U.N. lifts Syria death toll to "truly shocking" 60,000

AMMAN/GENEVA (Reuters) - More than 60,000 people have died in Syria's uprising and civil war, the United Nations said on Wednesday, dramatically raising the death toll in a struggle that shows no sign of ending.

In the latest violence, dozens were killed in a rebellious Damascus suburb when a government air strike turned a petrol station into an inferno, incinerating drivers who had rushed there for a rare chance to fill their tanks, activists said.

"I counted at least 30 bodies. They were either burnt or dismembered," said Abu Saeed, an activist who arrived in the area an hour after the 1 p.m. (1100 GMT) raid in Muleiha, a suburb on the eastern edge of the capital.

U.N. Human Rights Commissioner Navi Pillay said in Geneva that researchers cross-referencing seven sources over five months of analysis had listed 59,648 people killed in Syria between March 15, 2011 and November 30, 2012.

"The number of casualties is much higher than we expected and is truly shocking," she said. "Given that there has been no let-up in the conflict since the end of November, we can assume that more than 60,000 people have been killed by the beginning of 2013."

There was no breakdown by ethnicity or information about whether the dead were rebels, soldiers or civilians. There was also no estimate of an upper limit of the possible toll.

Previously, the opposition-linked Syrian Observatory for Human Rights monitoring group put the toll at around 45,000 confirmed dead but said the real number was likely to be higher.

FATAL RUSH FOR PETROL

Muleiha, the target of Wednesday's air strike, is a residential and industrial area in the eastern Ghouta region of Damascus that also houses a Syrian air defense base.

Video footage taken by activists showed the body of a man in a helmet still perched on a motorcycle amid flames engulfing the scene. Another man was shown carrying a dismembered body.

The video could not be verified. The government bars access to the Damascus area to most international media.

The activists said rockets were fired from the base at the petrol station and a nearby residential area after the air raid.

"Until the raid, Muleiha was quiet. We have been without petrol for four days and people from the town and the countryside rushed to the station when a state consignment came in," Abu Fouad, another activist at the scene, said by phone.

In Damascus, President Bashar al-Assad's forces fired artillery and mortars at the eastern districts of Douma, Harasta, Irbin and Zamlaka, where rebels are active, activists living there said.

Assad's forces control the centre of the capital, while rebels and their sympathizers hold a ring of southern and eastern suburbs that are often hit from the air.

The Observatory said a separate air strike killed 12 members of a family, most of them children, in Moadamiyeh, a southwestern district near the centre of Damascus where rebels have fought for a foothold.

The family of an American freelance journalist, James Foley, 39, said on Wednesday he had been missing in Syria since being kidnapped six weeks ago by gunmen. No group has publicly claimed responsibility for his abduction.

Syria was by far the most dangerous country for journalists in 2012, with 28 killed there.

The conflict began in March 2011 with peaceful protests against four decades of Assad family rule and turned into an armed revolt after months of government repression.

Insurgents trying to topple Assad see his air power as their main threat. They hold swathes of eastern and northern provinces, as well as some outlying parts of Damascus, but have been unable to protect their territory from relentless attack by helicopters and jets.

In the north, rebels, some from Islamist units, attacked the Afis military airport near Taftanaz air base, firing machineguns and mortars at helicopters on the ground to try and make a dent in Assad's air might, the Observatory said.

The al Qaeda-linked al-Nusra Front, Ahrar al-Sham Brigade and other units in northwestern Idlib province were attacking the base, which is near the main north-south highway linking Damascus to Aleppo, Syria's biggest city, the Observatory said.

In recent months, rebel units have besieged military bases, especially along the highway, Syria's main artery.

The Observatory's director, Rami Abdelrahman, said the attack was the latest of several attempts to capture the base. A satellite image of the airport shows more than 40 helicopter landing pads, a runway and aircraft hangars.

Syrian state media gave no immediate account of the Damascus air strikes or the fighting in the north.

"FOR GOD'S EYES"

Both sides have been accused of committing atrocities in the 21-month-old conflict, but the United Nations says the government and its allies have been more culpable.

In the latest evidence of atrocities, Internet video posted by Syrian rebels shows armed men, apparently fighters loyal to Assad, stabbing two men to death and stoning them with concrete blocks in a summary execution lasting several minutes.

Reuters could not verify the provenance of the footage or the identity of the perpetrators and their victims. The video was posted on Tuesday but it was not clear where or when it was filmed. However it does clearly show a summary execution and torture, apparently being carried out by government supporters.

At one point, one of the perpetrators says: "For God's eyes and your Lord, O Bashar," an Arabic incantation suggesting actions being carried out in the leader's name.

The video was posted on YouTube by the media office of the Damascus-based rebel First Brigade, which said it had been taken from a captured member of the shabbiha pro-government militia.

The perpetrators show off for the camera, smiling for close-up shots, slicing at the victims' backs, then stabbing them and bashing them with large slabs of masonry.

Syria's civil war is the longest and deadliest conflict to emerge from uprisings that began sweeping the Arab world in 2011 and has developed a significant sectarian element.

Rebels, mostly from the Sunni Muslim majority, confront Assad's army and security forces, dominated by his Shi'ite-derived Alawite sect, which, along with some other minorities, fears revenge if he falls.

(Additional reporting by Oliver Holmes in Beirut; Writing by Peter Graff; Editing by Alistair Lyon/Mark Heinrich)

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Football: Brazil starlet Lucas relishing PSG challenge

DOHA: Brazilian international midfielder Lucas Moura said Tuesday he is ready to embrace the "challenge" at an evolving Paris Saint-Germain.

Lucas, 20, signed from Sao Paulo in the summer on a four-and-a-half-year deal worth 40 million euros as PSG held off competition from the likes of Manchester United and Real Madrid to snare a player hailed as one of the bright hopes of the Brazilian team.

"It's a real challenge for me," said Lucas, who has scored three goals in 22 appearances for Brazil.

"PSG is in full evolution. (Sporting director) Leonardo helped me a lot to take the decision to sign when I could have continued with my former team in Brazil until season's end.

"It's a very important step in my career. There are stronger competitions in Europe. PSG has a long history with Brazilian players and I hope I'll be able to write a new page in this history."

PSG president Nasser al-Khelaifi added: "We're very happy to start the year with one of the world's best players."

Lucas, who has joined his new teammates at a training camp in Qatar, could make his debut in a friendly against Qatari champions Lekhwiya on Wednesday, four days before PSG's French Cup round-of-64 match against Arras in Calais.

Khelaifi said the club was not planning to recruit any more players in the January transfer window, adding however that "anything could happen".

"We've got a great team with some great players, I don't think we need to recruit," he said.

"We've got a month ahead of us. For the moment, we're not planning on recruiting anyone but I don't know, there could be injuries, anything can happen."

Khelaifi added: "PSG today wants to build a big European club and place itself among the best in Europe and the world.

"We have to spend money for that and act like the other big clubs. If we hadn't have spent this much, we wouldn't be at this level."

- AFP/fa

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Virbhadra Singh resigns as Himachal Congress president

SHIMLA: Himachal chief minister Virbhadra Singh on Tuesday resigned from the post of the Himachal Pradesh Congress Committee (HPCC) president.

Singh, who had hinted to resign as HPCC chief immediately after taking over as chief minister, has sent his resignation to party high command, AICC general secretary and incharge of party affairs for Himachal Pradesh, Birender Singh said.

In keeping with the "one man one post" principle, his resignation was a natural corollary after assuming the office of chief minister for the sixth time.

Virbhadra has remained HPCC chief thrice but this time his tenure was the shortest, just four months.

He had taken over as HPCC chief on August 29 this year replacing Kaul Singh Thakur and search for new president has begun after the resignation of Singh.

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Clinton receiving blood thinners to dissolve clot

WASHINGTON (AP) — Doctors treating Secretary of State Hillary Rodham Clinton for a blood clot in her head said blood thinners are being used to dissolve the clot and they are confident she will make a full recovery.

Clinton didn't suffer a stroke or neurological damage from the clot that formed after she suffered a concussion during a fainting spell at her home in early December, doctors said in a statement Monday.

Clinton, 65, was admitted to New York-Presbyterian Hospital on Sunday when the clot turned up on a follow-up exam on the concussion, Clinton spokesman Phillipe Reines said.

The clot is located in the vein in the space between the brain and the skull behind the right ear. She will be released once the medication dose for the blood thinners has been established, the doctors said.

In their statement, Dr. Lisa Bardack of the Mount Kisco Medical Group and Dr. Gigi El-Bayoumi of George Washington University said Clinton was making excellent progress and was in good spirits.

Clinton's complication "certainly isn't the most common thing to happen after a concussion" and is one of the few types of blood clots in the skull or head that are treated with blood thinners, said Dr. Larry Goldstein, a neurologist who is director of Duke University's stroke center. He is not involved in Clinton's care.

The area where Clinton's clot developed is "a drainage channel, the equivalent of a big vein inside the skull. It's how the blood gets back to the heart," Goldstein said.

Blood thinners usually are enough to treat the clot and it should have no long-term consequences if her doctors are saying she has suffered no neurological damage from it, Goldstein said.

Clinton returned to the U.S. from a trip to Europe, then fell ill with a stomach virus in early December that left her severely dehydrated and forced her to cancel a trip to North Africa and the Middle East. Until then, she had canceled only two scheduled overseas trips, one to Europe after breaking her elbow in June 2009 and one to Asia after the February 2010 earthquake in Haiti.

Her condition worsened when she fainted, fell and suffered a concussion while at home alone in mid-December as she recovered from the virus. It was announced Dec. 13.

This isn't the first time Clinton has suffered a blood clot. In 1998, midway through her husband's second term as president, Clinton was in New York fundraising for the midterm elections when a swollen right foot led her doctor to diagnose a clot in her knee requiring immediate treatment.

Clinton had planned to step down as secretary of state at the beginning of President Barack Obama's second term. Whether she will return to work before she resigns remained a question.

Democrats are privately if not publicly speculating: How might her illness affect a decision about running for president in 2016?

After decades in politics, Clinton says she plans to spend the next year resting. She has long insisted she had no intention of mounting a second campaign for the White House four years from now. But the door is not entirely closed, and she would almost certainly emerge as the Democrat to beat if she decided to give in to calls by Democratic fans and run again.

Her age — and thereby health — would probably be a factor under consideration, given that Clinton would be 69 when sworn in, if she were elected in 2016. That might become even more of an issue in the early jockeying for 2016 if what started as a bad stomach bug becomes a prolonged, public bout with more serious infirmity.

Not that Democrats are willing to talk openly about the political implications of a long illness, choosing to keep any discussions about her condition behind closed doors. Publicly, Democrats reject the notion that a blood clot could hinder her political prospects.

"Some of those concerns could be borderline sexist," said Basil Smikle, a Democratic strategist who worked for Clinton when she was a senator. "Dick Cheney had significant heart problems when he was vice president, and people joked about it. He took the time he needed to get better, and it wasn't a problem."

It isn't uncommon for presidential candidates' health — and age — to be an issue. Both in 2000 and 2008, Sen. John McCain, R-Ariz., had to rebut concerns he was too old to be commander in chief or that his skin cancer could resurface.

Two decades after Clinton became the first lady, signs of her popularity — and her political strength — are ubiquitous.

Obama had barely declared victory in November when Democrats started zealously plugging Clinton as their strongest White House contender four years from now, should she choose to take that leap.

"Wouldn't that be exciting?" House Democratic leader Nancy Pelosi declared in December. "I hope she goes. Why wouldn't she?"

Even Republicans concede that were she to run, Clinton would be a force to be reckoned with.

"Trying to win that will be truly the Super Bowl," Newt Gingrich, the former House Speaker and 2012 GOP presidential candidate, said in December. "The Republican Party today is incapable of competing at that level."

Americans admire Clinton more than any other woman in the world, according to a Gallup poll released Monday — the 17th time in 20 years that Clinton has claimed that title. And a recent ABC News/Washington Post poll found that 57 percent of Americans would support Clinton as a candidate for president in 2016, with just 37 percent opposed. Websites have already cropped up hawking "Clinton 2016" mugs and tote bags.

Beyond talk of future politics, Clinton's three-week absence from the State Department has raised eyebrows among some conservative commentators who questioned the seriousness of her ailment after she canceled planned Dec. 20 testimony before Congress on the deadly attack on the U.S. diplomatic mission in Benghazi, Libya.

Clinton had been due to discuss with lawmakers a scathing report she had commissioned on the attack. It found serious failures of leadership and management in two State Department bureaus were to blame for insufficient security at the facility. Clinton took responsibility for the incident before the report was released, but she was not blamed. Four officials cited in the report have either resigned or been reassigned.

___

Associated Press writer Ken Thomas in Washington and AP Chief Medical Writer Marilynn Marchione in Milwaukee contributed to this report.

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Senate Approves 'Fiscal Cliff' Deal, Sends to House

Two hours after a midnight deadline for action, the Senate passed legislation early New Year's Day to avert the so-called fiscal cliff with an overwhelming vote of 89-8.

Senate passage set the stage for a final showdown in the House, where a vote could come as early as today.

"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," President Obama said in a statement shortly after the vote.

"There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans."

The bill extends Bush-era tax cuts permanently for individuals making less than $400,000 per year and couples making less than $450,000 but allows the top marginal tax rate on incomes above those levels to rise to 39.6 percent.

Capital gains taxes would rise to 20 percent from 15 percent.

The measure would raise the estate tax from 35 to 40 percent for estates larger than $5 million, prevent the alternative minimum tax from hammering millions of middle-class workers and extend unemployment benefits for one year.

'Fiscal Cliff': Lawmakers Scramble for Last-Minute Deal Watch Video

Lawmakers also decided at the last minute to use the measure to prevent a $900 pay raise for each member of Congress due to take effect this spring.

The steep "sequester" budget cuts scheduled to go into effect with the New Year -- a $1.2 trillion hit to defense and domestic programs -- would be postponed for two months.

"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.

The deal at hand does little to address the nation's long-term debt woes, however, and does not entirely solve the problem of the "fiscal cliff."

Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- could set up a new showdown on the same spending cuts in two months amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

Reid said he is "disappointed" they were unable to achieve a broader deal but that the compromise was necessary.

"We tried," he said. "If we did nothing, the threat of a recession is very real."

Speaking after Reid, Senate Minority Leader Mitch McConnell, R-Ky., called the deal an "imperfect solution" and noted this should not be the model on how things get done in the Senate.

McConnell also thanked Vice President Joe Biden, who visited Capitol Hill late Monday night and brokered the deal with Senate Republicans.

The measure must now move to the Republican-led House.

Five Senate Republicans and three Democrats voted against the plan, but the large margin of passage was seen as boosting the bill's prospects in the House, even though fiscal conservatives were poised to vehemently oppose the deal when it comes to the floor for a vote.

House Speaker John Boehner of Ohio said the House would not vote on any Senate-passed measure "until House members, and the American people, have been able to review" it.

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About 60 crushed to death in Ivory Coast stampede

ABIDJAN (Reuters) - About 60 people were crushed to death in a stampede outside a stadium in Ivory Coast's main city of Abidjan after a New Year's Eve fireworks display, the government said on Tuesday.

The incident took place near Felix Houphouet Boigny Stadium where a crowd had gathered to watch fireworks, emergency officials said.

One of the injured, speaking to Reuters at a hospital, said security forces had arrived to break up the crowd, triggering a panic in which many people fell over and were trampled.

"The provisional death toll is 60 and there are 49 injured," Interior Minister Hamed Bakayoko said in a statement broadcast on national television.

President Alassane Ouattara, visiting injured people at the hospital, called the incident a national tragedy and said an investigation was underway to determine what happened.

A Reuters correspondent said blood stains and abandoned shoes littered the scene outside the stadium on Tuesday morning.

"My two children came here yesterday. I told them not to come but they didn't listen. They came when I was sleeping. What will I do?" said Assetou Toure, a cleaner.

She did not know if her children had escaped unhurt.

The incident was the worst of its kind in Abidjan since 2010, when a stampede at a stadium during a football match killed 18 people.

Ivory Coast, once a stable economic hub for West Africa, is struggling to recover from a 2011 civil war in which more than 3,000 people were killed.

(Reporting by Loucoumane Coulibaly and Alain Amontchi; Writing by Richard Valdmanis; Editing by Angus MacSwan)

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HTC hopes to get ahead of competition in 2013

TAIPEI: Taiwan's economy has been one of the worst performing economies in Asia this year.

A decline in exports has slowed its full year economic growth to one per cent.

2012 was a tough year for Taiwan's technology industry, especially for smartphone maker HTC, which lost much of its global market to rivals Apple and Samsung.

Its falling sales had not only hurt HTC's bottom-line, but also dragged Taiwan's exports into negative growth.

HTC is stepping up efforts to woo consumers. It hopes to turn its fortune around with new gadgets.

"Our storage capacity for HTC One X has increased to 64GB from the previous 32GB. Plus, its battery life is longer by up to 37 per cent," said Eric Chen, HTC Taiwan's marketing director on its HTC One X handset.

As Asia's second largest handset maker, HTC saw its sales falling some 40 per cent this year.

Competition from Apple and Samsung halved its global market share to 4 per cent.

This took a toll on Taiwan's export growth, of which a quarter came from HTC.

Sam Shen, Market Intelligence and Consulting Institute director said: "HTC's shipments last year exceeded 53 million units. This year could shrink to some 40 million units. So the decline stood out in the overall export figures."

The island's exports in 2012 are likely to contract by more than 2 per cent, to their lowest level in three years.

But Taiwan's market intelligence agency believes the worst is over for HTC.

Mr Shen said: "With the continuing advancement of smartphones and their key components, there's going to be greater demand from the emerging economies. Overall, the market will remain competitive, but demand will be high."

Global shipments for smartphones are expected to grow by more than 20 per cent in 2013.

HTC is fighting back by expanding its presence in China, the fastest growing market in the world. Still, it could be a rough road ahead for the company.

"On the high-end smartphones, HTC is competing against Samsung and Apple. And on the low-end handsets, HTC is up against China's Huawei Technologies and ZTE. So it's going to be tough," said Masson Li, Taishin Securities Investment Advisory's co-vice president.

Mr Li added: "Actually the lines between smartphones and tablets are blurring. So more tablet makers may want to get a piece of the smartphone market."

While it may take a while for HTC to get back on its feet, Taiwan can still count on tablets for support.

Currently, more than 80 per cent of tablets in the world are made by Taiwanese firms.

According to IDC, global shipments for tablets are estimated to soar 40 per cent in the coming year.

If the global market regains momentum as expected, Taiwan's economic growth could exceed 3 per cent in 2013.

- CNA/xq

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UP government to give Rs 20 lakh compensation for Delhi-gang-rape victim's family

LUCKNOW: Uttar Pradesh (UP) government on Monday announced Rs 20 lakh compensation for the family of the Delhi gang-rape victim who succumbed to injuries two days ago. The compensation will be given from the chief minister's discretionary fund.

Earlier, on December 21, chief minister Akhilesh Yadav had announced to give Rs five lakh financial assistance to the family of the victim in addition to the the offer to all medical expenses and a job after recovery.

The family hails from a village in Ballia district of the state and had moved to Delhi 20 years ago but is still connected to its native place.

He had taken a loan for the education of his daughter who wanted to be a physiotherapist. His two sons are still studying.

The chief minister announced the Rs 20 lakh compensation overlooking the criticism of Bahujan Samaj Party (BSP) chief Mayawati and Shahi Imam of Delhi's Jama Masjid Imam Bukhari. Mayawati had said that compensation is fine but the state government should focus on preventing rapes and provide speedy justice. She had also alleged that crime against women has increased manifold in first nine months of Samajwadi Party (SP) rule in the state. Bukhari had said that SP government should have also announced compensation for the Muslim rape victims.

Earlier today, the Delhi government announced financial aid of Rs 15 lakh for the next of the kin of the 23-year-old gang-rape victim and offered a job to a family member of the girl, who died two days ago.

The decisions were taken at a cabinet meeting presided over by chief minister Sheila Dikshit.

The phsyiotherapy student was brutally gang-raped and assaulted in a moving bus in south Delhi on December 16. She breathed her last in a Singapore hospital on Saturday morning and her mortal remains were cremated here on Sunday.

(Inputs from PTI)

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FDA approves 1st new tuberculosis drug in 40 years

WASHINGTON (AP) — The Food and Drug Administration on Monday approved a Johnson & Johnson tuberculosis drug that is the first new medicine to fight the deadly infection in more than four decades.

The agency approved J&J's pill, Sirturo, for use with older drugs to fight a hard-to-treat strain of tuberculosis that has not responded to other medications. However, the agency cautioned that the drug carries risks of potentially deadly heart problems and should be prescribed carefully by doctors.

Roughly one-third of the world's population is estimated to be infected with the bacteria causing tuberculosis. The disease is rare in the U.S., but kills about 1.4 million people a year worldwide. Of those, about 150,000 succumb to the increasingly common drug-resistant forms of the disease. About 60 percent of all cases are concentrated in China, India, Russia and Eastern Europe.

Sirturo, known chemically as bedaquiline, is the first medicine specifically designed for treating multidrug-resistant tuberculosis. That's a form of the disease that cannot be treated with at least two of the four primary antibiotics used for tuberculosis.

The standard drugs used to fight the disease were developed in the 1950s and 1960s.

"The antibiotics used to treat it have been around for at least 40 years and so the bacterium has become more and more resistant to what we have," said Chrispin Kambili, global medical affairs leader for J&J's Janssen division.

The drug carries a boxed warning indicating that it can interfere with the heart's electrical activity, potentially leading to fatal heart rhythms.

"Sirturo provides much-needed treatment for patients who have don't have other therapeutic options available," said Edward Cox, director of the FDA's antibacterial drugs office. "However, because the drug also carries some significant risks, doctors should make sure they use it appropriately and only in patients who don't have other treatment options."

Nine patients taking Sirturo died in company testing compared with two patients taking a placebo. Five of the deaths in the Sirturo group seemed to be related to tuberculosis, but no explanation was apparent for the remaining four.

Despite the deaths, the FDA approved the drug under its accelerated approval program, which allows the agency to clear innovative drugs based on promising preliminary results.

Last week, the consumer advocacy group Public Citizen criticized that approach, noting the drug's outstanding safety issues.

"The fact that bedaquiline is part of a new class of drug means that an increased level of scrutiny should be required for its approval," the group states. "But the FDA had not yet answered concerns related to unexplained increases in toxicity and death in patients getting the drug."

The FDA said it approved the drug based on two mid-stage studies enrolling 440 patients taking Sirturo. Both studies were designed to measure how long it takes patients to be free of tuberculosis.

Results from the first trial showed most patients taking Sirturo plus older drugs were cured after 83 days, compared with 125 days for those taking a placebo plus older drugs. The second study showed most Sirturo patients were cured after 57 days.

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Time's Up: Sides Closing In on 'Fiscal Cliff' Deal

Congressional and White House negotiators are closing in on a deal to avert across-the-board tax hikes and spending cuts that take effect at midnight, as the nation teeters on the edge of the so-called fiscal cliff.

An emerging tentative agreement would extend current tax rates for households making $450,000 or less; extend the estate tax at its current level of 35 percent for estates larger than $5 million; and prevent the Alternative Minimum Tax from hammering millions of middle-class workers, sources said.

The deal would also extend unemployment benefits set to expire Tuesday and avert a steep cut to Medicare payments for doctors.

Both sides also seem willing to delay by three months automatic spending cuts to defense and domestic programs, the sources said, setting the stage for continued fiscal debate in the next few months tied to the debt ceiling.

Vice President Joe Biden and Senate Minority Leader Mitch McConnell, R-Ky., are leading the negotiations, sources said, holding several "good" conversations late into Sunday night and continuing a dialogue early this morning.

They are trying to broker an elusive compromise on taxes and spending that can win the support of bipartisan majorities in the Senate and House.

Even if a deal is reached between Biden and McConnell, members in both chambers would still need to review it and vote on it later today. Passage is far from guaranteed.

"This is one Democrat that doesn't agree with that at all," Iowa Democratic Sen. Tom Harkin said of the tentative deal. "No deal is better than a bad deal, and this looks like a very bad deal the way this is shaping up."

Failure of Congress to act on a tax measure by Tuesday morning would trigger income tax hikes on all Americans. The average family would pay an extra $3,446 in 2013 under the higher rates, according to the Tax Policy Center.

Regardless of the "cliff," virtually all workers are due to see less in their paychecks starting in January when the temporary 2 percent payroll tax cut will expire.

More than $1 trillion in automatic spending cuts to defense and domestic programs will also begin to take effect later this week unless Congress delays or replaces them.

"It is absolutely inexcusable that all of us find ourselves in this place at this time," Sen. Joe Manchin, D-W.Va., said Sunday night on the Senate floor.

"Something has gone terribly wrong when the biggest threat to our American economy is our American Congress," he said, echoing a frustration shared by many Americans.

Republican and Democratic Senate leaders wrangled all weekend over the outlines of a deal, but those talks eventually hit a brick wall on GOP insistence that Social Security savings be included in a deal.

"I want everyone to know I'm willing to get this done, but I need a dance partner," McConnell said Sunday, noting that he had directly reached out to Biden to break the impasse.

As part of any deficit reduction deal, the White House wants to raise income tax rates on people making more than $250,000 a year, a threshold on which President Obama campaigned for re-election.

Republicans, caving on outright opposition to any tax increases, want a higher income threshold for the tax hike of around $450,000, sources said. They also want to prevent the estate tax from rising above its current 35 percent rate on estates of $5.1 million or more.

"There is still significant distance between the two sides, but negotiations continue," Senate Majority Leader Harry Reid of Nevada said Sunday evening. "There is still time to reach an agreement, and we intend to continue negotiations."

Both sides say the cost of failure is high.

"If we are not able to reach an agreement, it will be dire," Sen. Jon Kyl, R-Ariz., said Sunday on ABC's "This Week." "Probably at least another million jobs lost, an unemployment rate over 9 percent, and putting us back into recession."

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