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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.

Don Emmert/AFP/Getty Images

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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How human biology can prevent drug deaths

Thousands of people die from adverse effects of medicines that have been tested on animals. There is a better way, say geneticist Kathy Archibald and pharmacologist Robert Coleman

ADVERSE drug reactions are a major cause of death, killing 197,000 people annually in the European Union and upwards of 100,000 in the US. Little coverage is given to such grim statistics by governments or pharmaceutical companies, so patients and their doctors are not primed to be as vigilant as they should be, and adverse drug reactions (ADRs) remain seriously under-recognised and under-reported.

The €5.88-million EU-ADR project, which published its final report in October, showed that it is possible to spot these reactions earlier by applying data-mining techniques to electronic health records. These techniques could, for example, have detected the cardiovascular risk signals of arthritis drug Vioxx three years before the drug was withdrawn in 2004 - saving many tens of thousands of lives. But invaluable as such systems are, it would be even better to detect risk signals before a drug reaches humans, thus saving even more lives.

Currently, 92 per cent of new drugs fail clinical trials, even though they have successfully passed animal tests. This is mostly because of toxicity, which can be serious and even fatal for the people taking part in the trials. For example, in 2006, six people enrolled in a UK trial of the drug TGN1412 were hospitalised after developing multiple organ failure. Many clinical trials are now conducted in India, where, according to India's Tribune newspaper, at least 1725 people died in drug trials between 2007 and 2011. Clearly, there is an urgent need for better methods to predict the safety of medicines for patients as well as volunteers in clinical trials.

At the patient safety charity, Safer Medicines, we believe this goal is most likely to be achieved through a greatly increased focus on human, rather than animal, biology in preclinical drugs tests. New tests based on human biology can predict many adverse reactions that animal tests fail to do, and could, for example, have detected the risk signals produced by Vioxx, which in animal studies appeared to be safe, and even beneficial to the heart.

These techniques include: human tissue created by reprogramming cells from people with the relevant disease (dubbed "patient in a dish"); "body on a chip" devices, where human tissue samples on a silicon chip are linked by a circulating blood substitute; many computer modelling approaches, such as virtual organs, virtual patients and virtual clinical trials; and microdosing studies, where tiny doses of drugs given to volunteers allow scientists to study their metabolism in humans, safely and with unsurpassed accuracy. Then there are the more humble but no less valuable studies in ethically donated "waste" tissue.

These innovations promise precious insights into the functioning of the integrated human system. Many are already commercially available, but they are not being embraced with the enthusiasm they merit.

Pharmaceutical companies would make much greater use of them if governments encouraged it, but inflexible requirements for animal tests is a major deterrent. Ever since the thalidomide birth-defects tragedy, animal testing has been enshrined in law worldwide, despite the irony that more animal testing would not have prevented the release of thalidomide, because the drug harms very few species.

So how well have animal tests protected us? Many studies have calculated the ability of animal tests to predict adverse reactions to be at or below 50 per cent. In 2008, a study in Theriogenology (vol 69, p 2) concluded: "On average, the extrapolated results from studies using tens of millions of animals fail to accurately predict human responses." And a recent study in Regulatory Toxicology and Pharmacology (vol 64, p 345) shows that animal tests missed 81 per cent of the serious side effects of 43 drugs that went on to harm patients.

It is hard to understand why governments defend a system with such a poor record, or why they are dismissive of new technologies that promise increased patient safety while decreasing the time and cost of drug development, not to mention the savings to healthcare systems from fewer adverse drug reactions. Proposals to compare human-based tests with animal-based approaches have been strongly supported by members of the UK parliament. The Early Day Motions they signed were among the most-signed of all parliamentary motions between 2005 and 2006, 2008 and 2009, and 2010 and 2012.

Safer Medicines has put these concerns to the UK Department of Health and the prime minister - to be told that "human biology-based tests are not better able to predict adverse drug reactions in humans than animal tests".

It is a tragedy that so many suffer or die through the use of inadequately tested drugs when tests based on human biology are readily available. Yet governments continue to mandate animal tests, despite the lack of a formal demonstration of fitness for purpose, and a growing global realisation among scientists that animal toxicity tests are inadequate and must be replaced.

In its 2007 report, Toxicity Testing in the 21st Century: A Vision and a Strategy, the US National Research Council called for the replacement of animal tests: "The vision for toxicity testing in the 21st century articulated here represents a paradigm shift from the use of experimental animals... toward the use of more efficient in vitro tests and computational techniques." To its credit, the US government is at least working on initiatives to hasten this. The UK government, however, still denies there is a problem. How many must die before it listens?

Kathy Archibald is director of the Safer Medicines Trust. She is a geneticist who worked in the pharmaceutical industry.

Robert Coleman is a pharmacologist with pharmaceutical industry experience. He is now a drug discovery consultant and adviser to the trust

If you would like to reuse any content from New Scientist, either in print or online, please contact the syndication department first for permission. New Scientist does not own rights to photos, but there are a variety of licensing options available for use of articles and graphics we own the copyright to.

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PM Lee congratulates Japan's Shinzo Abe on election win

SINGAPORE: Prime Minister Lee Hsien Loong has congratulated the leader of the Liberal Democratic Party of Japan, Mr Shinzo Abe, on the party's victory in the lower house elections.

In a letter, Mr Lee said he looks forward to working closely with Mr Abe to improve bilateral ties.

Mr Lee said Singapore and Japan share a longstanding and strong relationship and that bilateral relations are comprehensive, comprising deep economic links and mutually beneficial cooperation in areas such as defence, health and cultural exchanges.

He added that Singapore will continue to support Japan's recovery efforts from the Tohuku disasters last year.

PM Lee said Singapore remains committed to a peaceful and prosperous Asia, and believes that Japan has a major contribution to make in building such a region.

Singapore will work closely with Japan in ASEAN and other multilateral fora to achieve this goal.

- CNA/lp

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NFL Week 15: The best photos

The Jacksonville Jaguars observe a moment of silence to honor the victims of the Connecticut school shooting before their game against the Miami Dolphins at Sun Life Stadium on Sunday, December 16. Check out the action from Week 15 of the NFL and then look back at the best photos from Week 14.

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First funerals set for Conn. shooting victims

Nov. 13, 2012 photo provided by the family via The Washington Post shows Noah Pozner, 6 / AP/Family Photo

NEWTOWN, Conn. The Connecticut Funeral Directors Association has announced that funerals have been scheduled for seven of the Connecticut school shooting victims.

Services for 6-year-olds Noah Pozner and Jack Pinto are being planned for Monday.

The funeral for 6-year-old Jessica Rekos is Tuesday.

On Wednesday, there will be funerals for 7-year-old Daniel Barden and 27-year-old teacher Victoria Soto.

19 Photos

Victims of Conn. school shooting

Services will be held on Thursday for 6-year-old Catherine Hubbard.

A private service has been planned for 6-year-old Dylan Hockley. No date was announced.

A spokesman for the local diocese, Brian Wallace, said it had not been asked yet to provide funerals for gunman Adam Lanza or his mother. Police say he shot her to death before heading to the Sandy Hook Elementary School and going on his rampage.

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'We Can't Tolerate This Anymore,' Obama Says

President Barack Obama said at an interfaith prayer service in this mourning community this evening that the country is "left with some hard questions" if it is to curb a rising trend in gun violence, such as the shooting spree Friday at Newtown's Sandy Hook Elementary School.

After consoling victims' families in classrooms at Newtown High School, the president said he would do everything in his power to "engage" a dialogue with Americans, including law enforcement and mental health professionals, because "we can't tolerate this anymore. These tragedies must end. And to end them we must change."

Mandel Ngan/AFP/Getty Images

President Obama: 'Newtown You Are Not Alone' Watch Video

Sandy Hook Elementary Shooting: Remembering the Victims Watch Video

The president was not specific about what he thought would be necessary and did not even use the word "gun" in his remarks, but his speech was widely perceived as prelude to a call for more regulations and restrictions on the availability of firearms.

The grieving small town hosted the memorial service this evening as the the nation pieces together the circumstances that led to a gunman taking 26 lives Friday at the community's Sandy Hook Elementary School, most first graders.

"Someone once described the joy and anxiety of parenthood as the equivalent of having your heart outside your body all of the time, walking around," he said, speaking of the joys and fears of raising children.

"So it comes as a shock at a certain point when you realize no matter how much you love these kids you can't do it by yourself," he continued. "That this job of protecting kids and teaching them well is something we can only do together, with the help of friends and neighbors, with the help of a community, and the help of a nation."

CLICK HERE for Full Coverage of the Tragedy at Sandy Hook

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Zebrafish made to grow pre-hands instead of fins

PERHAPS the little fish embryo shown here is dancing a jig because it has just discovered that it has legs instead of fins. Fossils show that limbs evolved from fins, but a new study shows how it may have happened, live in the lab.

Fernando Casares of the Spanish National Research Council and his colleagues injected zebrafish with the hoxd13 gene from a mouse. The protein that the gene codes for controls the development of autopods, a precursor to hands, feet and paws.

Zebrafish naturally carry hoxd13 but produce less of the protein than tetrapods - all four-limbed vertebrates and birds - do. Casares and his colleagues hoped that by injecting extra copies of the gene into the zebrafish embryos, some of their cells would make more of the protein.

One full day later, all of those fish whose cells had taken up the gene began to develop autopods instead of fins. They carried on growing for four days but then died (Cell, DOI: 10.1016/j.devcel.2012.10.015).

"Of course, we haven't been able to grow hands," says Casares. He speculates that hundreds of millions of years ago, the ancestors of tetrapods began expressing more hoxd13 for some reason and that this could have allowed them to evolve autopods.

If you would like to reuse any content from New Scientist, either in print or online, please contact the syndication department first for permission. New Scientist does not own rights to photos, but there are a variety of licensing options available for use of articles and graphics we own the copyright to.

All comments should respect the New Scientist House Rules. If you think a particular comment breaks these rules then please use the "Report" link in that comment to report it to us.

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S'pore offers condolences to victims of US school shooting

SINGAPORE: Foreign Affairs Minister K Shanmugam offered his condolences to the victims and families of the Connecticut shooting which left more than 20 dead, including young children.

In his Facebook post, Mr Shanmugam said the news is "heartbreaking".

"Children are innocent, full of life and promise. Cut down in a hail of bullets by a person with a rifle," he said.

He noted there have been so many shootings in the US over the years, that the public is no longer surprised when something like this happens.

He cited a report which indicated that since 2005, there have been multiple-victim shooting every 5.9 days, in the US.

He said reports from the Washington Post and others, put the number of mass shootings this year alone, at between 13 and 20.

Mr Shanmugam said "in no other developed country does this happen so regularly".

He added Singapore can only offer its thoughts and prayers for the victims and their families.

- CNA/xq

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