Len Goodman, Dancing with the Stars Judge, Marries Longtime Girlfriend

TV Watch

By Maggie Coughlan

01/01/2013 at 02:15 PM EST

From the judges' table to the altar!

Len Goodman of Dancing with the Stars tied the knot with his longtime girlfriend Sue Barrett on Sunday in London.

The couple exchanged vows during a surprise ceremony in front of 30 family members and friends.

Goodman, 68, and Barrett, 47, have been together for more than 10 years.

"I've had a marvelous day and now my gorgeous Sue is the new Mrs. Goodman," the ballroom dancing expert tells the Daily Mail.

This is Goodman's third marriage.

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"Fiscal cliff" moves to House, timing and outcome uncertain

WASHINGTON (Reuters) - Washington's last-minute scramble to step back from a recession-inducing "fiscal cliff" shifted to the Republican-controlled House of Representatives on Tuesday after the Senate approved a bipartisan deal to avoid steep tax hikes and spending cuts.

In a rare late-night show of unity, the Senate voted 89 to 8 to raise some taxes on the wealthy while keeping income taxes low on more moderate earners.

The bill's prospects were less certain in the House, where a vote had not yet been scheduled.

Republicans, unhappy that the bill contained over $600 billion in tax increases but only around $12 billion in spending cuts, said they may change it more to their liking and send it back to the Senate. Party leaders planned to take the temperature of rank-and-file lawmakers over the afternoon before deciding on a course of action.

"My recommendation would be not to take a package put together by a bunch of sleep-deprived octogenarians on New Year's Eve," said Representative Steve LaTourette, a moderate Republican from Ohio who is a close ally of House Speaker John Boehner.

Republicans could face a backlash if they scuttle the deal. Income tax rates technically rose back to 1990s levels for all Americans at midnight, and public opinion polls show Republicans would shoulder the blame if Congress fails to act.

Many conservative Republicans have rejected tax increases on any Americans, no matter how wealthy. Some liberal Democrats were also upset with the complex deal, which they thought gave away too much.

Lingering uncertainty over U.S. tax and spending policy has unnerved investors and depressed business activity for months, and lawmakers had hoped to reach a deal before Tuesday, when a broad range of automatic tax increases and spending cuts would begin to punch a $600 billion hole in the economy.

Financial markets have avoided a steep plunge on the assumption that Washington would ultimately avoid pushing the country off the fiscal cliff into a recession.

With financial markets closed for the New Year's Day holiday, lawmakers have one more day to close the deal.

"My district cannot afford to wait a few days and have the stock market go down 300 points tomorrow if we don't get together and do something," Representative Steve Cohen, a Democrat from Tennessee, said on the House floor.

LATE-NIGHT DRAMA

The bill passed by the Senate at around 2 a.m. would raise income taxes on families earning more than $450,000 per year and limit the amount of deductions they can take to lower their tax bill.

Low temporary rates that have been in place for less affluent taxpayers for the past decade would be made permanent, along with a range of targeted tax breaks put in place by President Barack Obama in the depths of the 2009 recession.

However, workers would see up to $2,000 more taken out of their paychecks annually as a temporary payroll tax cut was set to expire.

The bill would also delay an across-the-board spending cut in domestic and military programs for two months, and extend jobless benefits for 2 million long-term unemployed people who otherwise would see them run out.

The bill would raise taxes on less than 1 percent of the population, according to the nonpartisan Tax Policy Center.

However, that may be too much for conservative Republicans in the House, who last month scuttled an effort by Boehner to limit tax increases to those who earn more than $1 million. He has faced insurrections from his conservative wing in other budget showdowns over the past two years.

Republicans had hoped to include significant spending cuts in the deal to narrow trillion-dollar budget deficits. Conservatives were already looking forward to the next battle over the debt ceiling, in late February, to extract deficit reduction measures from the Democratic president.

The White House has floated $600 billion worth of spending cuts in earlier negotiations, and Obama said he would be willing to tackle deficit reduction over the coming months.

"There's more work to do to reduce our deficits, and I'm willing to do it," he said in a statement urging the House to pass the current bill.

Vice President Joe Biden, who was instrumental in pushing through the Senate measure, addressed a closed-door meeting of House Democrats seeking their support to pass the bill.

The conservative Club for Growth urged a "no" vote on the Senate measure, and warned that Republicans who support it could face a primary challenge when they run for re-election in two years.

Liberal groups also have urged Democrats to reject the deal.

Richard Trumka, head of the AFL-CIO labor union, wrote on Twitter that the deal does not raise taxes enough on the wealthy and "sets the stage for more hostage taking" by Republicans in future budget confrontations.

Obama had originally sought to raise taxes on households making more than $250,000. Even with the higher threshold, the White House said is getting 85 percent of the revenue it wanted.

Republican Representative Tom Cole said his House colleagues should pass the Senate bill rather than try to change it.

"We ought to take this deal right now, and we'll live to fight another day," Cole said on MSNBC.

(Additional reporting by Jeff Mason and Mark Felsenthal, Writing by Andy Sullivan; Editing by Alistair Bell)

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Ruthless Smuggling Rings Put Rhinos in the Cross Hairs

KRUGER NATIONAL PARK, South Africa — They definitely did not look like ordinary big-game hunters, the stream of slender young Thai women who showed up on the veld wearing tight blue jeans and sneakers.

But the rhinoceros carcasses kept piling up around them, and it was only after dozens of these hulking, relatively rare animals were dead and their precious horns sawed off that an extravagant scheme came to light.

The Thai women, it ends up, weren’t hunters at all. Many never even squeezed off a shot. Instead, they were prostitutes hired by a criminal syndicate based 6,000 miles away in Laos to exploit loopholes in big game hunting rules and get its hands on as many rhino horns as possible — horns that are now literally worth more than gold.

“These girls had no idea what they were doing,” said Paul O’Sullivan, a private investigator in Johannesburg who helped crack the case. “They thought they were going on safari.”

The rhino horn rush has gotten so out of control that it has exploded into a worldwide criminal enterprise, drawing in a surreal cast of characters — not just Thai prostitutes, but also Irish gangsters, Vietnamese diplomats, Chinese scientists, veterinarians, chopper pilots, antiques dealers and recently an American rodeo star looking for a quick buck who used Facebook to find some horns.

Driven by a common belief in Asia that ground-up rhino horns can cure cancer and other ills, the trade has also been embraced by criminal syndicates that normally traffic drugs and guns, but have branched into the underground animal parts business because it is seen as “low risk, high profit,” American officials say.

“Get caught smuggling a kilo of cocaine, you will receive a very significant prison sentence,” said Ed Grace, a deputy chief with the United States Fish and Wildlife Service. But with a kilogram of rhino horn, he added, “you may only get a fine.”

The typical rhino horn is about two feet long and 10 pounds, much of it formed from the same substance as fingernails. Yet it can fetch nearly $30,000 a pound, more than crack cocaine, and conservationists worry that this “ridiculous price,” as one wildlife manager put it, could drive rhinos into extinction.

Gangs are so desperate for new sources of horn that criminals have even smashed into dozens of glass museum cases all across Europe to snatch them from exhibits.

“Astonishment and rage, that’s what we felt,” said Paolo Agnelli, a manager at the Florence Museum of Natural History, after three rhino horns were stolen last year, including a very rare one from 1824.

American federal agents recently staged a cross-country undercover rhino horn sting operation, called Operation Crash, “crash” being the term for a herd of rhinos.

Among the 12 people arrested: Wade Steffen, a champion steer wrestler from Texas, who pleaded guilty in May to trafficking dozens of horns that he found through hunters, estate sales and Facebook; and two members of an Irish gang — the same gang suspected of breaking into the museums across Europe.

In an e-mail to an undercover agent, an Irish gangster bragged: “Believe me WE NEVER LOSES A HORN TO CUSTOMS, we have so many contacts and people payed off now we can bring anything we want out of nearly any country into Europe.”

Corruption is a huge element, just like in the illegal ivory trade, in which rebel groups, government armies and threadbare hunters have been wiping out tens of thousands of elephants throughout Africa, selling the tusks to sophisticated criminal networks that move them across the globe with the help of corrupt officials.

Here in South Africa, home to the majority of the world’s last surviving 28,000 rhinos or so, the country is throwing just about everything it has to stop the slaughter — thousands of rangers, the national army, a new spy plane, even drones — but it is losing.

The number of rhinos poached in South Africa has soared in the past five years, from 13 killed in 2007 to more than 630 this year. The prehistoric, battleship-gray animals are often found on their knees, bleeding to death from a gaping stump on their face.

“Ever seen a dead rhino?” said Philip Jonker, who works for a private security firm that has gone into wildlife protection. “It’s worse than going to a funeral.”

Gaia Pianigiani contributed reporting from Rome.

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Kim Kardashian: From Divorce Drama to Baby Mama in 5 Clicks

Follow her odyssey from her messy split with Kris Humphries to her great expectation with Kanye West

Credit: INF

Updated: Monday Dec 31, 2012 | 11:45 AM EST

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Wall Street rallies in choppy day after Obama's "cliff" talk

NEW YORK (Reuters) - U.S. stocks advanced on Monday in a choppy session after comments from President Barack Obama suggesting a deal on the "fiscal cliff" was drawing closer.

The S&P 500 jumped above 1 percent after Obama said it appeared a deal was within sight, but quickly cut some gains when the president noted an agreement was not complete yet. With just an hour left in the final session of 2012, though, the S&P 500 resumed its climb and shot above 1 percent.

A source familiar with the matter said an emerging deal, if adopted by Congress and President Barack Obama, would raise $600 billion in revenue over the next 10 years by increasing tax rates for individuals making more than $400,000 and households earning above $450,000 annually.

A plan is needed in order to avert a combination of tax hikes and spending cuts that many believe could push the U.S. economy into recession.

"There is positive momentum in the market, and we are building up to a deal - markets are definitely starting to price in a deal sometime before tomorrow," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

"This sounds counterintuitive, but if that doesn't happen, even if we don't get a bridge deal done, that is just going to increase the pressure on a deal getting done."

The gains put the S&P 500 on track to snap a five-day losing skid, its longest losing streak since September.

The Dow Jones industrial average <.dji> gained 136.08 points, or 1.05 percent, to 13,074.19. The Standard & Poor's 500 Index <.spx> rose 19.82 points, or 1.41 percent, to 1,422.25. The Nasdaq Composite Index <.ixic> climbed 59.89 points, or 2.02 percent, to 3,020.20.

The S&P 500 is now up 13.1 percent for the year, compared with a flat performance in 2011. The Dow is up 7 percent and the Nasdaq is up 15.9 percent.

Gains in Apple Inc , the most valuable U.S. company, helped lift the Nasdaq. The stock rose 4.4 percent to $531.85, lifting the S&P information technology sector index <.gspt> up 1.9 percent. For the year so far, Apple is up 31.3 percent.

The Dow was bolstered by Caterpillar Inc and Home Depot , both up more than 1 percent. In late afternoon trading, Caterpillar shot up nearly 3 percent to $86.35.

While a deal on the cliff is not yet official, investors may be ready to take on more risk next year in hopes of a greater reward.

Bank stocks rose after a New York Times report that U.S. regulators are nearing a $10 billion settlement with several banks that would end the government's efforts to hold lenders responsible for faulty foreclosure practices.

Bank of America Corp was up 2.1 percent at $11.59.

Financial stocks were among the strongest of the year, with the S&P financial index <.gspf> surging 25.2 percent for 2012 so far. Bank of America is the top-performing Dow component, with its stock price more than doubling over the past 12 months.

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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Cold-Weather Aid Trickles Into Afghan Camps

But camp leaders and Afghan government officials criticized the aid delivery as inadequate to protect residents from the weather and to prevent more deaths.

Last winter, more than 100 children died of the cold in refugee camps around Kabul, with 26 dying in the Charahi Qambar camp alone. That is the same camp where the 3-year-old died on Friday; it was the first confirmed death because of the cold this winter.

The distribution of supplies at the camp, which is home to about 900 families in western Kabul, had been scheduled before news reports about the child’s death, said Mohammad Nader Farhad, a spokesman for the United Nations refugees agency in Kabul.

On less than an hour’s notice, the agency convened a news conference with Afghan government officials at the camp to announce the distribution.

Each family was given warm children’s clothing, blankets, tarps, cooking utensils and soap. Separately, other aid groups, financed by the United Nations and other donors, will be distributing charcoal once every month through February, officials said.

United Nations officials acknowledged, however, that the fuel distributions in themselves were not enough to heat the mud and tarp huts throughout the season, and there were no plans to distribute food to the families. In most cases the men, who are largely war-displaced refugees, are unable to find day labor work in the cold weather, so they are usually unable to buy food.

“We are happy to receive this,” said Tawoos Khan, one of the camp representatives. “But we want food, and we need more fuel; we have all run out of firewood and charcoal.” He and other camp officials said large sacks of charcoal were distributed to every family more than two weeks ago, but supplies had run out.

“It’s supplementary,” said Douglas DiSalvo, a protection officer with the United Nations agency who was at the Charahi Qambar camp. “People have some level of support they can achieve for themselves.”

Mr. Farhad said: “The assistance we are providing, at least it is mitigating the harsh winter these families are experiencing right now.”

The estimated 35,000 people in 50 camps in and around Kabul are not classified as refugees from an international legal point of view, but as “internally displaced persons.” Since the United Nations agency’s mandate is to primarily help refugees — defined as those who flee across international borders — has not provided support to the Kabul camps in the past. That changed late last winter when the Afghan government asked it to do so in response to the emergency conditions that were taking so many lives.

This year, the agency is spearheading the effort to supply the camps, along with the Afghan government’s Ministry of Refugees and Repatriation, other United Nations agencies, and several aid groups, in order to prevent a recurrence of the crisis last winter.

Ministry officials, however, criticized the effort on Sunday — even though they were among the sponsors. “We have never claimed that we provided the internally displaced Afghans with sufficient food items, clothing or means of heat. We admit this. What the internally displaced people have received so far is not adequate at all,” said Islamuddin Jurat, a spokesman for the Ministry of Refugees and Repatriation.

“Before the arrival of harsh winter, we asked the international community and donor countries to help the internally displaced people, and luckily today U.N.H.C.R. provided them with some humanitarian assistance, but again we believe it’s not sufficient at all,” he added.

Both aid officials and the Afghan government have said they are wary about providing too much aid for fear that it would encourage more people to leave their homes. That fear has also been why the Afghan government has refused to allow permanent buildings to be erected in the camps, many of which are five or more years old.

“The illegal nature of these squatter settlements poses an obstacle to more lasting interventions and improvements,” said Mr. Farhad of the United Nations refugees agency. “Coordination this year has been very strong, and we expect that the multiagency effort will help us to detect and respond to particular problem areas as the winter progresses.”

Little is provided in the way of food aid. The only food aid in the Charahi Qambar camp is a hot lunch program for 750 students at a tented school run by Aschiana, an Afghan aid group.

The United Nations High Commissioner for Refugees is providing the cold-weather packages to 40,000 families, 5,000 of them in the Kabul camps, at a cost of $6 million. Other Kabul camps will receive distributions in the next two days, Mr. Farhad said.

The packages, which cost about $150 each, include two tarpaulins, three blankets, six bars of soap, a cooking utensils set, and 26 items of clothing ranging from jackets and sweaters to socks and hats, mostly for children.

Taj Mohammad, the father of the child who died, Janan, said Sunday that he believed that his son might have survived if the cold-weather kit had arrived earlier. But like many of the refugees, he was critical of its contents, which he said were hard to sell in exchange for food.

“I didn’t know a package costs $150,” he said. “It’s a lot of money. It would have been much better if they had given us the money, and we would have spent it on what we need the most.”

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Hidden Powers of Your Mouse

You use your mouse for just about everything: you drag, you drop, you highlight, you scroll. But even if you click your mouse a thousand times a day, I bet I’ve got a few secret mouse tricks you’ve never heard of.

Click Tricks
You surely know that double clicking highlights a word, and you might even know that triple clicking highlights a paragraph. But have you ever wanted to select a column of text in a Word document, without getting all the text to the left and right of it? Here’s how you can: Hold down the alt and left mouse button (on a Mac, option-left mouse), and drag the cursor over the section you want to select. The coolest thing about this trick is that the text you are selecting does not even need to be formatted as a column for this to work.

[Related: 8 Microsoft Word Shortcuts You Probably Don't Know]

Scroll Tricks
Most mice have a scroll wheel. Sure, it takes you up and down on a page, but in combination with other keys, it can do much more:

• Scroll sideways: In many versions of Excel, holding down the shift key while scrolling will take you sideways. That’s super helpful in a big spreadsheet.


• Scroll wheel as back button: In most web browsers, if you hold the shift key while using the scroll wheel, it works like the back button: You can fly through all the sites you’ve recently visited. (Some mice have side buttons that work like back and forward buttons in your browser, too.)


• Scroll to zoom: Holding ctrl and scrolling lets you zoom in or out of the page you’re viewing. Ctrl-scroll up zooms you in; ctrl-scroll down zooms you back out. On a Mac, this trick will zoom in and out your whole screen, not just the document you’re in.

Windows-Specific Tricks
While most of the tricks I’ve listed so far work in either Windows or Mac OS, here are a few that are specific to Windows machines:

• To maximize a window: drag the title bar to the top.


• To minimize all windows except the active window: “Shake” the title bar. Then if you want to restore all the windows you just minimized with this shortcut, just click again on the title bar of the window in view.


• To view two windows in a 50-50 split: Drag the title bar of one document to the left edge of your screen, then drag a second document to the right edge; they will snap into position in a nifty side-by-side view.

Bonus Sneaky Trick
Suppose you want to walk away from your hyper-secure work computer for a few minutes and not have to re-log in when you get back. Sure, you could change the sleep settings, but this idea is much more clever: Set your mouse on top of your analog watch or a clock. The mouse tracks the second hand’s movement and it tricks your computer into thinking you’re still busy working. Of course, there are valid security reasons for NOT using this trick, but I still think it’s cool that it works.

Did we miss your favorite mouse trick? Like us on Facebook, and share your secret there.

[Related: How to Speed Up Your Internet Browsing]

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Dick Clark New Year's Eve Love Story - Same Couple Dancing Since 1972

By Dahvi Shira

12/30/2012 at 02:45 PM EST

This New Year's Eve will be just like any other for Kathy and Louie Novoa, except without their dear friend Dick Clark, who passed away in April.

The pair met on American Bandstand and have since taken part in every one of his New Year's Rockin' Eves since they began on the Queen Mary in 1972.

"To be there from the very first one he did and to still be a part of it, I think, wow, I can't believe it," Louie tells PEOPLE. "I still have the original invitation to the very first one."

As for being a part of Rockin' Eve for the first time since Clark's death, Kathy says, "It's very sad and heartbreaking to know he started this tradition and was so important in so many homes. Everybody watches Dick Clark's New Year's Eve. It's very hard [with him gone], but it's also great knowing that it's still going on. That's what he would want."

Kathy and Louie Novoa with Dick Clark in 1976

Courtesy Louie Novoa

Now officially a couple for 36 years, Louie says that starting the New Year with a kiss is his favorite tradition on the show, which kicks off at 8 p.m. ET/PT this year on ABC.

"Kathy and I started doing it, and right after that, Dick's wife Kari [Wigton] goes, 'Why don't we follow up with that?' " he says. "It became a tradition. We had a lot of clips of that. That's what we're going to miss. We always looked forward to that."

The happy pair, who declined to provide their age, would only joke about it.

"People ask us, 'How old are you? You don't look that old,' " Louie explained with a chuckle. "I say, 'We've been around for a while. We are [old].' We really are. You can tell on the dance floor. We're out there dancing with the kids. We call them kids because we try to blend in with them. We still have it though."

Although Louie says they miss Clark "every day," he is a big fan of his replacement, Ryan Seacrest.

"He's incredible," he says. "He's awesome. He does a great job and he has the same personality as Dick Clark. He gets along with everybody."

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

___

Associated Press reporter Tom Odula contributed to this report.

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Fiscal deal stalls as clock ticks to deadline

WASHINGTON (Reuters) - Efforts to prevent the economy from tumbling over a "fiscal cliff" stalled on Sunday as Democrats and Republicans remained at loggerheads over a deal that would prevent taxes for all Americans from rising on New Year's Day.

One hour before they had hoped to present a plan, Democratic and Republican leaders said were still unable to reach a compromise that would stop the automatic tax hikes and spending cuts that could push the economy into recession.

"There are still serious differences between the two sides," Senate Democratic Leader Harry Reid said.

A sticking point appeared to be a Republican proposal floated late on Saturday, which would slow the growth of Social Security retirement benefits in an effort to narrow trillion-dollar budget deficits. Many Democrats, including Reid, have said Social Security should not be touched.

With negotiations at an apparent standstill on Capitol Hill, Senate Republican Leader Mitch McConnell said he would now try to hammer out an agreement with Vice President Joe Biden.

"I'm willing to get this done, but I need a dance partner," McConnell said.

Any agreement needs to be rushed through both chambers of Congress before midnight on Monday. Even if the two sides reach an agreement, procedural barriers in the Senate and the House of Representatives make quick action difficult.

If the politicians cannot agree, then tax increases and across-the-board government spending cuts will begin on January 1. That would take $600 billion out of the economy, push unemployment up and curb federal spending.

Another major disagreement was over tax hikes on the wealthy, an increase sought by President Barack Obama but opposed by Republicans, particularly fiscal conservatives in the House of Representatives.

Republicans aim to pair any tax increase with spending cuts to benefit programs that are projected to grow ever more expensive as the population ages in coming decades.

But their proposal to slow the growth of Social Security benefits by changing the way they are measured against inflation met fierce resistance from Democrats. Obama included the proposal, known as "chained CPI," in an earlier proposal, but many of his fellow Democrats remain opposed.

"POISON PILL"

"We consider it a poison pill - they know we can't accept it. It is a big step back from where we were on Friday," a Senate Democratic aide said.

Obama made a rare appearance on NBC's "Meet the Press" to pressure lawmakers into forging a deal.

Senators appearing on other Sunday morning shows expressed optimism that an agreement could be reached.

Republican Senator Lindsey Graham conceded that an agreement would end up raising income taxes on the wealthy, thus sparing the rest of the country from the looming income tax hikes.

"President Obama is going to get tax rate increases. The president won," Graham tweeted, echoing earlier comments he made on "Fox News Sunday." He told the show that the chances of a bipartisan deal before the New Year's deadline were "exceedingly good."

Obama has alternatively offered Republicans a deal to increase income taxes for households earning over $250,000 a year, and over $400,000 a year.

A White House aide said the president and his staff had been in touch with congressional leaders through the weekend.

Any deal on taxes in the Senate might meet resistance in the House from conservative Republicans.

On NBC, Obama warned of the fallout in financial markets if the two sides did not reach an agreement.

"If people start seeing that on January 1st this problem still hasn't been solved, that we haven't seen the kind of deficit reduction that we could have, had the Republicans been willing to take the deal that I gave them ... then obviously that's going to have an adverse reaction in the markets," Obama said, adding that he had offered Republicans significant compromises that had been rejected repeatedly.

He said he would avoid tax increases for most Americans, even if the talks fall apart.

"If Republicans do in fact decide to block it, so that taxes on middle class families do in fact go up on January 1st, then we'll come back with a new Congress on January 4th and the first bill that will be introduced on the floor will be to cut taxes on middle class families," Obama said.

John Boehner, the speaker of the House of Representatives, rejected Obama's accusations that Republicans were not being amenable to compromise.

"The president's comments today are ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party," Boehner, who has had trouble convincing his Republican colleagues to support his own proposals, said in a statement.

(Additional reporting by Tabassum Zakaria, Rachelle Younglai, David Lawder, Fred Barbash and Richard Cowan. Writing by Andy Sullivan, Editing by Alistair Bell and Jackie Frank)

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