Clinton admitted to hospital with blood clot

(REUTERS/Gary Cameron) U.S. Secretary of State Hillary Clinton delivers remarks at the State Department in Washington …Secretary of State Hillary Rodham Clinton has been admitted to a New York hospital for treatment of a blood clot, her spokesman said Sunday.

State Department Spokesman Philippe Reines said Clinton had entered the hospital following a medical examination for a concussion she sustained earlier this month.
"In the course of a follow-up exam today, Secretary Clinton's doctors discovered a blood clot had formed, stemming from the concussion she sustained several weeks ago," Reines said in a statement.  "She is being treated with anti-coagulants and is at NewYork-Presbyterian Hospital so that they can monitor the medication over the next 48 hours."

Reines added, "Her doctors will continue to assess her condition, including other issues associated with her concussion. They will determine if any further action is required."

Clinton was scheduled to return to work this week after treatment for the concussion. She is set to step down from her post shortly after President Barack Obama's inauguration on January 21. Last week, Obama announced he had chosen Massachusetts Sen. John Kerry to replace Clinton as the nation's top diplomat.

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Suspected US drone kills 3 al-Qaida men in Yemen

SANAA, Yemen (AP) — Three al-Qaida militants were killed in a suspected U.S. drone strike in southern Yemen, Yemeni security officials said, the fourth such attack this week and a sign attacks from unmanned aircraft are on the upswing in the country.

The officials said the three men were hit as they were riding in a Land Cruiser in el-Manaseh village on the outskirts of Radda in Bayda province. Dozens of local al-Qaida-linked fighters protested the drone strikes after traditional Islamic Friday prayers.

Earlier this week another suspected U.S. drone strike killed two militants in Radda itself, Yemeni security officials say, and seven were killed in two other strikes in the southeastern province of Hadramawt. Four suspected drone strikes a week is uncommon in Yemen.

According to statistics gathered by the Long War Journal before Saturday’s attacks, the United States “is known to have carried out 41 airstrikes” this year against al-Qaida in the Arabian Peninsula (AQAP), as the group’s branch in Yemen is known. That makes for an average of around three to four strikes per month.

The Journal, a product of the Foundation for Defense of Democracies that was founded by former U.S. officials, says that since December 2009, the CIA and the US military’s Joint Special Operations Command are known to have conducted at least 54 air and missile strikes inside Yemen, excluding Saturday’s suspected attack.

AQAP overran entire towns and villages — including Radda — last year by taking advantage of a security lapse during nationwide protests that eventually ousted the country’s longtime ruler. Backed by the U.S. military, Yemen’s army was able to regain control of the southern region but al-Qaida militants continue to launch deadly attacks on security forces that have killed hundreds.

Also on Saturday, two gunmen on a motorbike shot and killed an intelligence officer in the southeast, security officials said. They said that the officer, Mutea Baqutian, was on his way to work in Mukalla, capital of Hadramawt province, when the men stopped his car, gunned him down, and fled.

The government has blamed al-Qaida militants for similar assassinations of several senior military and intelligence officials this year. The bullet-riddled body of Major al-Numeiry Abdo al-Oudi, deputy director of the security department of al-Qitten in Hadramawt, was found in the town’s suburbs last week. He had been kidnapped earlier in the month.

All officials spoke on condition of anonymity according to regulations.

Meanwhile, Maj. Gen. Ahmed Seif, who is commander of Yemen’s central military region, said the Defense Ministry has deployed an infantry brigade in the northeastern province of Marib to stop armed tribesmen who maintain cordial ties with al-Qaida from attacking oil pipelines and power generating stations, as well as to counter al-Qaida militants.

State TV meanwhile aired a meeting between President Abed Rabbo Mansour Hadi and eight Yemeni sailors who were rescued last week by forces of Somalia’s semiautonomous Puntland region after being held for nearly three years by Somali pirates.

The Puntland government says that its forces captured the hijacked Panama-flagged MV Iceberg 1 on Sunday after a siege that lasted two weeks. They freed the eight Yemeni sailors together with five Indians, two Pakistanis, four Ghanaians, two Sudanese and a Filipino. The ship was hijacked March 29, 2010.

Hadi congratulated the eight sailors for their safety and ordered the government to compensate them for their suffering.

Eqbal Yassin, a relative of one of the freed sailors, told The Associated Press that the hijackers had allowed some sailors to phone their relatives and convey the pirates’ demand for $ 5 million ransom. He said he was told by his relative that the hijackers killed a Yemeni sailor who tried to escape. He gave no further details.

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Praying Hitler in ex-Warsaw ghetto sparks emotion

WARSAW, Poland (AP) — A statue of Adolf Hitler praying on his knees is on display in the former Warsaw Ghetto, the place where so many Jews were killed or sent to their deaths by Hitler’s regime, and it is provoking mixed reactions.

The work, “HIM” by Italian artist Maurizio Cattelan, has drawn many visitors since it was installed last month. It is visible only from a distance, and the artist doesn’t make explicit what Hitler is praying for, but the broader point, organizers say, is to make people reflect on the nature of evil.

In any case, some are angered by the statue’s presence in such a sensitive site.

One Jewish advocacy group, the Simon Wiesenthal Center, this week called the statue’s placement “a senseless provocation which insults the memory of the Nazis’ Jewish victims.”

“As far as the Jews were concerned, Hitler’s only ‘prayer’ was that they be wiped off the face of the earth,” the group’s Israel director, Efraim Zuroff, said in a statement.

However, many others are praising the artwork, saying it has a strong emotional impact. And organizers defend putting it on display in the former ghetto.

Fabio Cavallucci, director of the Center for Contemporary Art, which oversaw the installation, said, “There is no intention from the side of the artist or the center to insult Jewish memory.”

“It’s an artwork that tries to speak about the situation of hidden evil everywhere,” he said.

The Warsaw ghetto was an area of the city which the Nazis sealed off after they invaded Poland. They forced Jews to live in cramped, inhuman conditions there as they awaited deportation to death camps. Many died from hunger or disease or were shot by the Germans before they could be transported to the camps.

The Hitler installation is just one object in a retrospective of Cattelan’s work titled “Amen,” a show that explores life, death, good and evil. The other works are on display at the center itself, which is housed in the Ujazdowski Castle.

The Hitler representation is visible from a hole in a wooden gate across town on Prozna Street. Viewers only see the back of the small figure praying in a courtyard. Because of its small size, it appears to be a harmless schoolboy.

“Every criminal was once a tender, innocent and defenseless child,” the center said in a commentary on the work.

Poland’s chief rabbi, Michael Schudrich, said he was consulted on the installation’s placement ahead of time and did not oppose it because he saw value in the artist’s attempt to try to raise moral questions by provoking viewers.

He said he was reassured by curators who told him there was no intention of rehabilitating Hitler but rather of showing that evil can present itself in the guise of a “sweet praying child.”

“I felt there could be educational value to it,” said Schudrich, who also wrote an introduction to the exhibition’s catalogue in which he says art can “force us to face the evil of the world.”

On Friday, a stream of people walked by to view the work, and many praised it.

“It had a big emotional impact on me. It’s provocative, but it’s not offensive,” said Zofia Jablonska, a 30-year-old lawyer. “Having him pray in the place where he would kill people — this was the best place to put it.”

Cattelan caused controversy in Warsaw in 2000 when another gallery showed his work “La Nona Ora” — or “The Ninth Hour” — which depicts the late Pope John Paul II being crushed by a meteorite. That offended many in Poland, which is both deeply Catholic and was John Paul’s homeland.

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Dan Ariely Talks Creativity And Dishonesty

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Last-minute fiscal cliff talks in Senate

WASHINGTON (AP) — Senate leaders groped for a last-minute compromise Saturday to avoid middle-class tax increases and possibly prevent deep spending cuts at the dawn of the new year as President Barack Obama warned that failure could mean a "self-inflicted wound to the economy."

Obama chastised lawmakers in his weekly radio and Internet address for waiting until the last minute to try and avoid a "fiscal cliff," yet said there was still time for an agreement. "We cannot let Washington politics get in the way of America's progress," he said as the hurry-up negotiations unfolded.

For all the recent expressions of urgency, bargaining took place by phone, email and paper in a Capitol nearly empty except for tourists. Alone among top lawmakers, Senate Republican leader Mitch McConnell spent the day in his office.

In the Republicans' weekly address, Sen. Roy Blunt of Missouri cited a readiness to compromise. "Divided government is a good time to solve hard problems — and in the next few days, leaders in Washington have an important responsibility to work together and do just that," he said.

Even so, there was no guarantee of success, and a dispute over the federal tax on large estates emerged as yet another key sticking point alongside personal income tax rates.

In a blunt challenge to Republicans, Obama said that barring a bipartisan agreement, he expected both houses to vote on his own proposal to block tax increases on all but the wealthy and simultaneously preserve expiring unemployment benefits.

Political calculations mattered as much as deep-seated differences over the issues, as divided government struggled with its first big challenge since the November elections.

Speaker John Boehner remained at arms-length, juggling a desire to avoid the fiscal cliff with his goal of winning another term as speaker when a new Congress convenes next Thursday. Any compromise legislation is certain to include higher tax rates on the wealthy, and the House GOP rank and file rejected the idea when he presented it to them as part of a final attempt to strike a more sweeping agreement with Obama.

Lawmakers have until the new Congress convenes to pass any compromise, and even the calendar mattered. Democrats said they had been told House Republicans might reject a deal until after Jan. 1, to avoid a vote to raise taxes before they had technically gone up and then vote to cut taxes after they had risen.

Nor was any taxpayer likely to feel any adverse impact if legislation is signed and passed into law in the first two or three days of 2013 instead of the final hours of 2012.

Gone was the talk of a grand bargain of spending cuts and additional tax revenue in which the two parties would agree to slash deficits by trillions of dollars over a decade.

Now negotiators had a more cramped goal of preventing additional damage to the economy in the form of higher taxes across the board — with some families facing increases measured in the thousands of dollars — as well as cuts aimed at the Pentagon and hundreds of domestic programs.

Republicans said they were willing to bow to Obama's call for higher taxes on the wealthy as part of a deal to prevent them from rising on those less well-off.

Democrats said Obama was sticking to his campaign call for tax increases above $250,000 in annual income, even though he said in recent negotiations he said he could accept $400,000. There was no evidence of agreement even at the higher level.

There were indications from Republicans that estate taxes might hold more significance for them than the possibility of higher rates on income.

One senior Republican, Sen. Jon Kyl of Arizona, said late Friday he was "totally dead set" against Obama's estate tax proposal, and as if to reinforce the point, Blunt mentioned the issue before any other in his broadcast remarks. "Small businesses and farm families don't know how to deal with the unfair death tax_a tax that the president and congressional leaders have threatened to expand to include even more family farms and even more small businesses," he said.

Several officials said Republicans want to leave the tax at 35 percent after exempting the first $5 million in estate value. Officials said the White House wants a 45 percent tax after a $3.5 million exemption. Without any action by Congress, it would climb to a 55 percent tax after a $1 million exemption on Jan. 1.

Democrats stressed their unwillingness to make concessions on both income taxes and the estate tax, and said they hoped Republicans would choose which mattered more to them.

Officials said any compromise was likely to ease the impact of the alternative minimum tax, originally designed to make sure that millionaires did not escape taxation. If left unchanged, it could hit an estimated 28 million households for the first time in 2013, with an average increase of more than $3,000.

Taxes on dividends and capital gains are also involved in the talks, as well as a series of breaks for businesses and others due to expire at the first of the year.

Obama and congressional Democrats are insisting on an extension of long-term unemployment benefits that are expiring for about 2 million jobless individuals.

Leaders in both parties also hope to prevent a 27 percent fee cut from taking effect on Jan. 1 for doctors who treat Medicare patients.

There was also discussion of a short-term extension of expiring farm programs, in part to prevent a spike in milk prices at the first of the year. It wasn't clear if that was a parallel effort to the cliff talks or had become wrapped into them.

Across-the-board spending cuts that comprise part of the cliff were a different matter.

Republicans say Boehner will insist that they will begin to take effect unless negotiators agreed to offset them with specified savings elsewhere.

That would set the stage for the next round of brinkmanship — a struggle over Republican calls for savings from Medicare, Medicaid and other federal benefit programs.

The Treasury's ability to borrow is expected to expire in late winter or early spring, and without an increase in the $16.4 trillion limit, the government would face its first-ever default. Republicans have said they will use administration requests for an extension as leverage to win cuts in spending.

Ironically, it was just such a maneuver more than a year ago that set the stage for the current crisis talks over the fiscal cliff.

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C. African Republic neighbors to send help

BANGUI, Central African Republic (AP) — Central African Republic’s neighbors agreed on Friday to dispatch a contingent of soldiers to intervene in the troubled country, where a coalition of rebel groups is seeking to overthrow the president of nearly a decade.

Representatives from the 10-nation Economic Community of Central African States meeting in Gabon, though, did not specify how many troops they could contribute nor did they outline how quickly the military assistance would arrive.

President Francois Bozize had pleaded for international help Thursday as fears grew that the rebels would attack the capital of 600,000 next. Former colonial power France already has said that its forces in the country are there to protect French interests and not Bozize’s government.

“We are now thinking about the arrangements to make so that this mission can be deployed as quickly as possible, said Gabon’s Foreign Affairs Minister Emmanuel Issoze-Ngondet.

The announcement came as military officials in Central African Republic reported renewed fighting in the third largest city of Bambari, which fell under rebel control five days ago.

The military said it had taken country of the town, located about 385 kilometers (240 miles) from the capital, a claim that could not be immediately corroborated.

The ongoing instability prompted the United States to evacuate about 40 people, including the U.S. ambassador, on an U.S. Air Force plane bound for Kenya, said U.S. officials who insisted on anonymity because they weren’t authorized to discuss the operation.

The United States has special forces troops in the country who are assisting in the hunt for Joseph Kony, the fugitive rebel leader of another rebel group known as the Lord’s Resistance Army. The U.S. special forces remain in the country, the U.S. military’s Africa Command said from its headquarters in Stuttgart, Germany.

The evacuation of the U.S. diplomats came in the wake of criticism of how the U.S. handled diplomatic security before and during the attack on its consulate in Benghazi, Libya, on Sept. 11. The ambassador and three other Americans were killed in that attack.

French diplomats are staying despite a violent demonstration outside its embassy earlier this week. Dozens of protesters, angry about a lack of help against rebel forces, threw rocks at the French Embassy in Bangui and stole a French flag. French Foreign Minister Laurent Fabius spoke via phone with Bozize, asking him to take responsibility for the safety of French nationals and diplomatic missions in Central African Republic.

Bozize on Thursday urgently called on former colonial ruler France and other foreign powers to help his government fend off rebels who are quickly seizing territory and approaching the capital. But French President Francois Hollande said France wants to protect its interests in Central African Republic and not Bozize’s government.

This landlocked nation of some 4.4 million people has suffered decades of army revolts, coups and rebellions since gaining independence in 1960 and remains one of the poorest countries in the world. The current president himself came to power nearly a decade ago in the wake of a rebellion in this resource-rich yet deeply poor country.

Speaking to crowds in Bangui, a city of some 600,000, Bozize pleaded with foreign powers to do what they could. He pointed in particular to France. About 200 French soldiers are already in the country, providing technical support and helping to train the local army, according to the French defense ministry.

“France has the means to stop (the rebels) but unfortunately they have done nothing for us until now,” Bozize said.

Bozize’s government earlier reached out to longtime ally Chad, which pledged to send 2,000 troops to bolster Central African Republic’s own forces.

The rebels behind the most recent instability signed a 2007 peace accord allowing them to join the regular army, but insurgent leaders say the deal wasn’t fully implemented. The rebel forces have seized at least 10 towns across the sparsely populated north of the country, and residents in the capital now fear the insurgents could attack at any time, despite assurances by rebel leaders that they are willing to engage in dialogue instead of attacking Bangui.

The rebels have claimed that their actions are justified in light of the “thirst for justice, for peace, for security and for economic development of the people of Central African Republic.”

Despite Central African Republic’s wealth of gold, diamonds, timber and uranium, the government remains perpetually cash-strapped.

The rebels also are demanding that the government make payments to ex-combatants, suggesting that their motives may also be for personal financial gain.

Paris is encouraging peace talks between the government and the rebels, with the French Foreign Ministry noting in a statement that negotiations are due to “begin shortly in Libreville (Gabon).” But it was not immediately clear if any dates have been set for those talks.

The U.N.’s most powerful body condemned the recent violence and expressed concern about the developments.

“The members of the Security Council reiterate their demand that the armed groups immediately cease hostilities, withdraw from captured cities and cease any further advance towards the city of Bangui,” the statement said.

___

Goma reported from Libreville, Gabon. Associated Press writers Krista Larson in Dakar, Senegal; and Jason Straziuso in Nairobi, Kenya contributed to this report.

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Android-powered Ouya console now shipping to 1,200 developers [video]

Title Post: Android-powered Ouya console now shipping to 1,200 developers [video]
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Fans to introduce Beyonce at Super Bowl halftime

NEW YORK (AP) — All the single ladies — and fellas — will have a chance to join Beyonce on the field at the Super Bowl.

Pepsi announced Friday that fans will introduce the Grammy-winning diva when she takes the stage Feb. 3 at New Orleans’ Mercedes-Benz Superdome. A contest that kicks off Saturday will allow fans to submit photos of themselves in various poses, including head bopping, feet tapping and hip shaking. Those pictures will be used in a TV ad to air ahead of Beyonce’s halftime performance, and 50 of those who submit photos — along with a friend — will be selected to introduce the singer.

Photo contest details are at www.pepsi.com/halftime . The contest ends Jan. 19, but Jan. 11 is the cutoff date for those interested in introducing Beyonce.

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Analysis: For Senate leaders, a mission impossible from Obama

WASHINGTON (Reuters) – Following a Friday meeting with congressional leaders, an impatient and annoyed President Barack Obama said it was “mind boggling” that Congress has been unable to fix a “fiscal cliff” mess that everyone has known about for more than a year.

He then dispatched Senate Majority Leader Harry Reid, a Democrat, and Minority Leader Mitch McConnell, a Republican, on a mind-boggling mission: coming up with a bipartisan bill to break the “fiscal cliff” stalemate in the most partisan and gridlocked U.S. Congress of modern times – in about 48 hours.

Reid and McConnell, veteran tacticians known for their own long-running feud, have been down this road before.

Their last joint venture didn’t turn out so well. It was the deal in August 2011 to avoid a U.S. default that set the stage for the current mess. That effort, like this one, stemmed from a grand deficit-reduction scheme that turned into a bust.

But they have never had the odds so stacked against them as they try to avert the “fiscal cliff” – sweeping tax increases set to begin on Tuesday and deep, automatic government spending cuts set to start on Wednesday, combined worth $ 600 billion.

The substantive differences are only part of the challenge. Other obstacles include concerns about who gets blamed for what and the legacy of distrust among members of Congress.

Any successful deal will require face-saving measures for Republicans and Democrats alike.

“Ordinary folks, they do their jobs, they meet deadlines, they sit down and they discuss things, and then things happen,” Obama told reporters. “If there are disagreements, they sort though the disagreements. The notion that our elected leadership can’t do the same thing is mind-boggling to them.”

CORE DISAGREEMENT

The core disagreement between Republicans and Democrats is tough enough. It revolves around the low tax rates first put in place under Republican former President George W. Bush that expire at year’s end. Republicans would extend them for everyone. Democrats would extend them for everyone except the wealthiest taxpayers.

The first step for Reid and McConnell may be to find a formula acceptable to their own parties in the Senate.

While members of the Senate, more than members of the House of Representatives, have expressed flexibility on taxes, it’s far from a sure thing in a body that ordinarily requires not just a majority of the 100-member Senate to pass a bill, but a super-majority of 60 members.

With 51 Democrats, two independents who vote with the Democrats and 47 Republicans, McConnell and Reid may have to agree to suspend the 60-vote rule.

Getting a bill through the Republican-controlled House may be much tougher. The conservative wing of the House, composed of many lawmakers aligned with the Tea Party movement who fear being targeted by anti-tax activists in primary elections in 2014, has shown it will not vote for a bill that raises taxes on anyone, even if it means defying Republican House Speaker John Boehner.

Many Democrats are wedded to the opposite view – and have vowed not to support continuing the Bush-era tax rates for people earning more than $ 250,000 a year.

Some senators are wary of the procedural conditions House Republicans are demanding. Boehner is insisting the Senate start its work with a bill already passed by the House months ago that would continue all Bush-era tax cuts for another year. The Democratic-controlled Senate may amend the Republican bill, he says, but it must be the House bill.

For Boehner, it’s the regular order when considering revenue measures, which the U.S. Constitution says must originate in the House.

SHIFT BLAME

As some Democrats see it, it’s a way to shift blame if the enterprise goes down in flames. House Republicans would be able to claim that since they had already done their part by passing a bill, the Senate should take the blame for plunging the nation off the “cliff.”

And that could bring public wrath, currently centered mostly on Republicans, onto the heads of Democrats.

Voters may indeed be looking for someone to blame if they see their paychecks shrink as taxes rise or their retirement savings dwindle as a result of a plunge in global markets.

If Reid and McConnell succeed, there could be political ramifications for each side. For example, a deal containing any income tax hikes could complicate McConnell’s own 2014 re-election effort in which small-government, anti-tax Tea Party activists are threatening to mount a challenge.

If Obama and his fellow Democrats are perceived as giving in too much, it could embolden Republicans to mount challenge after challenge, possibly handcuffing the president before his second term even gets off the ground.

It could be a sprint to the finish. One Democratic aide expected “negotiation for a day.” If the aide is correct, the world would know by late on Saturday or early on Sunday if Washington’s political dysfunction is about to reach a new, possibly devastating, low.

If Reid and McConnell reach a deal, it would then be up to the full Senate and House to vote, possibly as early as Sunday.

Reid and McConnell have been through bitter fights before. The deficit reduction and debt limit deal that finally was secured last year was a brawl that ended only when the two leaders agreed to a complicated plan that secured about $ 1 trillion in savings, but really postponed until later a more meaningful plan to restore the country’s fiscal health.

That effort led to the automatic spending cuts that form part of the “fiscal cliff.”

Just months later, in December 2011, Reid and McConnell were going through a tough fight over extending a payroll tax cut.

In both instances, it was resistance from conservative House Republicans that complicated efforts, just as is the case now with the “fiscal cliff.”

(Editing by Fred Barbash and Will Dunham)

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For Senate leaders, is a 'cliff' deal a mission impossible?

WASHINGTON (Reuters) - Following a Friday meeting with congressional leaders, an impatient and annoyed President Barack Obama said it was "mind boggling" that Congress has been unable to fix a "fiscal cliff" mess that everyone has known about for more than a year.

He then dispatched Senate Majority Leader Harry Reid, a Democrat, and Minority Leader Mitch McConnell, a Republican, on a mind-boggling mission: coming up with a bipartisan bill to break the "fiscal cliff" stalemate in the most partisan and gridlocked U.S. Congress of modern times - in about 48 hours.

Reid and McConnell, veteran tacticians known for their own long-running feud, have been down this road before.

Their last joint venture didn't turn out so well. It was the deal in August 2011 to avoid a U.S. default that set the stage for the current mess. That effort, like this one, stemmed from a grand deficit-reduction scheme that turned into a bust.

But they have never had the odds so stacked against them as they try to avert the "fiscal cliff" - sweeping tax increases set to begin on Tuesday and deep, automatic government spending cuts set to start on Wednesday, combined worth $600 billion.

The substantive differences are only part of the challenge. Other obstacles include concerns about who gets blamed for what and the legacy of distrust among members of Congress.

Any successful deal will require face-saving measures for Republicans and Democrats alike.

"Ordinary folks, they do their jobs, they meet deadlines, they sit down and they discuss things, and then things happen," Obama told reporters. "If there are disagreements, they sort though the disagreements. The notion that our elected leadership can't do the same thing is mind-boggling to them."

CORE DISAGREEMENT

The core disagreement between Republicans and Democrats is tough enough. It revolves around the low tax rates first put in place under Republican former President George W. Bush that expire at year's end. Republicans would extend them for everyone. Democrats would extend them for everyone except the wealthiest taxpayers.

The first step for Reid and McConnell may be to find a formula acceptable to their own parties in the Senate.

While members of the Senate, more than members of the House of Representatives, have expressed flexibility on taxes, it's far from a sure thing in a body that ordinarily requires not just a majority of the 100-member Senate to pass a bill, but a super-majority of 60 members.

With 51 Democrats, two independents who vote with the Democrats and 47 Republicans, McConnell and Reid may have to agree to suspend the 60-vote rule.

Getting a bill through the Republican-controlled House may be much tougher. The conservative wing of the House, composed of many lawmakers aligned with the Tea Party movement who fear being targeted by anti-tax activists in primary elections in 2014, has shown it will not vote for a bill that raises taxes on anyone, even if it means defying Republican House Speaker John Boehner.

Many Democrats are wedded to the opposite view - and have vowed not to support continuing the Bush-era tax rates for people earning more than $250,000 a year.

Some senators are wary of the procedural conditions House Republicans are demanding. Boehner is insisting the Senate start its work with a bill already passed by the House months ago that would continue all Bush-era tax cuts for another year. The Democratic-controlled Senate may amend the Republican bill, he says, but it must be the House bill.

For Boehner, it's the regular order when considering revenue measures, which the U.S. Constitution says must originate in the House.

SHIFT BLAME

As some Democrats see it, it's a way to shift blame if the enterprise goes down in flames. House Republicans would be able to claim that since they had already done their part by passing a bill, the Senate should take the blame for plunging the nation off the "cliff."

And that could bring public wrath, currently centered mostly on Republicans, onto the heads of Democrats.

Voters may indeed be looking for someone to blame if they see their paychecks shrink as taxes rise or their retirement savings dwindle as a result of a plunge in global markets.

If Reid and McConnell succeed, there could be political ramifications for each side. For example, a deal containing any income tax hikes could complicate McConnell's own 2014 re-election effort in which small-government, anti-tax Tea Party activists are threatening to mount a challenge.

If Obama and his fellow Democrats are perceived as giving in too much, it could embolden Republicans to mount challenge after challenge, possibly handcuffing the president before his second term even gets off the ground.

It could be a sprint to the finish. One Democratic aide expected "negotiation for a day." If the aide is correct, the world would know by late on Saturday or early on Sunday if Washington's political dysfunction is about to reach a new, possibly devastating, low.

If Reid and McConnell reach a deal, it would then be up to the full Senate and House to vote, possibly as early as Sunday.

Reid and McConnell have been through bitter fights before. The deficit reduction and debt limit deal that finally was secured last year was a brawl that ended only when the two leaders agreed to a complicated plan that secured about $1 trillion in savings, but really postponed until later a more meaningful plan to restore the country's fiscal health.

That effort led to the automatic spending cuts that form part of the "fiscal cliff."

Just months later, in December 2011, Reid and McConnell were going through a tough fight over extending a payroll tax cut.

In both instances, it was resistance from conservative House Republicans that complicated efforts, just as is the case now with the "fiscal cliff."

(Editing by Fred Barbash and Will Dunham)

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