A Google-a-Day Puzzle for Jan. 3











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



Note: Ad-blocking software may prevent display of the puzzle widget.




Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

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Jay-Z composing original score for “The Great Gatsby”






LOS ANGELES (TheWrap.com) – If you liked the music in the trailer for Baz Luhrmann‘s “The Great Gatsby,” you’ll be happy to hear Jay-Z isn’t just lending a few of his songs to the soundtrack, he’s composing the upcoming film’s entire original score.


The rapper is, apparently, hard at work to accomplish the task with another artist, who goes by the name The Bullitts.






The latter broke the news on Twitter in the early morning hours Sunday.


Jay-Z and myself have been working tirelessly on the score for the upcoming #CLASSIC ‘The Great Gatsby,’” Bullitts exclaimed. “It is too DOPE for words!”


Don’t expect the collaborators to start producing tunes from the Roaring Twenties. The trailer certainly indicates otherwise and Luhrmann mixed in modern music for “Romeo + Juliet,” as well as the musical period piece “Moulin Rouge!”


It appears the flappers in Luhrmann’s latest film will be dancing to a very different beat than what F. Scott Fitzgerald imagined while writing his classic novel.


The Great Gatsby,” starring Leonardo DiCaprio and Tobey Maguire, hits theaters on May 10.


Warner Bros. and Jay-Z‘s rep did not immediately respond to TheWrap’s request for comment.


Music News Headlines – Yahoo! News





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Chinese Groups Slowly Carve Out Space in Work Against H.I.V./AIDS


Gilles Sabrie for The New York Times


In October, a student gave blood for an H.I.V. test at the Lingnan Health Center in Guangzhou. The center tries to be a safe space for gay men in an environment that can be hostile toward them.







GUANGZHOU, China — As he waited to give blood for an H.I.V. test one recent afternoon, Le, a 25-year-old marketing professional, explained why he was there. “I was aware of the consequences” of not using a condom, he said, “but somehow I didn’t know how to say no.”




Le, a gay man who would give only his first name, was being tested at the Lingnan Health Center, an organization run largely by gay volunteers, whose walls are adorned with red AIDS ribbons and a smiling condom mascot. In the past, Le went to hospitals to be tested, he said, but the stigma of being a gay man in China made the experience particularly harrowing.


“I’d always be concerned about what the doctors would think of me,” Le said. “Here we’re all in the same community, so there’s less to worry about.”


Le is one of thousands of gay men in this bustling city of 13 million people who are benefiting from a pioneering experiment that supporters hope will revolutionize the way the Communist Party deals with nongovernment groups trying to stop the spread of AIDS and other sexually transmitted diseases.


Encouraged by the new slate of leaders who came to power in November, civil society activists hope the model taking shape here in the prosperous southern province of Guangdong, which has long served as a petri dish for economic reform, will be replicated nationally, not just in the fight against disease but also on issues like poverty, mental health and the environment.


While China’s Center for Disease Control and Prevention has allowed community organizations across the country to participate in disease testing programs since 2008, in practice those efforts remain patchy. But in November, just before World AIDS Day the following month, the grass-roots movement received a high-profile endorsement from the incoming prime minister, Li Keqiang.


At a meeting with advocates for AIDS patients, Mr. Li, a large red ribbon pinned to his jacket, promised more government support and shook hands with H.I.V.-positive people. The image resounded in a society where those infected are routinely turned away from hospitals and hounded from their jobs. “Civil society plays an indispensable role in the national battle against H.I.V./AIDS,” he said, according to the state news media.


Activists remain wary, however, noting that the government has made similar promises in the past. And despite the high-level support and a policy in Guangdong allowing grass-roots groups to register directly with the government — instead of being forced to find an official sponsor, as in much of the country — many organizations say they still are stymied by dizzying bureaucratic hurdles or rejected for missing unannounced deadlines.


Tao Cai, the director of AIDS Care China, which provides support to 30,000 H.I.V.-positive people nationwide but remains unregistered, believes the obstacles come from local officials who are trying to prevent nonprofit groups from competing with their fiefs. “In China,” he said, “we say reform never gets out of Zhongnanhai,” a reference to the walled compound for senior leaders in Beijing.


There is little doubt that public health officials need help. Through October, nearly 69,000 new H.I.V. infections were reported in China in 2012, a 13 percent rise from the same period in 2011. Almost 90 percent of those cases were contracted through sexual intercourse, with rising numbers involving gay men. Medical experts also worry about syphilis, which has returned with a vengeance after being virtually wiped out during the Mao era.


Reported cases of syphilis, known in the south as “Guangdong boils,” have increased more than tenfold in the last decade, according to national statistics. As with H.I.V., gay men and sex workers are particularly at risk. Local health experts estimate that 5 percent of men who have sex with other men carry H.I.V., while around 20 percent test positive for syphilis.


The Chinese authorities have long tackled the rise in communicable diseases among gay men with all the sensitivity of a swinging billy club. In raids on bars, bathhouses and parks, police officers and health officials often force those detained to hand over their IDs and submit to blood tests.


Grass-roots health groups have been frequent targets of official harassment as well. In most provinces, they can legally register with the Bureau of Civil Affairs only if they are sponsored by a government agency. But advocates say few agencies are willing to vouch for groups focused on politically fraught issues like homosexuality, prostitution or sexually transmitted diseases.


In the face of such constraints, the majority of China’s estimated 1,000 H.I.V. organizations operate in a legal purgatory that deprives them of tax benefits and makes it risky to accept foreign donations, usually their main source of support.


Mr. Li, the incoming premier, has a spotty record when it comes to H.I.V. In the 1990s, when he was the top official in central Henan Province, a botched blood-collection program there infected hundreds of thousands of people with H.I.V. Critics say Mr. Li was more interested in covering up the problem than dealing with its causes. Even as he was holding court with AIDS groups, over a hundred of those infected in the scandal marched in Beijing to the Ministry of Health demanding justice.


Mr. Li’s views appear to have changed. In November, social media erupted over the case of a 25-year-old man seeking treatment for lung cancer who was turned away from two Beijing hospitals because he was H.I.V.-positive. A hospital in nearby Tianjin finally removed the tumor — but only after he altered his medical records to conceal his H.I.V. status from doctors. As a battle raged online between those condemning his actions and those sympathizing with his plight, Mr. Li ordered the Health Ministry to prohibit hospitals from rejecting AIDS patients.


This article has been revised to reflect the following correction:

Correction: January 2, 2013

Because of an editing error, an earlier version of a picture caption misspelled part of the name of an organization in Guangzhou. It is the Lingnan Health Center, not Lignan. 



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It's the Economy: What Will the Economy’s New ‘Normal’ Look Like in 2013?


Illustration by Jasper Rietman







Back in the mid-2000s, the U.S. consumer economy was undergoing a serious change. After decades of favoring low prices (even when they promised low quality), consumers began paying more for all sorts of premium features like single-serve packaging and pretty much anything “green” or “organic.” Then came the financial crisis and the drop in consumer demand.






Deep thoughts this week:

1. Consumption is back.

2. But many buying habits are changing.

3. Regardless, the habits of the U.S. middle class are becoming less important.





It’s the Economy




Adam Davidson translates often confusing and sometimes terrifying economic and financial news.







Despite a worse-than-expected holiday season, the Federal Reserve forecast that G.D.P. growth would approach the historic average of about 3 percent in 2013. The economy may be coming back, but the question for many businesses is what the new “normal” looks like. Will shoppers spend as they did in the credit-bubble years? Or has the Great Recession scared them into prolonged stinginess? Early evidence suggests a mix. What is clear is that the big changes are just beginning.


Waste More, Want More


From the 1970s through the 1990s, the dominant retail trend was toward cheap and big: shoppers drove long distances to buy large boxes of everything they needed in bulk. Starting in the last decade, though, this began to change. And the success of products like Tide Pods (premeasured balls of detergent that made Procter & Gamble an estimated $500 million last year) suggest that the era of premium conveniences isn’t going anywhere.


Somewhat counterintuitively, this trend is directly related to the downturn, says John N. Frank, an analyst at Mintel, a market-research firm. Fearful of losing their jobs, millions of workers coped with the crisis by putting in more time at the office — “doing at least two people’s jobs,” Frank says — even if it meant less time to shop for deals. Dollar General saw tremendous growth as a more convenient alternative to Sam’s Club. Duane Reade, now owned by Walgreen, is proving that no block in Manhattan should be without a drugstore that also carries basic grocery items at an upcharge. Frank says he expects that anxious, overtired workers will drive this trend well into this decade, too.


Housing Is Back


Now that at least one million households are looking to move somewhere better, investors are looking to buy houses on the cheap — not to flip, but to rent. (The Blackstone Group, the private-equity colossus, has spent more than $1 billion this year buying up thousands of single-family homes around the country.) New residential construction starts also came back strong last year, and much of the growth was from multiunit apartment buildings designed, yes, for renting.


Despite the fact that homeownership has been promoted as a universal economic good since the Depression, the trend toward rentals might be a good one. Renters are more able to follow the job market. Renting, as the housing bubble revealed, benefits the overall recovery, because fewer people have their money tied up in one asset.


Not Your Father’s Oldsmobile


In 2012, the average life of a car in the United States reached a historic high of 11.2 years. This was tied to the collapse of new-car sales during the recession, but it was also driven by several long-term shifts. After steady increases for decades, Americans are driving less. Total miles driven in the United States hit 3 trillion for the first time in 2006. It went up even further in 2007 but has generally fallen since.


For the first time in nine decades, according to census data, walkable cities are growing faster than suburbs. And wherever people happen to move, they are buying smaller, more fuel-efficient cars. Large- and some luxury-car segments are falling, says Tom Libby, an automotive research analyst at Polk, and the cheaper subcompact and emerging sub-subcompact classes are growing. All this means that autos — one of the biggest industries in the United States — will not soon regain the explosive growth of the early 2000s.


Debt and Taxes


In 2008, Americans owed a collective $12.7 trillion. Today, thanks in part to mortgage defaults, we are down to $11.3 trillion, which is about 95 percent of our disposable income. That’s progress, but it’s still higher than the 88 percent we owed 10 years ago.


Additional reporting by Jacob Goldstein


Adam Davidson is co-founder of NPR’s “Planet Money,” a podcast and blog.



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Brown plans extensive changes for school funding in 2013









SACRAMENTO — Gov. Jerry Brown will push this year to upend the way schools are funded in California, hoping to shift more money to poorer districts and end requirements that billions of dollars be spent on particular programs.


Brown said he wants more of the state's dollars to benefit low-income and non-English-speaking students, who typically are more expensive to educate.


"The reality is, in some places students don't enjoy the same opportunities that people have in other places," the governor said in an interview. "This is a way to balance some of life's chances."





He would also scale back — and possibly eliminate — dozens of rules that districts must abide by to receive billions in state dollars. Some of those requirements, such as a mandate to limit class size, have been suspended amid Sacramento's recurrent budget problems but are set to resume by 2015.


Brown and his aides are keeping most details under wraps. But advisers say his proposals, part of the budget blueprint to be unveiled early this month, will amount to the most extensive changes in decades in the relationship between school districts and state government.


His intentions are already raising concerns among school administrators, district officials and labor unions. The governor postponed earlier plans to push for the changes when the discord threatened to distract from his campaign for higher taxes. Voters approved the tax hikes in November, averting billions of dollars in education cuts.


Now, the transformation of school funding is at the top of his agenda. He says his goal is more local control.


"What the state has done for 40 years is develop one new program after another to compensate for underperforming" schools, he said. "What we have now is command and control issuing from headquarters in Sacramento."


Scores of programs set up by state mandate — for smaller classes, bilingual education and summer school, for example — have their own pots of money sent from Sacramento to pay for them. ¿The Public Policy Institute of California found that nearly 40% of every dollar sent to schools from both the state and federal governments is earmarked for such a purpose.


The programs vary in size and scope: $4.5 million to meet the needs of Native American students, $10 million to improve school Internet access, more than $618 million set aside for school buses, etc.


According to Brown's Department of Finance, 56 such programs received a total of $11.8 billion in state funds last year. ¿The result, the governor says, is a bloated school bureaucracy that takes money away from core instruction.


"You have to have administrators at the state level, district level and at the school level who are engaged in making sure this money is used for what it's supposed to be used for," Brown said. "This constant articulation of rules is a world unto itself that is not directly supporting the teacher in the classroom."


But many of the programs are popular with parents and various interest groups and have staunch defenders in the Capitol. They say lifting restrictions on how schools spend their money could hurt struggling students.


In recent years, state lawmakers have offered districts some flexibility to cope with rounds of budget cuts. The results, some say, have not always been good, leading to larger classes and sharp reductions in programs for adults trying to earn a high school degree.


Since 2008, the average class size in kindergarten through third grade has grown from 20 to 23, among the largest in the nation, according to a study from the Public Policy Institute of California. During the same period, the average class size elsewhere in the country remained at around 15 students.


In addition, "since schools have been given greater flexibility, adult education ... has been decimated throughout the state," said Jeff Freitas, secretary-treasurer of the California Federation of Teachers. "You can't just give the locals carte blanche with the money."


Shifting money to poorer schools at the expense of wealthier ones is also certain to stir protest.


Under a similar proposal the governor floated last year, the Department of Finance estimated that Compton Unified schools would see an uptick of more than $4,700 per pupil by the 2017-18 school year. Manhattan Beach Unified would get a per-student increase of just $681.


Those who have met with Brown's top education aides expect the governor to propose a similar formula in January, asking districts to account for the expenditures to make sure the funds serve higher-needs students.


Adonai Smith, a lobbyist for the Assn. of California School Administrators, said his members would not support a plan that amounts to a "redistribution of resources."


The governor says that even if funding is tweaked to favor more poor students and English learners, all schools will receive more money now that state revenue is on the uptick.


"I want to align more closely the money schools receive with the problems that teachers encounter," Brown said. "When somebody's teaching in Compton, it's a much bigger challenge than teaching in Beverly Hills."


anthony.york@latimes.com





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The Future Is Now: What We Imagined for 2013 — 10 Years Ago










Predicting the future is hard, but that doesn’t stop us from trying. We’re Wired, after all.


Ten years ago, we boldly declared that we’d be living with phones on our wrists, data-driven goggles on our eyes and gadgets that would safety-test our food for us. Turns out, a lot of the things Sonia Zjawinski conceptualized in our “Living in 2013” feature way back in 2003 were remarkably close to what we’ve seen. We even got the iPhone right (sort of).


And so, as we look back on life in 2013 circa 2003, we’re going to spin it forward once again to tell you what life will be like in 2023.





Mat Honan is a senior writer for Wired's Gadget Lab and the co-founder of the Knight-Batten award-winning Longshot magazine.

Read more by Mat Honan

Follow @mat on Twitter.



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LA photographer killed while shooting Bieber’s car






LOS ANGELES (AP) — Police say a paparazzo was hit by a car and killed after taking photos of Justin Bieber‘s white Ferrari on a Los Angeles street.


Los Angeles police Officer James Stoughton says the photographer, who was not identified, died at a hospital shortly after the crash Tuesday evening. Stoughton says Bieber was not in the Ferrari at the time.






The sports car was parked on the side of Sepulveda Boulevard near Getty Center Drive after a traffic stop. The photographer was struck as he walked across the boulevard after taking pictures.


Stoughton says no charges are expected to be filed against the motorist who hit the man.


A call to a spokesperson for the singer was not immediately returned Tuesday night.


Entertainment News Headlines – Yahoo! News





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Safed Journal: New Insights on Marijuana in Israel, Where It’s Illegal


Baz Ratner/Reuters


Tikkun Olam, a medical marijuana farm in Israel, blends the high-tech and the spiritual.







SAFED, Israel — Among the rows of plants growing at a government-approved medical marijuana farm in the Galilee hills in northern Israel, one strain is said to have the strongest psychoactive effect of any cannabis in the world. Another, rich in anti-inflammatory properties, will not get you high at all.




Marijuana is illegal in Israel, but farms like this one, at a secret location near the city of Safed, are at the cutting edge of the debate on the legality, benefits and risks of medicinal cannabis. Its staff members wear white lab coats, its growing facilities are fitted with state-of-the-art equipment for controlling light and humidity, and its grounds are protected by security cameras and guards.


But in addition to the high-tech atmosphere, there is a spiritual one. The plantation, Israel’s largest and most established medical marijuana farm — and now a thriving commercial enterprise — is imbued with a higher sense of purpose, reflected by the aura of Safed, an age-old center of Jewish mysticism, as well as by its name, Tikkun Olam, a reference to the Jewish concept of repairing or healing the world.


There is an on-site synagogue in a trailer, a sweet aroma of freshly harvested cannabis that infuses the atmosphere and, halfway up a wooded hillside overlooking the farm, a blue-domed tomb of a rabbinic sage and his wife.


In the United States, medical marijuana programs exist in 18 states but remain illegal under federal law. In Israel, the law defines marijuana as an illegal and dangerous drug, and there is still no legislation regulating its use for medicinal purposes.


Yet Israel’s Ministry of Health issues special licenses that allow thousands of patients to receive medical marijuana, and some government officials are now promoting the country’s advances in the field as an example of its pioneering and innovation.


“I hope we will overcome the legal obstacles for Tikkun Olam and other companies,” Yuli Edelstein, the minister of public diplomacy and diaspora affairs, told journalists during a recent government-sponsored tour of the farm, part of Israel’s effort to brand itself as something beyond a conflict zone. In addition to helping the sick, he said, the effort “could be helpful for explaining what we are about in this country.”


Israelis have been at the vanguard of research into the medicinal properties of cannabis for decades.


In the 1960s, Prof. Raphael Mechoulam and his colleague Yechiel Gaoni at the Weizmann Institute of Science isolated, analyzed and synthesized the main psychoactive ingredient in the cannabis plant, tetrahydrocannabinol, or THC. Later, Professor Mechoulam deciphered the cannabinoids native to the brain. Ruth Gallily, a professor emerita of immunology at the Hebrew University of Jerusalem, has studied another main constituent of cannabis — cannabidiol, or CBD — considered a powerful anti-inflammatory and anti-anxiety agent.


When Zach Klein, a former filmmaker, made a documentary on medical marijuana that was broadcast on Israeli television in 2009, about 400 Israelis were licensed to receive the substance. Today, the number has risen to about 11,000.


Mr. Klein became devoted to the subject and went to work for Tikkun Olam in research and development. “Cannabis was used as medicine for centuries,” he said. “Now science is telling us how it works.”


Israeli researchers say cannabis can be beneficial for a variety of illnesses and conditions, from helping cancer patients relieve pain and ease loss of appetite to improving the quality of life for people with post-traumatic stress disorder and neuropsychological conditions. The natural ingredients in the plant, they say, can help with digestive function, infections and recovery after a heart attack.


The marijuana harvest, from plants that can grow over six feet tall, is processed into bags of flowers and ready-rolled cigarettes. There are also cannabis-laced cakes, cookies, candy, gum, honey, ointments and oil drops. The strain known as Eran Almog, which has the highest concentration of THC, is recommended for severe pain. Avidekel, a strain rich in CBD and with hardly any psychoactive ingredient, allows patients to benefit from the drug while being able to drive and to function at work.


Working with Hebrew University researchers, the farm has also developed a version in capsule form, which would make exporting the drug more practical, should the law allow it.


Professor Mechoulam, now 82, said in an interview that he had been urging producers over the years to grow cannabis with less THC and more CBD, something in which nonmedical marijuana growers had little interest. He said what Tikkun Olam had done was not great science but “a very practical development.”


In Israel, he said, research in the field is “definitely a work in progress,” and he cautioned, “Science is not a 100-meters Olympic race; it is not who is first on the line that is important.”


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Scant Proof Is Found to Back Up Claims by Energy Drinks





Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.




Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.


The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.


“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.


Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.


Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.


As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.


Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.


“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”


A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.


In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.


Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.


Consider the case of taurine, an additive used in most energy products.


On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.


But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.


Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.


Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.



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Senate passes 'fiscal cliff' deal; House to vote Tuesday









WASHINGTON — The Senate voted overwhelmingly early Tuesday to approve legislation to halt a tax increase for all but the wealthiest Americans while postponing for two months deep spending cuts. The vote came just hours after the accord was reached between the White House and congressional leaders.


After a rare holiday session that lasted through the New Year’s Eve celebration and two hours into New Year’s Day, senators voted 89-8 to approve the proposal. Three Democrats and five Republicans dissented, most prominently Sen. Marco Rubio (R-Fla.).


“It took an imperfect solution to prevent our constituents from very real financial pain,” Senate Minority Leader Mitch McConnell (R-Ky)  said before the vote. “This shouldn’t be the model for how to do things around here. But I think we can say we’ve done some good for the country.”





President Obama, in a statement released by the White House early Tuesday morning, said, “While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay.”


The lopsided vote puts pressure on the House to swiftly follow suit to ensure the nation avoids the so-called fiscal cliff. As long as Congress is seen to be working toward a solution, no dire economic fallout is expected from the delay. The House is expected to bring the bill up Tuesday afternoon.


The deal, if approved by Congress, would represent a milestone for Republicans, whose anti-tax stance has defined the party since former President George H.W. Bush broke his promise not to raise taxes in 1990. Republicans have not supported an effort to increase income taxes since then.


It also would be a concession for Democrats who backed away from President Obama’s popular campaign pledge that he would ask households earning more than $250,000 to pay more in taxes. Under the deal with Republicans, taxes will increase only on households earning more than $450,000.


Still, the deal spares the average middle class family a tax hike of about $2,200, a reality that drove the sense of urgency that motivated lawmakers in the frantic final hours of 2012.


“I’m not happy the way it happened, but it is what it is,” Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, said before the vote. “It was very important that we prevent an increase on middle income taxes. And I’ll be working next year to get a bigger agreement.”


The deep automatic spending cuts scheduled to begin Wednesday — the other part of the "fiscal cliff" — would be pushed back just long enough to ensure that the partisan budget battles marking Obama's first term will also punctuate the beginning of his second. Negotiations over the cuts were expected to be rolled into talks about extending the nation's debt ceiling, a prospect Democrats promised to resist.

The normally festive time of year turned serious Monday as details of the deal emerged. Vice President Joe Biden, who brokered the deal in marathon sessions with McConnell, was dispatched to the Capitol for an intense 90-minute session with Democrats.

In an afternoon speech with middle-class Americans arrayed on risers behind him, Obama had urged congressional negotiators to press on and resolve the remaining issues.

"It's not done," Obama said from the Eisenhower Executive Office Building next to the White House. He called on Americans to urge their lawmakers to "see if we can get this done."

The talks had largely settled the income tax provisions, which would stop the increase on most Americans and raise rates for households making more than $450,000 a year. But the two sides remained at odds over how to deal with the automatic spending cuts.

"We are very, very close," an upbeat McConnell said on the Senate floor. "We can do this."

Lawmakers were told to stay near the Capitol, and many hunkered down there for New Year's Eve.

Sen. Mary L. Landrieu (D-La.) hosted an evening gathering at her nearby home as lawmakers awaited word of final details. "We're serving beer, not champagne," she said.

Yet Democratic leaders remained largely silent on the proposal before Biden, a former senator who has cut deals with McConnell before, headed to Capitol Hill to brief his Democratic colleagues.

"Having been in the Senate as long as I have, there are two things you shouldn't do: You shouldn't predict how the Senate's going to vote before they vote," Biden said, emerging from the session, which lawmakers described as robust. "And number two, you surely shouldn't predict how the House is going to vote."

The office of Senate Majority Leader Harry Reid, the Nevada deal-maker who stepped aside for Biden to negotiate with McConnell, offered visible evidence of the level of concern. Lawmakers came in and out of his door throughout the day.

"No deal is better than a bad deal," said Sen. Tom Harkin (D-Iowa), an influential liberal. "And this looks like a very bad deal."

The powerful AFL-CIO president, Richard Trumka, tweeted his displeasure.

Conservatives similarly sounded off. "Republicans should kill the compromise, if there are no spending cuts," Erick Erickson, the conservative founder of the influential Red State blog, said in a tweet.

Putting the vote off until Tuesday would accomplish a political back flip that would be particularly advantageous for anti-tax Republicans, and it represented an option that has been discussed for months.

With the existing tax rates set to expire at midnight, Tuesday ushered in the new higher rates. By acting Tuesday rather than Monday, the congressional votes would technically be to lower tax rates on most Americans, rather than raise them.

Biden and McConnell were in close contact all day after working past midnight Sunday and resuming very early Monday morning to craft the deal.

The minority leader convened Republican senators behind closed doors at dinnertime, and many emerged optimistic that a deal was at hand.

"Hope springs eternal around here, even though it gets a little sticky at times," said Sen. Pat Roberts (R-Kan.). House Speaker John A. Boehner convened his troops in a basement office beneath the Rotunda.

Optimism aside, one thing was increasingly clear: With some major issues still unresolved, Washington was poised to continue the partisan budget battles that have defined Obama's first term.

Under the proposed deal, more than $620 billion in revenue would be raised — far less than the $1.6 trillion Obama first sought in new revenue when he still hoped for a large deficit reduction package.

The agreement would set the top tax rates at 39.6% for income above $450,000 for households and $400,000 for individuals, according to a source who spoke on the condition of anonymity because he was not authorized to discuss the negotiations.

Tax rates on investment income would also rise for those higher-income households, from the historic low 15% rate on capital gains and dividends to 20%. Obama had wanted to tax dividends at the same rate as ordinary income.

The rate for the estate tax was a key sticking point throughout the weekend. The agreement would set a new rate at 40% on estates valued at more than $5 million. That is a compromise between the 35% rate in effect in 2012 and the 45% rate Democrats demanded on estates of $3.5 million or more.

About 2 million out-of-work Americans would benefit, if the deal is approved, from a one-year extension of long-term unemployment benefits. Those benefits expired over the weekend.

One area that hewed closer to Democratic priorities was Obama's proposal to reinstate limits on how much upper-income households could benefit from personal exemption tax credits and itemized deductions. Those limits, in place before the George W. Bush-era tax cuts began in 2001, were done away with over the past decade.

The agreement would reduce those deductions for households earning more than $250,000, leading to higher effective taxes on those households without an increase in tax rates, which the GOP had resisted.

Other tax credits established under Obama's economic recovery program would also be extended for five more years. That provision is a nod to Democratic calls for more stimulus spending to help the economy and for adjustments to the tax code to help those with more modest incomes.

Those credits include a $2,500 tax credit for college students and another that allows cash refunds even if no tax is owed for those with children and family incomes below $45,000.

The deal also includes a permanent fix for the alternative minimum tax, a part of the tax code that was established decades ago to ensure high-income earners paid at least a minimum amount of tax even if they were able to reduce their liability through extensive deductions. But it increasingly snares middle-class families because it was never indexed to inflation. Congress must fix it every year, a problem that would be finally resolved with Monday's deal.

The agreement also includes a nine-month extension of a stalled farm bill, ensuring that milk prices would not double, as some had predicted, without price supports. Doctors who serve Medicare patients would also be spared a pay cut, a usually routine adjustment that got caught up in the year-end fight.

Even with the thorny tax issues all but settled, the mandatory budget cuts that would start to reduce federal spending on Wednesday remained a sticking point until late Monday.

Those cuts, which would slice across defense and domestic programs, had been set as a last-ditch trigger designed to spur negotiations for a broader budget deal after an earlier deficit-reduction effort failed.

Talks focused on postponing the cuts for two months but offsetting the $24 billion that would not be saved. The White House and Republicans eventually settled on a mix of revenue increases and spending cuts.

Postponing the automatic cuts for two months, as the Republicans wanted, all but guarantees the budget battles will continue. Democrats had hoped to extend that reckoning for a year to keep Obama's second term from beginning with a repeat of past tumultuous budget battles.


In addition to Rubio, the dissenters to the deal in the Senate were Democrats Tom Harkin (Iowa), Thomas R. Carper (Del.) and Michael Bennet (Colo.), and Republicans Chuck Grassley (Iowa), Mike Lee (Utah), Rand Paul (Ky.) and Richard Shelby (Ala.).


Three senators did not vote: Frank R. Lautenberg (D-N.J.), who is battling the flu; Jim DeMint (R-S.C.), who announced his resignation earlier this month; and Mark Steven Kirk (R-Ill.), who is set to return to the Senate for the first time later this week after suffering a stroke.



lisa.mascaro@latimes.com

kathleen.hennessey@latimes.com

michael.memoli@latimes.com 





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