Stock futures gain ahead of data on fiscal hopes












NEW YORK (Reuters) – Stock futures rose on Thursday, building on the previous session’s steep gains, on expectations of progress toward a fiscal agreement in Washington that would avert an economic meltdown.


Market participants will continue to focus on discussions in Congress to avoid big spending cuts and tax hikes – dubbed the “fiscal cliff” – and equities may retreat, as they did Tuesday, if the upbeat negotiation environment in Washington shifts.












“There will be a deal before December 31 to avert the economy facing disaster,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.


“We’re back on track for a year-end rally to continue,” he said, highlighting the continued support the Federal Reserve has given to equity markets.


Investors await data, including the second estimate of third-quarter gross domestic product, due at 8:30 a.m. ET (1330 GMT). Economists in a Reuters survey forecast a 2.8 percent annualized pace of growth, compared with a 2.0 percent rate in the first estimate.


The Commerce Department will issue preliminary corporate profits for the third quarter at 8:30 a.m. (1330 GMT). At the same time, the Labor Department will release first-time claims for jobless benefits; 390,000 new filings are forecast, compared with 410,000 in the prior week.


The yield on Italy’s 10-year bonds fell to the lowest in two years at an auction, amid relief that immediate risks over Greece had diminished.


“The fact that the bond sales in Europe went well suggest confidence is beginning to reenter some of the peripheral nations and that is a good sign,” Cardillo said.


The euro flirted with the $ 1.30 level and boosted commodity prices, which could lift the basic materials and energy stock sectors.


S&P 500 futures rose 9 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 78 points, and Nasdaq 100 futures added 17.5 points.


Also due for release Thursday are pending home sales for October at 10:00 a.m. (1500 GMT) and the Federal Reserve Bank of Kansas City November manufacturing survey at 11:00 a.m.


Tiffany shares fell 9 percent to $ 58.02 in premarket trading after the upscale jeweler reported quarterly results and lowered its full-year sales and profit forecasts.


U.S.-listed shares of BlackBerry maker Research In Motion soared 11.7 percent to $ 12.40 in premarket trading after Goldman Sachs upgraded the stock to “buy” from “neutral.”


Kroger , the biggest U.S. supermarket operator, is due to report third-quarter earnings.


On Wednesday, the Dow Jones industrial average <.DJI> rose 106.98 points, or 0.83 percent, to 12,985.11. The S&P 500 <.SPX> gained 10.99 points, or 0.79 percent, to 1,409.93. The Nasdaq Composite <.IXIC> added 23.99 points, or 0.81 percent, to close at 2,991.78.


(Editing by Bernadette Baum)


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Myanmar cracks down on mine protest; dozens hurt












MONYWA, Myanmar (AP) — Security forces used water cannons and other riot gear Thursday to clear protesters from a copper mine in in northwestern Myanmar, wounding villagers and Buddhist monks just hours before opposition leader Aung San Suu Kyi was to visit the area to hear their grievances.


The crackdown at the Letpadaung mine near the town of Monywa risks becoming a public relations and political fiasco for the reformist government of President Thein Sein, which has been touting its transition to democracy after almost five decades of repressive military rule.












The environmental and social damage allegedly produced by the mine has become a popular cause in activist circles, but was not yet a matter of broad public concern. However, hurting monks — as admired for their social activism as they are revered for their spiritual beliefs — is sure to antagonize many ordinary people, especially as Suu Kyi’s visit highlights the events.


“This is unacceptable,” said Ottama Thara, a 25-year-old monk who was at the protest. “This kind of violence should not happen under a government that says it is committed to democratic reforms.”


According to a nurse at a Monywa hospital, 27 monks and one other person were admitted with burns caused by some sort of projectile that released sparks or embers. Two of the monks with serious injuries were sent for treatment in Mandalay, Myanmar’s second biggest city, a 2 ½ hour drive away. Other evicted protesters gathered at a Buddhist temple about 5 kilometers (3 miles) from the mine’s gates.


Lending further sympathy to the protesters’ cause is whom they are fighting against. The mining operation is a joint venture between a Chinese company and a holding company controlled by Myanmar’s military. Most people remain suspicious of the military, while China is widely seen as having propped up army rule for years, in addition to being an aggressive investor exploiting the country’s many natural resources.


Government officials had publicly stated that the protest risked scaring off foreign investment that is key to building the economy after decades of neglect.


State television had broadcast an announcement Tuesday night that ordered protesters to cease their occupation of the mine by midnight or face legal action. It said operations at the mine had been halted since Nov. 18, after protesters occupied the area.


Some villagers among a claimed 1,000 protesters left the six encampments they had at the mine after the order was issued. But others stayed through Wednesday, including about 100 monks.


Police moved in to disperse them early Thursday.


“Around 2:30 a.m. police announced they would give us five minutes to leave,” said protester Aung Myint Htway, a peanut farmer whose face and body were covered with black patches of burned skin. He said police fired water cannons first and then shot what he and others called flare guns.


“They fired black balls that exploded into fire sparks. They shot about six times. People ran away and they followed us,” he said, still writhing hours later from pain. “It’s very hot.”


Photos of the wounded monks showed they had sustained serious burns on parts of their bodies. It was unclear what sort of weapon caused them.


The protest is the latest major example of increased activism by citizens since the elected government took over last year. Political and economic liberalization under Thein Sein has won praise from Western governments, which have eased sanctions imposed on the previous military government because of its poor record on human and civil rights. However, the military still retains major influence over the government, and some critics fear that democratic gains could easily be rolled back.


In Myanmar’s main city of Yangon, six anti-mine activists who staged a small protest were detained Monday and Tuesday, said one of their colleagues, who asked not to be identified because he did not want to attract attention from the authorities.


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Past hosts teaming for Spike Video Game Awards












LOS ANGELES (AP) — The Spike Video Game Awards are assembling past hosts.


The cable network announced Thursday that the gaming extravaganza’s previous emcees would join “The Avengers” star and four-time VGAs host Samuel L. Jackson at next week’s show.












Previous hosts Zachary Levi, Snoop Lion, Jack Black and Neil Patrick Harris are set to appear at the 10th annual ceremony.


The show will also feature debut footage from upcoming games “BioShock Infinite,” ”Castlevania: Lords of Shadow 2″ and “Tomb Raider,” and from downloadable content “Spartan Ops” for “Halo 4″ and “The Tyranny of King Washington” for “Assassin’s Creed III.”


“Assassin’s Creed III,” ”Dishonored,” ”Journey,” ”Mass Effect 3″ and “The Walking Dead: The Game” are vying for the best game trophy.


The VGAs will air live on Spike on Dec. 7 from Sony Picture Studios in Culver City, Calif.


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Rihanna’s “Unapologetic” tops Billboard album chart












LOS ANGELES (Reuters) – R&B singer Rihanna shot straight to the top of the Billboard 200 album chart on Tuesday with her seventh record “Unapologetic,” scoring her first No. 1 album despite mixed reviews.


“Unapologetic,” which topped iTunes charts in 43 countries just hours after its release on November19, sold 238,000 copies according to Billboard, scoring the 24-year-old singer from Barbados her best opening sales week to date.












The album’s lead single “Diamonds” landed at the top of the Billboard Hot 100 chart last week, giving Rihanna her 12th No. 1 single and tying her with Madonna and The Supremes for the fourth-most chart-topping singles in Billboard history.


“Unapologetic” left some critics unsettled by the singer’s harder sound and close-to-home lyrics. One track in particular that had everyone talking is “Nobody’s Business,” Rihanna’s collaboration with ex-boyfriend Chris Brown, who was charged with assaulting her three years ago.


The album has been promoted extensively by Rihanna, who embarked on a seven day tour across seven cities around the world, accompanied by a plane full of fans and journalists.


The full Billboard charts will be released on Wednesday.


(Reporting By Piya Sinha-Roy, editing by Jill Serjeant)


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In Israel, some rebel against circumcision












JERUSALEM (Reuters) – Circumcision is one of Judaism’s most important laws and for generations of faithful it has symbolized a Biblical covenant with God.


But in Israel, more and more Jewish parents are saying no to the blade.












“It’s such a taboo in Israel and in Judaism,” said Gali, nursing her six-week-old son, about the decision not to have him circumcised.


“It’s like coming out of the closet,” she said, asking to be identified by her first name only because she had not told her relatives yet.


Nearly all baby boys in Israel are circumcised. Be their parents ultra-Orthodox or totally secular Jews, it is by far the most common choice. Most Israeli-Arabs also keep with a practice that is widespread in the Muslim world.


Jewish circumcisions are done when the baby is eight days old. The majority are performed by a mohel, a religious man trained in the procedure carried out in a festive religious ceremony called a “brit”, Hebrew for covenant.


But an increasing minority fear it is a form of physical abuse.


“It’s the same as if someone would tell me ‘it’s our culture to cut off a finger when he is born’,” said Rakefet Kaufman, who also did not have her son circumcised.


“People should see it as abuse because it is done to a baby without asking him,” she said.


When Gali learnt she was carrying a baby boy it was obvious to her that he would be circumcised. But she started to think again after a conversation with a friend whose son was uncircumcised.


“She asked me what my reason was for doing it, was it religious? I said no. Was it for health reasons? No. Social? No. Then it began to sink in. I began to read more about it, enter Internet forums, I began to realize that I cannot do it.”


PHENOMENON GROWING


“The phenomenon is growing, I have no doubt,” said Ronit Tamir, who founded a support group for families who have chosen not to circumcise their sons.


“When we started the group 12 years ago we had to work hard to find 40 families … They were keeping it secret and we had to promise them we’d keep it secret,” she said. “Then, we’d get one or two phone calls a month. Nowadays I get dozens of emails and phone calls a month, hundreds a year.”


Tamir believes Jews in today’s Israel find it easier to break religious taboos.


“People are asking themselves what it means to be Jewish these days,” she said, and that leads some to question rules of all kinds, including circumcision.


In societies around the world who circumcise boys for non-religious reasons, out of habit or tradition or because of the perceived health benefits, the practice can be controversial.


Rates of circumcision in Europe are well under 20 percent, while in the United States, according to 2010 statistics cited by the Center for Disease Control (CDC), more than half of newborn boys continue to be circumcised.


The American Academy of Paediatrics said in August that the health benefits of infant circumcision – potentially avoiding infection, cancer and sexually-transmitted diseases – outweighed the risks, but said parents should make the final call.


But where the decision is ultimately a matter of personal choice for many families around the world, for Jews who question the tradition, it is more complicated.


“It is the covenant between us and God – a sign that one cannot deny and that Jews have kept even in times of persecution,” said one well-known mohel who has been performing circumcisions in Israel for more than 30 years. He asked not to be named to avoid being connected to any controversy.


He pointed to the Book of Genesis, where God said to Abraham: “And you shall circumcise the flesh of your foreskins; and it shall be a sign of the covenant between me and you.”


It is this covenant that, the mohel said, that “keeps the people of Israel together”.


The Bible goes on: “And the uncircumcised male child whose flesh of his foreskin is not circumcised, that soul shall be cut off from his people; he has broken my covenant.”


Scholars have differed over the years what this means in practice.


BEING DIFFERENT


Tamir is unswayed by the ancient verses.


“This edict is painful, irreversible and maims,” she said. The Internet was helping to spread the word, she said, allowing parents to find information about circumcision and seek advice anonymously.


Some Jewish groups in the United States which oppose circumcision offer alternative religious brit ceremonies that do not include an actual circumcision.


“There is definitely a growing number of Jewish families in the U.S. who are choosing not to circumcise,” said Florida-based Rebecca Wald. In 2010 she started a website to connect parents who are unsure about what to do.


“Since then, in phone calls, emails, and on social networking sites I have connected with hundreds of Jewish people in the U.S. who question circumcision.” she said in an email interview. “Many of them have intact (uncircumcised) sons or plan to leave future sons intact.”


Wald’s son was not circumcised.


“I have a very strong sense of Jewish identity and, believe it or not, having an intact son has only deepened it,” she said.


In Israel, where the vast majority are circumcised, the dilemma may be particularly difficult.


Although she is confident of the choice she and her husband made, Gali still has one concern.


“The main issue which still troubles me a little is the social one, that one day he may come to me and say ‘Mom, why did you do that to me? They made fun of me today’,” Gali said.


The Health Ministry does not keep records on circumcisions but estimates about 60,000 to 70,000 are held in Israel every year, which roughly corresponds to the number of boys born in 2010, according to the Central Bureau of Statistics.


The ministry said it treats about 70 cases a year of circumcisions gone wrong, mainly minor complications such as excessive bleeding.


Kaufman said “people were shocked” to learn that her son is not circumcised.


“In Israel everybody does it, like a herd,” she said. “They don’t stop and ask themselves about this specific procedure which has to do with damaging a baby.”


Watching her son rummage through a stack of toys, Kaufman said: “The way he was born is the way his body should be.”


(Editing by Jeffrey Heller and Sonya Hepinstall)


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IMF says Spain’s financial reform on track, challenges ahead












MADRID (Reuters) – Spain’s financial sector reform is on track and all deadlines have been met so far but difficult steps still lie ahead while risks for the economy and the country’s lenders remain high, the International Monetary Fund said on Wednesday.


The report follows European Commission approval of the recapitalization plans of four nationalized Spanish banks, under a 100 billion euro European credit line agreed in June.












The financial sector program is on track so far, with all deadlines met. However, the most challenging steps lie ahead, especially those related to implementing bank restructuring plans and making the asset management company effective,” the IMF said in its first progress report on the financial reform.


It added that bank liquidity remains a risk that is only mitigated by extensive support from the European Central Bank, while non-viable lenders should be quickly wound down and mergers that do not generate value should be avoided.


Economic risks remain high, with further headwinds expected from private-sector deleveraging, tight credit, falling house prices, fiscal consolidation, weak confidence and high uncertainty, it said.


(Reporting by Julien Toyer; Editing by Fiona Ortiz)


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US rabbi says jailed American in good health












HAVANA (AP) — A prominent New York rabbi and physician visited an American subcontractor serving a long jail term in Cuba and said the man is in good health, despite his family’s concerns about a growth on his right shoulder.


Rabbi Elie Abadie, who is also a gastroenterologist, told The Associated Press in an exclusive interview following Tuesday’s 2 1/2-hour visit at a military hospital in Havana that he personally examined Alan Gross and received a lengthy briefing from a team of Cuban physicians who have attended him.












He said the 1 1/2-inch growth on Gross’s shoulder appeared to be a non-cancerous hematoma that should clear up by itself.


“Alan Gross does not have any cancerous growth at this time, at least based on the studies I was shown and based on the examination, and I think he understands that also,” Abadie said.


Abadie said the hematoma, basically internal bleeding linked to the rupture of muscle fiber, was likely caused by exercise Gross does in jail. He said the growth ought to eventually disappear on its own.


Gross’s plight has put already chilly relations between Cuba and the United States in a deep freeze. The Maryland native was arrested in December 2009 while on a USAID-funded democracy building program and later sentenced to 15 years in jail for crimes against the state.


He claims he was only trying to help the island’s small Jewish community gain Internet access.


Gross’s health has been an ongoing issue during his incarceration. The 63-year-old, who was obese when arrested, has lost more than 100 pounds while in jail.


Abadie, a rabbi at New York’s Edmund J. Safra Synagogue, said Gross’s weight is appropriate for a man his age and height.


Photos that Abadie and a colleague provided to AP of Tuesday’s meeting with Gross showed him looking thin, but generally appearing to be in good spirits.


In one photo, Gross holds up a handwritten note that says “Hi Mom.”


“He definitely feels strong. He is in good spirits. He feels fit, to quote him, physically. But of course, like any other person who is incarcerated or in prison, he wants to be free. He wants to be able to go back home,” Abadie said.


Gross’s family has repeatedly appealed for his release on humanitarian grounds, noting his health problems and the fact that his adult daughter and elderly mother have both been battling cancer.


Jared Genser, counsel to Alan Gross, said late Tuesday that Rabbi Abadie is not Gross’s physician and he would like an oncologist of his choosing to evaluate him.


“While we are grateful Rabbi Abadie was able to see Alan, we have asked an oncologist to review the test results to determine if they are sufficient to rule out cancer. More importantly, if Alan is so healthy, we cannot understand why the Cuban government has repeatedly denied him an independent medical examination by a doctor of his choosing as is required by international law,” said Genser.


Gross and his wife recently filed a $ 60 million lawsuit against his former Maryland employer and the U.S. government, saying they didn’t adequately train him or disclose risks he was undertaking by doing development work on the Communist-run island.


They filed another lawsuit against an insurance company they say has reneged on commitments to pay compensation in case of his wrongful detention.


Separately, a lawyer for Gross has written the United Nations’ anti-torture expert, saying Cuban officials’ treatment of his client “will surely amount to torture” if he continues to be denied medical care.


Rumors have been swirling in U.S. media that Cuba might soon release Gross as a gesture of good will or in the hopes of winning concessions from the administration of President Barack Obama, but Abadie said that those reports appeared to be false.


“As far as I know there is no truth to it,” he said.


Abadie said he met with senior Cuban officials who expressed their desire to resolve the case “as quickly as possible,” but would not say specifically who he spoke with or what they offered.


“They claim that they are more than willing to sit at the table,” he said.


Cuban officials have strongly implied they hope to trade Gross for five Cuban agents sentenced to long jail terms in the United States, one of whom is already free on bail.


Abadie said Gross made clear that he does not want his case linked to that of the agents, known in Cuba as “The Five Heroes,” because he does not believe he is guilty of espionage.


But Abadie said Gross is hoping for a “constructive and productive” dialogue between U.S. and Cuban officials to resolve his case.


___


Follow Paul Haven on Twitter: http://www.twitter.com/paulhaven.


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U.S. for-profit colleges spend big on marketing while slashing other costs












(Reuters) – Google‘s biggest advertiser is neither a bank nor a retailer.


It’s the for-profit University of Phoenix, which has recently been spending nearly $ 400,000 a day on ads, more than any financial firm or retailer, the traditional big spenders on online advertising, according to search analytics firm SpyFu.












That kind of spending may seem surprising coming from a college, but marketing has become vital for the university and its for-profit rivals as enrollments plummet and they fight back against a host of criticisms, including low job-placement rates.


Colleges such as University of Phoenix, the industry leader owned by Apollo Group Inc, will not only have to boost enrollments to reverse their fortunes, analysts say. They will also need to consider cutting tuition fees as well as continue to slash costs and take market share from rivals.


“I have witnessed several versions of this cycle but none as extreme as this,” said Trace Urdan, an analyst with Wells Fargo Securities, who has been covering the U.S. for-profit education industry for about 15 years.


“We are going to see more pointed efforts at marketing and more price competition in an effort to try to capture more market share both from each other as well as from traditional schools,” Urdan said.


Operators of other for-profit colleges, whose ranks include the Washington Post Co’s Kaplan business, DeVry Inc and ITT Educational Services Inc, are also boosting their spending on marketing and are among the 25 biggest advertisers on Google.


But no one is spending like the University of Phoenix, which doubled its spending on Google ads to about $ 380,000 per day on average between October 12 and November 12, compared with $ 170,000 a day in the previous month, according to SpyFu.


Increased marketing alone will not be enough to fatten fast-shrinking profit margins and increase enrollments, however. Lower tuition fees and increased specialization of the type of programs offered, along with further streamlining of operations, will also be necessary, analysts say.


Industry bellwether University of Phoenix, which offers courses at about 230 campuses as well as online, announced plans last month to shut about half its locations and cut 800 jobs in order to save about $ 300 million a year by 2014.


New enrollments in the Apollo system are down nearly 50 percent in the past two years. As of August 31, enrollment totaled about 328,000.


Career Education Corp, which owns American InterContinental University and the Le Cordon Bleu colleges, and Lincoln Educational Services Corp have also announced closures.


LOW-COST MODEL


The $ 25 billion industry, which typically serves adults looking for a career change or a program to enhance job skills, is reeling after government investigations revealed fraud related to financial aid, worryingly high student debt loads and low rates of graduation and job placement.


“Many for-profit colleges make decisions that prioritize their bottom line, even when those decisions limit their students’ opportunities for academic success,” a U.S. Senate report said earlier this year.


Tuition fees, and therefore profits, is one area under pressure as potential students need to be convinced to take out loans in an uncertain job market.


Apollo, whose stock has lost about 65 percent of its value this year, implemented a tuition freeze earlier this year and promised students it will not increase prices through the course of their programs.


Apollo is also looking at different cost models, with a view to serving segments of the population that it cannot serve with current University of Phoenix tuition prices.


“We have certainly seen a lot more competition at the lower end of the price scale, and that’s something we are focusing on,” Apollo spokesman Mark Brennar said, while declining to offer specifics.


Wells Fargo’s Urdan said it is likely that Apollo wants to compete in the low-cost end of the market by building a second brand, which it would likely do by acquiring another college rather than starting from scratch.


As colleges lower their revenue base by cutting tuition fees even as they spend more on marketing, lower margins could become the norm, analysts say. That has spooked investors already worried about sliding enrollments.


The S&P 1500 Education Services index has lost three-quarters of its value since April 2010, including a 50 percent decline in 2012.


Some for-profit colleges already differentiate themselves in the crowded higher-education market by offering programs in a particular field or by targeting students of a particular background, and that trend could accelerate.


American Public Education, for example, is known for enrolling those who work in the military and public services, while Universal Technical Institute offers programs related to the automotive industry.


For-profit colleges play up their links to employers to attract students who may otherwise opt for traditional or community colleges, said Rob Lytle, head of the education practice at advisory firm Parthenon Group.


“They are about getting people workforce employability skills, and I think they are going to be focusing tighter on that,” said Lytle.


(Reporting by A. Ananthalakshmi in Bangalore; Editing by Ted Kerr)


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New Jersey’s Christie, more popular than ever, seeks re-election












NEW YORK (Reuters) – New Jersey Governor Chris Christie, a Republican star who has enjoying record-high popularity for his hands-on approach to Superstorm Sandy, on Monday filed papers announcing his intention to seek a second term next November.


Christie, a popular surrogate on Republican Mitt Romney‘s failed presidential campaign, delivered the keynote address at the Republican National Convention this summer and is considered a popular choice to run for president in 2016.












Despite his popularity on the national stage, Christie – known for his blunt, sometimes over-the-top style – has sometimes struggled to win over his constituents in liberal New Jersey, where Democrats control both houses of the legislature.


Since Sandy tore through the state on October 29, laying waste to large stretches of the Jersey Shore, Christie’s approval rating has jumped 19 percentage points.


Christie appeared to set politics aside, touring the damage with Democratic President Barack Obama days before November 6 Election Day, and showing a personal touch with residents who lost their homes or loved ones in the storm.


Christie has a 67 percent favorability rating among registered voters, up from 48 percent in October, according to the Rutgers-Eagleton poll.


Since taking office three years ago, Christie’s signature achievement has been a 2011 law that made sweeping changes to the state’s pensions and health benefits for state workers.


(Reporting by Edith Honan; Editing by Jackie Frank)


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Leading U.S. Democrat Durbin embraces future Medicare reforms












WASHINGTON (Reuters) – Assistant Senate Democratic Leader Dick Durbin, one of U.S. President Barack Obama‘s leading allies, urged fellow liberals on Tuesday to consider reforming the Medicare and Medicaid healthcare programs that they have long fought to shield from cuts.


“Progressives should be willing to talk about ways to ensure the long-term viability of Medicare and Medicaid” programs for the elderly and poor, Durbin said in excerpts of a speech he is to deliver later in the day.












Most Democrats have avoided talking about cutting these two “entitlement” programs, which have been adding to U.S. budget deficits because of the growing numbers of participants and escalating healthcare costs.


Instead, Obama and Democrats in Congress mostly have stressed the need to raise income taxes on the wealthy as part of renewed efforts to reduce budget deficits that have topped $ 1 trillion in each of the past four years.


Lately, Durbin has made high-profile remarks about eventually reducing Medicare and Medicaid costs, just as Republicans have begun talking about raising revenues as part of a tax overhaul effort next year.


On Sunday, Durbin raised the possibility of Democrats accepting Medicare reforms to make higher-income seniors pay more for their care. He made his remarks on ABC’s “This Week” program.


The Illinois senator said, however, that the debate over Medicare and Medicaid should not be part of the more immediate negotiations on averting the “fiscal cliff” of steep tax hikes and spending cuts.


“Meaningful reforms can protect the vulnerable and improve care and efficiency, leaving the programs stronger for future generations,” Durbin said in excerpts of the speech he is to deliver at the Center for American Progress, a liberal think tank.


Durbin’s remarks sought to foster productive talks aimed at averting on January 1 the fiscal cliff, the start of about $ 600 billion worth of tax hikes and automatic spending cuts that could shove the nation into a recession early next year if allowed to go forward.


The key battle pits Republican demands for deep spending cuts against Democrats’ insistence on tax hikes for the wealthiest Americans.


“We can and we should avoid ‘the fiscal cliff’ by acting now – before January 1st – to extend middle class tax cuts for 98 percent of the American people and allow the tax cuts to expire for those earning over $ 250,000 a year,” Durbin said.


Republicans could block any bill that does not extend all tax cuts. But after January 1, with all tax cuts expired, Democrats could draft a bill that cuts taxes only for those earning up to $ 250,000, cranking up pressure on Republicans to go along.


Durbin said decisions on Medicare and Medicaid should not be put off too long.


“Putting the discussions off indefinitely makes our choices harder, our success less likely and negative effects on current beneficiaries a near certainty,” he said.


(Reporting by Thomas Ferraro; Editing by Jackie Frank)


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