In-depth 2012: The best long reads of the year

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

Dig deeper, look closer and think harder – these are the goals of New Scientist's in-depth articles. Each one is perfect for saving in your favourite read-it-later app and curling up in front of a glowing tablet for a good long read.

These are our editors' picks of our best features of the year, and all are prime examples of the amazing breadth of big ideas that were ripe for the tackling in 2012. When you have finished digesting these readable meals, visit our in-depth articles archive if you're hungry for more.

Richard Webb: "You might not have heard of the algorithm that runs the world." I certainly hadn't, or that its mathematical foundations are starting to look a little wobbly. An eye-opening examination of how seemingly abstruse mathematics is in fact deeply embedded in modern life: "The algorithm that runs the world"

Sally Adee: Gastric bypass surgery is the best surgery you're not getting, said Dr Oz on his popular medical advice show in the US. Because of enthusiasm from people like him, this operation has become massively popular – but by whimsically hacking at our stomach, might we might be messing with a system far more complicated than anyone really understands? Samantha Murphy had the surgery and began to realise that losing 45 kilograms could come with some profound neurological trade-offs: "Change your stomach, change your brain"

Michael Le Page: Nowadays most people either haven't heard of the 1970 book The Limits to Growth, or believe – wrongly – that the research it was based on has been discredited. But the main message of Limits is perhaps more relevant than ever – that a delayed response to mounting environmental problems leads to catastrophe further down the line: "Boom and doom: Revisiting prophecies of collapse"

Richard Fisher: This is a simple story about a scientific mystery. Strange rumbles, whistles and blasts have been reported all over the world for centuries. In New York state, they are called "Seneca guns"; in the Italian Apennines they are described as brontidi, which means thunder-like; in Japan they are yan; and along the coast of Belgium they are called mistpouffers – or fog belches. Yet the cause is often unexplained – what on Earth could be behind them? "Mystery booms: The source of a worldwide sonic enigma"

Valerie Jamieson: It's been a sensational year for particle physics, but the Higgs boson isn't the only fascinating particle in town. Meet 11 more particles that change our understanding of the subatomic world: "11 particles for 11 physics puzzles"

David Robson: What is the secret of the legendary "flow state" that seems to mark out genius in everyone from piano virtuosos to tennis champions? With the latest brain stimulation techniques, it may soon be within everyone's reach, and Sally Adee writes with panache as she describes her own use of the technology during a terrifying marksmanship training session. This has everything I want to read in a story – drama, a revolutionary idea and some practical advice for anyone to try at home: "Zap your brain into the zone: Fast track to pure focus"

Graham Lawton: The writer of this article, Christopher Kemp, is a self-confessed lover of marginalia – nooks and crannies of science that are often overlooked. But as this beautifully written story reveals, those nooks and crannies often contain rich and fascinating material. Material, in fact, like ambergris: "Heaven scent: The grey gold from a sperm whale's gut"

Ben Crystall: Many people may remember the wonder material Starlite from an episode of BBC TV's Tomorrow's World – it seemed to have a miraculous ability to withstand fire and heat. So what happened to it? In this feature Richard Fisher uncovers the strange tale of Starlite and its eccentric inventor Maurice Ward, and on the way reveals fascinating details about Ward and his creation. And though Ward is dead, the story may not be over – it now looks like Starlite could get a second chance… "The power of cool: Whatever became of Starlite?"

Clare Wilson: I enjoyed working on this feature the most this year because to me it truly represents the future of medicine. New Scientist often predicts that some new medicine or technology will be available in five years' time. When it comes to using gene therapies or stem cell therapies on babies in the womb – the subject of this feature – the timeline is probably more uncertain, yet I don't see how anyone can doubt that some day it will happen: "Fetal healing: Curing congenital diseases in the womb"

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Asian markets rise as US averts fiscal cliff

HONG KONG: Asian shares rose sharply Wednesday as the US Congress backed a deal to avert a "fiscal cliff" of drastic tax rises and spending cuts in an upbeat start to the year for regional markets.

As the House of Representatives approved the bill, which avoids tax hikes for most Americans and delays automatic spending cuts, the dollar strengthened against the yen and oil prices surged.

Hong Kong was up 1.91 percent, Singapore gained 1.26 percent, Seoul rose 1.48 percent, and Sydney put on 1.29 percent. Financial markets in Japan and China were closed for a public holiday.

Asian shares had risen on Wednesday morning in anticipation of a deal in Washington, strengthening further after it was approved by US lawmakers.

Jason Hughes, head of premium client management for IG Markets Singapore, said the market reaction was "very positive".

"With the final hurdle being passed now, we've got a minimum deal that avoids any immediate threat of the US falling off the cliff... that's definitely boosted Asian equities markets," he said.

The gains followed jumps in US stocks on New Year's Eve as Congress moved towards a deal.

The Dow Jones Industrial Average finished up 1.28 percent, the S&P 500 gained 1.69 percent and the tech-rich Nasdaq Composite surged 2.00 percent.

The upbeat start for shares in 2013 will be a relief for investors after the uncertainty that clouded markets in the final months of last year as wrangling over the fiscal cliff dragged on.

The US deal passed the Senate early on Tuesday but its fate hung in the balance for hours as House conservatives sought to amend it to include big spending cuts, which would likely have killed it.

In the end, the House voted by 257 votes to 167 to pass the original bill with minority Democrats joining a smaller number of majority Republicans to pass the legislation after a bitterly contested session on New Year's Day.

The deal between the White House and Senate Republicans raises taxes on the rich and puts off automatic $109 billion budget cuts for two months.

Had it splintered, all Americans would have been hit by tax increases and spending cuts would have kicked in across the government, in a combined $500 billion shock that could have rocked the fragile recovery.

The House vote took place after a conservative rebellion fizzled when it became clear there were not sufficient votes in the restive Republican caucus to send an amended version of the bill with spending cuts back to the Senate.

Republican party leaders ultimately feared they would carry the can if the deal collapsed.

On currency markets in Asian afternoon trade, the dollar rose to 87.18 yen from 86.69 yen on Monday and the euro strengthened to $1.3272 from $1.3192. The single currency was at 115.71 yen from 114.45 yen.

On oil markets, New York's main contract, light sweet crude for delivery in February gained 63 cents to $92.45 a barrel and Brent North Sea crude for February delivery advanced 65 cents to $111.76.

Gold was at $1,677.72 at 0440 GMT compared with $1,658.90 late Friday.

- AFP/al

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Pa. gov. to sue NCAA over Penn State sanctions

HARRISBURG, Pa. Gov. Tom Corbett said Tuesday he plans to sue the NCAA in federal court over stiff sanctions imposed against Penn State University in the wake of the Jerry Sandusky child sexual abuse scandal.

The Republican governor scheduled a Wednesday news conference on the Penn State campus in State College to announce the filing in U.S. District Court in Harrisburg.

The sanctions, which were agreed to by the university in July, included a $60 million fine that would be used nationally to finance child abuse prevention grants. The sanctions also included a four-year bowl game ban for the university's marquee football program, reduced football scholarships and the forfeiture of 112 wins.

The governor's office announced the news conference late Tuesday afternoon. His spokesman did not respond to repeated calls and emails seeking to confirm a Sports Illustrated story that cited anonymous sources saying a lawsuit was imminent.

Corbett's brief statement did not indicate whether his office coordinated its legal strategy with state Attorney General-elect Kathleen Kane, who is scheduled to be sworn in Jan. 15.

Kane, a Democrat, ran on a vow to investigate why it took state prosecutors nearly three years to charge Sandusky, an assistant under former football coach Joe Paterno. Corbett was the attorney general when that office took over the case in early 2009 and until he became governor in January 2011.

6 Photos

Who's who in the Penn State child sex abuse scandal

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Pa. Atty Gen: Penn State officials showed "callous lack of concern"

State and congressional lawmakers from Pennsylvania have objected to using the Penn State fine to finance activities in other states. Penn State has already made the first $12 million payment, and an NCAA task force is deciding how it should be spent.

The NCAA, which did not respond to calls seeking comment Tuesday, has said at least a quarter of the money would be spent in Pennsylvania.

Republican U.S. Rep. Charlie Dent called that an "unacceptable and unsatisfactory" response by the NCAA to a request from the state's U.S. House delegation that the whole $60 million be distributed to causes within the state.

Last week, state Sen. Jake Corman, a Republican whose district includes Penn State's main campus, said he plans to seek court action barring any of the first $12 million from being released to groups outside the state.

The fine was just part of college sports' governing body's sanctions on Penn State for its handling of the abuse scandal involving Sandusky, who was convicted in June on charges he sexually abused 10 boys, some on campus. The landmark sanctions, though, didn't include a suspension of the university's football program, the so-called death penalty.

Sandusky, 68, was convicted on 45 counts. He's serving a 30- to 60-year state prison term.

Eight young men testified against him, describing a range of abuse they said went from grooming and manipulation to fondling, oral sex and anal rape when they were boys.

Sandusky did not testify at his trial but has maintained his innocence, acknowledging he showered with boys but insisting he never molested them.

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House Approves 'Fiscal Cliff' Deal

The House of Representatives has approved a bipartisan Senate deal to avert the "fiscal cliff" and preserve Bush-era tax cuts for all Americans making less than $400,000 per year.

The compromise is now on its way to President Obama for his signature.

"I will sign a law that raises taxes on the wealthiest two percent of Americans while preventing a middle class tax hike that could have sent the economy back into recession and obviously had a severe impact on families all across America," said Obama, who was joined by his top negotiator, Vice President Joe Biden, for late-night televised remarks after the House vote.

"Under this law, more than 98 percent of Americans and 97 percent of small businesses will not see their income taxes go up," he added. "A central premise of my campaign for president was to change the tax code that was too skewed towards the wealthy at the expense of working middle-class Americans."

House Republicans agreed to the up-or-down vote Tuesday evening, despite earlier talk of trying to amend the Senate bill with more spending cuts before taking a vote. The bill delays for two months tough decisions about automatic spending cuts that were set to kick in Wednesday.

A majority of the Republicans in the GOP-majority House voted against the fiscal cliff deal. About twice as many Democrats voted in favor of the deal compared to Republicans. One hundred fifty-one Republicans joined 16 Democrats to vote against the deal, while 172 Democrats carried the vote along with 85 Republicans.

The Senate passed the same bill by an 89-8 vote in the wee hours of New Year's Day. If House Republicans had tweaked the legislation, there would have been no clear path for its return to the Senate before a new Congress is sworn in Thursday.

The vote split Republican leaders in the House. House Speaker John Boehner, R-Ohio, voted yes, and so did the GOP's 2012 vice presidential candidate, Rep. Paul Ryan, R-Wis.

But House Majority Leader Eric Cantor, R-Va., the No. 2 Republican in the House, voted no. It was his opposition that had made passage of the bill seem unlikely earlier in the day.

The deal does little to address the nation's long-term debt woes and does not entirely solve the problem of the "fiscal cliff."

Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- sets up a new showdown on the same spending cuts in two months amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

Bill Clark/Roll Call/Getty Images

'Fiscal Cliff' Negotiations: Congress Reaches Agreement Watch Video

"Now the focus turns to spending," said Boehner in a statement after the vote. "The American people re-elected a Republican majority in the House, and we will use it in 2013 to hold the president accountable for the 'balanced' approach he promised, meaning significant spending cuts and reforms to the entitlement programs that are driving our country deeper and deeper into debt."

President Obama also seemed to be looking forward to the next debate.

"This is one step in the broader effort to strengthen our economy for everybody," Obama said.

Obama lamented that earlier attempts at a much larger fiscal deal that would have cut spending and dealt with entitlement reforms failed. He said he hoped future debates would be done with "a little less drama, a little less brinksmanship, and not scare folks quite as much."

But Obama drew a line in the sand on the debt ceiling, which is set to be reached by March.

"While I will negotiate over many things, I will not have another debate with this Congress over whether they should pay the bills for what they've racked up," Obama said. "We can't not pay bills that we've already incurred."

Republicans hope that allowing the fiscal cliff compromise, which raised taxes without an equal amount of spending cuts, will settle the issue of tax rates for the coming debates on spending.

However, getting the deal done wasn't easy. Before deciding on the up-or-down vote in the House on the fiscal cliff deal, GOP leaders had emerged from a morning conference meeting disenchanted by the legislative package devised by Senate Minority Leader Mitch McConnell, R-Mo., and Vice President Biden early this morning, with several insisting they could not vote on it as it stood.

"I do not support the bill," Cantor said as he left the meeting. "We're looking for the best path forward. No decisions have been made yet."

Boehner refused to comment on the meeting, but his spokesman said, "The lack of spending cuts in the Senate bill was a universal concern amongst members in today's meeting."

As lawmakers wrestled with the legislation, the non-partisan Congressional Budget Office estimated that the bill's added spending combined with the cost of extending tax cuts for those making under $400,000 would actually add $3.9 trillion to the deficit over the next 10 years. The Joint Committee on Taxation reached a similar conclusion.

The impasse once again raised the specter of sweeping tax hikes on all Americans and deep spending cuts' taking effect later this week.

"This is all about time, and it's about time that we brought this to the floor," House Minority Leader Nancy Pelosi said after emerging from a meeting with Democrats.

"It was a bill that was passed in the U.S. Senate 89-8. Tell me when you've had that on a measure as controversial as this?" she said of the overwhelming vote.

Pelosi could not say, however, whether the measure had the backing of most House Democrats.

"Our members are making their decisions now," she said.

Biden joined Democrats for a midday meeting on Capitol Hill seeking to shore up support for the plan.

While Congress technically missed the midnight Dec. 31 deadline to avert the so-called cliff, both sides expressed eagerness to enact a post-facto fix before Americans went back to work and the stock market opened Wednesday.

"This may take a little while but, honestly, I would argue we should vote on it today," said Rep. Tom Cole, R-Okla., who sits on the Budget Committee, early Tuesday. "We know the essential details and I think putting this thing to bed before the markets is important.

"We ought to take this deal right now and we'll live to fight another day, and it is coming very soon on the spending front."

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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.

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Thousands to march against Hong Kong leader

HONG KONG: Tens of thousands of protesters are expected to rally in Hong Kong Tuesday, calling for the city's embattled new chief executive to quit and for greater democracy.

Organisers are expecting 50,000 people to turn up at the New Year day's march against Leung Chun-ying, while pro-government groups staged a separate and smaller rival rally in support of the Beijing-backed leader.

Since taking office in July, Leung's popularity ratings have tumbled and he has faced a no-confidence vote in the legislature amid a row over illegal structures at his luxury home -- a politically sensitive issue in the city.

Leung has acknowledged and apologised for the structures, which were built without planning permission and include a wooden trellis and a glass enclosure.

He became chief executive after his rival to the post, Henry tang, was brought down by a row over illegal structures at his home.

Protesters have used the scandal to press for universal suffrage in choosing the leader of the former British colony, which was returned to Beijing in 1997 but maintains a semi-autonomous status.

Leung was elected by a 1,200-strong election committee packed with a pro-Beijing elite in March, amid rising anger among the city's seven million inhabitants over what many perceive to be China meddling in local affairs.

Beijing has said the city's chief executive could be directly elected in 2017 at the earliest, with the legislature following by 2020.

"We want to push for Leung's resignation to further push for democratic elections in Hong Kong," Jackie Hung, a spokeswoman for protest organiser Civil Human Rights Front, told AFP ahead of the march through the streets to the government headquarters, due to start at 3pm (0700 GMT).

About 4,000 pro-government supporters held a separate rally ahead of the mass demonstration, chanting "support CY (Leung), support the government".

Hong Kong Federation of Trade Unions honorary president Cheng Yiu-tong said: "We get together today to support the government in developing the economy, better the lives of people. This is the wish of all Hong Kong people."

In a bid to tackle discontent, Leung has banned mainland women from giving birth in Hong Kong and introduced policies to prioritise housing for locals, a move analysts say was a reaction to mainland buyers pushing up prices in the city, one of the world's most expensive.

The city's South China Morning Post newspaper said about 1,000 police will be deployed for Tuesday's marches, following scuffles over the weekend at a pro-government rally that saw two journalists assaulted.

-AFP/ac

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No Senate vote yet on proposed fiscal cliff deal

STORY HIGHLIGHTS

• Senate leaders cut a deal to avoid the fiscal cliff


• Biden pitches the plan to Democrats late Monday


• Obama says more work will be needed and chides Congress for dragging its feet


• "Take the 84% of your winnings off the table," anti-tax crusader advises GOP

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

(CNN) -- Senate leaders and the White House struck a last-minute deal to avert the feared fiscal cliff Monday night, with Vice President Joe Biden headed to the Capitol Hill to pitch the plan to fellow Democrats.

"Happy New Year," Biden, who became the Democratic point man in the talks, told reporters. "Did you think we would be here New Year's Eve?"

A senior Democratic aide told CNN that if caucus meetings went well, a Senate vote could come "within the hour." But the House of Representatives went home long before midnight, meaning nothing will get through Congress before the combination of tax increases and spending cuts lawmakers have been scrambling to head off starts to kick in, at least on paper.

A source familiar with the deal told CNN that the Senate proposal would put off the cuts for two months and keep the expiring Bush-era tax cuts for individuals earning less than $400,000 or couples earning less than $450,000. President Barack Obama has long demanded that the threshold be set at $250,000.

Tax rates on income above those levels would go back to the Clinton-era rate of 39.6%, up from the current 35%, and itemized deductions would be capped at $250,000 for individuals and $300,000 for couples. That would generate an estimated $600 billion in additional revenue over 10 years.

Taxes on inherited estates will go up to 40% from 35%, but the exemption will be indexed to rise with inflation -- a provision the source said was added at the insistence of moderate Democrats.

Unemployment insurance would be extended for a year for for 2 million people, and the alternative minimum tax -- a perennial issue -- would be permanently adjusted for inflation. Child care, tuition and research and development tax credits would be renewed. And the "Doc Fix" -- reimbursements for doctors who take Medicare patients -- will continue, but it won't be paid for out of the Obama administration's signature health care law.

Biden had been in negotiations with Senate Minority Leader Mitch McConnell, R-Kentucky, since Sunday afternoon. Senate Majority Leader Harry Reid and House Minority Leader Nancy Pelosi, both Democrats, agreed to the plan in calls with President Barack Obama, a Democratic source said Monday night.

In the House, GOP sources said earlier Monday that there's little practical difference in settling the issue Monday night versus Tuesday. But if tax-averse 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.

Economists warn the one-two punch of tax increases and spending cuts, known as "sequestration," could push the U.S. economy back into recession and drive unemployment back over 9% by the end of 2013. Obama had chided lawmakers for their last-minute scramble earlier Monday, hitting a nerve among several Republicans in the Senate.

Latest updates: Final fiscal cliff scramble

"They are close, but they're not there yet," he said. "And one thing we can count on with respect to this Congress is that if there is even one second left before you have to do what you're supposed to do, they will use that last second."

The president warned that if Republicans think they can get future deficit reduction solely through spending cuts "that will hurt seniors, or hurt students, or hurt middle-class families without asking also equivalent sacrifice from millionaires or companies with a lot of lobbyists ... they've got another thing coming."

That irked Republican senators who have been grappling for a deal with the Democratic majority in that chamber. Sen. Bob Corker, R-Tennessee, called the president's comments "very unbecoming of where we are at this moment" and added, "My heart's still pounding."

"I know the president has fun heckling Congress," Corker said. "I think he lost probably numbers of votes with what he did."

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

As Monday's deadline drew nigh, federal agencies were preparing for the possibility of furloughing workers. At the Pentagon, a Defense Department official said as many as 800,000 civilian employees could be forced to take unpaid days off as the armed services face an expected $62 billion in cuts in 2013 -- about 12% of its budget.

Those workers perform support tasks across the department, from maintaining aircraft and weapons systems to processing military payrolls and counseling families. The Pentagon believes it can operate for at least two months before any furloughs are necessary, but has to warn its civilian workforce that furloughs could be coming, the official said.

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

The White House budget office noted in September that sequestration was designed during the 2011 standoff over raising the federal debt ceiling as "a mechanism to force Congress to act on further deficit reduction" -- a kind of doomsday device that was never meant to be triggered. But Congress failed to substitute other cuts by the end of 2012, forcing the government to wield what the budget office called "a blunt and indiscriminate instrument."

In its place, the Senate plan would use $12 billion in new tax revenue to replace half the expected deficit reduction from the sequester and leave another $12 billion in spending cuts, split half-and-half between defense and domestic programs.

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

Despite Obama's backing, one leading Senate Democrat warned a 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 Monday morning. Late in the day, nothing had changed that would cause him to support the package.

Conservative lobbyist Grover Norquist, whose Americans for Tax Reform pushes candidates to sign a pledge never to raise taxes, said the plan "right now, as explained" would preserve most of the Bush tax cuts and wouldn't violate his group's pledge.

"Take the 84% of your winnings off the table," Norquist told CNN. "We spent 12 years getting the Democrats to cede those tax cuts to the American people. Take them off the table. Then we go back and argue about making the tax cuts permanent for everyone."

But Robert Reich, who served as labor secretary in the Clinton administration, said the $450,000 threshold "means the lion's share of the burden of deficit reduction falls on the middle class, either in terms of higher taxes down the road or fewer government services." In addition, he said, the plan does nothing to raise the federal debt ceiling just as the federal government bumps up against its borrowing limit.

And that, Arizona GOP Sen. John McCain told CNN, is likely to be "a whole new field of battle."

"We just added 2.1 trillion in the last increase in the debt ceiling, and spending continues to go up," McCain said. "I think there's going to be a pretty big showdown the next time around when we go to the debt limit."

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

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Fiscal Cliff Deal Vote Likely in Senate

The so-called "fiscal cliff" came tonight -- but now there is a specific deal on the table to try to soften it after the fact, according to congressional sources.

Senate Majority Leader Harry Reid, D-Nev., said the deal -- brokered by Vice President Joe Biden and Senate Minority Leader Mitch McConnell -- would get a vote in the Senate sometime after midnight. The House would not vote before Tuesday afternoon at the earliest, sources said.

"I feel really very, very good about this vote," Biden told reporters leaving the meeting with Senate Democrats, "but having been in the Senate for as long as I have there's two things you shouldn't do: You shouldn't predict how the Senate is going to vote before they vote....[and] you surely shouldn't predict about how the House is going to vote."

The proposal would extend Bush-era tax cuts permanently for people making less than $400,000 per year and households making less than $450,000, the sources said.

The steep "sequester" budget cuts scheduled to go into effect with the New Year would be postponed two months, said sources. They said half the money would come from cuts elsewhere, and the other half from new revenue.

The deal also would affect taxes on investment income and estates, and extend unemployment benefits for a year, the congressional sources added.

"The end is in sight," said a Democratic aide with Senate Majority Leader Harry Reid's office. "If everyone cooperates, it's possible things can move pretty quickly."

After the Biden meeting, Sen. Charles Schumer, D-N.Y., said there was "strong" support for the plan among Senate Democrats.

"There is a feeling that it's not that this proposal is regarded as great or as loved in any way, but it's a lot better than going off the cliff," he said.

Sen. Dianne Feinstein, D-Calif., called the compromise the "best" that could be done.

Even with progress in the Senate tonight, the "cliff" deadline will pass without action by the House, where Republican leaders said they would "consider" the deal starting tomorrow.

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

"Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members -- and the American people -- have been able to review the legislation," said House Speaker John Boehner, Majority Leader Eric Cantor, Majority Whip Kevin McCarthy, and Republican Conference Chair Cathy McMorris Rodgers in a statement.

The failure of a deal to pass Congress by Jan. 1 technically triggers an income tax hike on all Americans and automatic spending cuts, though lawmakers could still prevent a tax hike by making retroactive any legislation that passes in the weeks ahead, experts said.

The deal at hand will not entirely solve the problem of the "fiscal cliff," however. In fact, it could set up a new showdown over the same spending cuts in just two months that would be amplified by a brewing fight over how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

Earlier, during a midday news conference, Obama said he was optimistic about compromise in the short-term.

"It appears that an agreement to prevent this New Year's tax hike is within sight, but it's not done," he said. "There are still issues left to resolve, but we're hopeful that Congress can get it done."

In addition to extending current tax rates for households making $450,000 or less, the latest plan would 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, according to sources familiar with the talks.

Capital gains taxes would rise to 20 percent from 15, according to a senior White House official.

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, congressional sources said.

"I can report that we've reached an agreement on the all the tax issues," said Senate Minority Leader Mitch McConnell in an afternoon speech on the Senate floor.

At the time, McConnell said that federal spending cuts remained a sticking point. That hurdle later appeared to be cleared by postponing the debate two more months, though it is unclear whether House Republicans will go along.

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

Some Republicans also said Obama unduly complicated progress toward an agreement by seeming to take a victory lap on taxes at his campaign-style event at the White House.

"Keep in mind that just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans," Obama said, raising the ire of several Republicans. "Obviously, the agreement that's currently discussed would raise those rates, and raise them permanently."

Those words drew a sharp retort from Republican Sen. John McCain.

Rather than staging a "cheerleading rally," McCain said, the president should have been negotiating the finishing touches of the deal.

"He comes out and calls people together and has a group standing behind him, laughs and jokes and ridicules Republicans. Why?" said McCain.

Several Democrats also voiced disappointment with the president and the emerging deal.

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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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S'pore stocks close lower

SINGAPORE: Share prices in Singapore closed lower in line with other regional markets in a shortened pre-holiday session.

Markets were weighed down by the US fiscal deadlock, as hopes faded that a deal will be reached just a day before the deadline.

The Straits Times Index fell 24.72 points, or 0.77 per cent, to end at 3,167.08.

On the broader market, losers outnumbered gainers by 216 to 175.

Volume totalled 1.54 billion shares valued at S$957.6 million.

Among the declining issues, Great Eastern dropped 18 cents to $15.66, DBS lost 14 cents S$14.84, and SIA also moved down 14 cents to finish at S$10.75.

Ramba Energy rose 21.5 cents to 60 cents, Venture added 6 cents to S$8.06, while City Developments gained 4 cents to S$12.87.

- CNA/al

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