Obama: Fiscal cliff deal 'within sight'

STORY HIGHLIGHTS

• NEW: House GOP sources say they're unlikely to vote on any deal until Tuesday


• Deal to avert "fiscal cliff" is "within sight," President Barack Obama says


• Possible agreement calls for increase in income, estate taxes


• The fiscal cliff triggers broad tax increases and an automatic $110 billion in spending cuts

As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNN iReport to share your video.

(CNN) -- An agreement to avert the "fiscal cliff" of automatic tax increases and spending cuts appears to be "within sight," President Barack Obama said Monday.

The deal would prevent a tax increase for the overwhelming majority of Americans, extend the child tax and tuition credits for families as well as those for clean-energy companies and extend unemployment benefits for two million people, Obama said.

"There are still issues left to resolve, but we are hopeful Congress can get it done," Obama said.

Nevertheless, he did not sound hopeful a deal was imminent, saying he expected to remain at the White House for New Year's Eve while lawmakers used up every last second available to them.

"Keep the pressure on over the next 12 hours or so," he urged supporters. "Let's see if we can get this thing done."

Latest updates: Final fiscal cliff scramble

A GOP source told CNN negotiators are "very close" to a deal. The sticking point is $24 billion in spending cuts being sought by Republicans in place of deeper cuts that would automatically take effect at midnight, according to the source.

"It's like looking under the cushions at this point," the source said. "If we can't find that at this point, we should pack this place up."

A congressional Democratic source agreed that spending cuts are the main hold up now.

But House GOP sources told CNN that they think it increasingly unlikely they'll vote on the proposal before Tuesday.

There's little practical difference in settling the issue Monday night versus Tuesday, the sources said. One exception: if House Republicans approve the bill on Tuesday -- when taxes have technically gone up -- they can argue they've voted for a tax cut to bring rates back down, even after just a few hours, GOP sources said.

That could bring some more Republicans on board, one source said.

"I wouldn't overestimate it, but a handful may be the difference we need," the source said.

Read more: Why your paycheck is getting smaller, no matter what

The proposal under discussion Monday afternoon called for rolling back tax rates on the highest-income earners to Clinton-era levels, increasing the estate tax rate, extending unemployment benefits and potentially putting off the $110 billion in automatic spending cuts called for in the legislation that created the cliff, according to sources close to the process.

A source familiar with the negotiations said the proposal under discussion would generate $600 billion in revenues by ending the Bush-era tax cuts on individuals with incomes above $400,000 and families over $450,000. Their tax rate would be 39.6%, the same as it was in 2000 during President Bill Clinton's presidency. The top income rate is currently 35%.

The deal would also increase the estate tax to 40% from the current 35% level and cap itemized deductions for individuals with incomes above $250,000 and household income over $300,000, the source said.

Read more: What if there's no deal on fiscal cliff

In addition to the tax proposals, also under discussion is a proposal to delay the $110 billion in automatic cuts in domestic and military spending due over the next nine months, a draconian approach called sequester that was created by Congress to address the impact of high deficits and debt on the U.S. economy.

Republicans want a three-month delay while Democrats seek to forestall the cuts by one year, a Democratic source told CNN. Another Democratic source said the proposed three-month delay "can't pass."

Despite Obama's backing, one leading Senate Democrat warned the deal could run into trouble -- not only from House Republicans who have long opposed any tax increase, but also from liberals in the Senate who oppose allowing more high-income households to escape a tax increase.

"No deal is better than a bad deal, and this looks like a very bad deal the way this is shaping up," Sen. Tom Harkin, D-Iowa, said.

Read more: Medicare patients may suffer if country goes over fiscal cliff

If nothing gets done before Monday at midnight, broad taxes hikes will kick in as the Bush-era cuts expire and the deep spending cuts will begin to take hold.

The nonpartisan Congressional Budget Office has predicted the combined effect could dampen economic growth by 0.5%, possibly tipping the U.S. economy into a recession and driving unemployment from its current 7.7% back over 9%.

Graham on fiscal cliff: Obama wins 'hollow' political victory

CNN's Matt Smith, Jessica Yellin, Dana Bash, Deirdre Walsh, Lisa Desjardins, Ted Barrett and Ashley Killough contributed to this report.

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Lovie Smith fired as Bears coach after 9 seasons

LAKE FOREST, Ill. The Chicago Bears fired coach Lovie Smith on Monday after the team missed the playoffs for the fifth time in six seasons.

Smith was informed of the decision by general manager Phil Emery on the day after the Bears beat Detroit to finish 10-6 but still didn't make the playoffs.

10 Photos

NFL coaches, GMs sacked in firing frenzy

Smith led the Bears to a Super Bowl, but also saw his team collapse in the second half of the past two seasons. Hired in 2004, Smith led the Bears to three division titles, two NFC title games and a 2007 Super Bowl appearance in his nine seasons. His record is 81-63, and he leaves with one year left on his contract.

The Bears scheduled a news conference Tuesday to discuss the move.

Even though Chicago closed with a win, the Bears needed a loss by Minnesota to get into the playoffs. The Vikings, though, beat Green Bay to clinch a postseason spot, leaving Chicago as the second team since the postseason expanded to 12 teams to miss out after a 7-1 start. The other was Washington in 1996.

CBS Sports NFL Insider Jason La Canfora reported Sunday that Smith's tenuous hold on his job "would be further imperiled should his team fail to get into the postseason."

But Smith, who had one year remaining on his current deal, shouldn't have any trouble finding work. League sources told La Canfora that Smith should land head-coaching interviews with other NFL teams.

Smith's record ranks third on the Bears' all-time list, behind George Halas and Mike Ditka.

The highlight of his tenure was the run to the title game that ended with a loss to the Indianapolis Colts. It was the first time two black coaches met for the championship, with Smith going against his mentor Tony Dungy.

The Bears made the playoffs just three times and posted three postseason victories under Smith. The 2010 team beat Seattle after the Seahawks won their division with a 7-9 record, but the Bears lost to Green Bay in the NFC title game at Soldier Field.

There was speculation Smith would be let go following the 2011 team's collapse, but he got one more year while general manager Jerry Angelo was fired.

Ultimately, the struggles on offense did him in.

Known for solid defenses, Smith oversaw a unit that was consistently effective and at times ranked among the league's best with stars such as Brian Urlacher, Lance Briggs and later Julius Peppers. Smith emphasized taking the ball away from the opposition, and no team did it more than the Bears with 310 during his tenure.

But on the other side, it was a different story.

Smith went through four offensive coordinators in Terry Shea, Ron Turner, Mike Martz and Mike Tice. He never could find the right formula, even as the Bears acquired stars such as quarterback Jay Cutler and receiver Brandon Marshall over the years.

The offensive line has struggled in a big way over the past few seasons after age took its toll on a group that was a strength during the 2005 and 2006 playoff seasons. The Bears were never able to replenish, spending first-round picks on Chris Williams (2008) and Gabe Carimi (2011) that did not pan out.

Williams had his contract terminated in October, ending a disappointing run, and Carimi struggled this season after missing most of his rookie year with a knee injury.

While Angelo took the fall after last season, Smith was not without blame in the personnel issues over the years. He pushed to bring in former Rams offensive lineman Orlando Pace and safety Adam Archuleta, players who succeeded in St. Louis when Smith was the defensive coordinator there but were busts with the Bears.

He had no bigger supporter than team matriarch Virginia McCaskey, but the fans seemed split on him. To some, he was a picture of calm, a coach who never lost his composure and never criticized his players in public, the anti-Ditka if you will.

History suggests fans who are clamoring for a high-profile replacement such as Bill Cowher or Jon Gruden might be disappointed. The last time the Bears went with an experienced NFL head coach was when Halas returned to the sideline in 1958.

They might, however, go with an offensive-minded coach for the first time since Mike Ditka was fired after the 1992 season, given the issues in that area.

That the Bears would be in this spot seemed unthinkable after they ripped Tennessee 51-20 on Nov. 4. They were sailing along at 7-1 and eyeing a big playoff run after collapsing the previous season, with the defense taking the ball away and scoring at an eye-opening rate to compensate for a struggling offense, but the schedule took a tougher turn.

They dropped back-to-back games to Houston and San Francisco and five of six in all before closing out with wins at Arizona and Detroit. Injuries mounted along the way, and what looked like a playoff run slipped from their grasp, just as it did after a promising start in 2011.

That year, they won seven of their first 10 only to wind up at 8-8 after a monumental collapse sparked by a season-ending injury to Cutler.

While Angelo was fired, Smith got spared and Emery took the job with a mandate to keep the coach at least one more year.

He quickly went to work retooling the roster, landing Marshall in a blockbuster trade with Miami that reunited Cutler with his favorite target in Denver.

He also added depth in other areas, bringing in Jason Campbell as the backup quarterback after Caleb Hanie failed the previous season and teaming running back Michael Bush in the backfield with Matt Forte.

All those moves sent expectations soaring. The results were awfully familiar, though.

Now, Smith's out of a job.

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

President Obama said an 11th-hour agreement to avert year-end tax hikes on 98 percent of Americans is "within sight" but not yet complete with just hours to go before the nation reaches the so-called fiscal cliff.

"There are still issues left to resolve but we're hopeful Congress can get it done," Obama said at a midday White House news conference. "But it's not done."

Congressional and White House negotiators have forged the contours of an agreement that would extend current tax rates for households making $450,000 or less; raise the estate tax from 35 to 40 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 for one year unemployment insurance benefits set to expire Tuesday, and avert a steep cut to Medicare payments for doctors.

"There is an agreement to fix the tax problem; that is finalized," an aide to Senate Minority Leader Mitch McConnell told ABC News.

Both sides remained at odds over what to do about the other significant piece of the "fiscal cliff" -- the more than $1 trillion of automatic cuts to defense and domestic programs set to begin tomorrow.

The White House has proposed a three-month delay of the cuts to allow more time to hash out details for deficit reduction, while many Senate Democrats want a flat one-year delay. Republicans insist that some spending cuts should be implemented now as part of any deal.

Chip Somodevilla/Getty Images

'Fiscal Cliff': Lawmakers Scramble for Last-Minute Deal Watch Video

"In order to get the sequester moved, you're going to have to have real, concrete spending cuts," Rep. Mike Rogers, R-Mich., said. "[Without that], I don't know how it passes the House."

Vice President Joe Biden and McConnell, R-Ky., have been locked in behind-the-scenes negotiations for much of the day, sources said, following several "good" conversations that stretched late into Sunday night.

"We are very, very close," McConnell said in an afternoon speech on the Senate floor. "We can do this. We must do this."

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."

"I don't see how you get something voted on today," Rogers said. "Even if they get a handshake deal today, you have to put the whole thing together and that's probably not going to happen before midnight. So it would make sense to roll into tomorrow to do that."

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.

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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2012 review: The year in health science

Read more: "2013 Smart Guide: 10 ideas that will shape the year"

The first half of 2012 will be remembered for the saga over whether or not to publish controversial research involving versions of the H5N1 bird flu virus engineered to spread more easily in mammals. In the end openness won out, and both contentious studies did finally see the light of day.

This was also the year that saw the battle to eradicate polio reach its crucial endgame – just as another problem, in the form of totally drug resistant tuberculosis, reared its head.

Away from infectious disease, 2012 brought us a theory on the link between Tutankhamun, epilepsy and the first monotheistic religion, and an insight into the perils of premature ageing in Italy's ominously named Triangle of Death. Here are 10 more of the year's memorable stories.

Babies are born dirty, with a gutful of bacteria
Far from being sterile, babies come complete with an army of bacteria. The finding could have implications for gut disorders and our health in general

Forensic failure: 'Miscarriages of justice will occur'
Our survey of UK forensic scientists reveals that many are concerned that closure of the Forensic Science Service will lead to miscarriages of justice

Scandal of an underfunded and undertreated cancer
Lung cancer in those who have never smoked is on the rise – but they face the same stigma as their smoking counterparts

Ovarian stem cells discovered in humans
Stem cells capable of forming new eggs could promise limitless eggs for IVF treatments, and the rejuvenation of older eggs

Paralysis breakthrough: spinal cord damage repaired
An implant helping paralysed people stand unaided suggests the spinal cord is able to recover function years after severe damage

A real fMRI high: My ecstasy brain scan
Graham Lawton reports the highs, lows and psychedelic purple doors involved in taking MDMA while having his brain scanned

You may carry cells from siblings, aunts and uncles
Male cells found in the umbilical cord blood of baby girls with older brothers suggests fetal cells cross between mother and baby more than once thought

Can we deter athletes who self-harm to win?
The Paralympics may encourage a debate on a dangerous practice – and potential ways to prevent it

First non-hormonal male 'pill' prevents pregnancy
A non-hormonal drug that temporarily reverses male fertility appears to have few side effects in mice

Mining MRSA genetic code halts superbug outbreak
Whole genome sequencing of an MRSA outbreak has identified the person who unwittingly spread the bacteria around a hospital, stopping further infection

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.

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C. Africa's pressured leader open to unity government

BANGUI: The president of the Central African Republic was on Sunday said to be ready to make important concessions to a rebel coalition that has easily pushed its way across the impoverished country and was within striking distance of the capital Bangui.

After meeting with President Francois Bozize, African Union chief Thomas Boni Yayi said Bozize was ready to take part in talks to end the crisis, and that he would not run for president in 2016.

The talks "should lead to a national unity government", Boni Yayi said, adding that Bozize, who seized power in a 2003 coup and then won two elections, would not run for re-election in 2016 and would "respect constitutional provisions".

Opposition figures have criticised the president, whom they suspect wants to modify the constitution to enable a third term in office.

Rebels from a coalition known as Seleka, who took up arms December 10 near the Chad border and have met little resistance from government troops, on Sunday warned they could enter Bangui.

The rebels, now controlling five regional capitals in the centre and north of the country, faced no opposition as they entered the town of Sibut around 150 kilometres from Bangui on Saturday, a military official told AFP.

The country's armed forces had retreated to Damara, the last major town on the way to the capital, about 75 kilometres to the southwest.

Rebel spokesman Eric Massi on Sunday had said rebels would enter Bangui "if the situation demands it" but later said he had "taken note" of Bozize's pledges.

"A meeting shall be held with (Boni Yayi) to study in detail President Bozize's proposals and together create a plan to end the crisis," he told French radio.

With the rebels closing in, the Economic Community of Central African States (ECCAS), which has troops in the country, warned both sides Sunday that Damara must remain in government control.

"The ECCAS forces are on maximum alert, and the city of Damara is the line not to be crossed. We ask the FACA (government forces) and the rebels not to advance from their current positions and to give talks a chance," said Antonio Di Garcia, head of the regional bloc's mission, on national radio.

The rebels have been insisting on Bozize's departure.

"That issue must be discussed with the African Union," Massi told AFP. "President Bozize must recognise his military defeat on the ground ... and draw the necessary conclusions".

Officials on both sides said the rebels had also repelled army soldiers trying to recapture Bambari, a former military stronghold in the landlocked country, one of the world's poorest despite vast mineral wealth.

The coalition of three rebel movements in Seleka -- or the "alliance" in the Sango language -- launched their offensive claiming the government failed to meet the terms of peace pacts signed in 2007 and 2011, which include providing for disarmament, pay and social reintegration for insurgents.

Bozize on Sunday asked for a meeting with French President Francois Hollande, but calls for help from former colonial power France, as well as from the United States, have so far not been heeded.

France has a military presence of about 580 troops in the country, 180 of whom arrived overnight Saturday, the French defence ministry said.

This contingent is on hand to help protect and evacuate French and European nationals, should the need arise.

Hollande late Sunday urged all sides involved in the conflict to end hostilities, and welcomed efforts to find a negotiated solution to the crisis.

Neighbouring Chad, which helped Bozize with rebellions in 2010, has sent a contingent to the country, but those troops too have retreated from the rebel advance.

In Bangui, the population was fearful of a rebel attack and the uncertainty has caused a sharp spike in food prices. Authorities have imposed a night-time curfew, resulting in an eerie quiet in the usually noisy city.

In the town centre, businesses had hired guards armed with machetes to stand watch and prevent looting.

"I'm afraid of the rebels coming," said vegetable vendor Euphrasie Ngotanga in the city's huge Sambo market. "We're not going to sell our produce if there's no peace. And then how we will feed our children?"

The landlocked Central African Republic, with a population of about five million, is notorious for unrest including coups, army mutinies and rebellions.

- AFP/jc

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Decluttering before the New Year

Time off work during the holidays is a perfect time to tidy up your home and work spaces to start the New Year right.

STORY HIGHLIGHTS

• Do your New Year's resolutions include a push to clean up? Here are some tips to start


• Being organized is about being in control, says professional organizer Susan Fleischman


• Cleaning clutter can eliminate the need to buy what you simply can't find

(CNN) -- Whatever other resolutions we make leading up to the New Year -- to call Mom more often, lay off the late-night snacks -- getting ourselves organized is likely near the top of the list. And that often means clearing out the clutter that keeps us from functioning efficiently, whether we're at work or at home.

Many employees -- whether they go to actual offices or do their jobs from home -- find the last week of the calendar year is ideal for sorting through e-mails, clearing their desks, and reorganizing their work spaces. Sorting through stuff is rarely fun, but those who tackle it now will find themselves a step ahead when their now-vacationing colleagues and clients come staggering back after the holidays.

According to the National Association of Professional Organizers, which sponsors the annual "Get Organized Month" each January to help folks take control of their time, tasks and possessions, 83% of members polled say that "paper organization" ranks highest on their individual and corporate clients' to-do lists. For people taking time off between Christmas and New Year's, this week offers a chance to get things in order before 2013 arrives.

Devoting time to both physically and mentally clearing out the "old" and embracing the "new" is about more than just getting rid of stuff. Being organized is really about being in control, says Susan Fleischman, a Chicago-based professional organizer, home stager and founder of clutterfree.

"As joyous as the holidays can be, the period between Thanksgiving and New Year's is probably one of the most stressful of the year for people," she says. That's why spending the week after Christmas decluttering "really helps you recover and detox from the hustle and bustle of the holidays.

"It's very symbolic -- we're ramping up to the ultimate do-over. We all get to turn the calendar page and make a fresh start."

For those at work, says Fleischman, "the phone stops ringing, there are fewer meetings. Real work probably comes to a screeching halt. There are far fewer reasons to keep letting getting organized fall to the bottom of the to-do list." And these days, when employees often feel compelled to work harder and longer, being organized can be a real competitive advantage.

NAPO Industry Member Director Mary Dykstra says that on average, Americans waste time amounting to between six and 12 weeks a year searching for things in their offices and homes. "Just imagine if you could get out from under that clutter and spend that time helping your company build their business and ultimately, your career," says Fleischman, who was a public relations and marketing executive before launching her professional organizing business.

"Every minute counts when it comes to impressing the boss, your colleagues and clients. At work, we strive to project that we're knowledgeable, in control and experts. We're constantly accessing, sharing, reacting to information. Being able to put your hands on the information or generate some information means the better you'll be able to rise to the top and have clarity of thought and creativity and maximize productivity."

But what about moving from work to the home front? Cynthia Ewer, the Washington state-based editor of OrganizedHome.com and the author of "The Complete Idiot's Guide to Getting Organized Fast-Track," suggests we use this in-between-holidays week to step back and reflect on our habits and how well they're working for us at home.

It's important to remember, says Ewer, that "there are different personality types. "Organized" is what works for you. There are filers -- people who love folders. They want the serenity of knowing where things are. Pilers like to keep their eyes on their stuff. Deniers have bags of paperwork shoved into closets. Instead of using a "What-does-it-look-like?" yardstick, it's a "How-will-it-work?" question. Know yourself, and come up with solutions that reflect who you are, she says.

After all, she says, " 'It's here somewhere' is the most frustrating phrase in the English language."

Cutting clutter also can boost the bottom line. "How many times do you go to the store and buy the things you couldn't find?" asks Fleischman. But cleaning up and cleaning out also can generate money, says Ewer.

"It can be a real fun process to turn your clutter into cash."

Nab tax deductions by donating cleared-out items to nonprofit organizations. Declutterers can send usable books, DVDs, video games and music to third-party merchants in exchange for gift cards through the Amazon Trade-In Program. Even computer manufacturers like Apple offer gift cards to customers who send in an old iPhone, iPad or computer for reuse or recycling, if those devices still have monetary value.

"Leading an orderly life is about saving time, saving money, reducing stress," says Fleischman, who also blogs about organizing tips and clutter makeovers. "And that's energy you can spend on leisure pursuits, which is very important to emotional well-being."

Some tips for cutting through the workplace and home clutter this holiday week:

• Stockpile your supplies. Fleischman advises making sure you've got the right trash bins, shredders, file folders and markers at your fingertips before you start sorting and tossing.
• Take it a zone at a time. Your office, home and car didn't become a mess overnight, so declutter in increments. Fleischman suggests starting with desktops, then floors, then moving on to file cabinets and bookcases.
• Go from horizontal to vertical piles. If you're purging papers, clear those piles from your desk and the floor by placing newly sorted files in a cabinet or an upright vertical file. This way, your eyes can quickly scan and identify what you need at a glance.
• Free up the fridge. "Get the ghosts of Christmas past out of there -- all those little cans of this and that, the beef sticks from the gift basket no one can bear to throw out," says Ewer. Besides, this clean-up also will save you some calories.
• Be realistic. If you really write out bills at the kitchen table and not in the home office, says Ewer, get yourself a wheeled cart you can roll where the work gets done. If your kids' toys actually live in the family room -- not in the bedroom toy box -- create a storage solution there.

"Look at your patterns of living and organize yourself accordingly."

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Pakistan terror incidents threaten peace talks

ISLAMABAD The killing of 41 people in two separate terrorist incidents in Pakistan appeared on Sunday to temporarily halt prospects for immediate peace talks between Pakistani authorities and Taliban militants, two senior Pakistani intelligence officers and a senior western diplomat in Islamabad warned.

Both intelligence officers said that the fallout of the killings may even harm U.S. plans to peacefully draw down troops from Afghanistan, with Pakistan's active backing.

In the first incident, 21 Pakistani paramilitary guards working in the northern Khyber-Pakhtunkhwa province who were kidnapped last week by the Taliban were confirmed dead on Saturday.

"All the 21 young men were brutally killed by their captors," said one Pakistani intelligence officer who spoke to CBS News on condition of anonymity because intelligence officers are not allowed to speak to journalists.

He said that the kidnapped men's killings may have been triggered in part by the Pakistani government's refusal to release some Taliban militants in custody.

After the men were kidnapped, a senior government official in the northern city of Peshawar, the provincial capital, told CBS News that the Taliban were demanding the release of some of their fellow militants in Pakistan's custody in exchange for the 21 men.

In the second incident on Sunday, at least 20 Pakistanis of the Shia Muslim faith were killed and more than 20 wounded when a car bomb targeted their convoy of buses being driven through the southwestern Baluchistan province to the Iranian border.

Pakistani officials said the dead were heading to Iran's northern holy city of Mashhad to attend an important Shiite commemoration in the coming week.

The second Pakistani intelligence officer who spoke to CBS News said that the killings in Baluchistan "seem to be linked to factions associated with the Taliban.

"These killings make it practically impossible for the government to have a peace dialogue with the Taliban," the officer said. "No one will speak to these people while we have a gun pointed to our heads."

In the past, representatives of Pakistan's Shia Muslims have claimed that the Taliban (who belong to a hardline version of the Sunni Muslim faith) have been involved in attacks on Shiites in Baluchistan.

The two terrorist incidents were preceded by reports of the Taliban sending messages to senior leaders of President Asif Ali Zardari's administration in Islamabad, seeking peace talks to end a decade-long conflict with the Pakistan army.

Senior government officials have reacted cautiously, with some suggesting that the offer should be carefully considered, while others have warned that the Taliban will not agree to end their attacks on Pakistani troops until a final settlement, on their terms, comes together.

"The two brutal terrorist incidents are a major cause of concern. They suggest there's no appetite among the Taliban for a peaceful end to the war," said a senior Western diplomat in Islamabad who also spoke to CBS News on condition of anonymity.

He warned that in addition to Pakistan's own internal security conditions, more violence will make it harder for the country to cooperate with the U.S. in facilitating an orderly American troop drawdown from Afghanistan by end of 2014.

"Pakistan will be the main route for U.S. troops leaving Afghanistan. If there is no end to Taliban violence in Pakistan, the drawdown will face threats," added the diplomat.

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President Suggests Small 'Cliff' Deal Likely

With less than two days remaining for Congress to reach a budget agreement that would avoid the so-called “fiscal cliff,” President Obama today suggested that a small deal remains the best hope to avoid the perilous package of spending cuts and tax increases.

In an interview aired this morning 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. 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 their budget.

Repeating remarks he made Friday after a meeting with congressional leaders, Obama said that should negotiations fail he has asked Senate Majority Leader Harry Reid, D-Nev., 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 January 1, then we’ll come back with a new Congress on January 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 was taped Saturday while Reid and his GOP counterpart Sen. Mitch McConnell of Kentucky 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.

Republican leaders bit back at the president’s remarks. In a written statement Speaker 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. ”

“In an effort to get the president to agree to cut spending – which is the problem – I put revenues on the table last year, and I put them on the table again last month,” he wrote. “Republicans made every effort to reach the ‘balanced’ deficit agreement that the president promised the American people, while the president has continued to insist on a package skewed dramatically in favor of higher taxes that would destroy jobs.”

Senator McConnell’s office issued this response to the NBC appearance:

“While the President was taping those discordant remarks yesterday, Sen. McConnell was in the office working to bring Republicans and Democrats together on a solution. Discussions continue today.”

Regardless of outcome, talk of a comprehensive budget deal is gone and any bill would likely set up a series of smaller partisan roadblocks in the weeks and months to come. For example, if any hypothetical legislation managed to dodge tax increases for the middle class it may still not address the looming debt ceiling, which Treasury can avoid using accounting tricks for approximately two months.

A small deal may also not address the estate tax, another central point of the brinkmanship. Currently standing at 35 percent, Republicans want to leave that rate as-is after exempting the first $5 million in estate value. Meanwhile Democrats have called for a 45 percent tax after a $3.5 million exemption. Should negotiations fail, it would climb to 55 percent after a $1 million exemption after the New Year.

ABC’s Sunlen Miller and the Associated Press contributed to this report, which has been updated.

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Today on New Scientist: 28 December 2012

Best videos of 2012: Rare view of Challenger tragedy

Watch a rare amateur video of the Challenger explosion, our most-viewed video of the year

Strong jet stream super-charged US Christmas storms

Record snowfall and dozens of tornadoes snarled holiday travel as a powerful winter storm plowed across much of the US, while rainstorms battered the UK

2012 review: The year in life science

The year's biggest stories in life science, including James Cameron's descent into the Mariana trench and efforts to break into Antarctica's buried lakes

Superstorm lessons for adapting to climate change

As the post-Sandy rebuild gets under way, coastal cities around the world will be watching

Best videos of 2012: First MRI movie of childbirth

Watch a unique view of a baby's birth, at number 2 in our countdown of the year's top science videos

Fleadom or death: Reviving the glorious flea circus

The parasite-based sideshows were almost done for by the domestic vacuum cleaner - but they are bouncing back, finds Graham Lawton

Approval for gene-modified salmon spawns controversy

Apparently months late, US regulators have declared genetically engineered fish safe to farm and eat, but final approval could be some way off

Best videos of 2012: New aircraft flies inside out

Watch a novel flying machine use a unique mechanism to propel itself, at number 3 in our countdown of the top videos of the year

2012 review: The year in technology

The year's biggest stories in technology, including Kinect devices that may spot signs of autism and controlling a robot by the power of thought

Superdoodles: The science of scribbling

Far from being a distraction, doodling has an important purpose - and you can harness it

2013 Smart Guide: Wave goodbye to the mouse

The Leap, a 3D motion control device set to launch next year, will let you control your computer with touch-free hand and finger movements

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China sets date for 12th National People's Congress

BEIJING: China has fixed March 5, 2013, as the date it will convene a key legislative session, state media reported Friday, with new Communist Party chief Xi Jingping set to become president during the two-week meeting.

The date for the start of the first annual session of the 12th National People's Congress (NPC) was approved at an NPC Standing Committee meeting Friday, the official Xinhua news agency reported.

The announcement comes after the Communist Party in November chose current Vice President Xi to take over the reins of the ruling party from current President Hu Jintao.

That was the first step in China's highly choreographed once-a-decade leadership transition that sees the party change leaders first, with state positions, including president, premier and other key posts, filled at the NPC several months later.

Xi is set to be formally selected as president during the NPC session, while Li Keqiang, another top party official, is slated to become premier, replacing Wen Jiabao, the positions's current occupant.

Xinhua said the legislative session would last about two weeks and would also deal with other important matters including approving a draft plan on national economic and social development for next year.

The announcement of the start of the next NPC comes after November's party congress, which had been expected some time in October, was delayed amid an internal party scandal involving disgraced politician Bo Xilai.

Bo, the former party boss in the central mega-city of Chongqing, was once seen as a candidate for promotion to the party's top echelons but was brought down by murder allegations against his wife that came to light after his police chief sought refuge in a US consulate.

Gu Kailai, Bo's wife, was later given a suspended death sentence -- a judgment commonly commuted to a life sentence -- for fatally poisoning British businessman Neil Heywood.

Bo has been formally expelled from the party and is in custody awaiting trial for alleged corruption and abuse of power.

The months-long controversy exposed deep divisions in the party's top leadership ahead of the sensitive power transition, as Bo had influential patrons and a following among left-leaning members.

-AFP/ac

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