Boehner scraps his fiscal cliff plan after failing to get votes

STORY HIGHLIGHTS

• NEW: "The president will work with Congress to get this done," the White House says


• The House Speaker says his Plan B wasn't voted on because it didn't have "sufficient support"


• A bill to alter cuts did narrowly pass the House; the White House says it would veto


• The fiscal cliff's tax hikes and spending cuts are set to take effect in January

Washington (CNN) -- House Speaker John Boehner's proposal to avert the looming fiscal cliff's automatic tax increases failed to curry enough Republican support Thursday night, after which Congress left for the holiday with no clear end in sight in the high-stakes debate.

Boehner said earlier Thursday that he was confident that his so-called Plan B -- which would extend tax cuts that are set to expire at year's end for most people while allowing rates to increase to 1990s levels on income over $1 million -- would pass the House, and in the process put pressure on President Barack Obama and the Democratic-controlled Senate. But his gambit seemed in doubt earlier Thursday as Republican leaders struggled to get most all their members to sign on -- even enlisting senators like Sen. Rob Portman, to work the House floor -- knowing the chamber's Democrats oppose it.

Then, around 8 p.m., House Majority Leader Eric Cantor announced that the measure would not go up for a vote as planned.

"The House did not take up the tax measure today because it did not have sufficient support from our members to pass," Boehner said in a statement. "Now it is up to the president to work with Senator (Harry) Reid on legislation to avert the fiscal cliff."

Democratic leaders already had signaled they oppose the so-called Plan B.

After Thursday night's unexpected reversal, Republican legislators walked past reporters through the halls of Congress, and most did not take questions. One who did -- Rep. Jeff Flake, an Arizonan who will move to the Senate next month -- said he was disappointed.

"It's too bad; I'd rather vote on it tonight," said Flake, who said he sides with Democrats in backing the extension of tax cuts except for household income of more than $250,000. "Get it done."

What this means next in the fiscal cliff talks is unclear. From here, scenarios range from intensified and ultimately successful talks in the coming days or entrenchment as the fiscal cliff becomes a reality next year, when a new Congress could enter negotiations with Obama.

The Plan B was significant because Republican leaders previously insisted they wouldn't raise rates on anyone, while Obama called tax rates for those earning more than $250,000 threshold to return to 1990s levels while extending tax cuts for everyone else.

Although the House didn't vote on Boehner's tax measure, most Republicans did vote together earlier Thursday as the House narrowly approved, 215-209, a related measure to alter automatic spending cuts set to kick in next year under the fiscal cliff, replacing cuts to the military with reductions elsewhere. The Congressional Budget Office said this would lead to $217.7 billion in cuts over the next decade, short of the $1.2 trillion in cuts that would go into effect in January if the fiscal cliff isn't averted.

Moments after that vote, the White House issued a statement indicating it would veto this bill. But that should be a moot point, since Senate Majority Leader Harry Reid has said he won't bring it up for a vote.

Republicans consider piggybacking spending cuts to 'Plan B'

"For weeks, the White House said that if I moved on rates, that they would make substantial concessions on spending cuts and entitlement reforms," House Speaker John Boehner said before his plan fell flat. "I did my part. They've done nothing."

While the Ohio congressman said Obama seems "unwilling to stand up to his own party on the big issues that face our country," Democrats say Republican leaders are buckling to their conservative base by backing off as negotiations seemed to be nearing a deal.

White House spokesman Jay Carney called the GOP alternatives "a major step backwards," claiming they'd lead to extended tax cuts of $50,000 for millionaires. Reid slammed the two Republican measures -- the one that passed and the one that wasn't brought up for a vote -- as "pointless political stunts."

The war of words notwithstanding, Boehner, Carney and Senate Democratic leaders all said they are ready to talk. Reid has said the Senate -- with many members attending a memorial service Friday and funeral in Hawaii on Sunday for Sen. Daniel Inouye -- will be back at work December 27. And after Thursday's session, Cantor's office said legislative business was finished for the week but the House could reconvene after Christmas if needed.

"I remain hopeful," Boehner said. "Our country has big challenges, and the president and I are going to have to work together to solve those challenges."

The path toward the fast-approaching fiscal cliff

The possibility of a fiscal cliff -- which economists warn will hit the American economy hard -- was set in motion two years ago, as a way to force action on mounting government debt. Negotiations between top Congressional Republicans and Democrats resumed after Obama's re-election last month as did the barbs from both sides.

Polling has consistently shown most Americans back the president, who insists wealthy Americans must pay more, rather than Boehner and his Republican colleagues, who have balked at tax rate hikes and demanded spending cuts and entitlement program reforms.

A new CNN/ORC International survey released Thursday showed that just over half of respondents believe Republicans should give up more in any solution and consider the party's policies too extreme.

CNN poll: Are GOP policies too extreme?

The two sides seemingly had made progress on forging a $2 trillion deficit reduction deal that included new revenue sought by Obama and spending cuts and entitlement changes desired by Boehner.

Senior administration officials said Obama and Boehner have not spoken since Monday, when the president made a counterproposal to a Republican offer over the weekend.

The president's offer set $400,000 as the household income threshold for a tax rate increase. It also included a new formula for the consumer price index applied to benefits for programs such as Social Security, Medicare and Medicaid to protect against inflation, much to the chagrin of some liberals.

The new calculation, called 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.

Boehner essentially halted negotiations by introducing his Plan B on Tuesday. He described it as a fallback option to prevent a sweeping tax increase when tax cuts dating to President George W. Bush's administration expire in two weeks. The spending cut vote -- similar to one passed by the House last year that went nowhere in the Senate -- was added to the docket later Thursday, to appeal to conservative legislators upset about backing a tax increase without acting on spending and protecting the military budget.

The House speaker's reasoning was that the passage of Plan B and the spending bill would put the onus on Obama and Senate Democrats to accept them or offer a compromise.

For now, the Obama administration won't have to weigh in on the tax part of that scenario. As to the House-approved spending cuts bill, White House spokeswoman Amy Brundage dismissed the GOP alternative as "nothing more than a dangerous diversion" for eliminating federal funding by negatively impacting millions of seniors, disabled individuals and poor and at-risk children.

In a statement Thursday night, the White House didn't address Thursday's House proceedings but referenced its top priority -- ensuring that 98% of Americans don't see their taxes rise in January. The statement expressed confidence that there will be deal on the fiscal cliff but with no explanation of how, when or what such an agreement would look like.

"The president will work with Congress to get this done, and we are hopeful that we will be able to find a bipartisan solution quickly that protects the middle class and our economy," the White House said.

Delay of 100 million tax returns?

CNN's Tom Cohen, Greg Botelho, Joe Sterling and Ted Barrett contributed to this report.

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Obama to hold moment of silence for Conn. victims

President Obama speaks at a memorial service for the victims of the Sandy Hook Elementary School shooting on December 16, 2012 in Newtown, Conn. / MANDEL NGAN/AFP/Getty Images

WASHINGTON President Barack Obama plans to observe a moment of silence at the White House on Friday morning in honor of the victims of the Connecticut elementary school massacre.

The White House says the president will observe the moment of silence at 9:30 a.m. EST, about one week after the shooting at Sandy Hook Elementary School in Newtown, Conn., in which 20 children and six adults were killed at the school.

Obama has asked Vice President Joe Biden to produce recommendations on new gun laws by next month and pledged to push new legislation without delay.

The White House said the president's observance of the shootings would take place in private without press coverage.

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Fiscal Cliff 'Plan B' Is Dead: Now What?

Dec 20, 2012 11:00pm

The defeat of his Plan B — Republicans pulled it when it became clear it would be voted down — is a big defeat for Speaker of the House John Boehner.  It demonstrates definitively that there is no fiscal cliff deal that can pass the House on Republican votes alone.

Boehner could not even muster the votes to pass something that would only allow tax rates on those making more than $1 million to go up.

Boehner’s Plan B ran into opposition from conservative and tea party groups -including Heritage Action, Freedom Works and the Club for Growth – but it became impossible to pass it after Senate Democrats vowed not to take up the bill and the president threatened to veto it.  Conservative Republicans saw no reason to vote for a bill conservative activists opposed – especially if it had no hopes of going anywhere anyway.

Plan B is dead.

Now what?

House Republicans say it is now up to the Senate to act.  Senate Democrats say it is now up to Boehner to reach an agreement with President Obama.

Each side is saying the other must move.

The bottom line:  The only plausible solution is for President Obama and Speaker Boehner to do what they have failed repeatedly to do:  come up with a truly bi-partisan deal.

The prospects look grimmer than ever. It will be interesting to see if the markets react.

SHOWS: This Week

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Human hands evolved so we could punch each other

Forget toolmaking, think fisticuffs. Did evolution shape our hands not for dexterity but to form fists so we could punch other people? That idea emerges from a new study, although it runs counter to conventional wisdom.

About the same time as we stopped hanging from trees and started walking upright, our hands become short and square, with opposable thumbs. These anatomical changes are thought to have evolved for tool manipulation, but David Carrier at the University of Utah in Salt Lake City has an alternative explanation.

He says there are several possible hand shapes that would have allowed greater dexterity, making it less clear why we ended up with the hands we have. But only one hand shape lets us make a fist with a thumb as buttress.

Among primates' hands, ours is unique for its ability to form a fist with the thumb outside the fingers. The fingers of other primates' hands are too long to curl into their palms, and their thumbs are too short to reach across the fingers. So when apes fight, they are far more likely to wrestle or hold their opponent down while others stomp on him, says Carrier.

To test the importance of fists, Carrier and his colleagues recruited 10 athletes and measured how hard they could hit a punching bag using a normal fist, a fist with the thumb stuck out, and with an open palm.

The athletes could generate more than twice the force with a normal fist as with the thumb-stuck-out fist, because of thumb's buttressing role. There was no difference in the force they could generate with a normal fist and with an open palm, but Carrier says it's possible that a fist concentrates the force into a smaller area and so does more damage.

Cause or effect?

Mary Marzke of Arizona State University in Tempe says the study is interesting, but it far from proves that the ability to make a strong fist was the main driver behind the evolution of our hands' shape. It is more likely that it was a useful side effect of a whole suite of modifications.

She points out that apes strike with the heel of their hand when knocking fruit out of trees. Carrier's study didn't assess the force that the heel of the hand generates, but if it turns out to be as good as a fist, it becomes less clear that our hands evolved so as to be perfect for fist-making, Marzke says.

But if the hypothesis is true, Carrier thinks it could explain another mystery. It has long been unclear why high levels of testosterone cause men's ring fingers to be longer than their index fingers. He says the finger-length ratio makes sense if it generates a better fist. This would make dominant males even better fighters.

Journal reference: Journal of Experimental Biology, doi:10.1242/jeb.075713

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Mexico empties prison of inmates after deadly riot

DURANGO, Mexico: Officials have removed all of the prisoners -- about 500 inmates -- from a prison in northern Mexico, one day after the facility erupted in violence, leaving 15 inmates and nine guards dead.

The prison "has been totally emptied as a preventive measure," Durango public safety spokesman Fernando Rios told AFP, who said the inmates had been distributed to penal facilities throughout the region.

Security forces said Tuesday's uprising, which occurred at the prison in the city of Gomez Palacio, erupted when prison guards foiled an attempted jailbreak by inmates.

Mass jailbreaks have become a recurring problem in Mexico. In September, 131 inmates escaped through the front door of a prison in Piedras Negras, a city on the US border.

A jailbreak at a prison in the northern state of Nuevo Leon in February saw 44 prisoners killed during fighting between two warring drug cartels.

In the last two years, 521 inmates have run free in 14 prison escapes while 352 homicides have been committed inside penitentiaries, according to the National Human Rights Commission.

- AFP

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Blizzard warning issued for large swath of Midwest

Drivers in Colorado contend with heavy snow Wednesday.

STORY HIGHLIGHTS

• NEW: 156-mile stretch of freeway closed in Colorado


• 23-car pileup in Texas dust storm kills one, injures 17


• Heavy snow, high winds stretch from Colorado to Wisconsin in season's first blizzard


• Storm to crawl from Midwest to New England by Friday

(CNN) -- People traveling early for Christmas in the center of the country will be dashing through the snow and the rain and the wind.

The first major storm of the season has prompted the National Weather Service to issue a blizzard warning for a huge swath of the Midwest stretching from eastern Colorado to Wisconsin's Lake Michigan shoreline, including virtually all of Iowa. The declaration warns of snow accumulations of up to 12 inches, complemented by 25- to 35-mph winds that will occasionally gust to 45 to 50 mph.

A 156-mile stretch of Interstate Highway 70 between Denver and the Kansas state line was closed in both directions for a time Wednesday. The westbound side reopened about 7 p.m. MT, but the eastbound lanes remained closed.

Cheyenne Wells, in east-central Colorado, reported a 67-mph wind gust with zero visibility just after 2 p.m. MT, CNN meteorologist Sean Morris said. U.S. Highway 385 was closed for 65 miles in the Cheyenne Wells region, Colorado's Department of Transportation reported.

"Most of the storm is on its way out across the state, except for the Eastern Plains, where there are still high winds, blizzard conditions, and highway closures," the department's Facebook page said.

"Whiteout conditions are likely and travel could become impossible" Wednesday night and into Thursday, the service's Omaha, Nebraska, office warned.

Is the storm hitting you? Send images to iReport

"Far southeast Nebraska and extreme southwest Iowa could see rain or a wintry mix for several hours yet this evening, so blizzard conditions may not develop over that area until mid-evening or later," the service said.

Airlines were reporting relatively few cancellations or delays in areas affected by the storm Wednesday night, but that could change overnight.

The storm will race into western Illinois, the weather service said. Rain will quickly change over to snow as the storm advances northeast, with the heaviest snow occurring overnight.

"Snow drifts several feet deep will be possible given the strong winds," the blizzard warning states.

At least 17 people were sent to hospitals near Lubbock, Texas, after a 23-vehicle chain-reaction crash on Interstate Highway 27 north of New Deal, Texas, state safety officials told CNN. There was at least one fatality, said Clinton Thetford, emergency management coordinator of Lubbock County. A stretch of the freeway in Lubbock County remains closed indefinitely.

Wrapping around the blizzard warning on the north, south and east is a winter storm warning, which will be no picnic either. The winds won't be quite as strong, but residents should expect a strong dose of rain, sleet and snow, with a few hail-packing thunderstorms thrown in for good measure.

A winter weather advisory is in effect for the Indiana-Ohio-Michigan tri-state area, as well as central Missouri and Kansas.

The "intense cyclone" will crawl across the Great Lakes region Thursday and slog into northern New England by Friday evening, the National Weather Service predicted.

Dodging the heavy precipitation but not the high winds is an area from western Texas and eastern New Mexico through the Oklahoma Panhandle and into southwest Kansas.

Much of the Southwest and Mississippi Valley is extremely dry, and the high winds have kicked up blinding dust near Lubbock, Texas.

CNN's Carma Hassan and Joe Sutton contributed to this report.

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Senate GOP proposes much smaller Sandy aid package

WASHINGTONSenate Republicans on Wednesday proposed a $24 billion emergency aid package for Superstorm Sandy victims, less than half of what Democrats hope to pass by Christmas.

The GOP alternative bill would provide more than enough money to pay for immediate recovery efforts through the spring.

Republicans complain that the $60.4 billion Democratic bill being debated in the Senate is larded with money for projects unrelated to damage from the late October storm, which battered the Atlantic coastline from North Carolina to Maine.

The Republican version does not include $13 billion Democrats want for projects to protect against future storms, including fortification of mass transit systems in the Northeast and protecting vulnerable seaside areas by building jetties against storm surges.

49 Photos

Sandy's devastation on Staten Island

Republicans said however worthy such projects may be, they are not urgently needed and should be considered by Congress in the usual appropriations process next year, not through emergency spending.

"We want to take care of urgent needs now," said Indiana Sen. Dan Coats, ranking Republican on the Senate Appropriations homeland security subcommittee, who put forward the bill. "We can look at other needs down the road when we have more time to look at them."

The GOP bill also scraps spending from the Democratic bill that is not directly related to Sandy damages, such as the $150 million for the National Oceanic and Atmospheric Administration for declared fisheries disasters in 2012 that could go to New England states, Alaska, New York and Mississippi.

The aid will help states rebuild public infrastructure like roads and tunnels and help thousands of people displaced from their homes. Sandy was the most costly natural disaster since Hurricane Katrina in 2005 and one of the worst storms ever in the Northeast.

More than $2 billion in federal funds has been spent on relief efforts so far for 11 states and the District of Columbia. The Federal Emergency Management Agency's disaster relief fund still has about $4.8 billion, and officials have said that is enough to pay for recovery efforts into early spring.

Earlier this month, Govs. Chris Christie, R-N.J., Andrew Cuomo, D-N.Y., and Dannel Malloy, D-Conn., argued in an op-ed that "in times of crisis no region, state or single American should have to stand alone or be left to fend for themselves," pointing to the "hundreds of thousands of homes and businesses damaged or destroyed, thousands still left homeless or displaced, tens of billions of dollars in economic loss" as evidence that "It's time for Congress to stand with us."

The governors, while recognizing that "our nation faces significant fiscal challenges," strive to separate the disaster-relief needs of their region from the ongoing "fiscal cliff" negotiations consuming Capitol Hill, arguing that Congress must "not allow this much-needed aid to fall in to the ideological divide."

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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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Migrant Workers' Centre reminds employers of their roles

SINGAPORE: The Migrant Workers' Centre has reminded employers of their responsibilities to foreign workers under Singapore's manpower regulations.

These include prompt payment of salaries, providing acceptable housing and adequate care during their stay here.

The reminder came after Tuesday' incident at a Yishun construction site where some workers stopped work as a result of unpaid salaries.

The centre's chairman, Yeo Guat Kwang, also urged the Ministry of Manpower (MOM) to respond swiftly to all foreign worker claims and complaints so that they do not take matters into their own hands out of desperation.

The centre said it has always advocated for stricter enforcement against errant employers, and is encouraged by the ministry's swift response to Tuesday's Yishun incident.

The centre said it received notice of the workers' salary dispute with Sime Chong Construction at 4pm on Tuesday, and quickly sent a team to the site.

The team worked with MOM officials, the employer and workers to reach a satisfactory resolution.

The centre also provided emergency housing for four workers who were not able to have their claims resolved on Tuesday. It will follow up with the ministry on Wednesday and is confident of a favourable resolution for them.

The centre added that it is ready to intervene and provide further assistance to the workers, should the need arise.

- CNA/al

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