'Cliff' talks: Geithner invites GOP counteroffer

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Lone Chinese home destroyed; farmer accepts deal

BEIJING (AP) — Authorities have demolished a five-story home that stood incongruously in the middle of a new main road and had become the latest symbol of resistance by Chinese homeowners against officials accused of offering unfair compensation.

Xiayangzhang village chief Chen Xuecai told The Associated Press the house was bulldozed Saturday after its owners, duck farmer Luo Baogen and his wife, agreed to accept compensation of 260,000 yuan ($41,000).

There was no immediate confirmation from Luo, whose cellphone was turned off Saturday.

The couple had been the lone holdouts from a neighborhood that was demolished to make way for the main thoroughfare heading to a newly built railway station on the outskirts of the city of Wenling in Zhejiang province.

The razing comes a week after images of the house circulated widely online in China, triggering a flurry of domestic and foreign media reports about the latest "nail house," as buildings that remain standing as their owners resist development are called.

Luo, 67, had just completed his house at a cost of about 600,000 yuan ($95,000) when the government approached him with their standard offer of 220,000 ($35,000) to move out — which he refused, Chen has previously said. The offer then went up to 260,000 yuan ($41,000) last week.

It was not immediately clear why Luo accepted the compensation in a meeting with officials Friday afternoon when the amount of money offered was the same as a week ago.

Village chief Chen said Luo was tired of all the media attention and voluntarily consented to the deal. "Luo Baogen received dozens of people from the media every day and his house stands in the center of the road. So he decided to demolish the house," Chen said.

Authorities commonly pressure residents to agree to make way for development with sometimes extreme measures, such as cutting off utilities or moving in to demolish when residents are out for the day. In Luo's case, however, he had told local reporters last week his electricity and water were still flowing.

Real estate is one of the big drivers of China's runaway growth in recent decades. But the rapid development has run into objections from many of the hundreds of thousands of residents who have been forced out to make way for new housing, factories and other business ventures, creating a major source of unrest.

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New job posting suggests Nokia may still be considering Android after all

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JLo tones down concert in Indonesia

JAKARTA, Indonesia (AP) — Jennifer Lopez wowed thousands of fans in Indonesia, but they didn't see as much of her as concertgoers in other countries — the American pop star toned down both her sexy outfits and her dance moves during her show in the world's most populous Muslim country, promoters said Saturday.

Lopez's "Dance Again World Tour" was performed in the country's capital, Jakarta, on Friday in line with promises Lopez made to make her show more appropriate for the audience, said Chairi Ibrahim from Dyandra Entertainment, the concert promoter.

"JLo was very cooperative ... she respected our culture," Ibrahim said, adding that Lopez's managers also asked whether she could perform her usual sexy dance moves, but were told that "making love" moves were not appropriate for Indonesia.

"Yes, she dressed modestly ... she's still sexy, attractive and tantalizing, though," said Ira Wibowo, an Indonesian actress who was among more than 7,000 fans at the concert.

Another fan, Doddy Adityawarman, was a bit disappointed with the changes.

"She should appear just the way she is," he said, "Many local artists dress even much sexy, much worse."

Lopez changed several times during her 90-minute concert along with several dancers, who also dressed modestly without revealing their chests or cleavage.

Most Muslims in Indonesia, a secular country of 240 million people, are moderate. But a small extremist fringe has become more vocal in recent years.

They have pushed through controversial laws — including an anti-pornography bill — and have been known to attack anything perceived as blasphemous, from transvestites and bars to "deviant" religious sects.

Lady Gaga was forced to cancel her sold-out show in Indonesia in May following threats by Islamic hard-liners, who called her a "devil worshipper."

Lopez will also perform in Muslim-majority Malaysia on Sunday.

"Thank you Jakarta for an amazing night," the 43-year-old diva tweeted to her 13 million followers Saturday.

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South Africa makes progress in HIV, AIDS fight

JOHANNESBURG (AP) — In the early '90s when South Africa's Themba Lethu clinic could only treat HIV/AIDS patients for opportunistic diseases, many would come in on wheelchairs and keep coming to the health center until they died.

Two decades later the clinic is the biggest anti-retroviral, or ARV, treatment center in the country and sees between 600 to 800 patients a day from all over southern Africa. Those who are brought in on wheelchairs, sometimes on the brink of death, get the crucial drugs and often become healthy and are walking within weeks.

"The ARVs are called the 'Lazarus drug' because people rise up and walk," said Sue Roberts who has been a nurse at the clinic , run by Right to Care in Johannesburg's Helen Joseph Hospital, since it opened its doors in 1992. She said they recently treated a woman who was pushed in a wheelchair for 3 kilometers (1.8 miles) to avoid a taxi fare and who was so sick it was touch and go. Two weeks later, the woman walked to the clinic, Roberts said.

Such stories of hope and progress are readily available on World AIDS Day 2012 in sub-Saharan Africa where deaths from AIDS-related causes have declined by 32 percent from 1.8 million in 2005 to 1.2 million in 2011, according to the latest UNAIDS report.

As people around the world celebrate a reduction in the rate of HIV infections, the growth of the clinic, which was one of only a few to open its doors 20 years ago, reflects how changes in treatment and attitude toward HIV and AIDS have moved South Africa forward. The nation, which has the most people living with HIV in the world at 5.6 million, still faces stigma and high rates of infection.

"You have no idea what a beautiful time we're living in right now," said Dr. Kay Mahomed, a doctor at the clinic who said treatment has improved drastically over the past several years.

President Jacob Zuma's government decided to give the best care, including TB screening and care at the clinic, and not to look at the cost, she said. South Africa has increased the numbers treated for HIV by 75 percent in the last two years, UNAIDS said, and new HIV infections have fallen by more than 50,000 in those two years. South Africa has also increased its domestic expenditure on AIDS to $1.6 billion, the highest by any low-and middle-income country, the group said.

Themba Lethu clinic, with funding from the government, the United States Agency for International Development and the President's Emergency Plan for AIDS Relief, is now among some 2,500 anit-retroviral therapy facilities in the country that treat approximately 1.9 million people.

"Now, you can't not get better. It's just one of these win-win situations. You test, you treat and you get better, end of story," Mahomed said.

But it hasn't always been that way.

In the 1990s South Africa's problem was compounded by years of misinformation by President Thabo Mbeki, who questioned the link between HIV and AIDS, and his health minister, Manto Tshabalala-Msimang, who promoted a "treatment" of beets and garlic.

Christinah Motsoahae first found out she was HIV positive in 1996, and said she felt nothing could be done about it.

"I didn't understand it at that time because I was only 24, and I said, 'What the hell is that?'" she said.

Sixteen years after her first diagnosis, she is now on anti-retroviral drugs and her life has turned around. She says the clinic has been instrumental.

"My status has changed my life, I have learned to accept people the way they are. I have learned not to be judgmental. And I have learned that it is God's purpose that I have this," the 40-year-old said.

She works with a support group of "positive ladies" in her hometown near Krugersdorp. She travels to the clinic as often as needed and her optimism shines through her gold eye shadow and wide smile. "I love the way I'm living now."

Motsoahae credits Nelson Mandela's family for inspiring her to face up to her status. The anti-apartheid icon galvanized the AIDS community in 2005 when he publicly acknowledged his son died of AIDS.

None of Motsoahae's children was born with HIV. The number of children newly infected with HIV has declined significantly. In six countries in sub-Saharan Africa — South Africa, Burundi, Kenya, Namibia, Togo and Zambia —the number of children with HIV declined by 40 to 59 percent between 2009 and 2011, the UNAIDS report said.

But the situation remains dire for those over the age of 15, who make up the 5.3 million infected in South Africa. Fear and denial lend to the high prevalence of HIV for that age group in South Africa, said the clinic's Kay Mahomed.

About 3.5 million South Africans still are not getting therapy, and many wait too long to come in to clinics or don't stay on the drugs, said Dr. Dave Spencer, who works at the clinic .

"People are still afraid of a stigma related to HIV," he said, adding that education and communication are key to controlling the disease.

Themba Lethu clinic reaches out to the younger generation with a teen program.

Tshepo Hoato, 21, who helps run the program found out he was HIV positive after his mother died in 2000. He said he has been helped by the program in which teens meet one day a month.

"What I've seen is a lot people around our ages, some commit suicide as soon as they find out they are HIV. That's a very hard stage for them so we came up with this program to help one another," he said. "We tell them our stories so they can understand and progress and see that no, man, it's not the end of the world."

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Pakistan agrees to free more Taliban prisoners

ISLAMABAD (AP) — Pakistan agreed on Friday to free more Taliban prisoners in the future, a move considered a key step to coaxing the militant group into peace negotiations to end the 11-year-old war in Afghanistan.

The decision was announced in a statement by the foreign ministry in Islamabad after a one-day visit by Afghan Foreign Minister Zalmay Rasoul, who held talks with his Pakistani counterpart, Hina Rabbani Khar.

The statement gave no details on when the prisoners would be released, how many would go free or whether the militant group's former deputy leader, Mullah Abdul Ghani Baradar, would be among them.

Earlier this month, Pakistan decided to release nine Taliban prisoners in a move that Kabul welcomed as a positive first step and an indication that Islamabad supports the stalled Afghan peace process.

The cooperation of Pakistan, which has longstanding ties to the Taliban, is seen as key to jumpstarting an Afghan peace process that has made little headway since it began several years ago, hobbled by distrust among the major players, including the United States. The Afghan and U.S. governments accuse Islamabad of backing insurgents — an allegation Pakistan denies — and say many militant leaders are hiding in the country.

With Afghan presidential elections and the withdrawal of most foreign combat troops looming in 2014, Afghanistan and its international allies are trying to push a peace process with the Taliban to bring an end to the conflict.

The foreign ministry statement after Rasoul's meeting with Khar said both sides agreed to the "release of more prisoners," but gave no further details.

Rasoul was expected to press Pakistan to free more Taliban prisoners, including Baradar, whom Afghanistan considers to be key to the reconciliation process, said an Afghan official who spoke on condition of anonymity ahead of the talks.

Baradar was captured in Pakistan in 2010 because he reportedly was having secret talks with the Afghans.

Khar, the Pakistani foreign minister, said during a joint news conference earlier Friday that the release of prisoners was "discussed thoroughly" and that the two countries had "operationalized" a joint commission to address the issue.

Pakistan also shared with Afghanistan a draft of a strategic partnership agreement the two countries hope to negotiate over the next year, Khar said. Afghanistan signed a similar agreement with Pakistan's archenemy India last year, causing consternation in Islamabad.

The Afghan foreign minister welcomed Pakistan's efforts.

"We want all Afghan Taliban to return to their country, join the constitutional political process there and play their part in furthering the construction and development of our nation," Rasoul said.

The Taliban prisoners released earlier by Pakistan, including some senior leaders, are believed to still be in the country, said the Afghan official who spoke ahead of Rasoul's visit.

While it's unclear whether the Taliban are interested in negotiating peace, the official maintained that there are indeed key Taliban figures who support a political process to end the violence, but that some of them are afraid to establish direct contact with the Afghan government because some of those who did in the past were killed or detained.

Afghanistan wants Pakistan to encourage Taliban leaders to join the Afghan-led peace process and allow Taliban negotiators to travel to third countries for talks without detaining them or putting pressure on their families, the official said.

Informal contacts have been established with Taliban officials in recent years, but so far no formal negotiations have begun.

Waheed Muzhda, a political analyst in Kabul and an expert on Taliban issues, told The Associated Press in a recent interview that he met informally about two months ago in Qatar with several Taliban figures, including Tayyab Agha, a personal emissary of Taliban leader Mullah Omar, and Sher Mohammad Abbas Stanekzai, a former deputy at two ministries during the Taliban regime.

Muzhda said the Taliban are interested in talks, but with the U.S. and not with the Afghan government. If any negotiations begin, they would be between the U.S. and the Taliban, he said.

"If there was a good result from that, then the Afghan government could be involved," Muzhda said.

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Riechmann reported from Kabul, Afghanistan. Associated Press Writer Rahim Faiez contributed to this report from Kabul.

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The Xbox 720 Is Coming Sooner Than Anyone Anticipated

After almost three years without an update, and with Windows 8 sales flailing, Microsoft will release a new Xbox just in time for Christmas next year, sources told Bloomberg’s Dina Bass and Ian King. Last year Microsoft had said that it wouldn’t release a new version of the gaming system “anytime soon,” with other sources talking up a date sometime in 2013 “at the earliest.” This new Christmas launch makes perfect sense for the video-game nerd anticipated “Xbox 720,” as the rumorers refer to it. An Xbox is one of those it toys that gets people lining up at 3 a.m. during holiday shopping craziness. Even the aging 360 console has managed to double the sales of the new Nintendo Wii so far this holiday season, according to numbers from the NDP Group. Microsoft hasn’t put out an entirely new console since 2005, which led to riots during Black Friday of that year.

RELATED: Foxconn Is Still a Hard Place to Work

And Microsoft needs a super-anticipated something, since Windows 8 sales fell so flat this year. After whispers that the new operating system wasn’t selling well, NDP research group found that sales fell 21 percent for new computers running Windows. The research group doesn’t measure sales from Microsoft stores or online, but Microsoft has said most of its sales come from third-party retailers like Best Buy anyway. Windows 8 tablet sales were almost “nonexistent” said the report, making up just 1 percent of all Windows 8 sales. Yeesh. However, Microsoft CEO Steve Ballmer has said he is playing the long game on this one, claiming that people will get used to the new look and when they do fall in love with it. Maybe the people will line up for Windows 8 next year, too? 

RELATED: Amazon’s New Cloud Music Player Is Great, But Is It Legal?

If not, though, the new Xbox sounds like an upgrade that will get gamers excited and buying. As for what exactly the gadget will look like, the rumorers say it will be cheaper and smaller than the 360, which retails starting at $ 300. In addition, it will have an udpated Kinect controller, a quad core processor, 8GB Ram, Blu-Ray, and augmented reality glasses, according to “leaked reports.” 

Gaming News Headlines – Yahoo! News

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MacFarlane surprises UCLA class, announces contest

LOS ANGELES (AP) — Oscar host Seth MacFarlane is inviting college students to join him on stage at the Academy Awards.

The "Family Guy" creator made a surprise appearance at UCLA to announce a contest sponsored by the Academy of Motion Picture Arts and Sciences and MTV that will allow winning college students to appear on the Feb. 24 Oscar telecast.

The contest invites students to submit videos on the academy's Facebook page describing how they'll contribute to the future of film. At least six winners will serve as trophy carriers on the Oscar show, replacing the leggy models who usually perform the duties.

MacFarlane spent 40 minutes leading the undergraduate film and television class at UCLA's Westwood campus on Wednesday as part of MTV's "Stand In" series, which brings celebrities to colleges as guest lecturers.

"In re-imagining what we want the Oscar show to be, we wanted everyone appearing on that stage to feel a deep commitment to film and its legacy, and most importantly, its future," said Oscar telecast producers Craig Zadan and Neil Meron in a statement. "That was the impetus in creating this special honor for young film students who will inspire a new generation to create the films that will be honored in the future."

The contest is also aimed at drawing younger viewers favored by advertisers to the Oscars' aging TV audience. Like UCLA student Abby Smith, who immediately pulled out her smartphone to share the moment on Facebook when MacFarlane appeared before her class.

"Seth MacFarlane is speaking to my film lecture for the next hour," Smith posted. "I'm having a panic attack."

The 39-year-old entertainer urged the aspiring filmmakers and show-runners in the class to make a "commercially viable student film" before leaving school, adding that "Family Guy" was based on his own student film.

And MacFarlane said "Family Guy" could once again become a film. He said he's already come up with a concept for a feature-length movie and promised "it will happen at some point."

MacFarlane cheekily described the Academy Awards as "a crazy little variety show" and said "all I can do is do what I think is funny and most entertaining."

"The Oscars is a tricky venue," he said. "The (hosts) who have not done well, I would classify them as a noble failure, an honorable failure, because at least they were trying something new... If I can do it without torpedoing my career and getting drummed out of the business... All I can do is my very best."

He paused a beat, and added, "Lame (expletive) answer."

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AP Entertainment Writer Sandy Cohen is on Twitter: www.twitter.com/APSandy.

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Online:

http://www.facebook.com/TheAcademy/app_436081253118204

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Kenya village of AIDS orphans hangs hopes on trees

NYUMBANI, Kenya (AP) — There are no middle-aged adults in the Kenyan village of Nyumbani. They all died years ago. Only the young and old live here.

The 938 children here all saw their parents die. The 97 grandparents saw their middle-aged children die. But put together, the bookend generations take care of one another.

UNAIDS says that as of 2011 an estimated 23.5 million people living with HIV resided in sub-Saharan Africa, representing 69 percent of the global HIV burden. Eastern and southern Africa are the hardest-hit regions.

Saturday is World AIDS Day.

Nyumbani is currently planting tens of thousands of trees for the fourth straight year in the hopes that the village will soon harvest the hardwood and become self-sustaining.

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Who will blink first in fiscal cliff standoff?

"Absurd" -- that's the word one top Republican Hill aide used to describe the plan that Treasury Secretary Timothy Geithner presented to GOP leaders yesterday to avoid the fiscal cliff.

And an aide to House Speaker Boehner described the White House's offer as "completely unrealistic" and "a break with reality."

Meanwhile, a top Democratic insider complained to ABC's Jonathan Karl that "the Republicans have taken to screaming at us."

Sources familiar with the phone call Wednesday night between Speaker Boehner and President Obama -- which lasted 30 minutes -- told Karl it was as "unproductive" and "blunt." One source said the president did most of the taking, explaining why he will insist that tax rates go up.

Get more pure politics at ABCNews.com/Politics and a lighter take on the news at OTUSNews.com

"No substantive progress has been made over the last two weeks," said House Speaker John Boehner at a press conference yesterday. "It's time for the president and Congressional Democrats to tell the American people what spending cuts they're really willing to make."

With few signs of optimism in Washington and just 33 days before the end-of-the-year fiscal cliff deadline, President Obama is taking his show on the road.

ABC's Mary Bruce notes that the president is bypassing the wrangling between both sides and traveling to Hatfield, Pa. today where he will tour a toy manufacturing facility and speak to workers there.

According to the White House, "the President will continue making the case for action by visiting a business that depends on middle class consumers during the holiday season, and could be impacted if taxes go up on 98 percent of Americans at the end of the year."

FROM THE SPEAKER'S OFFICE: Boehner's office gives six reasons why the Obama administration's fiscal cliff offer won't fly:

"1) Twice the Taxes: It's absolutely true that the President ran on a tax plan of raising the top two rates. That's what Americans heard from him. That yields about $800 billion in new tax revenue. He just asked for twice that. 2) Not Even the Votes in His Own Party: The Senate was barely able to pass a bill with $800 billion in new tax revenue a few months ago (51 votes). There is no chance there are votes in the Senate for anything close to $1.6 trillion. 3) Unbalanced: The President also ran on a so-called balanced approach. Apparently his idea of balance is four times as much revenue as spending cuts. 4) No Net Spending Cuts: The spending cuts they are offering (which come later) are wiped out by all the new goodies he's also requesting. (stimulus, UI, payroll, housing, etc). 5) Debt Limit Pipe Dream: Permanently doing away with the debt limit? Come on. Guess what - the debt limit is actually very popular. Raising it to infinity is not. 6) We're Far From Opening Bids: Even as an "opening bid," this offer would be ludicrous. But we're way past that. We had about seven weeks to resolve this. Three of those weeks are gone, and this is what he comes with?"

FROM THE WHITE HOUSE: White House spokesman Josh Earnest: "Right now, the only thing preventing us from reaching a deal that averts the fiscal cliff and avoids a tax hike on 98 percent of Americans is the refusal of Congressional Republicans to ask the very wealthiest individuals to pay higher tax rates. The President has already signed into law over $1 trillion in spending cuts and we remain willing to do tough things to compromise, and it's time for Republicans in Washington to join the chorus of other voices -- from the business community to middle class Americans across the country -- who support a balanced approach that asks more from the wealthiest Americans."

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