House Hesitates, Cites Cliff Deal Spending

Top House Republicans today opposed a bipartisan compromise that passed the Senate in the wee hours of New Year's Day to avert the "fiscal cliff," amid concerns about the cost of the deal's spending provisions.

If House Republicans tweak the legislation, as they seem likely to do, there's no clear path for its return to the Senate before a new Congress is sworn in Thursday.

GOP leaders emerged from a morning conference meeting disenchanted by the legislative package devised by Senate Minority Leader Mitch McConnell and Vice President Biden early this morning, with several insisting they cannot vote on it as it now stands.

"I do not support the bill," House Majority Leader Eric Cantor, R-Va., said as he left the meeting. "We're looking for the best path forward. No decisions have been made yet."

It's almost certain that Republicans will attempt to amend the bill in order to win over the support of more conservatives.

House Speaker John Boehner refused to comment on the meeting, but his spokesman said "the lack of spending cuts in the Senate bill was a universal concern amongst members in today's meeting."

"Conversations with members will continue throughout the afternoon on the path forward," Brendan Buck said in a statement.

As lawmakers wrestled with the legislation, the non-partisan Congressional Budget Office estimated that the bill's added spending combined with the cost of extending tax cuts for those making under $400,000 would actually add $3.9 trillion to the deficit over the next 10 years. The Joint Committee on Taxation reached a similar conclusion.

Bill Clark/Roll Call/Getty Images

Fiscal Cliff Countdown: Missing the Deadline Watch Video

Obama on Fiscal Cliff: 'Agreement Within Sight' Watch Video

The impasse once again raised the specter of sweeping tax hikes on all Americans and deep spending cuts' taking effect later this week.

"This is all about time, and it's about time that we brought this to the floor," House Minority Leader Nancy Pelosi said after emerging from a meeting with Democrats.

"It was a bill that was passed in the U.S. senate 89-8. Tell me when you've had that on a measure as controversial as this?" she said of the overwhelming vote.

Pelosi could not say, however, whether the measure had the backing of most House Democrats. "Our members are making their decisions now," she said.

Biden, who brokered the deal with McConnell, joined Democrats for a midday meeting on Capitol Hill seeking to shore up support for the plan.

While Congress technically missed the midnight Dec. 31 deadline to avert the so-called cliff, both sides have expressed eagerness to enact a post-facto fix before Americans go back to work and the stock market opens Wednesday.

"This may take a little while but, honestly, I would argue we should vote on it today," said Rep. Tom Cole, R-Okla., who sits on the Budget Committee. "We know the essential details and I think putting this thing to bed before the markets is important.

"We ought to take this deal right now and we'll live to fight another day, and it is coming very soon on the spending front."

The Senate passed legislation shortly after 2 a.m. that would extend current tax rates on 98 percent of Americans, raise taxes on the wealthiest earners and delay by two months the pending automatic spending cuts to defense and domestic programs, known as the "sequester."

The measure passed by an overwhelming majority vote of 89-8, boosting the prospects that enough House members would follow suit to make it law.

If the House amends the bill, however, the fragile compromise could get shattered. The Senate would need to reconvene to consider the changes.

A Senate Democratic leadership aide told ABC News, "we did our work, and McConnell's office said they were confident of House passage. All bets are off if they amend our bill."

Meanwhile, most Senators have already returned home, dismissed early this morning by Majority Leader Sen. Harry Reid.

"I've said all along our most important priority is protecting middle-class Americans, this legislation does that," Senate Majority Leader Harry Reid, D-Nev., said early this morning prior to the vote.

Read More..

At least 61 crushed to death in Ivory Coast stampede

ABIDJAN (Reuters) - At least 61 people were crushed to death in a stampede after a New Year's Eve fireworks display at a stadium in Ivory Coast's main city Abidjan early on Tuesday, officials said.

Witnesses said police had tried to control crowds around the Felix Houphouet-Boigny Stadium following the celebrations, triggering a panic in which scores were trampled.

"The estimate we can give right now is 49 people hospitalized ... and 61 people dead," said the chief of staff of Abidjan's fire department Issa Sacko.

Crying women searched for missing family members outside the stadium on Tuesday morning. The area was covered in patches of dried blood and abandoned shoes.

"My two children came here yesterday. I told them not to come but they didn't listen. They came when I was sleeping. What will I do?" said Assetou Toure, a cleaner.

Sanata Zoure, a market vendor injured in the incident, said New Year's revelers going home after watching the fireworks had been stopped by police near the stadium.

"We were walking with our children and we came upon barricades, and people started falling into each other. We were trampled with our children," she said.

Another witness said police arrived to control the crowd after a mob began chasing a pickpocket.

President Alassane Ouattara called the deaths a national tragedy and said an investigation was under way to find out what happened.

"I hope that we can determine what caused this drama so that we can ensure it never happens again," he said after visiting the injured in hospital.

The country, once a stable economic hub for West Africa, is struggling to recover from a 2011 civil war in which more than 3,000 people were killed.

Ivory Coast's security forces once were among the best trained in the region, but a decade of political turmoil and the 2011 war has left them in disarray.

At least 18 people were killed in another stampede during a football match in an Abidjan stadium in 2009.

(Reporting by Loucoumane Coulibaly and Alain Amontchi; Writing by Richard Valdmanis; Editing by Michael Roddy)

Read More..

No House vote before US 'fiscal cliff' deadline

WASHINGTON: The US House of Representatives will not vote on Monday on an 11th-hour proposal to prevent the country from tottering over the so-called "fiscal cliff," a senior Republican source told AFP.

US markets will not immediately feel the shock of the failure as January 1 is a public holiday, giving lawmakers a short breathing space in which to hammer out a stop-gap deal and pass it through the Senate and House on Tuesday.

Lawmakers worked feverishly through the night to hammer out a deal that would raise tax rates on the wealthy but preserve tax breaks for the middle class and maintain some key stimulus benefits like unemployment insurance.

At the end of the day Monday, while President Barack Obama and lawmakers acknowledged they were close, there was still no finalised deal between Senate Republicans and Democrats, including Vice President Joe Biden who is now playing a key part in negotiations.

"We don't have anything to vote on," the senior House Republican source said, referring to the lack of any bill in the Senate.

There was "no chance they pass something early enough that we could (vote) before midnight, even if we wanted to," he said.

Another House Republican source sought to downplay the fact that lawmakers were missing their self-imposed deadline.

"If a deal is reached, there's little difference between a vote tonight or tomorrow to give members a chance to review," the source said.

Some would argue there is a very clear distinction.

Passing a measure on New Year's Eve would mean Republicans - who by and large oppose raising taxes on anyone - vote for a tax hike on the wealthy.

If they wait until January 1, when the tax cuts first enacted under president George W. Bush expire and rates go up on everyone, Republicans could then turn around and vote to reduce taxes on the middle class.

As for whether the Senate could get it together to at least present a bipartisan deal before the year end, the number-two Republican in the chamber was non-committal.

"I don't know" if a Monday night vote was still possible, Senator Jon Kyl told AFP.

The Republican caucus was going to "try to get together here before long, and at least review the bidding and see where we are," he said.

"A lot of progress has been made, and I think it's obvious that we either have to have something finished here very soon or it's not going to happen."

- AFP/de

Read More..

Global rights bodies slam India for 'weak' rape laws

NEW DELHI: The Indian government has come under attack from global human rights bodies for its inadequate laws against sexual violence or treatment of survivors.

Meenakshi Ganguly, South Asia director at Human Rights Watch, said, "The government needs to act now to prevent sexual assault, aggressively investigate and prosecute perpetrators, and ensure the dignified treatment of survivors."
The US embassy, in a statement, also mourned the death of the victim — ""We are deeply saddened to learn that the victim of a horrific assault in New Delhi Dec 16 has died," an embassy statement said. "As we honour the memory of this brave young woman, we also recommit ourselves to changing attitudes and ending all forms of gender-based violence which plagues every country in the world."

Meanwhile, UNICEF drew attention to the fact that an alarmingly large number of victims of sexual violence in India are children. "It is alarming that too many of these cases are children. One in three of the rape victims is a child. More than 7,200 children , including infants are raped every year. Given the stigma attached to rapes, especially when it comes to children, this most likely is only the tip of the ice berg," said Mr. Louis-Georges Arsenault, UNICEF Representative to India.

Read More..

Clinton's blood clot an uncommon complication

The kind of blood clot in the skull that doctors say Hillary Rodham Clinton has is relatively uncommon but can occur after an injury like the fall and concussion the secretary of state was diagnosed with earlier this month.

Doctors said Monday that an MRI scan revealed a clot in a vein in the space between the brain and the skull behind Clinton's right ear.

The clot did not lead to a stroke or neurological damage and is being treated with blood thinners, and she will be released once the proper dose is worked out, her doctors said in a statement.

Clinton has been at New York-Presbyterian Hospital since Sunday, when the clot was diagnosed during what the doctors called a routine follow-up exam. At the time, her spokesman would not say where the clot was located, leading to speculation it was another leg clot like the one she suffered behind her right knee in 1998.

Clinton had been diagnosed with a concussion Dec. 13 after a fall in her home that was blamed on a stomach virus that left her weak and dehydrated.

The type of clot she developed, a sinus venous thrombosis, "certainly isn't the most common thing to happen after a concussion" and is one of the few types of blood clots in the skull or head that are treated with blood thinners, said neurologist Dr. Larry Goldstein. He is director of Duke University's stroke center and has no role in Clinton's care or personal knowledge of it.

The area where Clinton's clot developed is "a drainage channel, the equivalent of a big vein inside the skull — it's how the blood gets back to the heart," Goldstein explained.

It should have no long-term consequences if her doctors are saying she has suffered no neurological damage from it, he said.

Dr. Joseph Broderick, chairman of neurology at the University of Cincinnati College of Medicine, also called Clinton's problem "relatively uncommon" after a concussion.

He and Goldstein said the problem often is overdiagnosed. They said scans often show these large "draining pipes" on either side of the head are different sizes, which can mean blood has pooled or can be merely an anatomical difference.

"I'm sure she's got the best doctors in the world looking at her," and if they are saying she has no neurological damage, "I would think it would be a pretty optimistic long-term outcome," Broderick said.

A review article in the New England Journal of Medicine in 2005 describes the condition, which more often occurs in newborns or young people but can occur after a head injury. With modern treatment, more than 80 percent have a good neurologic outcome, the report says.

In the statement, Clinton's doctors said she "is making excellent progress and we are confident she will make a full recovery. She is in good spirits, engaging with her doctors, her family, and her staff."

___

Online:

Medical journal: http://dura.stanford.edu/Articles/Stam_NEJM05.pdf

Read More..

Bombs kill 23 across Iraq as sectarian strife grows

BAGHDAD (Reuters) - At least 23 people were killed and 87 wounded in attacks across Iraq on Monday, police said, underlining sectarian and ethnic divisions that threaten to further destabilize the country a year after U.S. troops left.

Tensions between Shi'ite, Kurdish and Sunni factions in Iraq's power-sharing government have been on the rise this year. Militants strike almost daily and have staged at least one big attack a month.

The latest violence followed more than a week of protests against Shi'ite Prime Minister Nuri al-Maliki by thousands of people from the minority Sunni community.

No group claimed responsibility for any of Monday's attacks, which targeted government officials, police patrols and members of both the Sunni and Shi'ite communities.

Seven people from the same Sunni family were killed by a bomb planted near their home in the town of Mussayab, south of Baghdad.

In the Shi'ite majority city of Hilla, also in the south, a parked car bomb went off near the convoy of the governor of Babil province, missing him but killing two other people, police said.

"We heard the sound of a big explosion and the windows of our office shattered. We immediately lay on the ground," said 28-year-old Mohammed Ahmed, who works at a hospital near the site of the explosion.

"After a few minutes I stood up and went to the windows to see what happened. I saw flames and people lying on the ground."

In the capital Baghdad, five people were killed by a parked car bomb targeting pilgrims before a Shi'ite religious rite this week, police and hospital sources said.

Although violence is far lower than during the sectarian slaughter of 2006-2007, about 2,000 people have been killed in Iraq this year following the withdrawal last December of U.S. troops, who led an invasion in 2003 to overthrow Sunni dictator Saddam Hussein.

SUNNIS PROTEST

Violence also hit Iraq's disputed territories, over which both the central government and the autonomous Kurdish region claim jurisdiction.

Three militants and one Kurdish guard were killed in the oil-producing, ethnically mixed city of Kirkuk, where militants driving a car packed with explosives tried to break into a Kurdish security office.

Earlier on Monday, two policemen were killed in Kirkuk when a bomb they were trying to detonate exploded prematurely. An army official and his bodyguard were also killed in a drive-by shooting in the south of the city.

Kirkuk lies at the heart of a feud between Baghdad and Kurdistan over land and oil rights, which escalated last month when both sides deployed their respective armies to the swath of territory along their contested internal boundary.

Efforts to ease the standoff stalled when President Jalal Talabani, a Kurd seen as a steadying influence, suffered a stroke and was flown abroad for medical care in December.

Maliki then detained the bodyguards of his Sunni finance minister, which ignited anti-government protests in the western province of Anbar, a Sunni stronghold on the border with Syria.

A lecturer in law at Baghdad University said the protests could help create the conditions for militant Islamist groups like al Qaeda to thrive.

"Raising tension in Anbar and other provinces with mainly Sunni populations is definitely playing into the hands of al Qaeda and other insurgent groups," Ahmed Younis said.

More than 1,000 people protested in the city of Samarra on Monday and rallies continued in Ramadi, center of the protests, and in Mosul, where about 500 people took to the streets.

In the city of Falluja, where protesters have also staged large rallies and blocked a major highway over the past week, gunmen attacked an army checkpoint, killing one soldier.

Protesters are demanding an end to what they see as the marginalization of Sunnis, who dominated the country until the U.S.-led invasion. They want Maliki to abolish anti-terrorism laws they say are used to persecute them.

On Sunday, Deputy Prime Minister Saleh al-Mutlaq, himself a Sunni, was forced to flee a protest in Ramadi when demonstrators pelted him with stones and bottles.

The civil war in neighboring Syria, where majority Sunnis are fighting to topple a ruler backed by Shi'ite Iran, is also whipping up sectarian sentiment in Iraq.

"The toppling of President Bashar al-Assad and empowerment of Sunnis (in Syria) will definitely encourage al Qaeda to regain ground," Younis said.

(Reporting by Ali al-Rubaie in Hilla, Mustafa Mahmoud and Omar Mohammed in Kirkuk, Ali Mohammed in Baquba and Ahmed Rasheed and Aseel Kami in Baghdad; Writing by Isabel Coles; Editing by Alison Williams)

Read More..

Football: Evra vows to banish United's Wigan ghosts

WIGAN, United Kingdom: Manchester United defender Patrice Evra has promised there will be no repeat of last season's debilitating defeat at Wigan Athletic when the sides meet again on New Year's Day.

Alex Ferguson's side were beaten 1-0 at the DW Stadium at the start of a run of just one win in four matches that led to Manchester City regaining control of the title race on the way to winning the Premier League.

Although United have endured defensive problems this season, they have picked up six wins from their last seven matches and begin 2013 seven points clear of City.

Shaun Maloney scored the only goal of that defeat in April and Evra, 31, has vowed that United will not experience similar emotions this time around as they look to maintain consistency over the busy holiday period.

Evra is also adamant that with the options that Ferguson has available, tiredness cannot be an excuse.

"I think about the 4-3 win over Newcastle -- last year we lost at this time, 3-2 against Blackburn," said the French left-back.

"I think we have to use the bad experiences we had last year. I remember last year we lost 1-0 at Wigan and we showed nothing. It was a really bad performance for Manchester United.

"This year there will be no excuse. We will just go there, play like Man United, and make sure we get the three points, because it's really important we do that.

"I always say to myself that I'm lucky to get to play in so many games. I will say to the boss I am ready to play, but if he says I need a rest, then I will have a rest.

"I just want to keep going. I will rest when I retire. That's the name of my game."

Defenders Phil Jones and Rafael should return from injury for the game at United's north-west rivals.

But England striker Wayne Rooney is set to miss out again with a knee problem, while Anderson and Nani are both struggling with hamstring injuries.

Ferguson believes the changes he made for the 2-0 win over West Bromwich Albion on Saturday will also have a positive effect against a Wigan side who picked up a 3-0 victory at Aston Villa.

The United manager said: "Phil could be ready and Rafa will be ready.

"We rested Robin (van Persie), Chicharito (Javier Hernandez), Ryan (Giggs) and Paul (Scholes) against West Brom, so we've got enough freshness to bring in.

"Wigan had a great result and it'll be a hard game on Tuesday."

The Latics have been beset by defensive injury problems but after recalling Gary Caldwell earlier in the festive period, manager Roberto Martinez was able to include Spanish defender Ivan Ramis at Villa for the first time in more than a month after knee trouble.

That win at Villa Park ended a miserable run of five defeats in six games for Wigan, who had also conceded at least two goals in eight of their previous nine matches.

After finally keeping a clean sheet Martinez feels his team have now come through a difficult time and look more imposing at both ends of the pitch.

"At Aston Villa, their intensity was magnificent and meant the quality we had going forwards could open up the pitch and create opportunities," he said.

"We were dominant in both boxes, which is what has been missing in recent games, and we'll aim to take that into Tuesday's game against Manchester United."

Antolin Alcaraz is still out with a groin problem and Antonio Lopez, Ben Watson, on-loan Arsenal winger Ryo Miyaichi and Albert Crusat are also absent.

-AFP/ac

Read More..

Castrate all rapists, says Zubin Mehta

BEIJING: World famous composer of Indian origin, Zubin Mehta, called for castration of all accused in the Delhi gang-rape case and others found committing the rape in India. He expressed excitement about the protests against the gang-rape of Nirbhaya and expects positive changes to come out of it.

"I am fuming, but I see a very healthy sign of public objection, public demonstration. I hope it will not die down. I hope it will not be short-lived," Mehta told Toi in an exclusive interview.

He said the Indian government should realize what the people really want from it. "It is not only about justice, but the future of India. Police has to take it seriously".

Mehta said the issue is being discussed the world over like the case of Malala, the Pakistani girl, and brought shame to Indians. He also questioned the government's decision to shift the rape victim for medical treatment to Singapore. "Where they trying to remove her from the locality, for her own safety?" he asked.

The least that should be done is to castrate all the four accused in the Delhi gang rape case, he said. "I heard that a girl who reported rape was advised to marry one of the criminals. How can a human being do such a thing?" he asked.

"An important issue that needs to be addressed is how to look after the poor ladies who have been attacked," he said.

Read More..

Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

___

Associated Press reporter Tom Odula contributed to this report.

Read More..

Fiscal Cliff-Hanger: No Vote Tonight, Reid Says

With less than two days remaining for Congress to reach a budget agreement that would avoid the so-called "fiscal cliff," a senior White House official tells ABC News that President Obama is still "modestly optimistic" that a deal can be struck to prevent middle class taxes from increasing on New Year's Day.

But a resolution to the ordeal won't come tonight.

Senate Majority Leader Harry Reid adjourned his chamber just before 6 p.m., ensuring a potential deal could not be voted on before senators return to business Monday morning.

The Nevada lawmaker vowed despite the recess, the parties' leadership would continue negotiations throughout the night.

Vice President Biden has now re-emerged as a key player, back in Washington and playing "a direct role" in trying to make a deal with Senate Republicans. Biden has been tapped because of his long-standing relationship with Senate Republican Leader Mitch McConnell.

A Democratic source says that McConnell seems to be genuinely interested in getting an agreement. The news dovetails with reports that the GOP has backed off a key Social Security measure that had stalled negotiations.

According to sources, the row was sparked when the GOP offered a proposal that included a new method of calculating entitlement benefits with inflation. Called the "chained consumer price index," or Chained CPI, the strategy has been criticized by some Democrats because it would lower cost of living increases for Social Security recipients.

"We thought it was mutually understood that it was off the table for a scaled-back deal," a Democratic aide said. "It's basically a poison pill."

Obama has floated chained CPI in the past as part of a grand bargain, despite opposition from the AARP and within his own party.

Also in the Republican plan brought today: An extension of the current estate tax and no increase in the debt ceiling. Higher income earners would see their taxes increase, but at levels "well above $250,000," the sources said.

That "major setback" in the talks was evident on the floor of the Senate this afternoon.

"I'm concerned about the lack of urgency here, I think we all know we are running out of time," McConnell said, "I want everyone to know I am willing to get this done, but I need a dance partner."

McConnell, R-Ky., said he submitted the Republican's latest offer to Reid, D-Nev., at 7:10 p.m. Saturday and was willing to work through the night. Reid promised to get back to him at 10 this morning, but has yet to do so.

Why have the Democrats not come up with a counteroffer? Reid admitted it himself moments later.

"At this stage we're not able to make a counteroffer," Reid said noting that he's had numerous conversations with Obama, but the two parties are still far apart on some big issues, "I don't have a counteroffer to make. Perhaps as the day wears on I will be able to."

McConnell said he believes there is no major issue that is the sticking point but rather, "the sticking point appears to be a willingness, an interest, or frankly the courage to close the deal."

J. Scott Applewhite/AP Photo

Sens. Charles Schumer and Jon Kyl on 'This Week' Watch Video

Fiscal Cliff Negotiations: Could Economy Slip Back into Recession? Watch Video

Reid said late this afternoon that the fiscal cliff negotiations were getting "real close" to falling apart completely.

"At some point in the negotiating process, it appears that there are things that stop us from moving forward," he said. "I hope we're not there but we're getting real close and that's why I still hold out hope that we can get something done. But I'm not overly optimistic but I am cautiously optimistic that we can get something done."

Reid said there were serious difference between the two sides, starting with Social Security. He said Democrats are not willing to cut Social Security benefits as part of a smaller, short-term agreement, as was proposed in the latest Republican proposal.

"We're not going to have any Social Security cuts. At this stage it just doesn't seem appropriate," he said. "We're open to discussion about entitlement reforms, but we're going to have to take a different direction. The present status will not work."

Reid said that even 36 hours before the country could go over the cliff, he remains "hopeful" but "realistic," about the prospects of reaching an agreement.

"The other side is intentionally demanding concessions they know we are not willing to make," he said.

The two parties were met separately at 3 p.m., and before going in Reid said he hoped there would be an announcement to make on a way forward afterwards. But as of this evening there was no agreement and no counterproposal.

McConnell said earlier today he placed a call to Vice President Biden to see if he could "jump start the negotiations on his side."

In an interview aired this morning -- well before the breakdown -- Obama suggested that a smaller deal remained the best hope to avoid the perilous package of spending cuts and tax increases.

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.

House 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 its budget.

Repeating remarks he made Friday after a meeting with congressional leaders,
Obama said that should negotiations fail he has asked Reid 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 Jan. 1, then we'll come back with a new Congress on Jan. 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 with the president was taped Saturday while Reid and McConnell 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.

The Republican leaders immediately bit back at the president's remarks. In a written statement 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. "

Read More..