House Hesitates, Cites Cliff Deal Spending

Top House Republicans today opposed a bipartisan compromise that passed the Senate in the wee hours of New Year's Day to avert the "fiscal cliff," as new studies conclude that the compromise on taxes and spending would add trillions to the U.S. deficit.

If House Republicans tweak the legislation, as they seem likely to do, there's no clear path for its return to the Senate before a new Congress is sworn in Thursday.

GOP leaders emerged from a morning conference meeting disenchanted by the legislative package devised by Senate Minority Leader Mitch McConnell and Vice President Biden early this morning, with several insisting they cannot vote on it as it now stands.

"I do not support the bill," House Majority Leader Eric Cantor, R-Va., said as he left the meeting. "We're looking for the best path forward. No decisions have been made yet."

It's almost certain that Republicans will attempt to amend the bill in order to win over the support of more conservatives.

House Speaker John Boehner refused to comment on the meeting, but his spokesman said "the lack of spending cuts in the Senate bill was a universal concern amongst members in today's meeting."

"Conversations with members will continue throughout the afternoon on the path forward," Brendan Buck said in a statement.

As lawmakers wrestled with the legislation, the Joint Committee on Taxation and the Congressional Budget Office, two bipartisan groups that evaluate the cost of bills, said the measure would add roughly $4 trillion to the federal deficit in the next 10 years.

Bill Clark/Roll Call/Getty Images

Fiscal Cliff Countdown: Missing the Deadline Watch Video

Obama on Fiscal Cliff: 'Agreement Within Sight' Watch Video

The impasse once again raised the specter of sweeping tax hikes on all Americans and deep spending cuts' taking effect later this week.

"This is all about time, and it's about time that we brought this to the floor," House Minority Leader Nancy Pelosi said after emerging from a meeting with Democrats.

"It was a bill that was passed in the U.S. senate 89-8. Tell me when you've had that on a measure as controversial as this?" she said of the overwhelming vote.

Pelosi could not say, however, whether the measure had the backing of most House Democrats. "Our members are making their decisions now," she said.

Biden, who brokered the deal with McConnell, joined Democrats for a midday meeting on Capitol Hill seeking to shore up support for the plan.

While Congress technically missed the midnight Dec. 31 deadline to avert the so-called cliff, both sides have expressed eagerness to enact a post-facto fix before Americans go back to work and the stock market opens Wednesday.

"This may take a little while but, honestly, I would argue we should vote on it today," said Rep. Tom Cole, R-Okla., who sits on the Budget Committee. "We know the essential details and I think putting this thing to bed before the markets is important.

"We ought to take this deal right now and we'll live to fight another day, and it is coming very soon on the spending front."

The Senate passed legislation shortly after 2 a.m. that would extend current tax rates on 98 percent of Americans, raise taxes on the wealthiest earners and delay by two months the pending automatic spending cuts to defense and domestic programs, known as the "sequester."

The measure passed by an overwhelming majority vote of 89-8, boosting the prospects that enough House members would follow suit to make it law.

If the House amends the bill, however, the fragile compromise could get shattered. The Senate would need to reconvene to consider the changes.

A Senate Democratic leadership aide told ABC News, "we did our work, and McConnell's office said they were confident of House passage. All bets are off if they amend our bill."

Meanwhile, most Senators have already returned home, dismissed early this morning by Majority Leader Sen. Harry Reid.

"I've said all along our most important priority is protecting middle-class Americans, this legislation does that," Senate Majority Leader Harry Reid, D-Nev., said early this morning prior to the vote.

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In-depth 2012: The best long reads of the year

Read more: "2013 Smart Guide: 10 ideas that will shape the year"

Dig deeper, look closer and think harder – these are the goals of New Scientist's in-depth articles. Each one is perfect for saving in your favourite read-it-later app and curling up in front of a glowing tablet for a good long read.

These are our editors' picks of our best features of the year, and all are prime examples of the amazing breadth of big ideas that were ripe for the tackling in 2012. When you have finished digesting these readable meals, visit our in-depth articles archive if you're hungry for more.

Richard Webb: "You might not have heard of the algorithm that runs the world." I certainly hadn't, or that its mathematical foundations are starting to look a little wobbly. An eye-opening examination of how seemingly abstruse mathematics is in fact deeply embedded in modern life: "The algorithm that runs the world"

Sally Adee: Gastric bypass surgery is the best surgery you're not getting, said Dr Oz on his popular medical advice show in the US. Because of enthusiasm from people like him, this operation has become massively popular – but by whimsically hacking at our stomach, might we might be messing with a system far more complicated than anyone really understands? Samantha Murphy had the surgery and began to realise that losing 45 kilograms could come with some profound neurological trade-offs: "Change your stomach, change your brain"

Michael Le Page: Nowadays most people either haven't heard of the 1970 book The Limits to Growth, or believe – wrongly – that the research it was based on has been discredited. But the main message of Limits is perhaps more relevant than ever – that a delayed response to mounting environmental problems leads to catastrophe further down the line: "Boom and doom: Revisiting prophecies of collapse"

Richard Fisher: This is a simple story about a scientific mystery. Strange rumbles, whistles and blasts have been reported all over the world for centuries. In New York state, they are called "Seneca guns"; in the Italian Apennines they are described as brontidi, which means thunder-like; in Japan they are yan; and along the coast of Belgium they are called mistpouffers – or fog belches. Yet the cause is often unexplained – what on Earth could be behind them? "Mystery booms: The source of a worldwide sonic enigma"

Valerie Jamieson: It's been a sensational year for particle physics, but the Higgs boson isn't the only fascinating particle in town. Meet 11 more particles that change our understanding of the subatomic world: "11 particles for 11 physics puzzles"

David Robson: What is the secret of the legendary "flow state" that seems to mark out genius in everyone from piano virtuosos to tennis champions? With the latest brain stimulation techniques, it may soon be within everyone's reach, and Sally Adee writes with panache as she describes her own use of the technology during a terrifying marksmanship training session. This has everything I want to read in a story – drama, a revolutionary idea and some practical advice for anyone to try at home: "Zap your brain into the zone: Fast track to pure focus"

Graham Lawton: The writer of this article, Christopher Kemp, is a self-confessed lover of marginalia – nooks and crannies of science that are often overlooked. But as this beautifully written story reveals, those nooks and crannies often contain rich and fascinating material. Material, in fact, like ambergris: "Heaven scent: The grey gold from a sperm whale's gut"

Ben Crystall: Many people may remember the wonder material Starlite from an episode of BBC TV's Tomorrow's World – it seemed to have a miraculous ability to withstand fire and heat. So what happened to it? In this feature Richard Fisher uncovers the strange tale of Starlite and its eccentric inventor Maurice Ward, and on the way reveals fascinating details about Ward and his creation. And though Ward is dead, the story may not be over – it now looks like Starlite could get a second chance… "The power of cool: Whatever became of Starlite?"

Clare Wilson: I enjoyed working on this feature the most this year because to me it truly represents the future of medicine. New Scientist often predicts that some new medicine or technology will be available in five years' time. When it comes to using gene therapies or stem cell therapies on babies in the womb – the subject of this feature – the timeline is probably more uncertain, yet I don't see how anyone can doubt that some day it will happen: "Fetal healing: Curing congenital diseases in the womb"

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

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

If you are having a technical problem posting a comment, please contact technical support.

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Motorcycle bomb kills four in Pakistan's Karachi

KARACHI: A motorcycle bomb exploded Tuesday near the venue of a major political rally in Pakistan's largest city Karachi, killing four people and injuring 42 others, officials said.

The bombing appeared to be targeted at buses carrying supporters of the city's dominant political party, the Muttahida Qaumi Movement (MQM), which organised the rally attended by thousands of people.

"The latest report we have collected from hospitals said that four people have been killed and 42 are injured," provincial health minister Saghir Ahmad told AFP, updating the earlier toll of two dead and 25 injured.

Another health official at Karachi's Abbasi Shaheed hospital confirmed the new toll.

"The bomb was planted in a motorcycle," said Asif Ijaz, a senior police official.

Imran Shokat, a police spokesman in the southern Sindh province of which Karachi is the capital, said the motorcycle was parked in a congested neighbourhood near the venue of the rally.

"Bomb disposal experts are investigating but preliminary reports said it was a remote-controlled bomb," Shokat told AFP.

Karachi, the commercial capital of Pakistan with an estimated population of 18 million, is in the grip of a long-running wave of political and sectarian violence.

Its Arabian Sea port is used by the United States and NATO to ship supplies to the war in neighbouring, landlocked Afghanistan.

- AFP/jc

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Pelosi: 'Gigantic' progress in talks

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61 killed in post-celebration stampede in Ivory Coast

ABIDJAN, Ivory CoastA crowd stampeded after leaving a New Year's fireworks show early Tuesday in Ivory Coast's main city, killing 61 people — many of them children and teenagers — and injuring more than 200, rescue workers said.

Thousands had gathered at the Felix Houphouet Boigny Stadium in Abidjan's Plateau district to see the fireworks. It was only the second New Year's Eve fireworks display since peace returned to this West African nation after a bloody upheaval over presidential elections put the nation on the brink of civil war and turned this city into a battle zone.

With 2013 showing greater promise, people were in the mood to celebrate on New Year's Eve. Families brought children and they watched the rockets burst in the nighttime sky. But only an hour into the new year, as the crowds poured onto the Boulevard de la Republic after the show, something caused a stampede, said Col. Issa Sako of the fire department rescue team. How so many deaths occurred on the broad boulevard and how the tragedy started is likely to be the subject of an investigation.

Many of the younger ones in the crowd went down, trampled underfoot. Most of those killed were between 8 and 15 years old

"The flood of people leaving the stadium became a stampede which led to the deaths of more than 60 and injured more than 200," Sako told Ivory Coast state TV.

Desperate parents went to the city morgue, the hospital and to the stadium to try to find missing children. Mamadou Sanogo was searching for his 9-year-old son, Sayed.

"I have just seen all the bodies, but I cannot find my son," said a tearful Sanogo. "I don't know what to do."

State TV showed a woman sobbing in the back of an ambulance; another was bent over on the side of the street, apparently in pain; and another, barely conscious and wearing only a bra on her upper body, was hoisted by rescuers. There were also scenes of small children being treated in a hospital. One boy grimaced in pain and a girl with colored braids in her hair lay under a blanket with one hand bandaged. The death toll could rise, officials said.

After the sun came up, soldiers were patrolling the site that was littered with victims' clothes, shoes, torn sandals and other belongings. President Alassane Ouattara and his wife Dominique visited some of the injured in the hospital. Mrs. Ouattara leaned over one child who was on a bed in a crowded hospital ward and tried to console the youngster. The president pledged that the government would pay for their treatment, his office said.

The government organized the fireworks to celebrate Ivory Coast's peace, after several months of political violence in early 2011 following disputed elections.

This is not Ivory Coast's first stadium tragedy. In 2009, 22 people died and over 130 were injured in a stampede at a World Cup qualifying match at the Houphouet Boigny Stadium, prompting FIFA, soccer's global governing body, to impose a fine of tens of thousands of dollars on Ivory Coast's soccer federation. The stadium, which officially holds 35,000, was overcrowded at the time of the disaster.

A year later, two people were killed and 30 wounded in a stampede at a municipal stadium during a reggae concert in Bouake, the country's second-largest city. The concert was organized in the city, held by rebels at the time, to promote peace and reconciliation.

Ivory Coast is the world's largest cocoa producer, growing more than 37 percent of the world's annual crop of cocoa beans, which are used to make chocolate.

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Hillary Clinton's Blood Clot Located in Her Head

Michal Sula/MAFRA/isifa/Getty Images

The blood clot that put Secretary of  State Hillary Clinton in the hospital was found in her head between her brain and skull behind the right ear, her doctors said today.

“It did not result in a stroke, or neurological damage,” her doctors,  Drs. Lisa Bardack and Gigi El-Bayoumi, said in a joint statement. “To help dissolve this clot, her medical team began treating the secretary with blood thinners.”

The doctors  said Clinton will be released “once the medication dose has been established.”

Clinton, 65, was admitted to New York Presbyterian hospital on Sunday for treatment of a blood clot stemming  from a concussion she sustained a few weeks ago, a Clinton aide said.

“In the course of a routine follow-up MRI on Sunday, the scan revealed that a right transverse sinus venous thrombosis had formed. This is a clot in the vein that is situated in the space between the brain and the skull behind the right ear,” the doctors said.

“In all other aspects of her recovery, the secretary is making excellent progress and we are confident she will make a full recovery. She is in good spirits, engaging with her doctors, her family, and her staff,” the statement said.

Clinton was supposed to be back at work at the State Department this week, but now the date of her return in unknown.

Details of Clinton’s blood clot had not been immediately released after her hospitalization.

Members of Congress wished Clinton a speedy recovery today, while pressing their call for her to testify before Congress about the U.S. consulate attack in Benghazi.

“We just want to say how much Secretary Clinton is in our prayers this morning and hope she recovers rapidly from this health problem,” Sen. Joe Lieberman, I-Conn.,   said at a press conference today. Lieberman is chairman of the Senate Homeland Security Committee.

“Secretary Clinton has made clear that she will testify. And I think that’s a good idea,” said Lieberman.

House Foreign Affairs Chairman Rep. Illeana Ros-Lehtinen, R.-Fla., tweeted get well wishes to Clinton Sunday night,  but also mentioned Benghazi. “Wishing Secretary Clinton a full + speedy recovery!,” Ros-Lehtinen wrote. “She’s looking forward 2 testify on #Benghazi and is bummed she can’t travel now like b4.”

The committee released a new report last week which concludes that the security system was “flashing red” in Benghazi shortly before Ambassador Christopher Stevens and three other Americans were killed in an attack by terrorists on Sept. 11. The report cited a “rising crescendo of evidence” from the U.S. intelligence community that Benghazi had become “dangerous and unstable, and that a significant attack against American personnel there was becoming more and more likely.”

Lieberman called the administration’s reaction to the flashing red indicators as “woefully inadequate.”

Sen.  Susan Collins, R-Maine, said she thinks other must be held accountable at the State Department, in addition to those who have already resigned following the release of the State Department’s internal investigation. The Accountability Review Board issues a scathing report which faulted some senior management at the State Department for the breakdown of security and resulted in the four officials stepping down.

“My hope is, and my expectation is, that once Secretary Clinton is well enough, that she will carefully review our report and see if there are other officials that need to be held accountable,” Collins said. “It is difficult for us to make that judgment, but I believe that it is likely that there are others that do need to be held accountable.”

The congressional report found that the environment in Benghazi was dangerous and that local security was inadequate for protection. The report also found that the departments of Defense and State had not jointly assessed the availability and the accessibility of U.S. assets to support the mission facility in Benghazi in the event of an attack, such as the one that occurred.

“We should have closed this facility in Benghazi until we were prepared to provide the security necessary to give minimal protection, adequate protection to American personnel,” Lieberman said.

The report concludes that it is clear that terrorists were responsible for the attack on the consulate and that the administration response bouncing between the State Department, the Pentagon and the intelligence community added to some “confusion” over the attack.

Many conservatives have been skeptical of  Clinton’s illness, with former U.N. ambassador John Bolton telling Fox News  Clinton had come down with a “diplomatic illness” to avoid testifying on Dec. 2o, a charge the State Department vigorously denied.

“These people do not know what they are talking about,” spokesperson Victoria Nuland responded.

Dr. Howard Markel, a practicing doctor and medical historian at the University of Michigan, tells ABC News that history shows the best response to rumors is transparency.  The State Department did not disclose that Clinton had a concussion until several days after it occurred and currently waited a day to disclose what part of her body her blood clot is in, leaving the media and others to make assumptions about the seriousness of her condition.

“In the absence of information, this kind of speculation often takes up the vacuum,” says Markel, who points out that Clinton is receiving excellent medical care and that her condition sounds treatable.

State Department officials say they have been transparent about the secretary’s health, keeping the press and the public aware of all major developments within a reasonable amount of time, but they also maintain that Clinton is entitled to some degree of medical privacy, a claim Markel says held up historically but does not today.

“If you’re a private person, you are entitled to your privacy as a patient. When you’re a public figure and you’re working on behalf of the American people, you give up many aspects of your privacy,” he said.

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2012 review: The year in health science

Read more: "2013 Smart Guide: 10 ideas that will shape the year"

The first half of 2012 will be remembered for the saga over whether or not to publish controversial research involving versions of the H5N1 bird flu virus engineered to spread more easily in mammals. In the end openness won out, and both contentious studies did finally see the light of day.

This was also the year that saw the battle to eradicate polio reach its crucial endgame – just as another problem, in the form of totally drug resistant tuberculosis, reared its head.

Away from infectious disease, 2012 brought us a theory on the link between Tutankhamun, epilepsy and the first monotheistic religion, and an insight into the perils of premature ageing in Italy's ominously named Triangle of Death. Here are 10 more of the year's memorable stories.

Babies are born dirty, with a gutful of bacteria
Far from being sterile, babies come complete with an army of bacteria. The finding could have implications for gut disorders and our health in general

Forensic failure: 'Miscarriages of justice will occur'
Our survey of UK forensic scientists reveals that many are concerned that closure of the Forensic Science Service will lead to miscarriages of justice

Scandal of an underfunded and undertreated cancer
Lung cancer in those who have never smoked is on the rise – but they face the same stigma as their smoking counterparts

Ovarian stem cells discovered in humans
Stem cells capable of forming new eggs could promise limitless eggs for IVF treatments, and the rejuvenation of older eggs

Paralysis breakthrough: spinal cord damage repaired
An implant helping paralysed people stand unaided suggests the spinal cord is able to recover function years after severe damage

A real fMRI high: My ecstasy brain scan
Graham Lawton reports the highs, lows and psychedelic purple doors involved in taking MDMA while having his brain scanned

You may carry cells from siblings, aunts and uncles
Male cells found in the umbilical cord blood of baby girls with older brothers suggests fetal cells cross between mother and baby more than once thought

Can we deter athletes who self-harm to win?
The Paralympics may encourage a debate on a dangerous practice – and potential ways to prevent it

First non-hormonal male 'pill' prevents pregnancy
A non-hormonal drug that temporarily reverses male fertility appears to have few side effects in mice

Mining MRSA genetic code halts superbug outbreak
Whole genome sequencing of an MRSA outbreak has identified the person who unwittingly spread the bacteria around a hospital, stopping further infection

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

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

If you are having a technical problem posting a comment, please contact technical support.

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Clinton has blood clot close to her brain, say doctors

NEW YORK: Top US diplomat Hillary Clinton is suffering from a blood clot in a vein in her head but should make a full recovery, doctors said on Monday as she spent New Year's Eve in hospital.

A routine scan on Sunday had revealed "that a right transverse sinus venous thrombosis had formed," doctors Lisa Bardack, of Mount Kisco Medical Group, and Gigi El-Bayoumi, of George Washington University, said in a statement.

They described it as "a clot in the vein that is situated in the space between the brain and the skull behind the right ear. It did not result in a stroke, or neurological damage."

Clinton was admitted to the New York Presbyterian Hospital on Sunday following the discovery and is being treated with blood thinners to dissolve the clot. She will be released "once the medication dose has been established."

"In all other aspects of her recovery, the secretary is making excellent progress and we are confident she will make a full recovery. She is in good spirits, engaging with her doctors, her family, and her staff," they added.

Her top aide, Philippe Reines, said on Sunday the popular US secretary of state would stay in the hospital for some 48 hours after being admitted so she could be monitored while on the anti-coagulant drugs.

The globe-trotting diplomat has not been seen in public after succumbing to a stomach virus on returning from a trip to Europe on December 7.

It's a rare absence for the most popular member of President Barack Obama's cabinet, who has been a highly-visible and loyal supporter of his foreign policy agenda, travelling almost a million miles during four years in office.

But Clinton, 65, has made it clear she intends to step down in the coming weeks, once Senator John Kerry, tapped by President Barack Obama to replace her, is confirmed by the Senate.

Clinton fell ill with the bad stomach bug virus on her return from her trip to Prague, Brussels, Dublin and Belfast, which caused her to become dehydrated. She fainted and suffered a concussion.

According to one media report on the website Buzzfeed, she was being treated amid tight security on the hospital's 9th floor, known as the VIP wing, where her husband, former president Bill Clinton, had bypass surgery in 2004.

The couple's daughter, Chelsea, was seen leaving the hospital visibly upset on Monday, The New York Daily News said.

It is not the first health scare for Clinton. In 1998, the then first lady had a blood clot in her leg which she told the New York Daily News was "scary because you have to treat it immediately - you don't want to take the risk that it will break loose and travel to your brain, or your heart or your lungs."

Though once seen as a deeply divisive figure, she now has approval ratings above 60 percent. And many believe she will run again for the White House in 2016, despite being narrowly defeated by Obama for the Democratic nomination in 2008.

A Gallup poll released Monday showed Clinton again topping an annual list of the woman most admired by Americans, winning support from 21 percent of those surveyed. It is the 17th time she has topped the list, a landmark for Gallup.

Clinton's lengthy absence from public life had sparked claims from some of her fiercest critics that she was faking illness to avoid testifying before lawmakers investigating a deadly attack on a US mission in Libya.

The September 11 assault on the US mission in eastern Benghazi, in which the US ambassador and three other American officials were killed, sparked a political firestorm in the United States. A subsequent State Department inquiry found that security at the mission was "grossly inadequate."

- AFP/de

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Obama says cliff deal is near; House won't vote today

STORY HIGHLIGHTS

• NEW: No House vote Monday night, leadership says


• NEW: McConnell says a deal is "very, very close," but GOP blasts Obama comments


• Possible agreement calls for increase in income, estate taxes


• The fiscal cliff triggers broad tax increases and an automatic $110 billion in spending cuts

As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNN iReport to share your video.

(CNN) -- An agreement to avert the fiscal cliff of automatic tax increases and spending cuts appeared "within sight," President Barack Obama said Monday, but lawmakers said nothing will pass Congress before a midnight deadline.

Senators were "very, very close" to a deal, having worked out an agreement on taxes, Senate Minority Leader Mitch McConnell said Monday afternoon. But the House of Representatives won't vote on any plans to avert the fiscal cliff on Monday, leaders have told members.

At the White House, Obama said the deal now on the table would prevent a tax increase for the overwhelming majority of Americans, extend the child tax and tuition credits for families as well as those for clean-energy companies, and extend unemployment benefits for 2 million people, Obama said.

But Obama did not sound hopeful a deal was imminent, saying he expected to remain at the White House for New Year's Eve as a midnight deadline neared.

"They are close, but they're not there yet," Obama said. "And one thing we can count on with respect to this Congress is that if there is even one second left before you have to do what you're supposed to do, they will use that last second."

The president urged supporters to "Keep the pressure on over the next 12 hours or so." And he cautioned that even if lawmakers can head off an increase in taxes for middle-class families as the tax cuts enacted under the Bush administration expire, they still have to figure out how to mitigate the possible damage from sharp spending cuts that are scheduled to take effect in 2013.

But his chiding of lawmakers grappling for a deal drew anger from Republicans. Sen. Bob Corker, R-Tennessee, called the president's comments "very unbecoming of where we are at this moment" and added, "My heart's still pounding."

"I know the president has fun heckling Congress," Corker said. "I think he lost probably numbers of votes with what he did."

"He didn't lose mine. I am not that way," he said. "I am going to look at the substance. But it is unfortunate that he doesn't spend as much time working on solving problems as he does with campaigns and pep rallies."

Latest updates: Final fiscal cliff scramble

There's little practical difference in settling the issue Monday night versus Tuesday, House GOP sources said. But if House Republicans approve the bill on Tuesday -- when taxes have technically gone up -- they can argue they've voted for a tax cut to bring rates back down, even after just a few hours, GOP sources said.

That could bring some more Republicans on board, one source said.

"I wouldn't overestimate it, but a handful may be the difference we need," the source said.

A GOP source told CNN negotiators are "very close" to a deal. The sticking point is $24 billion in spending cuts being sought by Republicans in place of deeper cuts that would automatically take effect at midnight, according to the source.

"It's like looking under the cushions at this point," the source said. "If we can't find that at this point, we should pack this place up."

A congressional Democratic source agreed that spending cuts are the main hold up now.

Read more: Why your paycheck is getting smaller, no matter what

The proposal under discussion Monday afternoon called for rolling back tax rates on the highest-income earners to Clinton-era levels, increasing the estate tax rate, extending unemployment benefits and potentially putting off the $110 billion in automatic spending cuts called for in the legislation that created the cliff, according to sources close to the process.

A source familiar with the negotiations said the proposal under discussion would generate $600 billion in revenues by ending the Bush-era tax cuts on individuals with incomes above $400,000 and families over $450,000. Their tax rate would be 39.6%, the same as it was in 2000 during President Bill Clinton's presidency. The top income rate is currently 35%.

The deal would also increase the estate tax to 40% from the current 35% level and cap itemized deductions for individuals with incomes above $250,000 and household income over $300,000, the source said.

Read more: What if there's no deal on fiscal cliff

In addition to the tax proposals, also under discussion is a proposal to delay the $110 billion in automatic cuts in domestic and military spending due over the next nine months, a draconian approach called sequester that was created by Congress to address the impact of high deficits and debt on the U.S. economy.

Republicans want a three-month delay while Democrats seek to forestall the cuts by one year, a Democratic source told CNN. Another Democratic source said the proposed three-month delay "can't pass."

Despite Obama's backing, one leading Senate Democrat warned the deal could run into trouble -- not only from House Republicans who have long opposed any tax increase, but also from liberals in the Senate who oppose allowing more high-income households to escape a tax increase.

"No deal is better than a bad deal, and this looks like a very bad deal the way this is shaping up," Sen. Tom Harkin, D-Iowa, said.

Read more: Medicare patients may suffer if country goes over fiscal cliff

If nothing gets done before Monday at midnight, broad taxes hikes will kick in as the Bush-era cuts expire and the deep spending cuts will begin to take hold.

The nonpartisan Congressional Budget Office has predicted the combined effect could dampen economic growth by 0.5%, possibly tipping the U.S. economy into a recession and driving unemployment from its current 7.7% back over 9%.

Graham on fiscal cliff: Obama wins 'hollow' political victory

CNN's Matt Smith, Jessica Yellin, Dana Bash, Deirdre Walsh, Lisa Desjardins, Ted Barrett and Ashley Killough contributed to this report.

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Lovie Smith fired as Bears coach after 9 seasons

LAKE FOREST, Ill. The Chicago Bears fired coach Lovie Smith on Monday after the team missed the playoffs for the fifth time in six seasons.

Smith was informed of the decision by general manager Phil Emery on the day after the Bears beat Detroit to finish 10-6 but still didn't make the playoffs.

10 Photos

NFL coaches, GMs sacked in firing frenzy

Smith led the Bears to a Super Bowl, but also saw his team collapse in the second half of the past two seasons. Hired in 2004, Smith led the Bears to three division titles, two NFC title games and a 2007 Super Bowl appearance in his nine seasons. His record is 81-63, and he leaves with one year left on his contract.

The Bears scheduled a news conference Tuesday to discuss the move.

Even though Chicago closed with a win, the Bears needed a loss by Minnesota to get into the playoffs. The Vikings, though, beat Green Bay to clinch a postseason spot, leaving Chicago as the second team since the postseason expanded to 12 teams to miss out after a 7-1 start. The other was Washington in 1996.

CBS Sports NFL Insider Jason La Canfora reported Sunday that Smith's tenuous hold on his job "would be further imperiled should his team fail to get into the postseason."

But Smith, who had one year remaining on his current deal, shouldn't have any trouble finding work. League sources told La Canfora that Smith should land head-coaching interviews with other NFL teams.

Smith's record ranks third on the Bears' all-time list, behind George Halas and Mike Ditka.

The highlight of his tenure was the run to the title game that ended with a loss to the Indianapolis Colts. It was the first time two black coaches met for the championship, with Smith going against his mentor Tony Dungy.

The Bears made the playoffs just three times and posted three postseason victories under Smith. The 2010 team beat Seattle after the Seahawks won their division with a 7-9 record, but the Bears lost to Green Bay in the NFC title game at Soldier Field.

There was speculation Smith would be let go following the 2011 team's collapse, but he got one more year while general manager Jerry Angelo was fired.

Ultimately, the struggles on offense did him in.

Known for solid defenses, Smith oversaw a unit that was consistently effective and at times ranked among the league's best with stars such as Brian Urlacher, Lance Briggs and later Julius Peppers. Smith emphasized taking the ball away from the opposition, and no team did it more than the Bears with 310 during his tenure.

But on the other side, it was a different story.

Smith went through four offensive coordinators in Terry Shea, Ron Turner, Mike Martz and Mike Tice. He never could find the right formula, even as the Bears acquired stars such as quarterback Jay Cutler and receiver Brandon Marshall over the years.

The offensive line has struggled in a big way over the past few seasons after age took its toll on a group that was a strength during the 2005 and 2006 playoff seasons. The Bears were never able to replenish, spending first-round picks on Chris Williams (2008) and Gabe Carimi (2011) that did not pan out.

Williams had his contract terminated in October, ending a disappointing run, and Carimi struggled this season after missing most of his rookie year with a knee injury.

While Angelo took the fall after last season, Smith was not without blame in the personnel issues over the years. He pushed to bring in former Rams offensive lineman Orlando Pace and safety Adam Archuleta, players who succeeded in St. Louis when Smith was the defensive coordinator there but were busts with the Bears.

He had no bigger supporter than team matriarch Virginia McCaskey, but the fans seemed split on him. To some, he was a picture of calm, a coach who never lost his composure and never criticized his players in public, the anti-Ditka if you will.

History suggests fans who are clamoring for a high-profile replacement such as Bill Cowher or Jon Gruden might be disappointed. The last time the Bears went with an experienced NFL head coach was when Halas returned to the sideline in 1958.

They might, however, go with an offensive-minded coach for the first time since Mike Ditka was fired after the 1992 season, given the issues in that area.

That the Bears would be in this spot seemed unthinkable after they ripped Tennessee 51-20 on Nov. 4. They were sailing along at 7-1 and eyeing a big playoff run after collapsing the previous season, with the defense taking the ball away and scoring at an eye-opening rate to compensate for a struggling offense, but the schedule took a tougher turn.

They dropped back-to-back games to Houston and San Francisco and five of six in all before closing out with wins at Arizona and Detroit. Injuries mounted along the way, and what looked like a playoff run slipped from their grasp, just as it did after a promising start in 2011.

That year, they won seven of their first 10 only to wind up at 8-8 after a monumental collapse sparked by a season-ending injury to Cutler.

While Angelo was fired, Smith got spared and Emery took the job with a mandate to keep the coach at least one more year.

He quickly went to work retooling the roster, landing Marshall in a blockbuster trade with Miami that reunited Cutler with his favorite target in Denver.

He also added depth in other areas, bringing in Jason Campbell as the backup quarterback after Caleb Hanie failed the previous season and teaming running back Michael Bush in the backfield with Matt Forte.

All those moves sent expectations soaring. The results were awfully familiar, though.

Now, Smith's out of a job.

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