney, TWAN

  Amateur astronomer Alex Cherney captured these star trails as they blazed above Lake Tyrrell, a salt lake in Victoria, Australia in October 2011 and posted to The World At Night website December 25, 2012.

  (See pictures of another Australian salt lake, Lake Eyre.)

  Published December 31, 2012

  
  











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  Tokyo From Space

  
  Image courtesy DLR

  The sprawling Japanese capital Tokyo looks like a funky computer chip in this image taken by Germany's Earth-observing satellite TerraSAR-X and released December 20.

  Launched in 2007, the satellite's radar sensors map Earth from 319 miles (514 kilometers) up in a near-polar orbit.

  Published December 31, 2012

  
  











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  Extreme View

  
  Image courtesy SDO/NASA

  NASA's Solar Dynamics Observatory snapped this extreme ultraviolet view of an active region on the sun as it rotated into view from December 16 to December 18. Ultraviolet light makes it easier to trace the whorls and loops created by superheated gas, or plasma, and the sun's magnetic field lines.

  Active solar regions such as this create space weather that, when aimed at Earth, can disrupt satellite communications and electronics. (See more pictures of solar activity and space weather.)

  Published December 31, 2012

  
  











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  Saturn’s Dark Side

  
  Image courtesy SSI/Caltech/NASA

  This image of the unlit side of Saturn's S rings, released December 24, was taken with visible light by NASA's Cassini spacecraft.

  The shadow of Saturn's innermost major moon, Mimas, is visible as a black oval south of the rings' shadow. For those with completely dust-free computer monitors, Janus, another Saturnian moon, is visible as a tiny white speck above the planet's north pole. (Learn about Saturn's major moons.)

  Published December 31, 2012

  
  











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  A River Runs Through It

  
  Image courtesy ESA/JAXA

  The European Space Agency released this picture—taken by Japan's satellite ALOS—of Italy's longest river on December 14.

  The Po river and its surrounding fields divide Italy into its northern and southern regions. The Japanese used ALOS, which they lost contact with in late April 2011, to generate precise land maps, monitor disasters, and conduct resource surveys. (Read an excerpt from National Geographic magazine about the Po river.)

  Published December 31, 2012

  
  











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  Glacial "Broccoli"

  
  Image from DigitalGlobe/Getty Images

  The Moshniy glacier, located on the Russian archipelago Novaya Zemlya in the Arctic Ocean, calves chunks of ice and debris into a pattern reminiscent of broccoli in an image released December 20.

  Novaya Zemlya was a sensitive military area during the Cold War, and was also the site of the most powerful nuclear device ever detonated. The energy released by the 50-megaton "Tsar" bomb was ten times that of all the explosions set off during World War II.

  Published December 31, 2012

  
  











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  Image courtesy Caltech/SSI/NASA

  Published December 31, 2012

  
  

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Senate Approves 'Fiscal Cliff' Deal, Sends to House

Hours past a self-imposed deadline for action, the Senate passed legislation early New Year's Day to neutralize a fiscal cliff combination of across-the-board tax increases and spending cuts that kicked in at midnight. The pre-dawn vote was a lopsided 89-8.

Senate passage set the stage for a final showdown in the House, where a vote was expected later Tuesday or perhaps Wednesday on the measure, which also raises tax rates on wealthy Americans.

Even by the recent dysfunctional standards of government-by-gridlock, the activity at both ends of historic Pennsylvania Avenue was remarkable as the administration and lawmakers spent the final hours of 2012 haggling over long-festering differences.

"It shouldn't have taken this long to come to an agreement, and this shouldn't be the model for how we do things around here," said Senate Republican leader Mitch McConnell, who negotiated the agreement with Vice President Joe Biden.

Under the deal, taxes would remain steady for the middle class and rise at incomes over $400,000 for individuals and $450,000 for couples — levels higher than President Barack Obama had campaigned for in his successful drive for a second term in office.

Spending cuts totaling $24 billion over two months aimed at the Pentagon and domestic programs would be deferred. That would allow the White House and lawmakers time to regroup before plunging very quickly into a new round of budget brinkmanship certain to revolve around Republican calls to rein in the cost of Medicare and other government benefit programs.

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.

"One thing we can count on with respect to this Congress is that if there's even one second left before you have to do what you're supposed to do, they will use that last second," the president said in a mid-afternoon status update on the talks. Yet when the roll was called nearly 12 hours later, only six Republicans and two Democrats opposed the measure.

As darkness fell on the last day of the year, Obama, Biden and their aides were at work in the White House, and lights burned in the House and Senate. Democrats complained that Obama had given away too much in agreeing to limit tax increases to incomes over $450,000, far above the $250,000 level he campaigned on. Yet some Republicans recoiled at the prospect of raising taxes at all.

Democratic senators said they expected a post-midnight vote on the measure. They spoke after a closed-door session with Vice President Joseph Biden, who brokered the deal with Senate Republican leader Mitch McConnell.

"The argument is that this is the best that can be done on a bipartisan basis," said Sen. Dianne Feinstein, D-Calif., when asked about the case the vice president had delivered behind closed doors.

Passage would send the measure to the House, where Speaker John Boehner, R-Ohio, refrained from endorsing a package as yet unseen by his famously rebellious rank-and-file. He said the House would not vote on any Senate-passed measure "until House members — and the American people — have been able to review" it.

Numerous GOP officials said McConnell and his aides had kept the speaker's office informed about the progress of the talks.

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

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

Vice President Joseph Biden and Sen. Mitch McConnell were locked in urgent talks late Sunday over the “fiscal cliff” after Democrats offered several significant concessions on taxes, including a proposal to raise rates only on earnings over $450,000 a year.

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

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

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

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

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

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

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

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

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

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

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

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India's trauma turns to anger at gang-rape killing

NEW DELHI: Horror at a deadly gang-rape that appalled India has turned to anger in New Delhi, where a leaden-footed government is accused of being out of touch and out of ideas in handling its latest crisis.

On Sunday evening, as dusk descended on an area of the Indian capital where protesters have assembled daily since the December 16 rape of a 23-year-old medical student, a group ran through the crowd with an effigy.

It depicted Sheila Dikshit, the 74-year-old chief minister of New Delhi blamed by many for failing to prevent Delhi becoming known as India's "rape capital".

The victim was repeatedly raped and violated with an iron bar on a bus before being thrown off the moving vehicle. She suffered horrific injuries and died on Saturday.

"Tomorrow it could be my sister or me," Soumya Tandon, a 26-year-old marketing executive, told AFP. "I take a bus from near my office and every day my mother is worried if I will reach home safely. Why should we live in constant fear?"

Under the watchful eye of hundreds of riot police, Dikshit's effigy was burnt to cheers, underlining the ugly mood among young urban voters who are increasingly vocal in denouncing their leaders as too old and too complacent.

"We are the future of this nation, they need to connect with us," said 32-year-old Mayuri Goswami, a chartered accountant carrying a banner that read "Time to engage, not disconnect. Wake up, leaders".

"They need to involve us more, try and understand our emotions and anger," he said.

Dikshit, who once said a female journalist murdered in Delhi should not have been so "adventurous" as to be out on her own late at night, is not the only target amid a chorus of calls for change.

Prime Minister Manmohan Singh, an 80-year-old former academic who struggles to connect with voters, called for "dispassionate debate" in a brief statement after the woman's death as the nation was consumed by grief.

As politicians of all stripes struggled to measure the mood and find the right language, the Minister for Women Krishna Tirath failed to make herself heard.

Heavy-handed policing and insensitive comments only stirred more anger.

The president's son, Abhjit Mukherjee, called the protesters "painted ladies", while others blamed provocative clothing and suggested withdrawing skirts at school to curb harassment.

Another protester's poster took aim at Rahul Gandhi, the 41-year-old "youth leader" of the ruling Congress party who is expected to be a prime ministerial candidate in 2014 national elections.

The aloof Oxford graduate -- the latest in the Gandhi political dynasty -- has made few public comments on the crime, which brought simmering anger over widespread abuse of women to boiling point.

"I am not Rahul Gandhi. I have guts to save my sisters," read one banner.

Commentary on the victim's ordeal has tended to place the assault at the centre of forces churning up one of the world's most diverse countries.

Economic growth of nearly 10 percent over the last decade has led to hectic urbanisation that has brought changed moral codes and lifestyles, a more global outlook and globalised trends, as well as simmering class and gender tensions.

Many reasons have been posited for the assault, a commonplace crime in India. A recent poll found it to be the worst in the G20 group of nations for women because of infanticide, child marriage and abuse.

Analysis has focused on India's deeply patriarchal society, in which misogyny runs deep and women are at best second-class citizens and at worst mere objects to be owned, enjoyed or abused by men.

But did the country's gender imbalance as a result of female foeticide play a role? And what about frustration among young Indians in an increasingly sexualised society?

"In our attitudes to sex, we are midway between the liberal democracies of the West and fundamentalist Islamic societies," wrote Palash Krishna Mehrotra, author of "The Butterfly Generation", this week.

In the "old versus new" narrative, most analysts agree that the scandal highlighted the growing battle line between young middle-class urban India -- the future of the country -- and a government still run by men of pensionable age.

Madhuresh Kumar of the non-profit National Alliance of People's Movement, says the protesters represent a new kind of movement which is urban and rooted in globalised, aspirational India.

"This class was till now complacent in its material prosperity," Kumar told AFP.

The millions who protested last year, when anti-corruption campaigner Anna Hazare ignited a national campaign against graft, had a similar profile.

Then as now, a political class seen as unable or unwilling to improve India was widely pilloried as failing to respond to a young population yearning for wealth and security.

- AFP/al

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Rights group announces reward of $10,000 for identification of each rapist of November 1984 massacre

JALANDHAR: As there is strong anger in the country against the rape and rapists, Sikhs For Justice (SFJ), an international human rights group advocating justice for the victims of November 1984, while showing solidarity and sending its "deepest condolences" to the family of the Delhi gang rape victim, questioned the silence of the Indian administration, politicians and the justice system over the rape of Sikh women in broad daylight during first week of November 1984.

The NGO has announced a reward of $10,000 for the identification and prosecution of those who raped Sikh women during November 1984. "The reward of $10,000 will be given to the witnesses who come forward with the identification of rapist and their prosecution," said SFJ legal advisor Gurpatwant Singh Pannun in a statement issued on Monday.

While sharing the pain with Delhi gang rape victims for the loss of their daughter who was gang raped in a Delhi Transport Bus, Rights group held that it was an irony that public transport buses were then used to transport death squads that raped Sikh women in broad day light during November 1984 massacre of Sikhs. "Successive governments have not only given impunity to those who perpetrated violent crime of rape against Sikh women but also have rewarded those with official positions," SFJ said.

While responding to Sonia Gandhi's, statement that "As a woman, and mother, I understand how protesters feel," "Today we pledge that the victim will get justice,"?, SFJ asked her stand on the plight of the victims of 1984.

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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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