Obama moves on taxes in latest "cliff" counter-proposal

President Obama gave up Monday on his demand for higher taxes on households earning $250,000 and upped it to $400,000 while embracing smaller cost-of-living Social Security raises in a counter-proposal to House Speaker John Boehner meant to narrow differences and forge a pre-Christmas "fiscal cliff" deal.

Mr. Obama and Boehner met for nearly an hour in the Oval Office on Monday and sources familiar with the talks released specific details of the White House proposal.

Boehner aides said it brought the two sides closer but said a deal was not at hand.

"Any movement away from the unrealistic offers the President has made previously is a step in the right direction, but a proposal that includes $1.3 trillion in revenue for only $930 billion in spending cuts cannot be considered balanced," said Brendan Buck, a Boehner spokesman.

Other senior Republican aides told reporters on Capitol Hill they are not rejecting the latest White House offer, but they also said that there is not parity or balance in the White House plan and substantive issues remain unresolved. One senior aide said the issues that they are talking about are not technically difficult to resolve, but they were wary the differences might be fundamental issues that are difficult to resolve.

But the depth, specificity and fine-grain nature of discussions over policy, tax revenue and spending cuts belied the tough rhetoric from the two sides in the negotiation. Signs point to a deal before the New Year's fiscal cliff deadline -- and possibly an announcement as early as Wednesday.

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Boehner's "fiscal cliff" offer brings optimism to Capitol Hill

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Boehner's "fiscal cliff" concessions come with a price

Talks picked up genuine momentum on Friday when Boehner agreed to higher income tax rates on households earning $1 million and above. Previously, Boehner opposed all income tax increases. He also gave in on raising the debt ceiling, a vote some Republicans wanted to use as leverage against Obama in 2013. Both gestures, top White House aides said, broke the logjam.

Mr. Obama responded with big concessions of his own on Monday. He offered a $400,000 income threshold for a Clinton-era top tax bracket of 39.6 percent. Boehner had proposed that tax rate for millionaires and a total 10-year tax revenue figure of $1 trillion. Obama wants $1.2 trillion in new revenue. Both sides look for hundreds of billions in new revenue in 2013 through a tax reform process that eliminates some tax deduction and closes loopholes.

The president also wants a two-year ceasefire on raising the debt ceiling. Boehner offered one year.

In addition to disagreement on income levels for tax rates or some other way to get more revenue, the two sides have not set in stone an actual tax reform process. It sounds like they are talking about creating a new sequester-like mechanism in 2014 as incentive for both tax reform and entitlement reforms.

Speaking of entitlements, Boehner also asked the White House to increase the eligibility age for Medicare but Mr. Obama again refused. This difference could loom large as Republicans want structural cost-saving changes in Medicare in exchange for raising income tax rates.

Mr. Obama has given ground on cost-of-living adjustments to Social Security and other federal benefits, but is trying to shield Medicare. Democrats have warned Obama they might bolt if he folds on raising Medicare's eligibility age. They have been less emphatic about cost-of-living adjustments.

Other components of the president's counter-proposal include:

• $1.2 trillion in new income tax revenue with a 39.6 percent (up from 35 percent) on income of $400,000 or more.
• $1.2 trillion in spending cuts divided this way: $800 billion in cuts; $290 billion in interest savings due to lower deficits; $130 billion in cost-of-living adjustments - - with specific protections to preserve increases for economically disadvantaged beneficiaries. Because changing cost-of-living adjustments would also affect where people fell in various tax brackets, this move would raise $90 billion
• The $800 billion in cuts would come from $400 billion in savings to health care entitlements like Medicare and Medicaid; $200 billion in better tax revenue collection, increased financial transaction fees and reduced federal employee benefits.
• $200 billion in domestic discretionary -- annual spending on basic government functions - divided equally between defense and non-defense programs.
• At least $50 billion devoted next year to infrastructure spending and more in latter years - figures still subject to negotiation.
• A one-year extension of unemployment insurance benefits.

Both sides have already agreed to create long-term solutions for the annual ritual of adjusting the Alternative Minimum Tax, the reimbursement formulas for Medicare physicians and a grab-bag of pro-business tax breaks.

Obama also did not ask for an extension of the temporary 2 percent payroll tax - a priority for some Democrats.

Funding for Superstorm Sandy will be handled separately from the emerging fiscal cliff package. The Senate is considering the administration's $60.4 billion request and the White House expects swift, bipartisan approval.

CBS News Capitol Hill producer Jill Jackson contributed to this report.

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Conn. Kids Laid to Rest: 'Our Hearts Are With You'

Visibly shaken attendees exiting the funeral today for 6-year-old Noah Pozner, one of 20 children killed in the Connecticut school massacre last week, said they were touched by a story that summed up the first-grader best.

His mother, Veronique, would often tell him how much she loved him and he'd respond: "Not as much as I [love] you," said a New York man who attended the funeral but was not a member of the family.

Noah's family had been scheduled to greet the public before the funeral service began at 1 p.m. at the Abraham L. Green & Son Funeral Home in Fairfield, Conn. The burial was to follow at the B'nai Israel Cemetery in Monroe, Conn. Those present said they were in awe at the composure of Noah's mother.

Rabbi Edgar Gluck, who attended the service, said the first person to speak was Noah's mother, who told mourners that her son's ambition when he grew up was to be either a director of a plant that makes tacos -- because that was his favorite food -- or to be a doctor.

Outside the funeral home, a small memorial lay with a sign reading: "Our hearts are with you, Noah." A red rose was also left behind along with two teddy bears with white flowers and a blue toy car with a note saying "Noah, rest in peace."

CLICK HERE for complete coverage of the tragedy at Sandy Hook.

Don Emmert/AFP/Getty Images

Sandy Hook Victims: Jack Pinto's Funeral Held Watch Video

First Sandy Hook Shooting Victims to Be Buried Watch Video

The funeral home was adorned with white balloons as members of the surrounding communities came also to pay their respects, which included a rabbi from Bridgeport. More than a dozen police officers were at the front of the funeral home, and an ambulance was on standby at a gas station at the corner.

U.S. Sen. Richard Blumenthal, U.S. Rep. and Sen.-Elect Chris Murphy and Gov. Dannel P. Malloy, all of Connecticut, were in attendance, the Connecticut Post reported.

Noah was an inquisitive boy who liked to figure out how things worked mechanically, The Associated Press reported. His twin sister, Arielle, was one of the students who survived when her teacher hid her class in the bathroom during the attack.

CLICK HERE for a tribute to the shooting victims.

The twins celebrated their sixth birthday last month. Noah's uncle Alexis Haller told the AP that he was "smart as a whip," gentle but with a rambunctious streak. He called his twin sister his best friend.

"They were always playing together, they loved to do things together," Haller said.

The funeral for Jack Pinto, 6, was also held today, at the Honan Funeral Home in Newtown. He was to be buried at Newtown Village Cemetery.

Jack's family said he loved football, skiing, wrestling and reading, and he also loved his school. Friends from his wrestling team attended his funeral today in their uniforms. One mourner said the message during the service was: "You're secure now. The worst is over."

Family members say they are not dwelling on his death, but instead on the gift of his life that they will cherish.

The family released a statement, saying, Jack was an "inspiration to all those who knew him."

"He had a wide smile that would simply light up the room and while we are all uncertain as to how we will ever cope without him, we choose to remember and celebrate his life," the statement said. "Not dwelling on the loss but instead on the gift that we were given and will forever cherish in our hearts forever."

Jack and Noah were two of 20 children killed Friday morning at Sandy Hook Elementary School in Newtown, Conn., when 20-year-old Adam Lanza sprayed two first-grade classrooms with bullets that also killed six adults.

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Zebrafish made to grow pre-hands instead of fins

PERHAPS the little fish embryo shown here is dancing a jig because it has just discovered that it has legs instead of fins. Fossils show that limbs evolved from fins, but a new study shows how it may have happened, live in the lab.

Fernando Casares of the Spanish National Research Council and his colleagues injected zebrafish with the hoxd13 gene from a mouse. The protein that the gene codes for controls the development of autopods, a precursor to hands, feet and paws.

Zebrafish naturally carry hoxd13 but produce less of the protein than tetrapods - all four-limbed vertebrates and birds - do. Casares and his colleagues hoped that by injecting extra copies of the gene into the zebrafish embryos, some of their cells would make more of the protein.

One full day later, all of those fish whose cells had taken up the gene began to develop autopods instead of fins. They carried on growing for four days but then died (Cell, DOI: 10.1016/j.devcel.2012.10.015).

"Of course, we haven't been able to grow hands," says Casares. He speculates that hundreds of millions of years ago, the ancestors of tetrapods began expressing more hoxd13 for some reason and that this could have allowed them to evolve autopods.

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AIG moves to sell final shares in AIA

HONG KONG: US insurance giant American International Group (AIG) will sell its remaining stake in Asian insurer AIA, in a deal that could raise up to $6.5 billion.

The sale will mark AIG's total exit from AIA after the US insurer, which was bailed out by Washington during the financial crisis, sold two-thirds of the unit in a Hong Kong listing in 2010 to help repay the financial aid.

The Hong Kong initial public offering in 2010 raised US$20.5 billion, making it one of the world's biggest.

AIG, which holds 13.69 per cent in AIA, started selling 1.65 billion shares at a price range of HK$29.65-HK$30.65 ($3.82-$3.95), Dow Jones Newswires said, quoting a term sheet.

In a short statement AIA said trading in it had been suspended in Hong Kong on Monday pending the potential sale by AIG on a "significant portion" of its stake.

AIA said it expects the trading to resume no later than Tuesday.

AIG has sold off assets as it restructured itself back to a path of profitability, and raising money to repay the $182 billion bailout it received from the US government four years ago.

It has sold AIA shares twice this year, raising a total of $8 billion.

The move also comes a week after the US Treasury sold off all of its remaining shares in AIG, earning the government $7.6 billion from the sale and taking the government's net profit on the AIG bailout to $22.7 billion.

- AFP/ck

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NFL Week 15: The best photos

The Jacksonville Jaguars take a moment of silence in honor of the Sandy Hook Elementary School shooting before their game against the Miami Dolphins at Sun Life Stadium on Sunday, December 16, in Miami Gardens, Florida. Check out the action from Week 15 of the NFL and then look back at the best photos from Week 14.

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Two Topeka, Kan., police officers killed in shootout

Officials stand outside a Topeka, Kan., grocery store, where two police officers where killed in a shootout on Dec. 16, 2012. / WIBW-TV

Updated 11:48 p.m. ET

TOPEKA, Kan. Authorities say two Kansas police officers shot outside a grocery store have died at a hospital.

Police say the 22-year-old male suspect in Sunday evening's shooting in Topeka remains at large and is believed to still be armed.

CBS affiliate WIBW-TV in Topeka reports the name of the suspect being sought is David Edward Tiscareno, a Topeka resident.

The officers were shot when they responded to a report of a suspicious vehicle near the store. The officers have been identified as 50-year-old Cpl. David Gogian and 29-year-old Officer Jeff Atherly.

A witness told WIBW the shooting happened just outside the entrance of Dillons. The witness said he heard three gun clips emptied, then heard another series of shots.

A small crowd gathered for a candlelight vigil outside police headquarters as reporters nearby were given the news of the officers' deaths.

Gogian had been with the department since September 2004 and Atherly since April 2011.

Authorities found the reported vehicle outside a house 10 blocks from the store.

Officers searched the house but didn't find the suspect.

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Obama: Nation Faces 'Hard Questions' After Shooting

President Barack Obama said at an interfaith prayer service in this mourning community this evening that the country is "left with some hard questions" if it is to curb a rising trend in gun violence, such as the shooting spree Friday at Newtown's Sandy Hook Elementary School.

After consoling victims' families in classrooms at Newtown High School, the president said he would do everything in his power to "engage" a dialogue with Americans, including law enforcement and mental health professionals, because "we can't tolerate this anymore. These tragedies must end. And to end them we must change."

Mandel Ngan/AFP/Getty Images

President Obama: 'Newtown You Are Not Alone' Watch Video

Sandy Hook Elementary Shooting: Remembering the Victims Watch Video

The president was not specific about what he thought would be necessary and did not even use the word "gun" in his remarks, but his speech was widely perceived as prelude to a call for more regulations and restrictions on the availability of firearms.

The grieving small town hosted the memorial service this evening as the the nation pieces together the circumstances that led to a gunman taking 26 lives Friday at the community's Sandy Hook Elementary School, most first graders.

"Someone once described the joy and anxiety of parenthood as the equivalent of having your heart outside your body all of the time, walking around," he said, speaking of the joys and fears of raising children.

"So it comes as a shock at a certain point when you realize no matter how much you love these kids you can't do it by yourself," he continued. "That this job of protecting kids and teaching them well is something we can only do together, with the help of friends and neighbors, with the help of a community, and the help of a nation."

CLICK HERE for Full Coverage of the Tragedy at Sandy Hook

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Zebrafish made to grow pre-hands instead of fins

PERHAPS the little fish embryo shown here is dancing a jig because it has just discovered that it has legs instead of fins. Fossils show that limbs evolved from fins, but a new study shows how it may have happened, live in the lab.

Fernando Casares of the Spanish National Research Council and his colleagues injected zebrafish with the hoxd13 gene from a mouse. The protein that the gene codes for controls the development of autopods, a precursor to hands, feet and paws.

Zebrafish naturally carry hoxd13 but produce less of the protein than tetrapods - all four-limbed vertebrates and birds - do. Casares and his colleagues hoped that by injecting extra copies of the gene into the zebrafish embryos, some of their cells would make more of the protein.

One full day later, all of those fish whose cells had taken up the gene began to develop autopods instead of fins. They carried on growing for four days but then died (Cell, DOI: 10.1016/j.devcel.2012.10.015).

"Of course, we haven't been able to grow hands," says Casares. He speculates that hundreds of millions of years ago, the ancestors of tetrapods began expressing more hoxd13 for some reason and that this could have allowed them to evolve autopods.

If you would like to reuse any content from New Scientist, either in print or online, please contact the syndication department first for permission. New Scientist does not own rights to photos, but there are a variety of licensing options available for use of articles and graphics we own the copyright to.

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

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

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Japan votes in poll likely to eject ruling party

TOKYO - Voters in Japan went to the polls Sunday in an election likely to return conservatives to power at a time of growing tension with China and as the nation seeks to arrest economic decline.

Polls point to a heavy defeat for Prime Minister Yoshihiko Noda's government, but observers say the electorate will hand the reins of power only reluctantly to the opposition Liberal Democratic Party (LDP).

Hawkish one-time premier Shinzo Abe appeared set for a return to office, after a campaign in which he has sketched out a harder line on foreign policy, as tensions rise with China over disputed islands in the East China Sea.

Polls opened early Sunday and exit polls from broadcasters will be released shortly after the ballot boxes are sealed at 8:00 pm (1100 GMT).

Abe, whose brief stint as premier in 2006-2007 ended ignominiously, has pledged to right Japan's listless economy, which has suffered years of deflation, made worse by a soaring currency that has squeezed exporters.

"With stronger monetary policies, fiscal policies and growth policies, we will end deflation, correct a high yen, and grow the economy," said Abe Saturday.

"It's time to put an end to the confusion and doldrums of three years and three months," Abe said, referring to the stint in power of Noda's Democratic Party of Japan.

"We've got to take a fresh step forward. Please join us for the fight," added the former premier, whose party ruled Japan almost continuously for more than five decades until it was ousted by the DPJ.

He has also pledged to boost spending on infrastructure projects at a time when large parts of the tsunami-ravaged northeast have yet to see significant rebuilding following the March 2011 catastrophe.

The collapse of an ageing highway tunnel that claimed nine lives earlier this month lent credence to his calls, which have been criticised by opponents as a return to the LDP's "construction state" of the last century.

Public unease about a deteriorating security environment -- North Korea launched a rocket over Japan's southern islands last week and China sent a plane into Japanese airspace -- has bolstered Abe's cause.

He has promised to boost defences and revitalise a security alliance with the United States that is widely thought to have drifted under Noda's party.

"It is an urgent task to rebuild the Japan-US alliance as unshakable and achieve peace and stability in Asia," Abe's LDP said in a statement issued ahead of the Sunday vote.

The DPJ disappointed voters who handed it a hefty majority in 2009 polls. Policy missteps, diplomatic gaffes and vicious factional infighting saw it burn through three premiers in as many years and squander its electoral hand.

A plodding and sometimes confused response to the disaster at Fukushima where nuclear reactors went into meltdown after the tsunami last year did it no favours either.

"Let us have another try... a lot of promises have yet to be fulfilled," Noda was quoted as saying in newspaper adverts published on Sunday.

Opinion polls show that despite a strong anti-nuclear feeling in Japan, an array of smaller parties promising an atomic exit may struggle to get much traction.

But commentators say there is little enthusiasm for any party, and the LDP's likely victory will come from their perceived status as the least-worst option.

- AFP/ir

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Pearlman: I think Bobby Petrino is slime

Bobby Petrino was named head coach at Western Kentucky, months after being embroiled in scandal at University of Arkansas

STORY HIGHLIGHTS

• Bobby Petrino was named the new football coach at Western Kentucky this week


• Hiring came just months after he was fired from Arkansas amid scandal


• Jeff Pearlman says, sadly, this is no surprise in big-time college sports


• He says the vast majority of players are ultimately hurt by the behavior of coaches and administrators

Editor's note: Jeff Pearlman is the author of 'Sweetness: The Enigmatic Life of Walter Payton.' He blogs at jeffpearlman.com. Follow him on Twitter.

(CNN) -- I have a dog named Norma.

She is a small beige cockapoo who barks at the mailman.

I would not trust Bobby Petrino to watch her.

Jeff Pearlman

I also would not trust Bobby Petrino to take my car in for a tire change. I would not trust Bobby Petrino to deposit my Aunt Ruth's Social Security check. I wouldn't trust him to clean my bowling ball, shop for a Christmas ham, change a twenty for two tens, tell me the time or recite the proper lyrics to Blind Melon's "No Rain."

This is not because I am a particularly untrusting person.

No, it's because I think Bobby Petrino is slime.

In case you missed the news, two days ago Western Kentucky University held a press conference to announce that Petrino, undeniably one of the nation's elite football minds, had agreed to a four-year, $850,000 per year deal to take over the Hilltoppers.

With nearly 400 giddy sports fanatics in attendance, Petrino, standing alongside Todd Stewart, the school's athletic director, spoke of honor and loyalty and love and redemption. The ensuing press release, issued by Western Kentucky's sports information department, was straight out of Disney: 101. It made Petrino sound like a cross between Vince Lombardi, Martin Luther King and Gandhi; God's gift to young men seeking to better themselves.

Petrino fired as Arkansas head football coach

What it failed to mention—and what the school desperately wants everyone to fail to mention—is that Petrino may well be the least ethically whole man in the, ahem, ethically whole-deprived world of Division I collegiate sports.

Why, it was only seven months ago that Petrino, at the time the University of Arkansas' head coach, was riding his motorcycle when he crashed along Highway 16 near Crosses, Arkansas.

When asked by school officials to explain what had happened, he failed to mention that, eh, also on the bike was Jessica Dorrell, a 26-year-old former Razorbacks volleyball player who worked as the student-athlete development coordinator for the football program. It turned out that Petrino, a married father of four, was not only having an affair with Dorrell (who was engaged at the time), but was a key voice on the board that hired her for the position when she wasn't even remotely qualified.

During an ensuing university investigation, it was determined that Petrino made a previously undisclosed $20,000 cash gift to Dorrell as a Christmas present.

Ho, ho, ho.

To his credit, Jeff Long, the school's athletic director, defied the wishes of every pigskin-blinded Razorback fan and fired Petrino. In a statement, he rightly wrote that, "all of these facts, individually and collectively, are clearly contrary to character and responsibilities of the person occupying the position of the Head Football Coach—an individual who should serve as a role model and a leader for our student-athlete."

Now, ethics and morals and character be damned, Bobby Petrino has returned, spewing off nonsense about second chances (Ever notice how garbage men and bus drivers rarely get the second chances we are all—according to fallen athletic figures—rightly afforded as Americans?) and learning from mistakes and making things right.

Western Kentucky, a school with mediocre athletics and apparently, sub-mediocre standards, has turned to a person who lied to his last employer about the nature of an accident involving the mistress he allegedly hired to a university position she was unqualified to hold. Please, if you must, take a second to read that again. And again. And again.

Bobby Petrino, holder of a Ph.D. in the Deceptive Arts (he also ditched the University of Louisville shortly after signing a long-term extension in 2007, and quit as coach of the Atlanta Falcons 13 game into his first season later that year. He informed his players via a note atop their lockers), will be the one charged with teaching the 17- and 18-year-old boys who decide to come to Bowling Green about not merely football, but life. He will be their guide. Their compass. Their role model.

Bobby Petrino and social media prove a bad mix

Sadly, in the world of Division I sports, such is far from surprising. This has been a year unlike any other; one where the virtues of greed and the color of green don't merely cloak big-time college athletics, but control them. In case you haven't noticed, we are in the midst of a dizzying, nauseating game of Conference Jump, where colleges and universities—once determined to maintain geographic rivals in order to limit student travel—have lost their collective minds.

The University of Maryland, a charter member of the ACC, is headed for the Big Ten. The Big East—formerly a power conference featuring the likes of Syracuse, Georgetown, St. John's and Connecticut—has added Boise State, San Diego State, Memphis, Houston, Southern Methodist and Navy. Idaho moved from the WAC to the Big Sky, Middle Tennessee State and Florida Atlantic went to Conference USA, the University of Denver—a member of the WAC for approximately 27 minutes—joined the Summit League. Which, to be honest, I didn't even know existed.

Rest assured, none of these moves (literally, nary a one) were conducted with the best interests of so-called student-athletes in mind. New conferences tend to offer increased payouts, increased merchandising opportunities, increased exposure and increased opportunities to build a new stadium—one with 80,000 seats, 100 luxury boxes, $20 million naming rights, $9 hot dogs and the perfect spot for ESPN to broadcast its Home Depot pregame show.

Why, within 24 hours of quarterback Johnny Manziel winning the Heisman Trophy, Texas A&M was hawking Heisman T-shirts for $24 on its website (Or, for a mere $54.98, one can purchase his No. 2 jersey).

Percentage of the dough that winds up in Manziel's pocket? Zero.

After another spectacular exit, Petrino eyes football return

That, really, is the rub of it all; of Petrino's crabgrass-like revival; of coaches bounding from one job for another (even as players can only do so after sitting out a year); of Rutgers moving west and San Diego State moving east and athletic department officials moving on up (to a penthouse apartment in the sky); of $54.98 jerseys.

It's the athletes ultimately getting screwed.

Sure, for the 0.5% of Division I football players who wind up in the NFL, the deal is a sweet one. The other 99.5%, however, are mere pawns, sold a dizzying narrative of glory and fame and lifelong achievement, but, more often than not, left uneducated, unfulfilled and physically battered.

They are told a coach will be with them for four years—then watch as said figure takes a $2 million gig elsewhere but, hey, only because it was right for him and his family.

They are told they will receive a great education, then find themselves stuck on a six-hour flight from California to Newark, New Jersey. They are told that these will be the greatest years of their life, that the college experience is a special one, that only the highest of standards exist.

Then they meet their new coach: Bobby Petrino.

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The opinions expressed in this commentary are solely those of Jeff Pearlman.

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