Madness in the air in Washington

National Rifle Association Executive Vice President Wayne LaPierre calls on Congress to pass a law putting armed police officers in every school in America.

STORY HIGHLIGHTS

• David Gergen: After election, there were hopes partisan tension would fade


• He says this week we've seen a complete breakdown on the fiscal cliff


• The NRA doubled down on its anti-gun-control rhetoric despite Newtown, he says


• Gergen: We're seeing the character assassination of a hero, Chuck Hagel

Editor's note: David Gergen is a senior political analyst for CNN and has been an adviser to four presidents. A graduate of Harvard Law School, he is a professor of public service and director of the Center for Public Leadership at Harvard University's Kennedy School of Government. Follow him on Twitter.

(CNN) -- What in the world is gripping Washington? Everywhere one turns -- from finances to guns to nominations -- there is madness in the air.

With time rapidly running out, efforts have collapsed to reach a major agreement on federal spending and taxes before year's end, and both Congress and President are leaving town for the holidays. At best, they will return next week and construct a small bridge over the "fiscal cliff"; at worst, they won't. But who knows?

David Gergen

And that's a big part of the problem -- no one can be confident that our national leaders are still capable of governing responsibly. And in the process, they are putting both our economy and our international reputation at risk.

Fresh poison

President Barack Obama had rightly hoped that the elections would clear the air; they haven't. If anything, the recent squabbling over the federal budget has injected fresh poison into relationships and dimmed prospects for other bipartisan agreements in the next few years, starting with hopes for a "grand bargain"in 2013.

John Boehner and Eric Cantor, the House GOP leaders

The President insists he remains an optimist, but if he and Republicans can't agree on how to bring the nation's finances under control -- something fundamental to the welfare of the country -- why should we have faith they will succeed on other important issues like energy, education, immigration and gun safety?

As the blame game heats up, Republicans are sure to pay the biggest price with the public. It was bad enough that they lost the message fight, letting themselves be painted as protectors of the wealthy. But it was inexcusable when they revolted against House Speaker John Boehner in his search for a way forward: that only reinforced a narrative that the Grand Old Party has fallen hostage to its right wing -- a narrative that already exacted a huge price in the fall elections.

Most voters -- I am among them -- believe the country needs a center-right party but will not support an extremist party.

President Obama is certainly not blameless in these financial talks. Early on, he overplayed his hand, alienating rank-and-file Republicans. Like Boehner, he has been more accommodating recently, offering concessions on taxes and entitlement spending that narrowed the negotiating gap between the parties, even as his leftward allies fretted.

Still, Boehner has a point in arguing that what Obama now has on the table comes nowhere close to what the he was advocating in the election season: a ratio of 2.5 dollars in spending cuts to 1.0 dollars in tax increases.

The buck stops on the President's desk, so that ordinarily one would expect him to take the lead in these final days before January 1. For reasons that are still unclear, he instead chose in his press statement late Friday to toss responsibility for negotiations next week into the laps of Congressional leaders.

Perhaps he has reached a quiet understanding with Boehner and Senate Majority Leader Harry Reid that the two of them can work out a stripped-down agreement. Let's hope so. But as we enter the holidays, it appears to be a mess. And time is quickly running out.

The NRA in denial

As if Friday weren't gloomy enough, the National Rifle Association weighed in with its long-awaited response to the horrors of Newtown, Connecticut. There had been hints that the NRA would offer a more conciliatory stance. Just the opposite: they doubled down.

Incredibly, Wayne LaPierre, executive vice president of the NRA, called for putting armed police officers in every school. Isn't that what parents of every six-year old have been longing for: to have their child studying and playing under the watchful eye of an armed guard? Has LaPierre visited an elementary school classroom in recent years? If so, he would know his idea would be repulsive in most schools.

Just as strikingly, the NRA response refused to acknowledge and address the beliefs of a majority of Americans in recent polls that the U.S. needs tougher laws in favor of gun safety. Americans aren't saying no one should have guns or that the 2nd Amendment should be gutted but they are demanding a national conversation to see what can be sensibly done. It is hard to have a conversation when one side won't talk.

Character assassination

Meanwhile, in a less noticed but important saga in Washington, we are once again watching the character assassination of a public servant of honor and distinction.

Chuck Hagel served America with valor as a sergeant in the Vietnam war, earning two Purple Hearts. He was a popular Republican senator from Nebraska who paid close attention to international affairs and is now co-chair of the President's Foreign Intelligence Advisory Board, serving with another former Senator, David Boren.

Ever since Hagel's name arose as a top candidate to become the next Secretary of Defense, he has been pilloried for statements and stands he has taken in the past. Is it legitimate to question his positions on Israel, Iran, and on gays? Absolutely. But what is grossly unfair is to misstate them, saying that he is against sanctions on Iran when in fact he has argued in favor of international sanctions, not unilateral sanctions (which don't work). As someone who strongly favors Israel, I am also deeply troubled by the way he has been misrepresented as virtually anti-Semitic.

Nor is this a fair fight. Hagel is in no-man's land because his name is prominently mentioned but he hasn't been formally nominated, so the White House isn't rushing to the barricades to support him.

The signals from 1600 Pennsylvania Avenue were that the Secretary of Defense nominee would be announced in a package with the Secretary of State. The President has now gone ahead with John Kerry but the absence of a Defense nominee has now left Hagel dangling in the breeze, a piñata.

The White House should now move early next week -- by announcement or by leak -- to settle this by making a decision. Whether or not the President nominates Hagel, he should put a stop to the defamation by recognizing Hagel as a patriot with an independent mind and a long record of honor. If selected as Secretary, Hagel would be a very fine member of the national security team.

One had hoped that the shootings at Sandy Hook would draw us together. Sadly, they haven't. Now, perhaps the blessings of the holidays and a brief moment to take a breath will lift our sights. Surely, this madness should not continue into the New Year.

Follow @CNNOpinion on Twitter

Join us at Facebook/CNNOpinion

The opinions expressed in this commentary are solely those of David Gergen.

Read More..

Banquets "off the menu" for China military

BEIJING: China's high-ranking military officers will no longer be treated to receptions featuring liquor and luxury banquets, state media reported on Saturday, as the country's new leaders stress austerity to fight corruption.

The state-run China Daily newspaper, quoting a dispatch from the official Xinhua news agency, said the Central Military Commission announced the new regulations on Friday.

Similar rules were passed down earlier this month aimed at Communist Party officials, as China's new leadership tries to send a clear signal that it is serious about reigning in corruption.

The report said that "receptions for high-ranking officers will no longer feature liquor or luxury banquets", with "welcome banners, red carpets, floral arrangements, formations of soldiers, performances and souvenirs" also to be abandoned.

The Central Military Commission is chaired by new Communist Party chief Xi Jinping, who took over the party and the commission at a key party meeting last month.

"Commission officials are also required to discipline their spouses, children and subordinates and make sure they do not take bribes," the report said, adding that commission officials were banned from staying in civilian or luxury military hotels while on inspection tours.

Xi, who is slated to become China's president in March, has repeatedly pledged to fight graft amid rising social discontent over government corruption and political scandals that have engulfed the Communist Party.

China's political transition this year was tarnished by the case of disgraced politician Bo Xilai, whose wife was convicted of murdering a British businessman.

Bo is awaiting trial for corruption and abuse of power after allegedly using police in Chongqing city where he ruled to remove political opponents and dissidents, practices that are routine in China.

The scandal unveiled rampant graft and lawlessness at the pinnacle of Chinese political power.

- AFP/al

Read More..

3 charged in deadly home explosion

By Logan Burruss, CNN

updated 6:11 PM EST, Fri December 21, 2012

Bob Leonard Jr., left, Mark Leonard and Monserrate Shirley are accused in a deadly explosion.

STORY HIGHLIGHTS

• Two brothers among accused in explosion at that killed couple next door


• Explosion injured 12 other people and caused $4 million in damage


• Investigators found abnormalities in gas line at suspect's home, affidavit says

(CNN) -- Three Indiana residents were arrested Friday on charges of arson and felony murder in a fatal house explosion in Indianapolis in November, according to the Marion County, Indiana, prosecutor's office.

Monserrate Shirley and brothers Mark Leonard and Bob Leonard Jr. were arrested Friday morning and charged with two counts of felony murder in the deaths of John and Jennifer Longworth, the neighbors of Shirley and Mark Leonard who were killed by the explosion at Shirley's home in the Richmond Hill area on November 10.

"We have to acknowledge that we are helpless to alleviate the pain and anguish of such innocent victims and their families," prosecutor Terry Curry said at a news conference Friday, according to a news release. "However, what we as a public safety community can do and must do is devote our best efforts to see that justice is served on behalf of those victims."

The explosion also injured 12 people and caused roughly $4 million in residential damage, according to the prosecutor's office.

An investigation led by local and federal authorities, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, revealed suspicious behavior and circumstances surrounding the explosion. In particular, various elements of the gas line at Shirley's home may have been tampered with before the blast, including a missing step-down regulator, which reduces gas pressure entering the home, and a missing on/off valve to the residence's gas fireplace.

"The absence of the valve and regulator would explain how such a large volume of gas would be released into the home," Curry told CNN.

In addition, the digital thermostat at Shirley's home had been replaced by a slide-switch thermostat that "will produce a spark when the thermostat reaches a specified temperature," the probable cause affidavit says. However, it appears that the thermostat did not contribute to the explosion; instead, it appears to have been started by the microwave in the kitchen, which was a model that could be programmed to start 24 hours in advance.

Witnesses interviewed during the investigation indicated that the three accused may have a long history of fraud, particularly Mark Leonard, who has allegedly been participating in confidence schemes since 1995, according to the affidavit. The investigation also revealed that Shirley filed for bankruptcy in 2012.

In addition to two counts of felony murder, the accused are charged with conspiracy to commit arson, 12 counts of arson as a Class A felony and 33 counts of arson as a Class B felony. Mark Leonard and Shirley were also charged with conspiracy to commit arson as a Class B felony. They are being held at the Marion County Jail without bail, and an initial court hearing is scheduled for Monday morning.

Read More..

NRA: Guns in schools would protect students

Updated: 6:44 p.m. ET

In a press conference reflecting on last week's massacre in Newtown, Conn., the National Rifle Association's Wayne LaPierre today called on Congress to put armed law enforcement agents in every American school, insisting that guns in schools -- not tougher gun laws -- would most effectively protect children from school shootings.

Play Video

A "good guy with a gun" in every school?

LaPierre, who did not take any questions and whose remarks were interrupted twice by pro-gun control protesters, disdained the notion that stricter gun laws could have prevented "monsters" like Adam Lanza from committing mass shootings, and wondered why students, unlike banks, don't have the protection of armed officials. He also called for a "national database of the mentally ill."

"The only thing that stops a bad guy with a gun is a good guy with a gun," he said.

Twenty first-grade students were gunned down at their Connecticut elementary school last Friday, when 20-year-old Lanza reportedly opened fire in the school. Six adult faculty members were killed in his rampage, and Lanza also took his own life. Shortly before entering Sandy Hook Elementary School, Lanza is believed to have killed his mother, Nancy Lanza, in her bed. In the aftermath of the shootings, there has been much speculation as to the state of Adam Lanza's mental health, but no concrete evidence has been established that he was mentally ill.

Play Video

60 Minutes archives: Understanding the NRA

In the aftermath of the shooting, the NRA stayed largely silent, making only a brief comment earlier this week when announcing today's press conference. In his remarks today, however, LaPierre vehemently defended the pro-gun agency against critics and offered up a solution of his own.

"We must speak for the safety of our nation's children," said LaPierre. "We care about our money, so we protect our banks with armed guards. American airports, office buildings, power plants, courthouses, even sports stadiums, are all protected by armed security. We care about our president, so we protect him with armed Secret Service agents. Members of Congress works in offices surrounded by Capitol police officers, yet when it comes to our most beloved innocent and vulnerable members of the American family -- our children -- we as a society leave them every day utterly defenseless. And the monsters and the predators of the world know it and exploit it."

"That must change now," argued LaPierre, moments before being interrupted by a protester carrying a large pink sign proclaiming that the "NRA is killing our kids." "The truth is that our society is populated by an unknown number of genuine monsters -- people so deranged, so evil, so possessed by voices and driven by demons that no sane person can possibly ever comprehend them. They walk among us every day. And does anybody really believe that the next Adam Lanza isn't planning his attack on a school he's already identified at this very moment?"

Play Video

60 Minutes archives: The anti-gun lobby

Alternately criticizing politicians, the media, and the entertainment industry, LaPierre argued that "the press and political class here in Washington [are] so consumed by fear and hatred of the NRA and America's gun owners" that they overlook what he claims is the real solution to the nation's recent surge in mass shootings -- and what, he said, could have saved lives last week.

"What if, when Adam Lanza started shooting his way into Sandy Hook Elementary School last Friday, he had been confronted by qualified, armed security?" he asked. "Will you at least admit it's possible that 26 innocent lives might have been spared? Is that so abhorrent to you that you would rather continue to risk the alternative?"

LaPierre called on Congress to put a police officer in every school in America, which according to a Slate analysis would cost the nation at least $5.4 billion. LaPierre recognized that local budgets are "strained," but urged lawmakers "to act immediately, to appropriate whatever is necessary to put armed police officers in every school." He offered up the NRA's unique "knowledge, dedication, and resources" to assist in efforts to train those forces, but made no mention of a fiscal contribution. 

Columbine High School employed an armed guard, Neil Gardner, at the time of the 1999 school shootings. According to CNN, Gardner was eating lunch in his car when violence broke out in the school, and 13 people were killed.

Play Video

Protesters disrupt NRA press conference

Gun control advocates immediately decried LaPierre's comments, and New York City Mayor Michael Bloomberg called the press conference a "shameful evasion of the crisis facing our country."

"Instead of offering solutions to a problem they have helped create, they offered a paranoid, dystopian vision of a more dangerous and violent America where everyone is armed and no place is safe," he said. "Leadership is about taking responsibility, especially in times of crisis. Today the NRA's lobbyists blamed everyone but themselves for the crisis of gun violence."

On Twitter, Senator-elect Chris Murphy, D-Ct., called LaPierre's comments "the most revolting, tone-deaf statement I've ever seen."

1/2

Read More..

Obama Still an 'Optimist' on Cliff Deal

Mandel Ngan/AFP/Getty Images

WASHINGTON D.C. – Ten days remain before the mandatory spending cuts and tax increases known as the “fiscal cliff” take effect, but President Obama said he is still a “hopeless optimist” that a federal budget deal can be reached before the year-end deadline that economists agree might plunge the country back into recession.

“Even though Democrats and Republicans are arguing about whether those rates should go up for the wealthiest individuals, all of us – every single one of us -agrees that tax rates shouldn’t go up for the other 98 percent of Americans, which includes 97 percent of small businesses,” he said.

He added that there was “no reason” not to move forward on that aspect, and that it was “within our capacity” to resolve.

The question of whether to raise taxes on incomes over $250,000 remains at an impasse, but is only one element of nuanced legislative wrangling that has left the parties at odds.

For ABC News’ breakdown of the rhetoric versus the reality, click here.

At the White House news conference this evening, the president confirmed he had spoken today to Senate Majority Leader Harry Reid, D-Nev., and House Speaker John Boehner, R-Ohio, although no details of the conversations were disclosed.

The talks came the same day Speaker Boehner admitted “God only knows” the solution to the gridlock, and a day after mounting pressure from within his own Republican Party forced him to pull his alternative proposal from a prospective House vote. That proposal, ”Plan B,” called for extending current tax rates for Americans making up to $1 million a year, a far wealthier threshold than Democrats have advocated.

Boehner acknowledged that even the conservative-leaning “Plan B” did not have the support necessary to pass in the Republican-dominated House, leaving a resolution to the fiscal cliff in doubt.

“In the next few days, I’ve asked leaders of Congress to work towards a package that prevents a tax hike on middle-class Americans, protects unemployment insurance for 2 million Americans, and lays the groundwork for further work on both growth and deficit reduction,” Obama said. ”That’s an achievable goal.  That can get done in 10 days.”

Complicating matters: The halls of Congress are silent tonight. The House of Representatives began its holiday recess Thursday and Senate followed this evening.

Meanwhile, the president has his own vacation to contend with. Tonight, he was embarking for Hawaii and what is typically several weeks of Christmas vacation.

However, during the press conference the president said he would see his congressional colleagues “next week” to continue negotiations, leaving uncertain how long Obama plans to remain in the Aloha State.

The president said he hoped the time off would give leaders “some perspective.”

“Everybody can cool off; everybody can drink some eggnog, have some Christmas cookies, sing some Christmas carols, enjoy the company of loved ones,” he said. “And then I’d ask every member of Congress, while they’re back home, to think about that.  Think about the obligations we have to the people who sent us here.

“This is not simply a contest between parties in terms of who looks good and who doesn’t,” he added later. “There are real-world consequences to what we do here.”

Obama concluded by reiterating that neither side could walk away with “100 percent” of its demands, and that it negotiations couldn’t remain “a contest between parties in terms of who looks good and who doesn’t.”

Boehner’s office reacted quickly to the remarks, continuing recent Republican statements that presidential leadership was at fault for the ongoing gridlock.

“Though the president has failed to offer any solution that passes the test of balance, we remain hopeful he is finally ready to get serious about averting the fiscal cliff,” Boehner said. “The House has already acted to stop all of the looming tax hikes and replace the automatic defense cuts. It is time for the Democratic-run Senate to act, and that is what the speaker told the president tonight.”

The speaker’s office said Boehner “will return to Washington following the holiday, ready to find a solution that can pass both houses of Congress.”

Read More..

Goodbye, U.S. Postal Service?

This Christmas could be the Post Office's last, says John Avlon.

STORY HIGHLIGHTS

• The U.S. Postal Service is bleeding money and heading toward insolvency


• John Avlon: Congress can save the postal service in deal on the fiscal cliff


• He says the urgency is clear, let's hope for a Christmas miracle


• Avlon: But be prepared that Washington dysfunction can doom the postal service

Editor's note: John Avlon is a CNN contributor and senior political columnist for Newsweek and The Daily Beast. He is co-editor of the book "Deadline Artists: America's Greatest Newspaper Columns." He is a regular contributor to "Erin Burnett OutFront" and is a member of the OutFront Political Strike Team. For more political analysis, tune in to "Erin Burnett OutFront" at 7 ET weeknights.

(CNN) -- It's the time of year for dashing through the snow to the crowded post office, with arms full of holiday gifts for family and friends.

Not to break the atmosphere of holiday cheer, but this Christmas could be the last for the U.S. Postal Service. It is losing $25 million dollars a day and staring down insolvency -- unless Congress steps in to pass a reform package that reduces its costs.

With just a few days left in the congressional calendar, there is still some small hope for a Christmas miracle -- maybe the Postal Service can be saved as part of a deal on the fiscal cliff. But with even Hurricane Sandy relief stalled, skepticism is growing.

John Avlon

The real question is, what's taken them so long? After all, back in April the Senate passed an imperfect but bipartisan bill by 62-37. It would have saved some $20 billion, cut some 100 distribution centers, and reduced head count by an additional 100,000 through incentives for early retirement, while reducing red tape to encourage entrepreneurialism and keeping Saturday delivery in place for at least another two years. At the time, Sen. Tom Carper of Delaware said, "The situation is not hopeless; the situation is dire. My hope is that our friends over in the U.S. House, given the bipartisan steps we took this week, will feel a sense of urgency."

To which the House might as well have replied, "Not so much."

In August, the Postal Service defaulted for the first time, unable to make a $5.5 billion payment to fund future retirees' health benefits. The headline in Government Executive magazine said it all: "Postal Service defaults, Congress does nothing."

The usual suspects were at fault -- hyperpartisan politics and the ideological arrogance that always makes the perfect the enemy of the good.

House Oversight Committee Chairman Darrell Issa greeted the news of the Senate bill by calling it a "taxpayer-funded bailout." His primary complaint was that the Senate bill did not go far enough. He was not alone -- Postmaster General Patrick Donahoe also expressed disappointment at the scope of the Senate bill, saying that it fell "far short of the Postal Service's plan."

But Issa's alternative couldn't even get to a vote in the Republican-controlled House. And so nothing happened. Even after the USPS defaulted on a second $5.5 billion payment, the response was crickets.

Washington insiders said that action would be taken after the election, when lawmakers would be free to make potentially unpopular decisions. But despite a series of closed-door meetings, nothing has been done.

It's possible that the nearly $20 billion in savings could be part of a fiscal cliff deal. Sen. Joseph Lieberman has suggested that ending Saturday delivery, except for packages, could be part of a compromise that could save big bucks down the road. Another aspect of a savings plan could be suspending the USPS' onerous obligation to fully fund its pension costs upfront, a requirement that would push many businesses into bankruptcy. And last fiscal year, the post office posted a record $15.9 billion loss.

"As the nation creeps toward the 'fiscal cliff,' the U.S. Postal Service is clearly marching toward a financial collapse of its own," says Carper. "The Postal Service's financial crisis is growing worse, not better. It is imperative that Congress get to work on this issue and find a solution immediately. ... Recently key House and Senate leaders on postal reform have had productive discussions on a path forward, and while there may be some differences of opinion in some of the policy approaches needed to save the Postal Service, there is broad agreement that reform needs to happen -- the sooner the better."

The urgency couldn't be clearer -- but even at this yuletide 11th hour, signs of progress are slim to none. If Congress fails to pass a bill, we'll be back to square one in the new year, with the Senate needing to pass a new bill which will then have to be ratified by the House. There is just no rational reason to think that lift will be any easier in the next Congress than in the current lame duck Congress, where our elected officials are supposedly more free to do the right thing, freed from electoral consequences.

So as you crowd your local post office this holiday season, look around and realize that the clock is ticking. The Postal Service is fighting for its life. And Congress seems determined to ignore its cries for help.

"Neither rain nor snow nor sleet nor gloom of night" can stop the U.S. Postal Service from making its appointed rounds -- but congressional division and dysfunction apparently can.

Follow us on Twitter @CNNOpinion.

Join us on Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of John Avlon.

Read More..

Madoff's brother sentenced to 10 years for fraud

NEW YORK: Peter Madoff, brother of shamed US financier Bernard Madoff, was sentenced on Thursday to 10 years in prison for cooking the books at the family investment firm.

Peter Madoff, 67, pleaded guilty to conspiracy to commit securities fraud during his role as book keeper for Bernard Madoff's once widely heralded but in fact fraudulent Wall Street firm.

The brother has also been slapped with stringent penalties that strip him of virtually everything he owns. Bernard Madoff is serving a 150-year sentence after pleading guilty to the multi-billion-dollar pyramid scheme.

"Peter Madoff was a gatekeeper, who was supposed to guard against fraud, but instead enabled it, facilitating his brother Bernie's breath-taking scheme by falsifying compliance records and lying to both regulators and clients," US Attorney Preet Bharara said in a statement.

"The decade he will spend in prison and the disgorgement of his assets are a just result."

Prosecutors say Peter Madoff did incredibly well through his brother's scheme, in which investors' capital was robbed to pay fake dividends, giving the appearance of an unusually successful Wall Street investment advisory firm.

Peter Madoff insists he had no idea that the whole firm was a fiction. However, he clearly did little to question where the money was coming from -- including his.

The judge ordered Madoff to pay back $143 billion, which represents everything he and his family own, and an enormous, symbolic additional amount.

This includes assets belonging to his wife Marion and daughter Shana. The surrendered items include several homes and a Ferrari sports car.

Bernard Madoff was the toast of Wall Street for years and remained advisor to a multitude of stars and well-connected members of the American-Jewish community, right up until his arrest in December 2008 and the collapse of his scheme.

Two years after that arrest, on December 11, 2010, Bernard Madoff's eldest son Mark was found hanged in his Manhattan apartment.

- AFP/al

Read More..

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.

Read More..

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.

Read More..

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

Read More..