Madness in the air in Washington

National Rifle Association Executive Vice President Wayne LaPierre calls on Congress to pass a law putting armed police officers in every school in America.

STORY HIGHLIGHTS

• David Gergen: After election, there were hopes partisan tension would fade


• He says this week we've seen a complete breakdown on the fiscal cliff


• The NRA doubled down on its anti-gun-control rhetoric despite Newtown, he says


• Gergen: We're seeing the character assassination of a hero, Chuck Hagel

Editor's note: David Gergen is a senior political analyst for CNN and has been an adviser to four presidents. A graduate of Harvard Law School, he is a professor of public service and director of the Center for Public Leadership at Harvard University's Kennedy School of Government. Follow him on Twitter.

(CNN) -- What in the world is gripping Washington? Everywhere one turns -- from finances to guns to nominations -- there is madness in the air.

With time rapidly running out, efforts have collapsed to reach a major agreement on federal spending and taxes before year's end, and both Congress and President are leaving town for the holidays. At best, they will return next week and construct a small bridge over the "fiscal cliff"; at worst, they won't. But who knows?

David Gergen

And that's a big part of the problem -- no one can be confident that our national leaders are still capable of governing responsibly. And in the process, they are putting both our economy and our international reputation at risk.

Fresh poison

President Barack Obama had rightly hoped that the elections would clear the air; they haven't. If anything, the recent squabbling over the federal budget has injected fresh poison into relationships and dimmed prospects for other bipartisan agreements in the next few years, starting with hopes for a "grand bargain"in 2013.

John Boehner and Eric Cantor, the House GOP leaders

The President insists he remains an optimist, but if he and Republicans can't agree on how to bring the nation's finances under control -- something fundamental to the welfare of the country -- why should we have faith they will succeed on other important issues like energy, education, immigration and gun safety?

As the blame game heats up, Republicans are sure to pay the biggest price with the public. It was bad enough that they lost the message fight, letting themselves be painted as protectors of the wealthy. But it was inexcusable when they revolted against House Speaker John Boehner in his search for a way forward: that only reinforced a narrative that the Grand Old Party has fallen hostage to its right wing -- a narrative that already exacted a huge price in the fall elections.

Most voters -- I am among them -- believe the country needs a center-right party but will not support an extremist party.

President Obama is certainly not blameless in these financial talks. Early on, he overplayed his hand, alienating rank-and-file Republicans. Like Boehner, he has been more accommodating recently, offering concessions on taxes and entitlement spending that narrowed the negotiating gap between the parties, even as his leftward allies fretted.

Still, Boehner has a point in arguing that what Obama now has on the table comes nowhere close to what the he was advocating in the election season: a ratio of 2.5 dollars in spending cuts to 1.0 dollars in tax increases.

The buck stops on the President's desk, so that ordinarily one would expect him to take the lead in these final days before January 1. For reasons that are still unclear, he instead chose in his press statement late Friday to toss responsibility for negotiations next week into the laps of Congressional leaders.

Perhaps he has reached a quiet understanding with Boehner and Senate Majority Leader Harry Reid that the two of them can work out a stripped-down agreement. Let's hope so. But as we enter the holidays, it appears to be a mess. And time is quickly running out.

The NRA in denial

As if Friday weren't gloomy enough, the National Rifle Association weighed in with its long-awaited response to the horrors of Newtown, Connecticut. There had been hints that the NRA would offer a more conciliatory stance. Just the opposite: they doubled down.

Incredibly, Wayne LaPierre, executive vice president of the NRA, called for putting armed police officers in every school. Isn't that what parents of every six-year old have been longing for: to have their child studying and playing under the watchful eye of an armed guard? Has LaPierre visited an elementary school classroom in recent years? If so, he would know his idea would be repulsive in most schools.

Just as strikingly, the NRA response refused to acknowledge and address the beliefs of a majority of Americans in recent polls that the U.S. needs tougher laws in favor of gun safety. Americans aren't saying no one should have guns or that the 2nd Amendment should be gutted but they are demanding a national conversation to see what can be sensibly done. It is hard to have a conversation when one side won't talk.

Character assassination

Meanwhile, in a less noticed but important saga in Washington, we are once again watching the character assassination of a public servant of honor and distinction.

Chuck Hagel served America with valor as a sergeant in the Vietnam war, earning two Purple Hearts. He was a popular Republican senator from Nebraska who paid close attention to international affairs and is now co-chair of the President's Foreign Intelligence Advisory Board, serving with another former Senator, David Boren.

Ever since Hagel's name arose as a top candidate to become the next Secretary of Defense, he has been pilloried for statements and stands he has taken in the past. Is it legitimate to question his positions on Israel, Iran, and on gays? Absolutely. But what is grossly unfair is to misstate them, saying that he is against sanctions on Iran when in fact he has argued in favor of international sanctions, not unilateral sanctions (which don't work). As someone who strongly favors Israel, I am also deeply troubled by the way he has been misrepresented as virtually anti-Semitic.

Nor is this a fair fight. Hagel is in no-man's land because his name is prominently mentioned but he hasn't been formally nominated, so the White House isn't rushing to the barricades to support him.

The signals from 1600 Pennsylvania Avenue were that the Secretary of Defense nominee would be announced in a package with the Secretary of State. The President has now gone ahead with John Kerry but the absence of a Defense nominee has now left Hagel dangling in the breeze, a piñata.

The White House should now move early next week -- by announcement or by leak -- to settle this by making a decision. Whether or not the President nominates Hagel, he should put a stop to the defamation by recognizing Hagel as a patriot with an independent mind and a long record of honor. If selected as Secretary, Hagel would be a very fine member of the national security team.

One had hoped that the shootings at Sandy Hook would draw us together. Sadly, they haven't. Now, perhaps the blessings of the holidays and a brief moment to take a breath will lift our sights. Surely, this madness should not continue into the New Year.

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The opinions expressed in this commentary are solely those of David Gergen.

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Egypt holds final vote on divisive charter

CAIRO: Egyptians vote on Saturday in the final round of a referendum on an Islamist-backed constitution that has fuelled weeks of sometimes bloody protests in the divided country but is likely to be approved.

Polling stations open at 8:00 am (0600 GMT) in the remaining 17 provinces that did not vote in last Saturday's first round of the referendum.

Hundreds of Egyptians clashed on Friday in the country's second largest city Alexandria in the latest violence between Islamists who back the charter and opponents who accuse them of overreaching.

The interior ministry said 62 people, among them 12 police conscripts, were injured and 12 protesters were arrested.

Some 250,000 police and soldiers will be deployed on Saturday to provide security at polling stations.

Last weekend's first round of the referendum exposed a deep rift in the country, with 57 percent of voters opting for the charter, according to unofficial tallies.

Analysts expect a majority of voters will accept the text in the second round also.

"Everything suggests the vote will go the way the Muslim Brotherhood wants," Hassan Nafaa, an analyst and commentator, wrote in the newspaper Al-Masri al-Youm.

Preliminary results compiled from returning officers are expected by early Sunday. The electoral committee overseeing the referendum has yet to announce when it will declare the final official result.

The constitution, drafted by an Islamist-dominated assembly boycotted by Christians and liberals, is at the heart of the power struggle between the Islamist president, Mohamed Morsi, and his secular-leaning opposition.

The main opposition group, the National Salvation Front, launched a last-minute campaign to vote down the charter after it failed to torpedo the referendum with mass rallies outside the presidential palace in Cairo.

Earlier in the month, confrontations turned deadly outside the presidential palace, with eight people killed and hundreds hurt.

Both the opposition coalition and civil society groups that monitored the vote allege fraud in the first round. The government's electoral committee denies the allegation.

If the constitution, which rights groups say limits religious freedoms and women's rights, is passed, Morsi will grant an Islamist-dominated senate full legislative powers until a new parliament is elected to replace the one annulled by Morsi's foes in a top court.

Analysts say the opposition will be emboldened even if it suffers a close defeat in the referendum, and will press ahead with rallies against the increasingly divisive president anyway.

They also said it was almost certain that adopting the new constitution would not end Egypt's political crisis.

The instability is also hurting the economy, which has limped along since the popular uprising that ousted the 30-year autocratic regime of Hosni Mubarak early last year.

The International Monetary Fund has put on hold a $4.8-billion loan Egypt needs to stave off a currency collapse, and Germany has indefinitely postponed a plan to forgive $316 million of Egypt's debt.

National Salvation Front chief Mohamed ElBaradei, a former UN atomic energy agency chief, warned in an online video that "the country is on the verge of bankruptcy".

But he said "a solution is still possible" if Morsi is prepared for "sincere dialogue" and allows a new constitution to be drafted through a more inclusive process.

- AFP/al

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3 charged in deadly home explosion

By Logan Burruss, CNN

updated 6:11 PM EST, Fri December 21, 2012

Bob Leonard Jr., left, Mark Leonard and Monserrate Shirley are accused in a deadly explosion.

STORY HIGHLIGHTS

• Two brothers among accused in explosion at that killed couple next door


• Explosion injured 12 other people and caused $4 million in damage


• Investigators found abnormalities in gas line at suspect's home, affidavit says

(CNN) -- Three Indiana residents were arrested Friday on charges of arson and felony murder in a fatal house explosion in Indianapolis in November, according to the Marion County, Indiana, prosecutor's office.

Monserrate Shirley and brothers Mark Leonard and Bob Leonard Jr. were arrested Friday morning and charged with two counts of felony murder in the deaths of John and Jennifer Longworth, the neighbors of Shirley and Mark Leonard who were killed by the explosion at Shirley's home in the Richmond Hill area on November 10.

"We have to acknowledge that we are helpless to alleviate the pain and anguish of such innocent victims and their families," prosecutor Terry Curry said at a news conference Friday, according to a news release. "However, what we as a public safety community can do and must do is devote our best efforts to see that justice is served on behalf of those victims."

The explosion also injured 12 people and caused roughly $4 million in residential damage, according to the prosecutor's office.

An investigation led by local and federal authorities, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, revealed suspicious behavior and circumstances surrounding the explosion. In particular, various elements of the gas line at Shirley's home may have been tampered with before the blast, including a missing step-down regulator, which reduces gas pressure entering the home, and a missing on/off valve to the residence's gas fireplace.

"The absence of the valve and regulator would explain how such a large volume of gas would be released into the home," Curry told CNN.

In addition, the digital thermostat at Shirley's home had been replaced by a slide-switch thermostat that "will produce a spark when the thermostat reaches a specified temperature," the probable cause affidavit says. However, it appears that the thermostat did not contribute to the explosion; instead, it appears to have been started by the microwave in the kitchen, which was a model that could be programmed to start 24 hours in advance.

Witnesses interviewed during the investigation indicated that the three accused may have a long history of fraud, particularly Mark Leonard, who has allegedly been participating in confidence schemes since 1995, according to the affidavit. The investigation also revealed that Shirley filed for bankruptcy in 2012.

In addition to two counts of felony murder, the accused are charged with conspiracy to commit arson, 12 counts of arson as a Class A felony and 33 counts of arson as a Class B felony. Mark Leonard and Shirley were also charged with conspiracy to commit arson as a Class B felony. They are being held at the Marion County Jail without bail, and an initial court hearing is scheduled for Monday morning.

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Pa. gunman kills 2 at church, 1 on roadway

(CBS/AP) GEESEYTOWN, Pa. - The gunman who died in an apparent shootout with police  in central Pennsylvania Friday morning began his rampage by shooting a woman who was decorating a church for a children's Christmas party, according to the brother of the church's late pastor.

The Altoona Mirror reports that  the gunman, who sources identified as Jeffrey Lee Michael of Hollidaysburg, then shot another person outside the church, and fled the scene in a pickup truck, crashed head-on into another car, and then shot and killed that car's driver.

CBS Pittsburgh reports that troopers responded to a 9-1-1 "shots fired" call about 9 a.m. Additional 9-1-1 calls reported an armed man shooting at additional locations.

Two troopers were fired at by the driver of a pickup truck on Juniata Valley Road and a third officer was injured in a head-on crash with the pickup, sources told the station.

Michael exited the truck and immediately shot at troopers. Troopers returned fire, killing Michael.

The troopers who were shot are expected to survive.

Officials tell the station that three men and one woman were killed in the incident.

The Pittsburgh Post-Gazette reports that according to Blair County District Attorney Rich Consiglio, the shooting scene "extended over several miles."

More on Crimesider
Dec. 21, 2012: Deadly Pennsylvania shooting leaves 4 dead, 2 injured, officials say
Dec. 21, 2012: Pennsylvania Shooting Update: Four dead, including one at a church, reports say

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Boehner's Take on Fiscal Cliff Deal: 'God Only Knows'

Dec 21, 2012 11:00am

Speaker of the House John Boehner bluntly acknowledged Friday morning he did not have the votes to pass his “Plan B” and said the only real solution is a broad agreement to cut spending and reform the tax code. Then he added these words:

“How we get there, God only knows.”

That about sums up the whole “fiscal cliff” situation after a chaotic Thursday night when Republicans had to abandon “Plan B” – their proposal to raise taxes only on people making more than $1 million.

Boehner said he is not giving up on talks to pursue a bipartisan agreement with the President, who wants taxes to be raised on people making more than $250,000. But Boehner made it clear nothing is going on right now.  Instead he said it was up to Senate Democrats and the White House to make the next move.

Read more  about “Plan B” and the dramatic action in the House on Thursday.

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Goodbye, U.S. Postal Service?

This Christmas could be the Post Office's last, says John Avlon.

STORY HIGHLIGHTS

• The U.S. Postal Service is bleeding money and heading toward insolvency


• John Avlon: Congress can save the postal service in deal on the fiscal cliff


• He says the urgency is clear, let's hope for a Christmas miracle


• Avlon: But be prepared that Washington dysfunction can doom the postal service

Editor's note: John Avlon is a CNN contributor and senior political columnist for Newsweek and The Daily Beast. He is co-editor of the book "Deadline Artists: America's Greatest Newspaper Columns." He is a regular contributor to "Erin Burnett OutFront" and is a member of the OutFront Political Strike Team. For more political analysis, tune in to "Erin Burnett OutFront" at 7 ET weeknights.

(CNN) -- It's the time of year for dashing through the snow to the crowded post office, with arms full of holiday gifts for family and friends.

Not to break the atmosphere of holiday cheer, but this Christmas could be the last for the U.S. Postal Service. It is losing $25 million dollars a day and staring down insolvency -- unless Congress steps in to pass a reform package that reduces its costs.

With just a few days left in the congressional calendar, there is still some small hope for a Christmas miracle -- maybe the Postal Service can be saved as part of a deal on the fiscal cliff. But with even Hurricane Sandy relief stalled, skepticism is growing.

John Avlon

The real question is, what's taken them so long? After all, back in April the Senate passed an imperfect but bipartisan bill by 62-37. It would have saved some $20 billion, cut some 100 distribution centers, and reduced head count by an additional 100,000 through incentives for early retirement, while reducing red tape to encourage entrepreneurialism and keeping Saturday delivery in place for at least another two years. At the time, Sen. Tom Carper of Delaware said, "The situation is not hopeless; the situation is dire. My hope is that our friends over in the U.S. House, given the bipartisan steps we took this week, will feel a sense of urgency."

To which the House might as well have replied, "Not so much."

In August, the Postal Service defaulted for the first time, unable to make a $5.5 billion payment to fund future retirees' health benefits. The headline in Government Executive magazine said it all: "Postal Service defaults, Congress does nothing."

The usual suspects were at fault -- hyperpartisan politics and the ideological arrogance that always makes the perfect the enemy of the good.

House Oversight Committee Chairman Darrell Issa greeted the news of the Senate bill by calling it a "taxpayer-funded bailout." His primary complaint was that the Senate bill did not go far enough. He was not alone -- Postmaster General Patrick Donahoe also expressed disappointment at the scope of the Senate bill, saying that it fell "far short of the Postal Service's plan."

But Issa's alternative couldn't even get to a vote in the Republican-controlled House. And so nothing happened. Even after the USPS defaulted on a second $5.5 billion payment, the response was crickets.

Washington insiders said that action would be taken after the election, when lawmakers would be free to make potentially unpopular decisions. But despite a series of closed-door meetings, nothing has been done.

It's possible that the nearly $20 billion in savings could be part of a fiscal cliff deal. Sen. Joseph Lieberman has suggested that ending Saturday delivery, except for packages, could be part of a compromise that could save big bucks down the road. Another aspect of a savings plan could be suspending the USPS' onerous obligation to fully fund its pension costs upfront, a requirement that would push many businesses into bankruptcy. And last fiscal year, the post office posted a record $15.9 billion loss.

"As the nation creeps toward the 'fiscal cliff,' the U.S. Postal Service is clearly marching toward a financial collapse of its own," says Carper. "The Postal Service's financial crisis is growing worse, not better. It is imperative that Congress get to work on this issue and find a solution immediately. ... Recently key House and Senate leaders on postal reform have had productive discussions on a path forward, and while there may be some differences of opinion in some of the policy approaches needed to save the Postal Service, there is broad agreement that reform needs to happen -- the sooner the better."

The urgency couldn't be clearer -- but even at this yuletide 11th hour, signs of progress are slim to none. If Congress fails to pass a bill, we'll be back to square one in the new year, with the Senate needing to pass a new bill which will then have to be ratified by the House. There is just no rational reason to think that lift will be any easier in the next Congress than in the current lame duck Congress, where our elected officials are supposedly more free to do the right thing, freed from electoral consequences.

So as you crowd your local post office this holiday season, look around and realize that the clock is ticking. The Postal Service is fighting for its life. And Congress seems determined to ignore its cries for help.

"Neither rain nor snow nor sleet nor gloom of night" can stop the U.S. Postal Service from making its appointed rounds -- but congressional division and dysfunction apparently can.

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The opinions expressed in this commentary are solely those of John Avlon.

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User revolt causes Instagram to keep old rules

SAN FRANCISCO: Instagram on Thursday tried to calm a user rebellion by nixing a change that would have given the Facebook-owned mobile photo sharing service unfettered rights to people's pictures.

"The concerns we heard about from you the most focused on advertising, and what our changes might mean for you and your photos," Instagram co-founder and chief Kevin Systrom said in a blog post.

"There was confusion and real concern about what our possible advertising products could look like and how they would work," he continued.

Protests prompted Instagram to stick with wording in its original terms of service and privacy policies regarding advertising and to do away with some changes that were to take effect in January, according to Systrom.

"You also had deep concerns about whether under our new terms, Instagram had any plans to sell your content," the Instagram chief said.

"I want to be really clear: Instagram has no intention of selling your photos, and we never did. We don't own your photos, you do."

Instagram on Tuesday backed off a planned policy change that appeared to clear the way for the mobile photo sharing service to sell pictures without compensation, after users cried foul.

Changes to the Instagram privacy policy and terms of service had included wording that appeared to allow people's pictures to be used by advertisers at Instagram or Facebook worldwide, royalty-free.

Twitter and Instagram forums buzzed over the phrasing, as users debated whether to delete their accounts before the new rules kicked in.

Originally proposed portions of the new policy that rankled users included "You hereby grant to Instagram a non-exclusive, fully paid and royalty-free, transferable, sub-licensable, worldwide license to use the content that you post on or through the service."

The terms also stated that "a business or other entity may pay us to display your username, likeness, photos, and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you."

Instagram said that the policy changes to take effect in January were part of a move to better share information with Facebook, which bought the company this year.

The original price was pegged at US$1 billion but the final value was less because of a decline in the social network's share price.

"I'm proud that Instagram has a community that feels so strongly about a product we all love," Systrom said while apologising to users and promising the offensive policy changes were gone.

-AFP/fl

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Mayans don't buy it

STORY HIGHLIGHTS

• Some believe a major calamity will occur Friday based on the Mayan calendar


• The Mayans don't think that's true: "It's an era," a Mayan wood carver says


• The end of the winter solstice marks the end of a 394-year period on the calendar


• Predictions mention a deity but not the end of the world, an archeologist says

Merida, Mexico (CNN) -- There may be no one left on Earth to say TGIF this week.

Some believe the world is coming to an end Friday -- on 12/21/12 -- which is when an important phase on the ancient calendar of the Mayan people terminates.

Mayans don't buy it.

At least the ones living in the city of Merida, Mexico, don't. Neither does anyone in the Mayan village of Yaxuna. They know the calendar their ancestors left them is about to absolve a key phase -- the end of an era and the heralding of a new one -- but they don't think we're all gonna die.

Read more: Be honest, apocalypse seems kind of exciting

"It's an era. We are lucky to see how it ends," said wood carver Santos Esteban in Yaxuna, a sleepy village of fewer than 700 Mayans, located in a territory that once belonged to the ancient kingdom founded around 2000 B.C.

He feels it is a momentous occasion and is looking forward to the start of the new age. He is not afraid.

"Lots of people say it's the end of the world, but we don't believe that," he said.

Read more: China cracks down on 'Doomsday cult'

People in his village will keep living much as they have, preferring hand-built, palm-thatch huts to concrete buildings and baking tortillas on an open flame.

For those less optimistic than the Mayans, an "official" website in the United States has collected links to all the doomsday articles and videos Internet users can consume.

December212012.com also offers tips on survival and advertisements for the needed gear -- from gas masks to first aid kits and hand-crank radios. Comments are welcome on its Facebook page, which has more than 14,000 likes, and website owner "John" from near Louisville, Kentucky, sends out tweets under the handle @December212012.

On the doomsday Facebook page -- in between gloomy superstitious links and user comments -- John has confessed that he does not really believe the world will end on Friday but thinks that a new era could dawn that may include some improvements for the world. That new era, however, might require a good bit of destruction as well.

John asked posters not to take the whole thing too seriously.

"PLEASE PEOPLE. . . I'm begging you. Do not overreact or make any rash decisions regarding Dec 21st. Anyone who knows anything about the 2012 prophecies, including myself, does not believes that the world is going to end," the Facebook page says.

Opinion: The Maya collapsed - could we?

Gunmaker Ryan Croft in Asheville, North Carolina, does take the prediction seriously. He is building a special assault rifle to deal with any signs of doom lurking around the corner.

He doesn't think life on Earth will come to a complete end Friday. "I'm not planning for the world to go away," Croft told CNN affiliate WHNS.

However, he thinks the day could mark the beginning of cataclysmic times introduced by a disaster. That may call for drastic measures, Croft said.

His new rifle, a hybrid of an AR-15 and an AK-47, is designed to be easy to use, the Gulf War veteran said. Trouble in the United States could ensue in the wake of an economic catastrophe, he thinks.

"I taught about economic collapse and how it actually looks on the ground," he said. "People want to act like it can't happen or doesn't happen, and it happens around the world. There are places on fire right now."

In true survivalist manner, Croft also teaches his family how to subsist on alternative sources of nourishment, such as algae, roasted mice and live earthworms.

Though 12/21/12 is a somewhat congruent date on the western calendar, the Mayan version enumerates the event in a different way.

The ancient people measured time in cycles called "baktuns" of 394 years each, and the winter solstice coming Friday marks the end of the 13th baktun. Some who study the calendar say the date for the end of the period is not Friday, but Sunday.

The Mayan calendar is based on the position of the heavenly bodies -- the sun, the moon and the stars -- and was meant to tell the Mayan people about agricultural and economic trends, said archeologist Alfredo Barrera.

NASA is also weighing in on the matter, with a post on its website declaring that the world will not end on Friday.

"It will be another winter solstice," NASA said. "The claims behind the end of the world quickly unravel when pinned down to the 2012 timeline."

As of Thursday afternoon in the eastern United States -- already Friday across Asia -- the space agency said it had detected "nothing unusual" and that it anticipated a normal couple of days ahead.

Read more: Hotels ready for the end of the world

The hubbub about a calamity occurring comes from a Mayan stone carving called monument 6, made in 700 A.D., which predicts a major event at the end of this baktun, Barrera said. But half of the broken tablet is missing, so one may only speculate on what the complete message may be.

Whatever it is, it's not about the end of the world, he said.

"We don't have a prophecy or inscription related to the finish of the world. It just mentioned a deity."

Barrera said he believes the hullabaloo about the end of the world has been whipped up by online speculation -- and he finds it a bit ignorant.

In Merida, Mayan priest Valerio Canche conducts an ancient ritual to honor the dead in light of the upcoming end of the 13th baktun.

"It is considered the closure of the great cycle of Mayan time," he said. "But, of course, the cycle (14th baktun) begins the following day. For the Mayans, it's not the end of the world."

If you're reading this on Thursday, keep in mind that it's already Friday in New Zealand, and it's still on the map. If it's Friday, a look out the window may be reassuring.

If it's Saturday, and no major calamity has occurred, then relax and go celebrate the beginning of the 14th baktun with the Mayans.

Debunking doomsday: 6 rumors dispelled

CNN's Ben Brumfield reported from Atlanta, and Nick Parker from Mexico

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House GOP: We have the votes for "Plan B"

Play Video

Cantor: "We're going to have the votes" to pass "Plan B"

Updated 1:45 p.m. ET

As the House readies for an expected vote on an alternate plan, dubbed "Plan B," to avoid massive tax hikes on all income earners, House Majority Leader Eric Cantor, R-Va., said he is confident he will have enough support to pass their plan.

"We're going to have the votes," Cantor told reporters this morning.

"Plan B," a scaled-back measure that extends tax rates for everyone except those making $1 million, comes to the House floor at the unilateral direction of Republican leadership just days after it seemed talks between House Speaker John Boehner, R-Ohio, and President Obama were progressing to avert the so-called "fiscal cliff." Both sides offered major concessions to move toward compromise, but aides tell CBS News White House correspondent Major Garrett that Boehner didn't have enough support in his party to pass his proposal that included $1 trillion worth of revenue increases.

While "Plan B" would raise taxes on millionaires, which is something Democrats support, it does not go far enough for Democrats who want higher tax rates for more income earners. The president's latest "fiscal cliff" offer would raise the marginal tax rate to 39.6 percent on those making more than $400,000, a concession from his previous demand that taxes go up for households making more than $250,000.

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Boehner: Dems' "Plan B" is "slow walk" over "fiscal cliff"

Boehner said he is doing his part by offering "Plan B"  to ensure taxes don't increase on millions of Americans in the New Year. "It will be up to Senate Democrats and the White House to act," he told reporters today.

While Cantor says they have the votes to pass the alternative, some Republicans expressed reservations because it would raise taxes on about 400,000 families, or about 0.2 percent of Americans.

Boehner's proposal doesn't abide by "clear conservative, clear Republican principles," Rep. Tim Huelskamp, R-Kan, told CBS News correspondent Nancy Cordes.

Perhaps offering Republicans an out, in an about-face, anti-tax crusader Grover Norquist said Boehner's proposal does not raise taxes. Other outside conservative groups, however, including the Heritage Foundation and FreedomWorks, are urging Republicans to vote against "Plan B", saying it does raise taxes.

Play Video

Reid: "Boehner's plans are nonstarters in the Senate"

Generally opposed to raising any taxes at all, Republicans are also reluctant to vote for a plan that has already been declared dead in the Senate by Majority Leader Harry Reid, D-Nev., if it passes the House. "Speaker Boehner's plans are non-starters in the Senate," Reid reiterated today. 

Even if it somehow cleared both houses of Congress, the White House announced Wednesday that it would veto "Plan B."

Another reason some Republicans also objected to Boehner's "Plan B" because it doesn't include spending cuts. Republican leadership addressed that concern Thursday morning, however, by offering a second piece of legislation that cuts $200 billion from the federal budget.

House Republicans "are taking concrete actions" to avert the "fiscal cliff" and reduce spending, Cantor said. "Absent a balanced offer from the president, this is our nation's best option."

During a news conference Wednesday, the president said Republicans "keep on finding ways to say no as opposed to finding ways to say yes" on agreeing to a deal to avert the "fiscal cliff."

He added that it's time for the Republicans to step up and compromise because its' "what the country needs."

The president pointed out their proposals are only "a few hundred billion dollars" apart. "The idea that we would put our economy at risk because you can't bridge that cap doesn't make a lot of sense," he said.

The president's latest proposal includes about $1.2 trillion dollars of revenue increases and $800 billion in spending cuts. Boehner said it's not balanced. His latest offer is, which is not what the House is voting on today, includes about $1 trillion in spending cuts and $1 trillion in tax increases.

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Merry 'Cliffmas'! Chances for a Deficit Deal Dim

The outlook for a deal to avert the "fiscal cliff" by Christmas is increasingly grim, though lawmakers and the White House still have hope for a deficit-reduction compromise by the end of the year.

Republicans will move forward tonight with a vote to pass House Speaker John Boehner's so-called "Plan B option" – an extension of current tax rates for Americans making up to $1 million a year while replacing some pending automatic cuts to defense and domestic programs with other measures.

The step seeks to show Republicans acting to avoid an income tax hike on 99 percent of Americans in 2013, and leverage new pressure on President Obama in the ongoing talks for a broader "cliff" deal.

"Absent a balanced offer from the president, this is our nation's best option and Senate Democrats should take up both of these measures immediately," House Majority Leader Eric Cantor said today.

Obama has threatened to veto the legislation, calling it counterproductive and the cuts burdensome for the middle class. If the Senate were to consider the bill to stave off a looming tax hike, Democrats would surely amend it to enact more amicable terms.

Jacquelyn Martin/AP Photo

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The posturing over "plan B" has drawn focus away from a broad deficit-reduction bargain to address taxes, spending, entitlement reforms and other measures that had begun coming into focus earlier this week.

Obama and Boehner have not spoken since Monday, though staff-level talks have continued behind the scenes.

Senate Majority Leader Harry Reid said lawmakers would break for the Christmas holiday but return to Washington one week from today.

"If you look at Speaker Boehner's proposal and you look at my proposal, they're actually pretty close," Obama said Wednesday, appealing for a big "fair deal."

"It is a deal that can get done," he said. "But it cannot be done if every side wants 100 percent. And part of what voters were looking for is some compromise up here."

The latest offers exchanged by Obama and Boehner are roughly $450 billion apart, largely differing on where to draw the line for an income tax hike at the end of the year.

Obama wants to see rates rise on incomes above $400,000 a year; Boehner wants the threshold to be $1 million.

Both sides also disagree about the size of spending cuts and changes to entitlement programs.

Obama's plan would trim spending by $800 billion over a decade with half coming from Medicare and Medicaid. He has also agreed to limits on future cost-of-living increases for Social Security beneficiaries, something anathema to many Democrats.

Boehner wants $1 trillion or more in spending cuts, citing entitlement programs as the primary drivers of U.S. deficits and debt. "The real issue here is spending," Boehner said today. "I don't think the White House has gotten serious."

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