Obama: 'Take the deal'

STORY HIGHLIGHTS

• White House threatens to veto Boehner's "plan B"


• President Obama suggests Republicans are fixated on besting him personally


• Speaker Boehner says the House will pass his fallback tax plan Thursday


• Without a deal, everyone's taxes go up in the new year

Washington (CNN) -- After progress earlier this week in fiscal cliff negotiations, President Barack Obama and House Speaker John Boehner butted heads Wednesday, setting the stage for a showdown as the deadline looms for an agreement.

The negotiations had focused on a $2 trillion package of new revenue, spending cuts and entitlement changes the two sides have shaped into a broad deficit reduction plan.

Boehner on Tuesday proposed a "plan B," which would extend Bush-era tax cuts on income of up to $1 million. He described it as a fallback option to prevent a sweeping tax hike while negotiations continue on a broader plan.

But the White House on Wednesday threatened to veto "plan B," saying it would bring only "minimal" changes in projected budget deficits.

Obama told reporters earlier in the day that Republicans were focused too much on besting him personally rather than thinking about what's best for the country.

"Take the deal," Obama said to Republicans, referring to the broader proposal, adding that it would "reduce the deficit more than any other deficit reduction package" and would represent an achievement.

"They should be proud of it," Obama said. "But they keep on finding ways to say 'no' as opposed to finding ways to say 'yes.' "

His comments at a White House news conference came less than two weeks before the end of the year, when the nation's taxpayers would face automatic tax increases and deep spending cuts if no agreement is reached.

Economists say that failure to reach agreement could spark another recession.

Boehner issued his own statement Wednesday, saying the president had yet to make a proposal offering a balance between increased revenue and spending cuts.

In a 52-second appearance before reporters, Boehner said the House will pass his fallback plan Thursday limiting tax increases to income above $1 million.

While the plan represents a concession from Boehner's original vow to oppose any tax-rate increase, it sets a higher threshold than the $400,000 sought by Obama.

Once the House passes his plan, the president can either persuade Senate Democrats to accept it or "be responsible for the largest tax increase in American history," Boehner said before walking off without answering shouted questions.

The Obama administration and congressional Democrats said Boehner changed course because he was unable to muster Republican support for the larger deal being negotiated with Obama.

At his news conference, Obama alluded to last Friday's Connecticut school shootings in calling on Republicans to put aside political brinksmanship. "If there's one thing we should have after this week, it should be perspective about what's important," he said.

"Right now, what the country needs is for us to compromise," he continued. He characterized as "puzzling" the GOP refusal to accept his compromise.

Asked why an agreement was proving so elusive after both sides had made concessions, Obama said it might be that "it is very hard for them to say 'yes' to me."

"At some point they've got to take me out of it," Obama said of Republicans, adding they should instead focus on "doing something good for the country."

Boehner responded by arguing that Obama's proposal was not evenly balanced, with more new revenue instead of the spending cuts and entitlement reforms Republicans seek.

The Boehner plan B would leave intact government spending cuts, including those related to defense, which are required under a budget deal reached last year to raise the federal debt ceiling. The threat of cuts was intended to motivate Congress to reach a deal.

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But Obama said Wednesday that Boehner's proposal "defies logic" because it raises tax rates on some Americans, which Republicans say they do not want, and contains no spending cuts, which Republicans say they do want.

He also criticized the measure as a benefit for wealthy Americans, who would have lower tax rates on income up to $1 million.

The White House and congressional Democrats say plan B has no chance of passing; Obama said that bringing it up only wastes time.

Senior administration officials said Obama and Boehner have not spoken to each other since Monday. GOP leaders planned to vote Thursday on Boehner's proposal, as well as Obama's long-standing proposal to return to higher tax rates of the 1990s on income above $250,000 for families.

Obama on Monday raised the threshold for the higher tax rates to $400,000.

Conservative allies publicly supported Boehner's plan Wednesday.

Anti-tax crusader Grover Norquist provided political cover for Republicans who have signed his pledge against tax increases, saying he could support plan B.

Obama and Democrats argue that increased revenue, including higher tax rates on the wealthy, must be part of broader deficit reduction plan.

Obama made the tax proposal a theme of his re-election campaign, arguing that it would prevent a tax increase for middle-class Americans.

Polls show support for the Obama plan, and some Republicans have called for acceding to the president on the tax issue in order to focus on cuts to spending and entitlement programs.

Budget experts: Fiscal cliff deal could disappoint

Boehner and Republicans initially opposed any rise in tax rates but agreed to raising revenue by eliminating some deductions and loopholes. The offer of a plan with higher rates for millionaires represented a further concession, but Obama and Democrats say it would not suffice.

Senate Majority Leader Harry Reid of Nevada said Boehner's plan appeared to be a result of pressure from tea party conservatives opposing a wider deal.

"It would be a shame if Republicans abandoned productive negotiations due to pressure from the tea party, as they have time and again," Reid said this week.

Boehner's spokesman, Michael Steel, shot back that the plan B proposal gave Democrats what they wanted -- higher tax rates on millionaires.

What happens if the payroll tax cut expires

Obama's latest offer has generated protests from the liberal base of the Democratic Party because it includes cuts in entitlement programs such as Social Security, Medicare and Medicaid.

Justin Ruben, executive director of MoveOn, which backed Obama's presidential campaigns, said its members would consider any benefit cuts "a betrayal that sells out working and middle-class families."

In particular, liberals cited concessions that Obama made Monday in his counteroffer, including a new inflation formula applied to benefits called chained CPI.

Obama offers fiscal cliff tax concession

Chained CPI includes assumptions on consumer habits in response to rising prices, such as seeking cheaper alternatives, and would result in smaller benefit increases in future years.

Statistics supplied by opponents say the change would mean Social Security recipients would get $6,000 less in benefits over the first 15 years of chained CPI.

But White House spokesman Jay Carney said Obama's CPI proposal "would protect vulnerable communities, including the very elderly, when it comes to Social Security recipients." He called the president's acceptance of the chained CPI a signal of his willingness to compromise.

CNN's Dan Lothian, Dana Bash, Deirdre Walsh and Brianna Keilar contributed to this report.

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More funerals for victims of Newtown shooting

(CBS News) NEWTOWN, Conn. - In Newtown, Connecticut, more children and a teacher -- victims of the deadly shooting at Sandy Hook Elementary School -- were laid to rest Wednesday.

Daniel Barden, 7, a victim in the mass shooting at Sandy Hook Elementary School in Newtown, Conn., Dec. 14, 2012.

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Rex Features via AP Images

Firefighters from across the northeast came to honor seven-year-old Daniel Barden. He wanted to be a firefighter someday.

"The firefighters were here in tribute to this young child and all the souls that were lost in this community" said Eddy Bowls of New York.

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Sandy Hook's fire department also stood at attention for Caroline Previdi's funeral procession. She loved to draw and dance.

Victoria Soto, a first grade teacher at Sandy Hook Elementary School, who was killed while protecting her students from a mass shooter on Dec. 14, 2012.

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Sandy Hook

And at teacher Vicki Soto's funeral, the crowd was so large that people stood outside. Inside, singer Paul Simon performed "The Sound of Silence."

"It was just heartbreaking when you see the small casket," said family friend Joseph Secola. "You think the girl is six years old. But she obviously was a lovely girl who gave joy to a lot of people, and that is what they have to hold on to."

Charlotte Bacon, the seventh student to be laid to rest since the shooting, was remembered for her love of animals and the color pink.

There is still no clear evidence as to what triggered Adam Lanza's rampage. The medical examiner is bringing in a geneticist to see if Lanza might have had a medical condition that could have played a role in the shooting.

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Obama Invokes Newtown on 'Cliff' Deal

Invoking the somber aftermath of the school massacre in Newtown, Conn., President Obama today appealed to congressional Republicans to embrace a standing "fair deal" on taxes and spending that would avert the fiscal cliff in 13 days.

"If there's one thing we should have after this week, it should be a sense of perspective about what's important," Obama said at a midday news conference.

"I would like to think that members of that [Republican] caucus would say to themselves, 'You know what? We disagree with the president on a whole bunch of things,'" he said. "'But right now what the country needs is for us to compromise.'"

House Speaker John Boehner's response: "Get serious."

Boehner announced at a 52-second news conference that the House will vote Thursday to approve a "plan B" to a broad White House deal -- and authorize simply extending current tax rates for people earning less than $1 million a year and little more.

"Then, the president will have a decision to make," the Ohio Republican said. "He can call on Senate Democrats to pass that bill or he could be responsible for the largest tax increase in American history."

Fiscal Cliff Negotiations: Trying to Make a Deal Watch Video

House Speaker John Boehner Proposes 'Plan B' on Taxes Watch Video

'Fiscal Cliff' Negotiations: Deal Might Be Within Reach Watch Video

Unless Congress acts by Dec. 31, every American will face higher income tax rates and government programs will get hit with deep automatic cuts starting in 2013.

Obama and Boehner have been inching closer to a deal on tax hikes and spending cuts to help reduce the deficit. But they have not yet had a breakthrough on a deal.

Obama's latest plan would raise $1.2 trillion in new tax revenue over 10 years, largely through higher tax rates on incomes above $400,000. He also proposes roughly $930 billion in spending cuts, including new limits on entitlement spending, such as slower annual cost-of-living increases for Social Security beneficiaries.

Boehner has agreed to $1 trillion in new tax revenue, with a tax rate hike for households earning over $1 million. He is seeking more than $1 trillion in spending cuts, with significant changes to Medicare and Social Security.

The president said today that he remains "optimistic" about reaching a broad compromise by Christmas because both sides are "pretty close," a sentiment that has been publicly shared by Boehner.

But the speaker's backup plan has, at least temporarily, stymied talks, with no reported contact between the sides since Monday.

"The speaker should return to the negotiating table with the president because if he does I firmly believe we can have an agreement before Christmas," said Sen. Chuck Schumer, D-N.Y., a White House ally.

Schumer said Obama and Boehner are "not that far apart" in the negotiations.

"If they were to come to an agreement by Friday, they could write this stuff over the Christmas break and then we'd have to come back before the New Year and pass it," Schumer said.

Obama said he is "open to conversations" and planned to reach out to congressional leaders over the next few days to try to nudge Republicans to accept a "fair deal."

"At some point, there's got to be, I think, a recognition on the part of my Republican friends that -- you know, take the deal," he told reporters.

"They keep on finding ways to say no, as opposed to finding ways to say yes," Obama added. "At some point, you know, they've got take me out of it and think about their voters and think about what's best for the country."

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AU Optronics executive guilty in LCD price-fixing case

SAN FRANCISCO: A US jury on Tuesday found a former senior manager at Taiwan-based AU Optronics Corp guilty of taking part in a global scheme to rig prices of liquid crystal display screens.

Shiu Lung Leung faces a maximum sentence of 10 years in prison and a $1 million fine for his crime, according to the US Department of Justice.

Marketplace rivals fixed the prices of LCD panels during monthly meetings held secretly at hotel conference rooms, karaoke bars and tea rooms around Taiwan, according to prosecutors.

A trial in San Francisco ended in March with AUO executives Hsuan Bin Chen and Hui Hsiung convicted for their roles in a conspiracy between late 2001 and late 2006 to rig prices of thin film transistor LCD panels.

A judge fined the company $500 million for taking part in what prosecutors called the "most serious price-fixing" case in US history.

Officials said that the fine matched the largest ever imposed on a company for violating US anti-trust laws.

A mistrial was declared in a portion of the proceedings involving Leung, and the verdict in his case was the outcome of a three-week retrial.

"This international price-fixing conspiracy impacted countless American consumers by raising the price of computer monitors, notebooks and televisions containing LCD panels," said Deputy Assistant Attorney General Scott Hammond.

The global LCD market was valued at $70 billion annually by the end of the alleged conspiracy, and companies that wound up paying inflated prices for screens included Apple, Dell and Hewlett Packard, according to prosecutors.

As a result of the investigation, eight companies have pleaded guilty or been convicted and have been sentenced to pay criminal fines totalling more than $1.39 billion, according to the Department of Justice.

- AFP/al

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Sources: Report on Benghazi attack to cite security

By Elise Labott, CNN

updated 8:54 PM EST, Tue December 18, 2012

Attack on the U.S. Consulate in Libya

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Attack on the U.S. Consulate in Libya

Attack on the U.S. Consulate in Libya

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Attack on the U.S. Consulate in Libya

Attack on the U.S. Consulate in Libya

Attack on the U.S. Consulate in Libya

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Attack on the U.S. Consulate in Libya

Attack on the U.S. Consulate in Libya

Attack on the U.S. Consulate in Libya

Attack on the U.S. Consulate in Libya

Attack on the U.S. Consulate in Libya

Attack on the U.S. Consulate in Libya

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Attack on the U.S. Consulate in Libya

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STORY HIGHLIGHTS

• Bureau of Diplomatic Security to get the blame, two sources say


• Senior management "does not come out well at all," a source says


• An unclassified version of the report is expected to be released

Washington (CNN) -- An independent review of the September 11 attack on the U.S. Consulate in Benghazi criticizes the State Department's Bureau of Diplomatic Security for its work in Libya before the event in which four Americans were killed, two sources who have read the report told CNN Tuesday.

The senior management in charge of diplomatic security "does not come out well at all," said one of the sources.

Assistant Secretary of State Eric Boswell is head of diplomatic security and Deputy Assistant Secretary of State Charlene Lamb oversaw State Department decisions on security at the diplomatic outpost. Lamb testified before Congress about the security precautions; documents show Lamb denied repeated requests for additional security in Libya.

The review has been sent to Capitol Hill, and an unclassified version was expected to be released as well.

State Department: Clinton not dodging Benghazi hearings

The Accountability Review Board completed its investigation into the matter this week and sent a copy to Secretary of State Hillary Clinton for review. A classified version of the report was delivered Tuesday afternoon to members and staff of the committees on Capitol Hill that have jurisdiction over the State Department.

Veteran diplomat Thomas Pickering and former Joint Chiefs of Staff Chairman Adm. Mike Mullen, both members of the review board will brief members of the House Foreign Affairs and Senate Foreign Relations Committees in a classified setting about the report on Wednesday.

State Department spokeswoman Victoria Nuland told reporters Tuesday that Clinton, who is home recovering from a stomach virus and concussion, wrote a letter to members of Congress that will accompany the report being sent to Capitol Hill.

Clinton ordered the review in the aftermath of the attack, which claimed the lives of Ambassador J. Christopher Stevens and three other Americans. Such reports are mandated by Congress when Americans working on behalf of the United States government are killed overseas.

It was expected to present a detailed examination of the events that led to the attacks along with a set of recommendations on improving security at U.S. diplomatic facilities around the world.

Read more: Benghazi attack back in the spotlight

In a notice sent to all State Department employees Tuesday, the department explained how the report would be implemented once it was released.

"To implement the Board's recommendations, the Secretary has directed the Deputy Secretary for Management and Resources to lead the implementation team, supported by the Under Secretary for Political Affairs, the Under Secretary for Management, the Director General of the Foreign Service, the Executive Secretary and the Deputy Legal Advisor," the notice said.

Employees were told the implementation team met Tuesday and would continue to do so regularly to implement the recommendations of the board.

The politics surrounding the events that led to the report have claimed one political casualty, with U.S. Ambassador to the United Nations Susan Rice last week pulling her name from consideration to succeed Clinton. Some Republican senators had said they would put a hold on her nomination if President Barack Obama had submitted it, based on comments Rice made in the days after the attack.

In place of Clinton, Deputy Secretaries of State William Burns and Thomas Nides will testify before the House and Senate committees Thursday.

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Texas school district encourages armed teachers for protection

HARROLD, Texas -- There's at least one school that welcome firearms to class.

It believes nothing makes a school safer than teachers who are armed,

The Harrold Independent School District is one building with 103 students. It's 20 minutes away from the nearest sheriff's station. Superintendent David Thweatt created what he calls a "guardian plan" after the attack at Virginia Tech.

"These people that go in and do these horrible acts, they're evil. But they're not that crazy -- they always know where they are going to get resistance," Thweatt said.

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Teachers and administrators here carry concealed handguns. They won't say how many faculty members are armed. They get extra training, but the district would not give us details.

Some people are horrified when he starts talking about putting guns in schools with children, but Thweatt said it's important to be safe.

"Sure, but it's a pretty horrific thing that happened the other day." Thweatt said. "And quite a few people are not horrified. Quite a few people we have in our district, since we have a high-transfer district, people bring their students to us for that protection."

Texas law allows concealed weapons in schools with a district's permission. Harrold was the first district to do it. A similar proposal was vetoed by Michigan's governor Tuesday.

Thweatt says allowing the firearms into the school will dissuade anyone who wants to hurt the kids.

"That's the bottom line," he said.

Since the shootings in Connecticut, Superintendent Thweatt has gotten calls from districts around the state and as far away as Missouri from school administrators asking whether they might be able to implement similar plans.

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Newtown Shooting: Bushmaster Under Fire

When the private investment firm Cerberus Capital Management announced Tuesday it would unload its interest in Bushmaster – the company that built the weapon used in last week's mass murder of 20 Connecticut first graders -- it marked the beginning of what experts say is likely to be a challenging period for the North Carolina-based weapons manufacturer.

"They are looking at a taint on their brand and looking at a marketplace that could change dramatically with respect to their weapon," said Chris Lehane, a crisis public relations expert who worked in the Clinton White House. "To me the fact that Cerberus is pulling out is a pretty significant defining moment."

For years, Bushmaster has been marketing itself to testosterone-fueled male customers, issuing "man cards" to customers who want to be "card carrying men." Now, Lehane and others said the company is facing the prospect of being branded the weapon of choice for mass killers. The Newtown, Connecticut shooting marked the fourth time a Bushmaster has been implicated in a mass shooting since 1999, including the Beltway sniper case that left 10 dead and three more wounded.

Cerberus announced Tuesday it wanted distance from Bushmaster, calling the murder of 20 first grade children at Sandy Hook Elementary School a "watershed event." The investment firm, which is chaired by former Vice President Dan Quayle, noted in its statement that Bushmaster may not be an investment consistent with the interests of its clients. Its investors include the pension plans of firemen, teachers, and policemen.

Rich Pedroncelli/AP Photo

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Lehane said the announcement could signal a shift in the way investors view companies that make military style weapons for a civilian market.

"It reminds me of the time when tobacco began to be associated with a negative light, or the divestiture movement surrounding companies in South Africa," he said. "Where financial markets believe they are going to pay a price."

In addition, a spokesman for Cerberus Group confirmed that the father of Stephen Feinberg, the founder of Cerberus Group, lives in Newtown.

Gun control groups have also lined up to criticize the weapons manufacturer, arguing that the company was selling civilian customers a weapon clearly designed for war.

"This thing is just a killing machine," said Josh Horwitz, executive director of the Coalition to Stop Gun Violence. "[I]t's a weapon that can easily shoot hundreds of … In fact it's very similar to the weapon that James Holmes used to shoot up the movie theater in Aurora."

The company has not responded to phone calls seeking comment, but gun enthusiasts say the weapon's menacing appearance can appeal to civilians looking for a means to secure their homes, and its ease of use can appeal to those looking for a weapon for target shooting.

"The [assault rifle] platform is the most popular in the country," said Frank Cornwall, a firearms instructor in Connecticut. "Civilians have always bought similar type arms to the military. And this is a very versatile platform. Quite a popular hunting and target shooting gun."

Phillip Stutts, a crisis management consultant who worked for President George W. Bush, said he has been surprised by the silence of the gun manufacturer.

"Bushmaster doesn't have to take responsibility for this tragedy, but they have a responsibility to respond to this tragedy," he said. "And they haven't. They have to get out in front of this. It needs to be corrected ASAP."

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Fungal frog killer hops into crayfish

Crayfish are vulnerable to the same fungus that is killing frogs all over the world. The discovery helps explain how the disease spreads even after all the amphibians in an area have been wiped out. Worryingly, chemicals released by the fungus may alone be enough to kill.

Taegan McMahon of the University of South Florida, Tampa, and colleagues discovered infected crayfish in field surveys in Louisiana and Colorado. They found that up to 29 per cent of the animals carried the chytrid fungus Batrachochytrium dendrobatidis. Lab studies proved that crayfish can become infected and die, the first time this has been shown in non-amphibians.

Infected crayfish can pass the disease to tadpoles, and crayfish exposed to water from which the fungus had been filtered still died. McMahon says the distribution of crayfish around the world may explain why the fungus is so widespread.

She adds that it is "is certainly possible" that other invertebrates might carry the fungus. Her team are currently investigating this and are working on possible ways to stop the spread of the toxin.

"It's very compelling, their evidence for crayfish as a disease vector and for a toxic effect secreted in the water," says Trenton Garner at London's Institute of Zoology.

PNAS, DOI: 10.1073/pnas.1200592110

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Football: Singapore, Thailand vie for record fourth title

SINGAPORE: Singapore and Thailand will vie for the honour of becoming Southeast Asia's first four-time champions when the AFF Suzuki Cup final gets under way on Wednesday.

Both teams have won the title three times, during a period in which they shared it for the first six editions, and they are reunited in the two-legged final after both failed to reach the semis at the last tournament in 2010.

But two years after those disappointing campaigns, normal service has been resumed as they topped their respective groups before battling through tricky semi-finals to reach the final once again.

The Thais have done it in impressive fashion, winning all of their group games against the Philippines, Myanmar and Vietnam before disposing of defending champions Malaysia 3-1 on aggregate in the last four.

The "War Elephants" have not won the regional title in a decade but Winfried Schaefer's vibrant side will be favourites after netting 12 times in five games with striker Teerasil Dangda bagging a tournament-leading five goals.

And in Datsakorn Thonglao, they have a talented and combative midfielder who is determined to lift the title after finishing with runners-up medals in 2007 and 2008.

"I have never been on the winning side in the AFF Suzuki Cup. It is a gap in my career. I want to put that right this year," said the 28-year-old.

Datsakorn will be gunning to avenge the loss to Singapore in the 2007 final when Khairul Amri's thunderbolt with nine minutes left in the second leg gave the Lions a 3-2 aggregate victory.

Amri has been hobbled by a series of injuries in the past four years but he netted the only goal over two legs in a hard-fought semi-final victory against the Philippines.

That followed a group stage in which Singapore stunned neighbours Malaysia 3-0 and lost 1-0 to Indonesia, before they came from two goals down to beat unfancied Laos 4-3.

Captain Shahril Ishak has led by example by scoring four goals while 42-year-old Aleksandar Duric, set to retire after the tournament, became the competition's oldest goal-scorer when he found the net against Malaysia.

"Like us, Thailand have a good mixture of old and young players and I think that it will be a great final with the two best teams playing for the most prestigious trophy in Southeast Asian football," said the veteran striker.

"For me, playing my last game at the Jalan Besar Stadium for the national team will be a special moment for me. I have two games left and I will be enjoying every moment especially knowing that it is the final."

The first leg will be played on the artificial pitch of Singapore's Jalan Besar venue on Wednesday, with the return game at Bangkok's Supachalasai Stadium on Saturday.

- AFP/ck

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