Obama to GOP: 'Take the deal'

STORY HIGHLIGHTS

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


• President Obama suggests Republicans are fixated on besting him personally


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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Opinion: Art that calls the fiscal cliff's bluff

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

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

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

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

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

Conservative allies publicly supported Boehner's plan Wednesday.

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

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

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

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

Budget experts: Fiscal cliff deal could disappoint

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

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

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

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

What happens if the payroll tax cut expires

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

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

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

Obama offers fiscal cliff tax concession

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

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

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

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

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Senate GOP proposes much smaller Sandy aid package

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

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

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

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

49 Photos

Sandy's devastation on Staten Island

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

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

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

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

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

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

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

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Obama Invokes Newtown on 'Cliff' Deal

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

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

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

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

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

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

Fiscal Cliff Negotiations: Trying to Make a Deal Watch Video

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Sandy Hook students won't return to class until January

STORY HIGHLIGHTS

• 6-year-olds Jessica Rekos and James Mattioli are laid to rest


• School won't start for Sandy Hook children until January


• The NRA says it is "prepared to offer meaningful contributions"


• Investigators are so far unable to retrieve data from a computer taken from the gunman's home

Watch CNN's LIVE TV coverage of the Connecticut elementary school shooting as the story continues to unfold. People are sharing their concern and sadness about the Newtown school shooting. What are your thoughts? Share them with CNN iReport.

Newtown, Connecticut (CNN) -- Attendance was taken at schools across this devastated town on Tuesday as most students returned to the classroom for the first time since the deadly school shooting.

Not everyone was there.

Sandy Hook Elementary students won't resume classes until January, and victims of last week's massacre will never return.

Jessica Rekos and James Mattioli, both 6, were laid to rest Tuesday, while the families of Charlotte Bacon, 6, Daniel Barden, 7, and Victoria "Vicki" Soto, 27, held calling hours, or visitations, for their lost loved ones.

The teacher and children were among the 27 people killed when gunman Adam Lanza shot his mother and then went to the Sandy Hook, indiscriminately opening fire on staff and young students. The rampage reignited a debate about guns in America and sent shock waves through a nation that has seen mass killings before -- but not like this.

Connecticut school shooting

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"She had an answer for everything, she didn't miss a trick, and she outsmarted us every time. We called her our little CEO for the way she carefully thought out and planned everything," the family of Jessica said about their little girl, who loved horses and asked Santa for a cowgirl hat this year.

"We can not imagine our life without her," they said.

James liked to remind everyone that he was 6 and three-quarters. "He would often sing at the top of his lungs, and once asked, 'How old do I have to be to sing on a stage?'" his family wrote in an obituary.

In an online posting about his funeral, the Mattioli family called James "our beloved prince."

Across town, hearses could be seen traveling along roads with police escorts. Onlookers cried as they drove past.

Remembering the victims

For Sandy Hook students, no school until January

Unlike students at other schools who returned Tuesday, Sandy Hook students are not expected to go back until January.

Their school is a crime scene. The current plan is for them to resume classes next year at the former Chalk Hill Middle School, eight miles away in neighboring Monroe, Newtown Superintendent of Schools Janet Robinson said in a letter to parents.

"We need to tend to our teachers' and students' needs to feel comfortable after this trauma in this new place," she wrote.

Teachers may call parents "to invite you to visit Chalk Hill with your child this week to walk around and see the classroom and get familiar with this new Sandy Hook home."

At other schools, students went back to class with their sense of normalcy shattered. They were met by police, counselors and teachers, who all face a tremendous burden.

How do they explain to children what happened? How do they help make them feel safe?

David Schonfeld, a crisis counselor who gave a presentation to Newtown teachers about how to talk to students, said they have to meet children where they are.

"I told them that as far as I was concerned, there was really only one lesson plan that they needed to teach before they broke for the (holidays), and that was to make sure that the children knew that they were safe and that they cared about them and they were going to care for them," he said.

The teachers' union said classes would discuss the tragedy in an age-appropriate manner.

The gunman's computer and grim new details

Investigators have so far been unable to retrieve data from a computer taken from the home of the gunman, Adam Lanza, a law enforcement official said Tuesday.

It appears Lanza smashed the computer, extensively damaging the hard drive, the official said, adding that the FBI is assisting Connecticut State Police in trying to retrieve data from the computer.

Lanza's mother was shot four times in the head while she slept in her bed, said Connecticut Chief Medical Examiner H. Wayne Carver, also Tuesday.

Adam Lanza killed himself with a shot to the front of his head from a handgun, the medical examiner said.

Toxicology tests are under way to determine whether Adam Lanza had taken medication.

Growing debate over gun laws

What happened in Newtown should never happen again, advocates on both sides of the gun-control debate agree. But they're at staunch odds about how to turn words into reality.

The National Rifle Association commented Tuesday for the first time since the shooting, saying it was shocked and heartbroken by what happened. The group is planning to hold a news conference on Friday.

"Out of respect for the families, and as a matter of common decency, we have given time for mourning, prayer and a full investigation of the facts before commenting," it said. "The NRA is prepared to offer meaningful contributions to help make sure this never happens again."

The grassroots group Newtown United sent a delegation to Washington to meet with the Brady Campaign to Prevent Gun Violence as well as families from July's movie theater massacre in Aurora, Colorado.

The new group, which formed out of Newtown on Sunday, aims to create meaningful dialogue -- both locally and beyond -- about what may have led to the tragedy.

Until school shooting, 1 homicide in almost a decade

The debate is playing out not just in Newtown and Washington, but across the United States.

Two national polls conducted shortly after the Newtown massacre suggest that more Americans want stricter gun control.

In a Washington Post/ABC News poll, 54% of adults favor stricter gun control laws in the country, while 43% oppose.

And a new CBS News poll indicates that 57% of Americans back stricter gun laws, the highest percentage in a decade; 30% think gun laws should be kept as they are.

However, less than half of the respondents in the CBS poll -- 42% -- think stricter gun laws would have helped prevent what happened at Sandy Hook Elementary.

Sen. Joe Manchin, a conservative Democrat from West Virginia and a "proud gun owner," said he's now committed to "dialogue that would bring a total change" after the massacre in Newtown.

"Who would have ever thought, in America or anywhere in the world, that children would be slaughtered?" he asked. "It's changed me."

John Licata told CNN's iReport there needs to be better vetting before people buy guns, and assault weapons should be banned -- something Sen. Dianne Feinstein, D-California, says she'll propose once the new Congress convenes in January.

But some say the shooting illustrates the need for more armed guards -- and possibly armed teachers -- in schools.

Gun lobby has laid groundwork against any new laws

Texas Gov. Rick Perry said that if school districts decide that arming teachers is the best way to keep schools safe, so be it.

If Texas residents are duly background-checked, trained and have a concealed handgun license, "you should be able to carry your handgun anywhere in the state," Perry said, according to CNN affiliate WFAA.

Out of respect for the Newtown victims and their families, Dick's Sporting Goods has removed all guns from its store closest to Newtown, the company said.

Dick's, one of the largest sporting goods retailers in the world, also has suspended the sale of some semiautomatic rifles nationwide, the company said. It was unclear how long Dick's will keep its suspension of "modern sporting rifles."

Shedding new light on the gunman

While Carver, the chief medical examiner, said he was told that Adam Lanza had Asperger's syndrome, officials are working to determine whether that diagnosis was correct, and whether he may have had other diagnosable problems.

A former director of security for Newtown Public Schools shed new light Monday night on the gunman.

Richard Novia said Adam Lanza had Asperger's syndrome, based on documents and conversations with Lanza's mother.

Novia said that as part of his job, which he left in 2008, he would be informed of students who might pose problems to themselves or others.

He also said he received "intake information," which he said "is common for any students troubled or impaired or with disabilities." The idea was to keep track of and help students who may need it.

However, Novia said he never thought Lanza was a threat and certainly never thought he was capable of such violence.

After shooting, cops take no-tolerance approach to copycat threats

Russ Hanoman, a friend of Lanza's mother, previously told CNN that Lanza had Asperger's and that he was "very withdrawn emotionally."

CNN has not been able to independently confirm whether Lanza was diagnosed with autism or Asperger's, a higher-functioning form of autism. Both are developmental disorders, not mental illnesses.

Many experts say neither Asperger's syndrome nor autism can be blamed for the rampage.

"There is absolutely no evidence or any reliable research that suggests a linkage between autism and planned violence," the Autism Society said in a statement. "To imply or suggest that some linkage exists is wrong and is harmful to more than 1.5 million law-abiding, nonviolent and wonderful individuals who live with autism each day."

Dr. Max Wiznitzer, a pediatric neurologist and autism expert at Rainbow Babies and Children's Hospital in Cleveland, also said the gunman's actions can't be linked to autism spectrum disorders.

"Aggression and violence in the ASD population is reactive, not preplanned and deliberate," he said.

Gun control: 'This one feels different'

CNN's Susan Candiotti reported from Newtown; Dana Ford reported from Atlanta. CNN's Holly Yan, Greg Botelho, Sandra Endo, Josh Levs, Miriam Falco, Wayne Drash, Carol Cratty, Paul Steinhauser and David Williams contributed to this report.

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UBS to pay $1.5B in fines for rate manipulation

Updated 4:30 a.m.

GENEVA Switzerland's UBS AG agreed Wednesday to pay some $1.5 billion in fines to international regulators following a probe into the rigging of a key global interest rate.

In admitting to fraud, Switzerland's largest bank became the second bank, after Britain's Barclays PLC, to settle over the rate-rigging scandal. The fine, which will be paid to authorities in the U.S., Britain and Switzerland, also comes just over a week after HSBC PLC agreed to pay nearly $2 billion for alleged money laundering.

The settlement caps a tough year for UBS and the reputation of the global banking industry. As well as being ensnared in the industry-wide investigation into alleged manipulations of the benchmark LIBOR interest rate, short for London interbank offered rate, UBS has seen its reputation suffer in a London trial into a multibillion dollar trading scandal and ongoing tax evasion probes.

As a result of the fines, litigation, unwinding of real estate investments, restructuring and other costs, UBS said it expects to post a fourth quarter net loss of between $2.2-2.7 billion.

Nevertheless, the Zurich-based bank maintained that it "remains one of the best capitalized banks in the world."

Other banks are expected to be fined for their involvement in the LIBOR scandal. LIBOR, which is a self-policing system and relies on information that global banks submit to a British banking authority, is important because it is used to set the interest rates on trillions of dollars in contracts around the world, including mortgages and credit cards.

UBS characterized the probes as "industry-wide investigations into the setting of certain benchmark rates across a range of currencies."

The UBS penalty is more than triple the $450 million in fines imposed by American and British regulators in June on Barclays for submitting false information between 2005 and 2009 to manipulate the LIBOR rates. Those fines exposed a scandal that led to the departure of Chief Executive Bob Diamond and the announcement that Chairman Marcus Agius would step down at the end of the year.

In accepting the fines, UBS said some of its employees tried to rig the LIBOR rate in several currencies, but that its Japan unit, where much of the manipulation took place, entered a plea to one count of wire fraud in an agreement with the U.S. Justice Department.

UBS said some of its personnel had "engaged in efforts to manipulate submissions for certain benchmark rates to benefit trading positions" and that some employees had "colluded with employees at other banks and cash brokers to influence certain benchmark rates to benefit their trading positions."

UBS added that "inappropriate directions" had been submitted that were "in part motivated by a desire to avoid unfair and negative market and media perceptions during the financial crisis."

Britain's financial regulator called the misconduct by UBS "extensive and broad" with the rate-fixing carried out from UBS offices in London and Zurich.

Different desks were responsible for different rate submissions. At least 2,000 requests for inappropriate submissions were documented -- an unquantifiable number of oral requests, which by their nature would not be documented, were also made, the U.K.'s Financial Services Authority said.

"Manipulation was also discussed in internal open chat forums and group emails, and was widely known," the FSA said. "At least 45 individuals including traders, managers and senior managers were involved in, or aware of, the practice of attempting to influence submissions."

Sergio Ermotti, who was appointed CEO of UBS AG in November 2012 in the wake of a major trading scandal, said the misconduct does not reflect the bank's values or standards.

"We deeply regret this inappropriate and unethical behavior. No amount of profit is more important than the reputation of the firm, and we are committed to doing business with integrity," he said.

With more than $2.4 trillion in invested assets, UBS is one of the world's largest managers of private wealth assets. At last count, the bank had 63,745 employees in 57 countries. It has said it aims for a headcount of 54,000 in 2015.

Along with Credit Suisse, the second-largest Swiss bank, UBS is on the list of the 29 "global systemically important banks" that the Basel, Switzerland-based Bank for International Settlements, the central bank for central banks, considers too big to fail.

It's not the first time that UBS has fallen afoul of regulators. Notably, in 2009, U.S. authorities fined UBS $780 million in 2009 for helping U.S. citizens avoid paying taxes.

The U.S. government has since been pushing Switzerland to loosen its rules on banking secrecy and has been trying to shed its image as a tax haven, signing deals with the United States, Germany and Britain to provide greater assistance to foreign tax authorities seeking information on their citizens' accounts.

In April, Ermotti called Switzerland's tax disputes with the United States and some European nations "an economic war" putting thousands of jobs at risk.

And in September 2011, the bank announced more than $2 billion in losses and blamed a 32-year-old rogue trader, Kweku Adoboli, at its London office for Britain's biggest-ever fraud at a bank.

Britain's financial regulator fined UBS, saying its internal controls were inadequate to prevent Adoboli, a relatively inexperienced trader, from making vast and risky bets. Adoboli has been sentenced to seven years in prison.

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'The idea we live in a simulation isn't science fiction'

If the universe is just a Matrix-like simulation, how could we ever know? Physicist Silas Beane thinks he has the answer

The idea that we live in a simulation is just science fiction, isn't it?
There is a famous argument that we probably do live in a simulation. The idea is that in future, humans will be able to simulate entire universes quite easily. And given the vastness of time ahead, the number of these simulations is likely to be huge. So if you ask the question: 'do we live in the one true reality or in one of the many simulations?', the answer, statistically speaking, is that we're more likely to be living in a simulation.

How did you end up working on this issue?
My day job is to do high performance computing simulations of the forces of nature, particularly the strong nuclear force. My colleagues and I use a grid-like lattice to represent a small chunk of space and time. We put all the forces into that little cube and calculate what happens. In effect, we're simulating a very tiny corner of the universe.

How accurate are your simulations?
We're able to calculate some of the properties of real things like the simplest nuclei. But the process also generates artefacts that don't appear in the real world and that we have to remove. So we started to think about what sort of artefacts might appear if we lived in a simulation.

What did you discover?
In our universe the laws of physics are the same in every direction. But in a grid, this changes since you no longer have a spacetime continuum, and the laws of physics would depend on direction. Simulators would be able to hide this effect but they wouldn't be able to get rid of it completely.

How might we gather evidence that we're in a simulation?
Using very high energy particles. The highest energy particles that we know of are cosmic rays and there is a well-known natural cut off in their energy at about 10²⁰ electron volts. We calculated that if the simulators used a grid size of about 10^-27 metres, then the cut off energy would vary in different directions.

Do cosmic rays vary in this way?
We don't know. The highest energy cosmic rays are very rare. A square kilometre on Earth is hit by one only about once per century so we're not going to be able map out their distribution any time soon. And even if we do, it'll be hard to show that this is conclusive proof that we're in a simulation.

But can we improve our own simulations?
The size of the universe we simulate is a just fermi, that's a box with sides 10^-15 metres long. But we can use Moore's Law to imagine what we might be able to simulate in future. If the current trends in computing continue, we should be simulating a universe the size of a human within a century and within five centuries, we could manage a box 10²⁶ metres big. That's the size of the observable universe.

How have people reacted to your work?
I gave a lecture on this topic the other week and the turnout was amazing. Half of the people looked at me as if I was disturbed and the other half were very enthusiastic.

Profile

Silas Beane is a physicist at the University of Bonn, Germany. His paper "Constraints on the Universe as a Numerical Simulation" has been submitted to the journal Physical Review D

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Changi Airport's aircraft handling capacity to be increased 40%

SINGAPORE - The authorities are gearing up to increase Changi Airport's aircraft handling capacity as there is scope for Changi Airport to handle about 40 per cent more aircraft movements than the 302,000 aircraft movements handled last year.

The airport's air traffic potential of about 430,000 annual aircraft movements is based on findings from a terminal airspace consultancy study commissioned by the Civil Aviation Authority of Singapore (CAAS) and completed by UK NATS, the air navigation service provider of the UK.

In order to grow Changi Airport's capacity, the CAAS will be looking at increasing air traffic management and runway availability, alongside improving collaboration with the airport's stakeholders.

Among other things, the CAAS is considering reducing the duration of scheduled runway closures through leveraging on IT systems to optimise runway inspection processes.

The CAAS will also attempt to reduce separation between aircraft, in order to free up the airport's runways for the next aircraft as soon as possible.

- TODAY

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Obama moves on taxes in latest "cliff" counter-proposal

President Obama gave up Monday on his demand for higher taxes on households earning $250,000 and upped it to $400,000 while embracing smaller cost-of-living Social Security raises in a counter-proposal to House Speaker John Boehner meant to narrow differences and forge a pre-Christmas "fiscal cliff" deal.

Mr. Obama and Boehner met for nearly an hour in the Oval Office on Monday and sources familiar with the talks released specific details of the White House proposal.

Boehner aides said it brought the two sides closer but said a deal was not at hand.

"Any movement away from the unrealistic offers the President has made previously is a step in the right direction, but a proposal that includes $1.3 trillion in revenue for only $930 billion in spending cuts cannot be considered balanced," said Brendan Buck, a Boehner spokesman.

Other senior Republican aides told reporters on Capitol Hill they are not rejecting the latest White House offer, but they also said that there is not parity or balance in the White House plan and substantive issues remain unresolved. One senior aide said the issues that they are talking about are not technically difficult to resolve, but they were wary the differences might be fundamental issues that are difficult to resolve.

But the depth, specificity and fine-grain nature of discussions over policy, tax revenue and spending cuts belied the tough rhetoric from the two sides in the negotiation. Signs point to a deal before the New Year's fiscal cliff deadline -- and possibly an announcement as early as Wednesday.

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Boehner's "fiscal cliff" offer brings optimism to Capitol Hill

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Boehner's "fiscal cliff" concessions come with a price

Talks picked up genuine momentum on Friday when Boehner agreed to higher income tax rates on households earning $1 million and above. Previously, Boehner opposed all income tax increases. He also gave in on raising the debt ceiling, a vote some Republicans wanted to use as leverage against Obama in 2013. Both gestures, top White House aides said, broke the logjam.

Mr. Obama responded with big concessions of his own on Monday. He offered a $400,000 income threshold for a Clinton-era top tax bracket of 39.6 percent. Boehner had proposed that tax rate for millionaires and a total 10-year tax revenue figure of $1 trillion. Obama wants $1.2 trillion in new revenue. Both sides look for hundreds of billions in new revenue in 2013 through a tax reform process that eliminates some tax deduction and closes loopholes.

The president also wants a two-year ceasefire on raising the debt ceiling. Boehner offered one year.

In addition to disagreement on income levels for tax rates or some other way to get more revenue, the two sides have not set in stone an actual tax reform process. It sounds like they are talking about creating a new sequester-like mechanism in 2014 as incentive for both tax reform and entitlement reforms.

Speaking of entitlements, Boehner also asked the White House to increase the eligibility age for Medicare but Mr. Obama again refused. This difference could loom large as Republicans want structural cost-saving changes in Medicare in exchange for raising income tax rates.

Mr. Obama has given ground on cost-of-living adjustments to Social Security and other federal benefits, but is trying to shield Medicare. Democrats have warned Obama they might bolt if he folds on raising Medicare's eligibility age. They have been less emphatic about cost-of-living adjustments.

Other components of the president's counter-proposal include:

• $1.2 trillion in new income tax revenue with a 39.6 percent (up from 35 percent) on income of $400,000 or more.
• $1.2 trillion in spending cuts divided this way: $800 billion in cuts; $290 billion in interest savings due to lower deficits; $130 billion in cost-of-living adjustments - - with specific protections to preserve increases for economically disadvantaged beneficiaries. Because changing cost-of-living adjustments would also affect where people fell in various tax brackets, this move would raise $90 billion
• The $800 billion in cuts would come from $400 billion in savings to health care entitlements like Medicare and Medicaid; $200 billion in better tax revenue collection, increased financial transaction fees and reduced federal employee benefits.
• $200 billion in domestic discretionary -- annual spending on basic government functions - divided equally between defense and non-defense programs.
• At least $50 billion devoted next year to infrastructure spending and more in latter years - figures still subject to negotiation.
• A one-year extension of unemployment insurance benefits.

Both sides have already agreed to create long-term solutions for the annual ritual of adjusting the Alternative Minimum Tax, the reimbursement formulas for Medicare physicians and a grab-bag of pro-business tax breaks.

Obama also did not ask for an extension of the temporary 2 percent payroll tax - a priority for some Democrats.

Funding for Superstorm Sandy will be handled separately from the emerging fiscal cliff package. The Senate is considering the administration's $60.4 billion request and the White House expects swift, bipartisan approval.

CBS News Capitol Hill producer Jill Jackson contributed to this report.

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Conn. Kids Laid to Rest: 'Our Hearts Are With You'

Visibly shaken attendees exiting the funeral today for 6-year-old Noah Pozner, one of 20 children killed in the Connecticut school massacre last week, said they were touched by a story that summed up the first-grader best.

His mother, Veronique, would often tell him how much she loved him and he'd respond: "Not as much as I [love] you," said a New York man who attended the funeral but was not a member of the family.

Noah's family had been scheduled to greet the public before the funeral service began at 1 p.m. at the Abraham L. Green & Son Funeral Home in Fairfield, Conn. The burial was to follow at the B'nai Israel Cemetery in Monroe, Conn. Those present said they were in awe at the composure of Noah's mother.

Rabbi Edgar Gluck, who attended the service, said the first person to speak was Noah's mother, who told mourners that her son's ambition when he grew up was to be either a director of a plant that makes tacos -- because that was his favorite food -- or to be a doctor.

Outside the funeral home, a small memorial lay with a sign reading: "Our hearts are with you, Noah." A red rose was also left behind along with two teddy bears with white flowers and a blue toy car with a note saying "Noah, rest in peace."

CLICK HERE for complete coverage of the tragedy at Sandy Hook.

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President Obama on Newtown Shooting: 'We Must Change' Watch Video

The funeral home was adorned with white balloons as members of the surrounding communities came also to pay their respects, which included a rabbi from Bridgeport. More than a dozen police officers were at the front of the funeral home, and an ambulance was on standby at a gas station at the corner.

U.S. Sen. Richard Blumenthal, U.S. Rep. and Sen.-Elect Chris Murphy and Gov. Dannel P. Malloy, all of Connecticut, were in attendance, the Connecticut Post reported.

Noah was an inquisitive boy who liked to figure out how things worked mechanically, The Associated Press reported. His twin sister, Arielle, was one of the students who survived when her teacher hid her class in the bathroom during the attack.

CLICK HERE for a tribute to the shooting victims.

The twins celebrated their sixth birthday last month. Noah's uncle Alexis Haller told the AP that he was "smart as a whip," gentle but with a rambunctious streak. He called his twin sister his best friend.

"They were always playing together, they loved to do things together," Haller said.

The funeral for Jack Pinto, 6, was also held today, at the Honan Funeral Home in Newtown. He was to be buried at Newtown Village Cemetery.

Jack's family said he loved football, skiing, wrestling and reading, and he also loved his school. Friends from his wrestling team attended his funeral today in their uniforms. One mourner said the message during the service was: "You're secure now. The worst is over."

Family members say they are not dwelling on his death, but instead on the gift of his life that they will cherish.

The family released a statement, saying, Jack was an "inspiration to all those who knew him."

"He had a wide smile that would simply light up the room and while we are all uncertain as to how we will ever cope without him, we choose to remember and celebrate his life," the statement said. "Not dwelling on the loss but instead on the gift that we were given and will forever cherish in our hearts forever."

Jack and Noah were two of 20 children killed Friday morning at Sandy Hook Elementary School in Newtown, Conn., when 20-year-old Adam Lanza sprayed two first-grade classrooms with bullets that also killed six adults.

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