Geithner predicts Republicans will accept higher tax rates

WASHINGTON (Reuters) – Treasury Secretary Timothy Geithner pressed Republicans to offer a plan to increase revenues and cut government spending, and predicted they would agree to raise tax rates on the wealthiest to secure a deal by year-end to avoid the “fiscal cliff.”

In a blitz of appearances on five Sunday morning talk shows, Geithner insisted that tax rates on the richest needed to go up in order to reach a deal, a step Republicans have so far resisted, and he dismissed much of the contentious rhetoric from last week as “political theater.”

“The only thing standing in the way of would be a refusal by Republicans to accept that rates are going to have to go up on the wealthiest Americans. And I don’t really see them doing that,” Geithner, who is leading the Obama administration‘s fiscal cliff negotiations, said on NBC’s “Meet the Press.”

The comments mark the latest round of high-stakes gamesmanship focusing on whether to extend the temporary tax cuts that originated under former President George W. Bush beyond their December 31 expiration date for all taxpayers, as Republicans want, or just for those with incomes under $ 250,000, as President Barack Obama and his fellow Democrats want.

Republicans, who control the House of Representatives but are the minority in the Senate, have expressed a willingness to raise revenues by taking steps such a limiting tax deductions, but they have largely held the line on increasing rates.

A handful of House Republicans expressed flexibility beyond that of their party leaders about considering an increase in tax rates for the wealthiest, as long as they are accompanied by significant spending cuts.

But most House Republicans refuse to back higher rates, preferring to raise revenue through tax reform.

“There’s not going to be an agreement without rates heading up,” Geithner said bluntly on CNN’s “State of the Union.”

The scheduled expiration of the Bush-era tax cuts and automatic reductions government spending set to take hold early next year would suck about $ 600 billion out of the economy and could spark a recession. The Obama administration and Congress are engaged in talks to avoid the fiscal cliff with a less-drastic plan to reduce U.S. budget deficits.

WHO SHOULD PAY?

Geithner’s Sunday interviews are part of a broader push to build public support for the Democrats’ position in the negotiations. Obama has made campaign-style appearances, including visiting a Pennsylvania toy factory on Friday where he portrayed Republicans as scrooges at Christmas time.

While breaking no new ground on the Obama administration’s position on Sunday, Geithner repeatedly urged Republicans to provide their own plan.

“They said they’re prepared to raise revenues but haven’t said how, or how much, or who should pay,” Geithner said on NBC.

In an interview with the Wall Street Journal on Friday, the Republican leader in the Senate, Mitch McConnell of Kentucky, asked Democrats to accept an increase in the Medicare eligibility age, impose higher Medicare premiums for the wealthy, and slow cost-of-living increases for Social Security.

At least one of those suggestions appears to have White House support. On CNN, Geithner said the administration‘s proposal included a modest rise in premiums for higher-income Medicare beneficiaries.

“What we can’t do is sit here trying to figure out what works for them,” Geithner said. “The ball really is with them now.”

The administration has said it is willing to find savings in the Medicare and Medicaid healthcare programs for the elderly and poor, but Geithner reiterated in an interview with ABC’s “This Week” that it would only be open to looking at changes in the Social Security retirement program outside of the context of a fiscal cliff deal.

(Reporting By Aruna Viswanatha; Editing by Eric Beech)

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'Cliff' talks: Geithner invites GOP counteroffer

WASHINGTON (AP) -- President Barack Obama is ready to entertain Republican proposals for spending cuts, but GOP lawmakers must first commit to higher tax rates on the rich and specify what additional spending cuts they want in a deal to avoid the looming "fiscal cliff," Treasury Secretary Timothy Geithner said.

"The ball really is with them now," Geithner, one of the president's chief negotiators with Capitol Hill, said during appearances on five Sunday talk shows. He acknowledged that Republicans are "having a tough time trying to figure out what they can do, what they can get support from their members for." The White House "might need to give them a little more time to figure out where they go next."

Geithner presented congressional leaders Thursday with Obama's postelection blueprint for averting the combination of hundreds of billions in tax increases and spending cuts that will take effect beginning in January if Washington doesn't act to stop it.

But House Speaker John Boehner, R-Ohio, dismissed the plan as "not serious," merely a Democratic wish list that couldn't pass his chamber.

As outlined by administration officials, the plan calls for nearly $1.6 trillion in new tax revenue over the next decade, while making $600 billion in spending cuts, including $350 billion from Medicare and other health programs. But it also contains $200 billion in new spending on jobless benefits, public works and aid for struggling homeowners — and would make it virtually impossible for Congress to block Obama's ability to raise the debt ceiling.

"I was just flabbergasted," Boehner said, describing his meeting with Geithner. "I looked at him and I said, 'You can't be serious?" The speaker, noting the short time between the Nov. 6 election and the new year, said time has been lost so far "with this nonsense."

With the George W. Bush-era tax cuts expiring and across-the-board spending cuts hitting in under a month, Boehner said, "I would say we're nowhere, period." He said "there's clearly a chance" of going over the cliff.

But Geithner, also in interviews that were taped Friday, offered a somewhat rosier view. "I think we're far apart still, but I think we're moving closer together," he said.

He called the back-and-forth "normal political theater," voicing confidence a bargain can be struck in time, and said all that's blocking it is GOP acceptance of higher tax rates on the wealthy.

"It's welcome that they're recognizing that revenues are going to have to go up. But they haven't told us anything about how far rates should go up ... (and) who should pay higher taxes?" Geithner said.

He said so far, GOP proposals demonstrate "political math, not real math."

Republican leaders have said they accept higher tax revenue overall, but only through what they call tax reform — closing loopholes and limiting deductions — and only coupled with tough measures to curb the explosive growth of Medicare, Medicaid and Social Security.

But Geithner insisted that there's "no path to an agreement (without) Republicans acknowledging that rates have to go up for the wealthiest Americans." He also said the administration would only discuss changes to Social Security "in a separate process," not in talks on the fiscal cliff.

As to spending, Geithner said if Republicans don't think Obama's cutting enough spending, they should make a counter-proposal. "They might want to do some different things. But they have to tell us what those things are," he said.

Republicans have also rejected Obama's debt ceiling proposal. Geithner noted it was Senate Minority Leader Mitch McConnell who first suggested it, as a temporary measure in the summer 2011 deficit deal. The administration would make it permanent. "It was a very smart way by a senator with impeccable Republican credentials to ... lift this ... periodic threat of default," Geithner said. "And that's an essential thing for us."

Geithner voiced sympathy for Republicans leaders, saying they're caught between the voters' endorsement of higher taxes on the rich and a House GOP caucus that thinks all tax increases are job-killers.

"They really are in a difficult position," he said. "And they're going to have to figure out their politics of what they do next."

In the past week, Obama has held a series of campaign-style appearances — including one in a swing district in Pennsylvania — urging lawmakers to accept a Senate-passed measure extending tax cuts for all but the top 2 percent of wage-earners. He'll continue the effort when he meets with governors on Tuesday and speaks to the Business Roundtable on Wednesday.

GOP leaders contend letting top-end tax cuts run out would hit small businesses and cost jobs.

Still, Sen. Lamar Alexander, R-Tenn., said Republicans will "hold our nose and raise some revenues" if the result is a deal that reins in runaway debt. But he said the onus is on Obama to knuckle down to talks.

"I'm ready for the president to get off the campaign trail, and get in the White House and get a result," Alexander told reporters in Nashville on Saturday. "Right now he's got the presidential limousine headed toward the fiscal cliff with his foot on the accelerator."

Geithner appeared on CBS' "Face the Nation," NBC's "Meet the Press," CNN's "State of the Union," ABC's "This Week," and "Fox News Sunday." Boehner was on Fox, too.

___

Associated Press Writer Erik Schelzig in Nashville contributed to this report.

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German producers plan Pope Benedict biopic

MUNICH, Germany (Reuters) – Two German producers have bought the film rights to an upcoming biography of Pope Benedict by the Bavarian author of three best-selling interview books with the pontiff.

The Odeon Film company said producers Marcus Mende and Peter Weckert planned a film for international release based on a biography by journalist Peter Seewald due to be published in early 2014.

Seewald’s book-length interviews with Benedict – two as Cardinal Joseph Ratzinger and one as pope – have given readers many insights into the life and thoughts of the shy theologian who now heads the Roman Catholic Church.

Seewald has signed on as a consultant to the scriptwriter, Odeon Film said in a statement on Thursday. It gave no information about the schedule for the film or who might play the main role.

“The producers plan an international film that illustrates all aspects of the extraordinary life and work of Joseph Ratzinger from his birth on Easter night in 1927 in Marktl am Inn in Bavaria to his pontificate today,” it said.

Benedict’s predecessor Pope John Paul was the subject of a dozen documentary films around the world and two major television movies in the United States.

(Reporting by Tom Heneghan; editing by Andrew Roche)

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Cargo plane crashes in Brazzaville, 3 dead

BRAZZAVILLE, Republic of Congo (AP) — A cargo plane owned by a private company crashed Friday near the airport in Brazzaville, the capital of the Republic of Congo, killing at least three people, officials said.

The Soviet-made Ilyushin-76 belonged to Trans Air Congo and appeared to be transporting merchandise, not people, said an aviation official who requested anonymity because he was not authorized to speak to the media.

The plane was coming from Congo‘s second-largest city, Pointe Noire, and tried to land during heavy rain, he said.

Ambulances rushed to the scene in the Makazou neighborhood, located near the airport, but emergency workers were hampered by the lack of light in this capital, which like so many in Africa has a chronic shortage of electricity.

“At the moment, my team is having a hard time searching for survivors in order to find the victims of the crash because there is no light and also because of the rain,” Congolese Red Cross head Albert Mberi said.

He said that realistically, they will only be able to launch a proper search Saturday, when the sun comes up.

Reporters at the scene fought through a wall of smoke. Despite the darkness, they could make out the smoldering remains of the plane, including what looked like the left wing of the aircraft. A little bit further on, emergency workers identified the body of the plane’s Ukrainian pilot, and covered the corpse in a blanket.

Firefighters were trying to extinguish the blaze of a part of the plane that had fallen into a ravine. They were using their truck lights to try to illuminate the scene of the crash. Although the plane was carrying merchandise, emergency workers fear that there could be more people on board.

Because of the state of the road connecting Pointe Noire to Brazzaville, many traders prefer to fly the roughly 400 kilometers (250 miles).

Africa has some of the worst air safety records in the world. In June, a commercial jetliner crashed in Lagos, Nigeria, killing 153 people, just a few days after a cargo plane clipped a bus in neighboring Ghana, killing 10.

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“Honey Boo Boo” star arrested for going ape on Georgia Freeway

LOS ANGELES (TheWrap.com) – If you tend to believe that the cast members of TLC reality series “Here Comes Honey Boo Boo” are less than totally evolved, rejoice; this story might just confirm your suspicions.

“Crazy” Tony Lindsey – the cousin of “Honey Boo Boo”‘s titular star Alana Thompson” – was arrested in Georgia earlier this week following a goofy, but dangerous, stunt involving a gorilla suit, TMZ reports.

A police report says that Lindsey was among a group of men arrested for reckless behavior after one of them, dressed in a gorilla suit, prepared to jump into a lane along Highway 20 at approximately 11 p.m. Unfortunately for the band of wrongheaded pranksters, Deputy Joe Rozier happened to be driving by as he was about to take the leap from the side of the road.

“I observed a white male dressed in a gorilla suit acting as if he was going to jump into my lane of travel. I swerved into the left lane to avoid an accident with the person,” Rozier said in a police report.

Rozier took pursuit, and “observed several white males run up the embankment and into the woods,” the report notes. After threatening to release his police dog, he heard a voice yell back, “You don’t have to do that, we’re coming back.”

A group of five adults and two minors emerged – but with no gorilla suit. After a while, however, they admitted to hiding the suit in the woods.

It’s not known if Lindsey was the one in gorilla suit, or if the stunt will be incorporated into an upcoming episode of “Here Comes Honey Boo Boo.”

A spokesperson for the show has not yet responded to TheWrap’s request for comment.

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How Aggressive Hyena Moms Give Their Kids a Boost

Early one morning I caught sight of Morpheus, silhouetted against a pink African dawn. Her long, sloping neck was stretched out as she loped away from me, disappearing over a hill. I followed her to a nearby plain and was met with the unmistakable sound of a group of hyenas squabbling over a carcass. Morpheus entered the fray, first lunging at a smaller male on her right. A moment later, she looked up briefly, her nose and mouth covered in blood, then turned and snapped at a hyena feeding nearby.I’m intimately acquainted with Morpheus and these other hyenas because they have been studied for more than twenty years by various members of the lab where I did my Ph.D. research; I’ve staked these hyenas out at dens for hours on end and followed them as they raced across open plains. From watching these animals, we’ve learned about hyenas’ social system, their physiology, and the conservation challenges they face.But to me, it’s the aggression that is the most fascinating thing about hyenas. It’s rule-based and constrained by specific social norms, but at the same time, it’s incredibly primal and ruthless. Studying aggression has helped us understand what makes hyenas tick, offering us a glimpse into the evolutionary pressures that have made them one of the most unusual and misunderstood species in the animal kingdom.Formidable femalesFor more than 1000 years, people believed that hyenas were hermaphrodites, since female hyenas have long, fully-erectile pseudopenises that mimic male genitalia. Seeing a hyena play the role of mom while sporting what looks like a penis would bewilder even an astute naturalist. Not only do female hyenas look like males, they are also the more aggressive and socially dominant sex, exhibiting aggression more than three times more often than male hyenas do.For many animals, too much aggression is detrimental, at least in terms of reproductive success; in baboons, aggressive females have reduced fertility and increased rates of miscarriage , and in western bluebirds, overly-aggressive males tend to fledge fewer offspring than other males. But in these species, males are generally more aggressive than females; how is aggressiveness related to fitness in a species where females are the more aggressive sex?Life in the clanHyenas live in huge social groups called clans that are structured by a “linear dominance hierarchy.” That’s the scientific way of saying that in these societies, a high-ranking individual is dominant to every lower-ranking animal in the clan: Morpheus is dominant to Scrabble, who is dominant to Hendrix, and so on. For hyenas, social rank isn’t just a title or a badge of honor. Rank determines access to food, so a high-ranking hyena like Morpheus can drive a lower-ranking hyena off a kill at any time, no matter who hunted or scavenged the meat.Social rank also plays an important role in aggressive behavior among hyenas, since dominance determines who can exhibit aggression toward whom. Aggression is nearly always directed down the hierarchy, toward lower-ranking hyenas (and if a hyena disregards this rule, it’s not taken lightly by other clan members). This means that the highest-ranking hyenas have a lot of opportunities for aggression – they can attack nearly any other hyena in the clan – whereas lower-ranking hyenas have far fewer possible targets. Aggression can occur over food, in defense of cubs, or to reprimand a pesky suitor.But unlike many species, aggression doesn’t dictate social rank among hyenas; instead, social rank is inherited. Hyenas are stuck with their lot in life, unable to move up the hierarchy. So does all this aggression actually benefit hyenas, and if so, how?The implications of aggressionAggressiveness, it turns out, varies drastically among hyenas; some hyenas tend to threaten – or outright attack – group members more frequently than others do. There is more than a five-fold difference in the aggression rates of the least aggressive and the most aggressive females, even after controlling for social rank and the number of opportunities for aggression.This type of consistent variation in behavior, called “animal personality,” is being found in several traits, such as sociability, boldness, and docility, across many species. And aggressiveness, like other personality traits, can have major implications for fitness. However, for hyenas, aggression doesn’t affect fitness by improving a hyena’s own survival; aggressive females don’t live longer or survive at higher rates than others that attack less often.Instead, the benefits of aggressiveness are seen later down the line, in the survival of offspring. Female hyenas that are particularly aggressive over food successfully rear a larger proportion of their cubs to adulthood than do females that aggress less often over food. But interestingly, the benefits of aggressiveness depend on social rank. For high-ranking hyenas, aggressiveness doesn’t matter much in terms of reproductive success; the offspring of dominant females do well no matter how aggressive their mom is. However, for hyenas low on the totem pole, aggression plays an important role in reproductive success, greatly improving their offspring’s odds of surviving until adulthood. But how?Competition and reputationsIt all comes down to acquiring resources for your offspring. High-ranking hyenas already have prime access to food, so being super-aggressive at a kill or carcass isn’t a huge advantage. However, for hyenas low on the totem pole, being able to secure a little extra food for a cub could mean the difference between its survival and starvation.When cubs begin eating meat at around 4 months of age, they start visiting kills with their moms. But as these cubs attempt to eat, they are often harassed by older hyenas and chased off the carcass. Additionally, these young hyenas have another disadvantage when it comes to feeding: their skulls haven’t finished developing yet. Although being able to crush bone is a big benefit for hyenas evolutionarily, it’s a huge morphological handicap for cubs. It takes up to 35 months for a hyena’s skull to develop the integrity and strength to crack bone, so until about three years of age, young hyenas feed more slowly and less efficiently than adults. Combine this physical disadvantage with the incredible feeding competition seen at kills, and cubs – especially low-ranking ones – often don’t get much to eat during these communal feeding situations.Here’s where a mom’s aggressiveness comes in: we found that the cubs of aggressive females are tolerated better, and are able to feed longer, at these kills than the cubs of less aggressive females are. By being super-aggressive, moms secure extra feeding time and valuable calories for their cubs during this particularly handicapped period in their lives. Although we don’t completely understand the process yet, aggressive females appear to develop a type of “mean girl” reputation within the clan that gives their offspring a boost early in life. This effect is incredibly strong and persists even when the mom isn’t present at the kill, allowing cubs to benefit from their mom’s aggressiveness even in her absence. This increased access to resources benefits low-ranking hyenas disproportionately, since they generally have very limited access to food.A combination of behavioral, morphological, and ecological research has helped us begin to understand why these highly aggressive and masculinized females have been favored evolutionarily. But even after 20 years of intensive research, there’s so much more to learn; we still aren’t sure what the functions and implications of male aggression are, and it’s possible that there are consequences of aggression in females that we haven’t yet discovered.Morpheus and her clanmates are still being observed, and you can follow the trials, tribulations, and musings of the researchers studying these hyenas out in the field at the Mara Hyena Project blog.

Follow Scientific American on Twitter @SciAm and @SciamBlogs.Visit ScientificAmerican.com for the latest in science, health and technology news.
© 2012 ScientificAmerican.com. All rights reserved.
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Obama accuses House GOP of holding middle class tax cuts 'hostage'

President Obama is urging Congress to extend tax breaks for the middle class, saying it's "unacceptable for some Republicans in Congress to hold middle class tax cuts hostage simply because they refuse to let tax rates go up on the wealthiest Americans."

With the clock ticking toward the so-called "fiscal cliff," Obama asked lawmakers in his weekly address to "begin by doing what we all agree on" and extend the middle class tax cuts set to expire at the end of the year.

Read: Cliff Dive: A Stalemate and a Scrooge Christmas

"With the issue behind us, we'll have more time to work out a plan to bring down our deficits in a balanced way, including by asking the wealthiest Americans to pay a little more, so we can still invest in the things that make our nation strong," he said from a toy manufacturing facility in Hatfield, Pa., where he delivered a similar message to workers Friday.

The president has launched a public campaign to try and force Republicans to sign on to his position on the expiring Bush tax cuts, asking them to pass a Senate bill that would maintain low middle class tax rates while allowing them to go up on the top income earners.

"If we can just get a few House Republicans on board, I'll sign this bill as soon as Congress sends it my way," he said.

Read: Could Outgoing Republicans Hold Keys to 'Fiscal Cliff'?

Earlier this week, the White House put forth a deficit reduction proposal to avert the looming tax increases and spending cuts set to kick in on Jan. 1, which included $1.6 trillion in tax increases over the next 10 years, $50 billion in new stimulus spending, $400 billion in unspecified Medicare cuts, and a measure to effectively end Congress's ability to vote on the debt limit. The offer, which closely mirrors the president's previous deficit-reduction plans, lacked concessions to Republicans, including detailed spending cuts, and was strongly rejected.

Since then, as House Speaker John Boehner put it, negotiations between the White House and House Republicans have come to a "stalemate."

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Grand jury probing meningitis-linked pharmacy: newspaper

BOSTON (Reuters) – A grand jury is investigating the compounding pharmacy at the heart of a deadly meningitis outbreak, the Boston Globe reported on Saturday.

The grand jury has begun issuing subpoenas to people who worked for the New England Compounding Center, which closed after investigators determined it had produced the tainted injectible steroid that has killed 36 people, the newspaper reported, citing unnamed people who formerly worked for the company.

Grand jury investigations, which are conducted in secrecy, are a step prosecutors take before determining whether to press criminal charges.

Officials at the U.S. Attorney‘s office and NECC could not be reached for immediate comment on Saturday. The Globe reported that U.S. officials declined to comment.

After federal officials in October raided the Framingham, Massachusetts-based pharmacy, U.S. Attorney Carmen Ortiz confirmed her office was investigating the company.

U.S. District Court Judge Dennis Saylor, who is hearing the dozen civil lawsuits filed against NECC in federal court in Boston, said during a Wednesday hearing there may be a grand jury investigation into the company.

(Reporting By Scott Malone; Editing by Vicki Allen)

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Why Obama is pushing for stimulus in 'fiscal cliff' deal

How about a little government economic stimulus?

That may sound incongruous considering the budget deficit and the push from Republicans to cut government spending.

But President Obama’s first offer to avoid going over the "fiscal cliff" holds out the hope of at least some stimulus. This would include extending the 2 percentage point Social Security payroll tax cut, boosting a tax incentive to businesses, establishing a $50 billion bank for long-term infrastructure projects, and extending unemployment benefits.

RECOMMENDED: 'Fiscal cliff' 101: 5 basic questions answered

The total bill: about $255 billion out of the federal government's pocket – an amount the GOP would likely say needs to be offset by spending cuts elsewhere.

The argument in favor of such stimulus? The tax measures, at least, could minimize the drag on the economy from Mr. Obama's proposed tax increases on the wealthy.

“The increases in the top two income tax brackets would put a drag on consumption, so I think, from the Obama point of view, the spending or tax cuts are designed to offset that drag to consumption,” says Michael Brown, an economist at Wells Fargo Securities in Charlotte, N.C.

But to some budget experts, Obama’s list seems more like an opening round of negotiations, where he has asked for a lot more than he will get.

“It looks to me like these are bargaining chips,” says Pete Davis of Davis Capital Ideas, which advises Wall Street firms. “Even most Democrats had given up on the prospect of getting the payroll tax cut extended.”

Mr. Davis considers the odds of most of the stimulus proposals passing Congress “very low.”

What's needed most, say others, is just buckling down and negotiating an end to the fiscal cliff. “Cancelling the fiscal cliff is economic stimulus,” says Stan Collender, a budget expert and partner at Qorvis Communications in Washington.

If Obama's stimulus were passed, however, here is a look at the impact the four elements might have.

SOCIAL SECURITY PAYROLL TAX CUT

The largest chunk of the Obama plan is the extension of the payroll tax cut. This is the money that comes out of an individual’s paycheck as a contribution to Social Security. Two years ago, in an effort to stimulate the economy, Congress decreased the individual contribution from 6.2 percent to 4.2 percent. The employer’s contribution of 6.2 percent remained unchanged.

The Obama administration estimates extending the cuts would cost the government as much as $115 billion in revenue.

The argument for extending the tax cut is that it helps lower-income workers who live paycheck to paycheck. “The difference in the paycheck might be the ability to pay the electric bill for someone or the chance to go to a sit-down restaurant once a month,” says Chris Christopher, an economist at IHS in Lexington, Mass.

The argument against continuing the cut is that it is weakening the Social Security Trust Fund. In order to make up for the loss of contributions, the government taps the general tax revenues, says Pamela Tainter-Causey, a spokeswoman for the National Committee to Preserve Social Security and Medicare.

“It sets up Social Security to compete for funding from the general fund,” she says. “It’s a perfect set up for people who are gunning for the program and claim we can’t afford it now.”

BUSINESS TAX INCENTIVE

The second largest program proposed by Obama would be the extension of accelerated depreciation for business, which would cost the US Treasury about $65 billion in fiscal year 2013, according to the Congressional Budget Office.

Two years ago, business was allowed to accelerate the write-off of 100 percent of its spending on certain capital equipment. Capital spending on equipment and computer software soared by 18.3 percent in 2011.

Then, this year, the benefit to business was cut in half to 50 percent. Capital spending sank in the third quarter by 2.7 percent compared with the same quarter the prior year. With business interest in using the tax break diminishing, economist Gregory Daco of IHS says “it’s a goner.”

INFRASTRUCTURE BANK

Obama has also proposed a $50 billion infrastructure bank. The idea is to fund roads, bridges, tunnels and other large projects that last for a long period of time. “At the moment the funding is done on a cash basis – you have to pay for it as you build it,” says Mr. Collender.

Democrats have been trying to get Congress to fund the bank for the past 10 years, he says. “It does not have a chance of getting through the House," which is controlled by the Republicans, says Mr. Collender.

UNEMPLOYMENT BENEFITS

And, finally, Obama wants to extend unemployment benefits, which would cost about $30 billion.

Under current law, if Congress does nothing, the maximum number of weeks in which an individual could receive jobless will drop to 26 from the current 73 weeks for states with unemployment over 9 percent and 63 weeks for states with unemployment over 7 percent.

If Congress does nothing about the program during the lame-duck session, some 2.1 million jobless will lose their benefits in the first week of January, says Judy Conti, a federal advocacy coordinator at the National Employment Law Project (NELP) in Washington. By the end of the March, she says, another 900,000 people will lose their benefits.

“Forty percent of the unemployed are long term unemployed,” she says. “They have been out of the workforce for over six months.”

RECOMMENDED: 'Fiscal cliff' 101: 5 basic questions answered

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