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House Republicans eye limited fiscal cliff bill

WASHINGTON (Reuters) – With time running short before a Dec. 31 deadline, House of Representatives Speaker John Boehner will begin work on legislation that simply would extend current low income tax rates for all families with incomes below $ 1 million a year, according to an aide.

Negotiations will continue with the White House on a broader tax and spending deal, the Boehner aide said.

Boehner is presenting the plan to rank-and-file Republicans in a closed-door session.

On January 1, income tax increases for most Americans will begin unless Congress acts.

Last July, the Democratic-controlled Senate passed a bill to extend the current low rates for all families with net incomes below $ 250,000 a year. The House Republican proposal, if passed by the House, would require agreement by the Senate or force a round of negotiations on a compromise between the two chambers.

In excerpts of remarks Boehner was delivering to his Republican members Tuesday morning, the speaker complained that “the White House just can’t seem to bring itself to agree to a ‘balanced’ approach” to deficit-reduction in negotiations. At the same time, Boehner said Republicans were “leaving the door wide open for something better” than just the limited extension of current low tax rates for most Americans.

“Current law has tax rates going up on everyone January 1. The question for us is real simple: How do we stop as many of those rate hikes as possible?” Boehner said.

For months, Democrats have been urging House Republicans to pass a bill protecting middle-class taxpayers from a January 1 rate increase.

(Reporting By Richard Cowan; Editing by Doina Chiacu)

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First of eight funerals begins at Newtown church

NEWTOWN, Conn. (AP) — Family members have gathered for the first of eight funerals for school shooting victims to be held at a Catholic church in Newtown, Conn.

A motorcade of dozens of vehicles led by police motorcycles accompanied the family of 6-year-old James Mattioli to St. Rose of Lima on Tuesday. His funeral comes a day after two other 6-year-old boys were laid in the first of a long, almost unbearable procession of funerals.

Margarita Rosniak and her 10-year-old daughter, Charlotte, watched from the sidewalk as people entered the church. They had traveled from California for a Christmas vacation in New York and came to Newtown to join the residents in their grief.

Clutching her daughter close, Margarita Rosniak spoke of sympathizing with the parents. Her daughter says she plans to do a school project on the massacre. She asks, "What was the point of it? They're just little kids."

Gunman Adam Lanza shot his mother Friday, then headed to Sandy Hook Elementary where he killed 20 children and six adults, and himself.

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Classes resume in Newtown

NEWTOWN, Conn. (AP) — With security stepped up and families still on edge in Newtown, students began returning to school Tuesday for the first time since last week's massacre, bringing a return of familiar routines — at least, for some — to a grief-stricken town as it buries 20 of its children.

One 6-year-old boy's funeral was under way Tuesday morning, and two other 6-year-old boys were laid to rest Monday in the first of a long, almost unbearable procession of funerals. A total of 26 people were killed at Sandy Hook Elementary in one of the worst mass shootings in U.S history.

Classes resume Tuesday for Newtown schools except those at Sandy Hook. At Newtown High School, students in sweatshirts and jackets, many wearing headphones, betrayed mixed emotions. Some waved at or snapped photos of the assembled media horde, and others appeared visibly shaken.

"There's going to be no joy in school," said 17-year-old senior P.J. Hickey. "It really doesn't feel like Christmas anymore."

At St. Rose of Lima Catholic Church in Newtown, a hearse arrived Tuesday morning carrying the casket of first-grader James Mattioli for the first of eight funerals of victims to be held in the coming days at the church. Mourners gathered outside, and the family followed the casket in.

At the high school, students didn't expect to get much work done Tuesday but rather anticipated most of the day would be spent talking about the shooting.

"We're going to be able to comfort each other and try and help each other get through this because that's the only way we're going to do it. Nobody can do this alone," Hickey said.

Sophomore Tate Schwab echoed that.

"It's definitely better than just sitting at home watching the news," he said.

"It really hasn't sunk in yet," he said. "It feels to me like it hasn't happened. It's really weird."

As for concerns about safety, Hickey was defiant.

"This is where I feel the most at home. I feel safer here than anywhere else in the world."

Some parents were likely to keep their children at home anyway. Local police and school officials have been discussing how and where to increase security, and state police said they would be on alert for threats and hoaxes.

On Monday, Newtown held the first two funerals of many the picturesque New England community of 27,000 people will face over the next few days, just as other towns are getting ready for the holidays. At least one funeral is planned for a student — 6-year-old Jessica Rekos — as well as several wakes, including one for teacher Victoria Soto, who has been hailed as a hero for sacrificing herself to save several students.

Two funeral homes filled Monday with mourners for Noah Pozner and Jack Pinto, both 6 years old. A rabbi presided at Noah's service, and in keeping with Jewish tradition, the boy was laid to rest in a simple brown wooden casket with a Star of David on it.

"I will miss your perpetual smile, the twinkle in your dark blue eyes, framed by eyelashes that would be the envy of any lady in this room," Noah's mother, Veronique Pozner, said at the service, according to remarks the family provided to The Associated Press. Both services were closed to the news media.

"Most of all, I will miss your visions of your future," she said. "You wanted to be a doctor, a soldier, a taco factory manager. It was your favorite food, and no doubt you wanted to ensure that the world kept producing tacos."

She closed by saying: "Momma loves you, little man."

Noah's twin, Arielle, who was assigned to a different classroom, survived the killing frenzy.

At Jack Pinto's Christian service, hymns rang out from inside the funeral home, where the boy lay in an open casket. Jack was among the youngest members of a youth wrestling association in Newtown, and dozens of little boys turned up at the service in gray Newtown Wrestling T-shirts.

Jack was a fan of New York Giants wide receiver Victor Cruz and was laid to rest in a Cruz jersey.

Authorities say the man who killed the two boys and their classmates, 20-year-old Adam Lanza, shot his mother, Nancy, at their home and then took her car and some of her guns to the school, where he broke in and opened fire. A Connecticut official said the mother, a gun enthusiast who practiced at shooting ranges, was found dead in her pajamas in bed, shot four times in the head with a .22-caliber rifle.

Lanza was wearing all black, with an olive-drab utility vest with lots of pockets, during the attack.

As investigators worked to figure out what drove him to lash out with such fury — and why he singled out the school — federal agents said that he had fired guns at shooting ranges over the past several years but that there was no evidence he did so recently as practice for the rampage.

Debora Seifert, a spokeswoman for the federal Bureau of Alcohol, Tobacco, Firearms and Explosives, said both Lanza and his mother fired at shooting ranges, and also visited ranges together.

"We do not have any indication at this time that the shooter engaged in shooting activities in the past six months," Seifert said.

Investigators have found no letters or diaries that could explain the attack.

Whatever his motives, normalcy will be slow in revisiting Newtown. Classes were canceled district-wide Monday.

Dan Capodicci, whose 10-year-old daughter attends the school at St. Rose of Lima Roman Catholic Church, said he thinks it's time for her to get back to classes.

"It's the right thing to do. You have to send your kids back. But at the same time I'm worried," he said. "We need to get back to normal."

The district has made plans to send surviving Sandy Hook students to Chalk Hill, a former middle school in the neighboring town of Monroe. Sandy Hook desks that will fit the small students are being taken there, empty since town schools consolidated last year, and tradesmen are donating their services to get the school ready within a matter of days.

With Sandy Hook Elementary still designated a crime scene, state police Lt. Paul Vance said it could be months before police turn the school back over to the district.

Lanza is believed to have used a Bushmaster AR-15-style rifle, a civilian version of the military's M-16. It is similar to the weapon used in a recent shopping mall shooting in Oregon and other deadly attacks around the U.S. Versions of the AR-15 were outlawed in this country under the 1994 assault weapons ban, but the law expired in 2004.

Private equity firm Cerberus Capital Management announced Tuesday it plans to sell its stake in Freedom Group, maker of the Bushmaster rifle, following the school shootings.

Cerberus said in a statement Tuesday that it was deeply saddened by Friday's events, and that it will hire a financial adviser to help with the process of selling its Freedom Group interests.

The outlines of a national debate on gun control have begun to take shape. At the White House, spokesman Jay Carney said curbing gun violence is a complex problem that will require a "comprehensive solution."

Carney did not offer specific proposals or a timeline. He said President Barack Obama will meet with law enforcement officials and mental health professionals in coming weeks.

New York Mayor Michael Bloomberg, flanked by shooting survivors and relatives of victims of gunfire around the country, pressed Obama and Congress to toughen gun laws and tighten enforcement after the Newtown massacre.

"If this doesn't do it," he asked, "what is going to?"

At least one senator, Virginia Democrat Mark Warner, said Monday that the attack in Newtown has led him to rethink his opposition to the ban on assault weapons.

West Virginia Sen. Joe Manchin, a Democrat who is an avid hunter and lifelong member of the National Rifle Association, said it's time to move beyond the political rhetoric and begin an honest discussion about reasonable restrictions on guns.

"This is bigger than just about guns," he added. "It's about how we treat people with mental illness, how we intervene, how we get them the care they need, how we protect our schools. It's just so sad."

___

Contributing to this report were Associated Press writers Allen G. Breed, Helen O'Neill, John Christoffersen, Pat Eaton-Robb and Katie Zezima in Newtown; Christine Armario in Miami; and Julie Pace in

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“The Office” head Greg Daniels sells tennis comedy to Fox

LOS ANGELES (TheWrap.com) – “The Office” might be preparing to close up shop, but the series’ creator is most definitely still open for business.

Greg Daniels, who birthed the American version of “The Office” – which is preparing to wrap up its run at the end of this season – has sold a half-hour comedy to Fox via Universal Television and his own Deedle-Dee Productions.

The project was sold through Daniels by Tom Gormican (“Are We Officially Dating?”) and Richie Keen (“It’s Always Sunny in Philadelphia”), who are also writing.

The as-yet-untitled project will revolve around Richie, a so-so tennis pro who returns to his college town to get a fresh start on life. There, Richie finds himself torn between living the carefree life with his bar-owning brother and growing up to pursue Kristen, the love of his life.

Daniels will executive-produce the project via his Deedle-Dee Production, along with Gormican and Keen.

Deedle-Dee’s Howard Klein and Tracy Katsky are also executive-producing, along with Oly Obst.

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Syrian rebels take control of Damascus Palestinian camp

BEIRUT (Reuters) – Syrian rebels took full control of the Yarmouk Palestinian refugee camp on Monday after fighting raged for days in the district on the southern edge of President Bashar al-Assad‘s Damascus powerbase, rebel and Palestinian sources said.

The battle had pitted rebels, backed by some Palestinians, against Palestinian fighters of the pro-Assad Popular Front for the Liberation of Palestine-General Command (PFLP-GC). Many PFLP-GC fighters defected to the rebel side and their leader Ahmed Jibril left the camp two days ago, rebel sources said.

“All of the camp is under the control of the (rebel) Free Syrian Army,” said a Palestinian activist in Yarmouk. He said clashes had stopped and the remaining PFLP fighters retreated to join Assad‘s forces massed on the northern edge of the camp.

The battle in Yarmouk is one of a series of conflicts on the southern fringes of Assad’s capital, as rebels try to choke the power of the 47-year-old leader after a 21-month-old uprising in which 40,000 people have been killed.

Government forces have used jets and artillery to try to dislodge the fighters but the violence has crept into the heart of the city and activists say rebels overran three army stations in a new offensive in the central province of Hama on Monday.

On the border with Lebanon, hundreds of Palestinian families fled across the frontier following the weekend violence in Yarmouk, a Reuters witness said.

Syria hosts half a million Palestinian refugees, most living in Yarmouk, descendants of those admitted after the creation of Israel in 1948, and has always cast itself as a champion of the Palestinian struggle, sponsoring several guerrilla factions.

Both Assad’s government and the mainly Sunni Muslim Syrian rebels have enlisted and armed divided Palestinian factions as the uprising has developed into a civil war.

“NEITHER SIDE CAN WIN”

Syrian Vice President Farouq al-Sharaa said in a newspaper interview published on Monday that neither Assad’s forces nor rebels seeking to overthrow him can win the war.

Sharaa, a Sunni Muslim in a power structure dominated by Assad’s Alawite minority, has rarely been seen since the revolt erupted in March 2011 and is not part of the president’s inner circle directing the fight against Sunni rebels. But he is the most prominent figure to say in public that Assad will not win.

Sharaa said the situation in Syria was deteriorating and a “historic settlement” was needed to end the conflict, involving regional powers and the U.N. Security Council and the formation of a national unity government “with broad powers”.

“With every passing day the political and military solutions are becoming more distant. We should be in a position defending the existence of Syria. We are not in a battle for an individual or a regime,” Sharaa was quoted as telling Al-Akhbar newspaper.

“The opposition cannot decisively settle the battle and what the security forces and army units are doing will not achieve a decisive settlement,” he said, adding that insurgents fighting to topple Syria’s leadership could plunge it into “anarchy and an unending spiral of violence”.

Sources close to the Syrian government say Sharaa had pushed for dialogue with the opposition and objected to the military response to an uprising that began peacefully.

In a veiled criticism of the crackdown, he said there was a difference between the state’s duty to provide security to its citizens, and “pursuing a security solution to the crisis”.

He said even Assad could not be certain where events in Syria were leading, but that anyone who met him would hear that “this is a long struggle…and he does not hide his desire to settle matters militarily to reach a final solution.”

In Hama province, rebels and the army clashed in a new campaign launched on Sunday by rebels to block off the country’s north, activists said.

The Syrian Observatory for Human Rights, an opposition-linked violence monitor, said fighting raged through the provincial towns of Karnaz, Kafar Weeta, Halfayeh and Mahardeh.

It said there were no clashes reported in Hama city, which lies on the main north-south highway connecting the capital with Aleppo, Syria’s second city.

Qassem Saadeddine, a member of the newly established rebel military command, said on Sunday fighters had been ordered to surround and attack army positions across the province. He said Assad’s forces were given 48 hours to surrender or be killed.

In 1982 Hafez al-Assad, father of the current ruler, crushed an uprising in Hama city, killing up to 30,000 civilians.

Qatiba al-Naasan, a rebel from Hama, said the offensive would bring retaliatory air strikes from the government but that the situation is “already getting miserable”.

(Additional reporting by Oliver Holmes, Erika Solomon and Dominic Evans in Beirut, Afif Diab at Masnaa, Lebanon; editing by Philippa Fletcher)

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Saudi Arabia bans Brazil beef imports on mad cow doubts

SAO PAULO (Reuters) – Saudi Arabia has suspended imports of Brazilian beef, Brazil‘s agriculture ministry said on Tuesday, and became the largest country to stop purchases after confirmation of a 2010 case of atypical mad cow disease.

The decision, confirmed by a ministry press official in Brasilia, follows Egypt‘s ban of beef on Monday from Parana state, where a cow that died two years ago had developed atypical bovine spongiform encephalopathy (BSE), or mad cow disease. Egypt will continue to import from other states.

Between January and October, Saudi Arabia imported 31,300 metric tons of beef, putting it among the top 10 largest importers from Brazil, the world’s largest beef exporter.

But top buyers Russia, Hong Kong and Egypt – which took more than half of the 896,000 metric tons of beef that Brazil has exported this year through September – continue to import its beef, suggesting the impact could be limited.

Prior to Saudi Arabia, only Japan, China and South Africa had halted imports of all Brazilian beef since Brazil announced on December 7 that a 13-year-old cow that died in 2010 in Parana tested positive for the protein linked to the development of BSE.

The countries are all minor importers of Brazilian beef.

The cow, which was kept for breeding purposes, never developed BSE and died of other causes. But it tested positive for the causal agent for BSE, a protein called a prion, which can arise spontaneously in elderly cattle.

A similar case of atypical BSE occurred in the United States in April. Like the Brazilian cow, that animal never entered the food chain and there was no major effect on U.S. beef exports.

Brazilian companies like JBS SA,, the world’s biggest meats producer, as well as rival Minerva SA and food processor Marfrig Alimentos SA have played down the impact of the case on their operations.

After it confirmed the case of atypical BSE, the World Animal Health Organization issued a statement maintaining Brazil’s status as a low-risk country for mad cow disease.

“This classification has been followed by important countries, blocks and consumers,” Minerva said in a statement on Tuesday, adding that sales to Saudi Arabia accounted for approximately 2.5 percent of gross sales so far this year.

(Reporting by Patricia Monteiro and Roberto Samora; Writing by Caroline Stauffer; Editing by Jeffrey Benkoe)

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Iran media: Son of ex-president released on bail

TEHRAN, Iran (AP) — Iranian media say the son of influential former President Akbar Hashemi Rafsanjani has been released on bail.

Several papers, including the pro-reform Etemad daily, say Mahdi Hashemi was released late Sunday and immediately went to his father’s home.

Authorities arrested the younger Hashemi in late September, a day after he returned to Iran from Britain.

He is held on charges of fomenting unrest in the aftermath of Iran’s disputed 2009 presidential election that brought President Mahmoud Ahmadinejad a second term in office. Hashemi also faced corruption charges.

His arrest came days after his sister, Faezeh, was taken into custody to serve a six-month sentence on charges of making propaganda against Iran’s ruling system.

Since Rafsanjani backed Ahmadinejad’s reformist challenger in 2009, his family has come under pressure from hardliners.

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Clearwire accepts slightly sweeter bid from Sprint

(Reuters) – Clearwire Corp agreed to sell roughly half of the company for $ 2.2 billion to majority shareholder Sprint Nextel Corp, which would then have full ownership of spectrum that will help it offer high-speed wireless services.

The $ 2.97-per-share deal is only 7 cents per share higher than a bid many minority shareholders said was too low days before. Clearwire shares tumbled 12.2 percent to $ 2.96 in morning trading on Monday.

Sprint already owns slightly more than half of Clearwire. The company said owners of 13 percent of Clearwire shares – Comcast Corp, Intel Corp and Bright House Networks LLC – had agreed to vote for the deal.

But it was not immediately clear whether Sprint, the No. 3 U.S. wireless carrier, could win the backing of a majority of Clearwire’s minority shareholders, which it needs to take control.

“This is not going to be popular with the minority shareholders,” said Davidson & Co analyst Donna Jaegers.

But Clearwire’s top executive told analysts on a Monday call that the company had little alternative.

“Despite our efforts we have been unable to secure new partnerships,” said Clearwire Chief Executive Officer Erik Prusch. “Our existing governance agreements prevented us from offering third parties the governance rights they desired in a partnership.”

Shareholders with more than 13 percent of Clearwire shares said last week that they were not happy with the $ 2.90-per-share offer, and some have said Sprint should offer as much as $ 5 per share.

Crest Financial, which owns more than 3 percent of Clearwire, recently filed a lawsuit to stop the company from selling itself to Sprint.

After the deal was announced on Monday, Crest said it had amended the lawsuit to make it a class action.

Another shareholder, Mount Kellett, said last week that the $ 2.90-a-share deal “grossly” undervalued Clearwire.

Clearwire, which also counts Sprint as its biggest customer, has been seeking financing for a high-speed wireless network upgrade and to keep itself afloat.

While some analysts and shareholders said Clearwire did not need to rush into a sale to Sprint, others have said that move would be its best hope for survival.

Sprint, whose shares rose 1 percent to $ 5.61 on Monday, needs Clearwire’s substantial spectrum to better arm itself against larger rivals Verizon Wireless and AT&T Inc.

Reuters reported last week that Japan’s Softbank Corp, which recently struck a deal to buy 70 percent of Sprint, would not consent to a bid of more than $ 2.97 per share.

Softbank said on Monday that it supported the deal.

(Reporting by Sinead Carew in New York and Sayantani Ghosh in Bangalore; Editing by Rodney Joyce, Sriraj Kalluvila and Lisa Von Ahn)

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