White House Revels in Fiscal Cliff 'Victory'

Jan 1, 2013 12:13pm

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Senate report faults State Department, intelligence on Benghazi

WASHINGTON (Reuters) - The State Department's decision to keep the U.S. mission in Benghazi open despite inadequate security and increasingly dangerous threat assessments before it was attacked in September was a "grievous mistake," a Senate report said on Monday.

The Senate Homeland Security Committee's report about the September 11 attacks on the U.S. mission and a nearby annex, which killed four Americans, including the U.S. ambassador to Libya, faulted intelligence agencies for not having enough focus on Libyan extremists. It also faulted the State Department for waiting for specific warnings instead of acting on security.

The assessment follows a scathing report by an independent State Department accountability review board that resulted in a top security official and three others at the department stepping down.

The attack, in which U.S. Ambassador Christopher Stevens died, has put diplomatic security practices at posts in insecure areas under scrutiny and raised questions about whether intelligence on terrorism in the region was adequate.

The Senate report said the lack of specific intelligence of an imminent threat in Benghazi "may reflect a failure" in the intelligence community's focus on terrorist groups that have weak or no operational ties to al Qaeda and its affiliates.

"With Osama bin Laden dead and core al Qaeda weakened, a new collection of violent Islamist extremist organizations and cells have emerged in the last two to three years," the report said. That trend has been seen in the "Arab Spring" countries undergoing political transition or military conflict, it said.

The report recommended that U.S. intelligence agencies "broaden and deepen their focus in Libya and beyond, on nascent violent Islamist extremist groups in the region that lack strong operational ties to core al Qaeda or its main affiliate groups."

Neither the Senate report nor the unclassified accountability review board report pinned blame for the Benghazi attack on a specific group. The FBI is investigating who was behind the assaults.

President Barack Obama, in an interview on NBC's "Meet the Press" on Sunday, said the United States had some "very good leads" about who carried out the attacks. He did not provide any details.

The Senate committee report said the State Department should not have waited for specific warnings before acting on improving security in Benghazi.

It also said that it was widely known that the post-revolution Libyan government was "incapable of performing its duty to protect U.S. diplomatic facilities and personnel," but the State Department failed to take adequate steps to fill the security gap.

"Despite the inability of the Libyan government to fulfill its duties to secure the facility, the increasingly dangerous threat assessments, and a particularly vulnerable facility, the Department of State officials did not conclude the facility in Benghazi should be closed or temporarily shut down," the report said. "That was a grievous mistake."

(Editing by Warren Strobel and David Brunnstrom)

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Football: Pardew blasts Ba's advisors as star eyes move

LONDON: Newcastle manager Alan Pardew has accused Demba Ba's agents of giving bad advice to their client as the Senegal striker continues to be linked with a move away from St James' Park.

Ba, who has scored 13 goals this season, has a clause in his contract allowing him to leave Newcastle if a club bids

£7 million and the former West Ham star has been linked with a host of teams ahead of the January transfer window.

Chelsea were the latest side to express interest in Ba, with representatives of the 27-year-old reportedly holding talks with the Blues on Sunday.

Those discussions were later described as unproductive, but Pardew is aware that it won't be the last time Ba is involved in transfer talk during the window as agents seek to cash in on a potential big-money move.

"In some respects, I feel a little bit sorry for Demba as well because I think people who are representing him are not actually representing him," Pardew said on Thursday.

"There are people out there who are saying this who are not actually involved or want to be involved, and that's the sort of world we are in.

"The contract is what it is, we are all aware of that, and for me as the manager I need it resolved as quickly as possible. That's the best situation for our fans and for the club."

Newcastle have spent recent months attempting to negotiate a new contract with Ba which would remove the clause and that remains on the table, but Pardew insisted it would not do so indefinitely.

"The situation with that is that it's getting close to the point where we say 'no more', but the offer is still there," Pardew added.

- AFP/de

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UP government to give Rs 20 lakh compensation for Delhi-gang-rape victim's family

LUCKNOW: Uttar Pradesh (UP) government on Monday announced Rs 20 lakh compensation for the family of the Delhi gang-rape victim who succumbed to injuries two days ago. The compensation will be given from the chief minister's discretionary fund.

Earlier, on December 21, chief minister Akhilesh Yadav had announced to give Rs five lakh financial assistance to the family of the victim in addition to the the offer to all medical expenses and a job after recovery.

The family hails from a village in Ballia district of the state and had moved to Delhi 20 years ago but is still connected to its native place.

He had taken a loan for the education of his daughter who wanted to be a physiotherapist. His two sons are still studying.

The chief minister announced the Rs 20 lakh compensation overlooking the criticism of Bahujan Samaj Party (BSP) chief Mayawati and Shahi Imam of Delhi's Jama Masjid Imam Bukhari. Mayawati had said that compensation is fine but the state government should focus on preventing rapes and provide speedy justice. She had also alleged that crime against women has increased manifold in first nine months of Samajwadi Party (SP) rule in the state. Bukhari had said that SP government should have also announced compensation for the Muslim rape victims.

Earlier today, the Delhi government announced financial aid of Rs 15 lakh for the next of the kin of the 23-year-old gang-rape victim and offered a job to a family member of the girl, who died two days ago.

The decisions were taken at a cabinet meeting presided over by chief minister Sheila Dikshit.

The phsyiotherapy student was brutally gang-raped and assaulted in a moving bus in south Delhi on December 16. She breathed her last in a Singapore hospital on Saturday morning and her mortal remains were cremated here on Sunday.

(Inputs from PTI)

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FDA approves 1st new tuberculosis drug in 40 years

WASHINGTON (AP) — The Food and Drug Administration on Monday approved a Johnson & Johnson tuberculosis drug that is the first new medicine to fight the deadly infection in more than four decades.

The agency approved J&J's pill, Sirturo, for use with older drugs to fight a hard-to-treat strain of tuberculosis that has not responded to other medications. However, the agency cautioned that the drug carries risks of potentially deadly heart problems and should be prescribed carefully by doctors.

Roughly one-third of the world's population is estimated to be infected with the bacteria causing tuberculosis. The disease is rare in the U.S., but kills about 1.4 million people a year worldwide. Of those, about 150,000 succumb to the increasingly common drug-resistant forms of the disease. About 60 percent of all cases are concentrated in China, India, Russia and Eastern Europe.

Sirturo, known chemically as bedaquiline, is the first medicine specifically designed for treating multidrug-resistant tuberculosis. That's a form of the disease that cannot be treated with at least two of the four primary antibiotics used for tuberculosis.

The standard drugs used to fight the disease were developed in the 1950s and 1960s.

"The antibiotics used to treat it have been around for at least 40 years and so the bacterium has become more and more resistant to what we have," said Chrispin Kambili, global medical affairs leader for J&J's Janssen division.

The drug carries a boxed warning indicating that it can interfere with the heart's electrical activity, potentially leading to fatal heart rhythms.

"Sirturo provides much-needed treatment for patients who have don't have other therapeutic options available," said Edward Cox, director of the FDA's antibacterial drugs office. "However, because the drug also carries some significant risks, doctors should make sure they use it appropriately and only in patients who don't have other treatment options."

Nine patients taking Sirturo died in company testing compared with two patients taking a placebo. Five of the deaths in the Sirturo group seemed to be related to tuberculosis, but no explanation was apparent for the remaining four.

Despite the deaths, the FDA approved the drug under its accelerated approval program, which allows the agency to clear innovative drugs based on promising preliminary results.

Last week, the consumer advocacy group Public Citizen criticized that approach, noting the drug's outstanding safety issues.

"The fact that bedaquiline is part of a new class of drug means that an increased level of scrutiny should be required for its approval," the group states. "But the FDA had not yet answered concerns related to unexplained increases in toxicity and death in patients getting the drug."

The FDA said it approved the drug based on two mid-stage studies enrolling 440 patients taking Sirturo. Both studies were designed to measure how long it takes patients to be free of tuberculosis.

Results from the first trial showed most patients taking Sirturo plus older drugs were cured after 83 days, compared with 125 days for those taking a placebo plus older drugs. The second study showed most Sirturo patients were cured after 57 days.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Both sides say the cost of failure is high.

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

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Body of India rape victim cremated in New Delhi

NEW DELHI (Reuters) - The body of a woman, whose gang rape provoked protests and rare national debate about violence against women in India, arrived back in New Delhi on Sunday and was cremated at a private ceremony.

Scuffles broke out in central Delhi between police and protesters who say the government is doing too little to protect women. But the 2,000-strong rally was confined to a single area, unlike last week when protests raged up throughout the capital.

Riot police manned barricades along streets leading to India Gate war memorial - a focal point for demonstrators - and, at another gathering point - the centuries-old Jantar Mantar - protesters held banners reading "We want justice!" and "Capital punishment".

Most sex crimes in India go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists, who say that successive governments have done little to ensure the safety of women.

The unidentified 23-year-old victim of the December 16 gang rape died of her injuries on Saturday, prompting promises of action from a government that has struggled to respond to public outrage.

The medical student had suffered brain injuries and massive internal injuries in the attack and died in hospital in Singapore where she had been taken for treatment.

She and a male friend had been returning home from the cinema, media reports say, when six men on a bus beat them with metal rods and repeatedly raped the woman. The friend survived.

New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, police figures show. Reported rape cases rose by nearly 17 percent between 2007 and 2011, according to government data.

Six suspects were charged with murder after her death and face the death penalty if convicted.

In Kolkata, one of India's four biggest cities, police said a man reported that his mother had been gang-raped and killed by a group of six men in a small town near the city on Saturday.

She was killed on her way home with her husband, a senior official said, and the attackers had thrown acid at the husband, raped and killed her, and dumped her body in a roadside pond.

Police declined to give any further details. One officer told Reuters no criminal investigation had yet been launched.

"MISOGYNY"

The leader of India's ruling Congress party, Sonia Gandhi, was seen arriving at the airport when the plane carrying the woman's body from Singapore landed and Prime Minister Mannmohan Singh's convoy was also there.

A Reuters correspondent saw family members who had been with her in Singapore take her body from the airport to their Delhi home in an ambulance with a police escort.

Her body was then taken to a crematorium and cremated. Media were kept away but a Reuters witness saw the woman's family, New Delhi's chief minister, Sheila Dikshit, and the junior home minister, R P N Singh, coming out of the crematorium.

The outcry over the attack caught the government off guard. It took a week for the prime minister to make a statement, infuriating many protesters. Last weekend they fought pitched battles with police.

Issues such as rape, dowry-related deaths and female infanticide rarely enter mainstream political discourse.

Analysts say the death of the woman dubbed "Amanat", an Urdu word meaning "treasure", by some Indian media could change that, though it is too early to say whether the protesters can sustain their momentum through to national elections due in 2014.

U.N. Secretary General Ban Ki-Moon added his voice to those demanding change, calling for "further steps and reforms to deter such crimes and bring perpetrators to justice".

Commentators and sociologists say the incident earlier this month has tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership on social issues.

Newspapers raised doubts about the commitment of both male politicians and the police to protecting women.

"Would the Indian political system and class have been so indifferent to the problem of sexual violence if half or even one-third of all legislators were women?" the Hindu newspaper asked.

The Indian Express said it was more complicated than realizing that the police force was understaffed and underpaid.

"It is geared towards dominating citizens rather than working for them, not to mention being open to influential interests," the newspaper said. "It reflects the misogyny around us, rather than actively fighting for the rights of citizens who happen to be female."

(Additional reporting by Ross Colvin and Diksha Madhokin New Delhi and Sujoy Dhar in Kolkata; Editing by Louise Ireland)

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Brahimi says he has Syria plan all world powers may back

CAIRO: International envoy Lakhdar Brahimi warned Sunday that the Syrian war was worsening "by the day" as he announced a peace plan he believed could find support from world powers, including key Syria ally Russia.

Brahimi's comments came as Russia despatched a third warship to its naval base in the Syrian port of Tartus in readiness for a possible evacuation of its nationals and as Turkish Prime Minister Recep Tayyip Erdogan told Syrian refugees that victory over the "tyrant" President Bashar al-Assad was at hand.

The situation in Syria "is very bad and getting worse by the day," Brahimi told reporters in Cairo, a day after warning in Moscow that Damascus faced a choice between "hell or the political process."

He said he had crafted a ceasefire plan "that could be adopted by the international community."

"I have discussed this plan with Russia and Syria... I think this proposal could be adopted by the international community," the UN and Arab League envoy said, without giving details.

"There is a proposal for a political solution based on the Geneva declaration foreseeing a ceasefire, forming a government with complete prerogatives and a plan for parliamentary and presidential elections," he said, referring to a peace initiative that world powers agreed to in Geneva in June.

That plan was rejected by Syria's opposition, which is adamant that Assad's departure is a given before any national dialogue such as that under the Geneva initiative can take place.

Russia and China have so far vetoed three Security Council draft resolutions seeking to force Assad's hand with the threat of sanctions.

Brahimi held talks in Moscow on Saturday with Russian Foreign Minister Sergei Lavrov on his end-of-year bid to accelerate moves to halt the conflict that monitors say has killed 45,000 people.

The talks came amid signs that Russia was beginning to distance itself from Assad's government.

Moscow dispatched a third naval vessel to the eastern Mediterranean on Sunday in readiness for a possible evacuation of Russian nationals, many of them women who married Syrian men during the Cold War years of close relations.

The Novocherkassk landing ship joined the Azov and Nikolai Filchenkov amphibious vessels already en route for Syria since Friday and is expected to dock in Tartus in the first 10 days of the new year, Russian news agencies reported.

The Tartus base is Russia's only remaining naval station outside the former Soviet Union and is seen as a major strategic asset for Moscow.

Russia has been accused of using the base to supply Assad's government with secret military shipments supplementing the official weapons sales that Moscow has made to Damascus since Soviet times.

But recent rebel gains prompted Russia to admit for the first time this month that Assad's days in power may be numbered.

The Turkish premier visited a Syrian refugee camp near the border accompanied by armed opposition National Coalition chief Ahmed Moaz al-Khatib.

"I can see it clearly that the help of God is near," Erdogan said. "You have suffered so much but do not despair."

Turkey is currently home to almost 150,000 Syrian refugees. It is also the principal rear-base for the rebels.

On the ground, at least 63 people were killed in violence on Sunday, 40 of them civilians, according to a preliminary toll from the Syrian Observatory for Human Rights.

Among seven people killed in an air strike in the central province of Hama were a man, his wife and young daughter, the Britain-based watchdog said.

South of second city Aleppo, rebels spearheaded by fighters of the jihadist Al-Nusra Front -- blacklisted by Washington for its suspected links to Al-Qaeda -- launched a fierce assault on besieged troops in the Hamidiyeh base near the strategic crossroads town of Maaret al-Numan.

In Idlib province in the northwest, rebels downed a military helicopter near the Taftanaz airbase, the Observatory said.

In Homs province in the centre, troops shelled rebel positions around Krak des Chevaliers, a UNESCO-listed Crusader castle that is one of the jewels of Syria's architectural heritage.

- AFP/jc

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Haryana khap opposes death penalty for rapists

HISAR: Opposing the demand for death penalty for rapists, a khap in Haryana on Sunday said no law should be introduced in a hurry which can be misused.

Speaking at a village here, khap leader Sube Singh said that the authorities should not be carried away by emotions in the wake of the public protests over the gang rape issue and demand for death penalty for rapists.

"We have seen the anti-dowry and the SC/ST laws being misused. Any new law which gives such harsh punishment would also be vulnerable to misuse," Singh said.

The influential khaps or caste panchayats have in the past drawn flak for opposing marriages in the same sect and their diktats on moral policing.

The statement by the khap leader raised hackles of activists who said it was an attempt to shield the rapists in Haryana.

"Twenty gangrapes took place in Haryana in which several people are involved. This is a plot to save them. This atmosphere forces them to ... disrespect among women," Jagmati Sangwan, general secretary of the All-India Democratic Women's Association, said.

The controversy comes in the midst of national outrage over the brutal gangrape of a 23-year-old in Delhi who died on Friday night.

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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.

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Associated Press reporter Tom Odula contributed to this report.

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