Storm over Depardieu's 'pathetic' move

STORY HIGHLIGHTS

• Russian President Vladimir Putin has bestowed Russian citizenship on actor Gérard Depardieu


• For Depardieu, a public war of words erupted, with many in France disgusted by his move


• Depardieu more than anyone, represents the Gallic spirit, says Agnes Poirier


• Majority of French people disapprove of his action but can't help loving him, she adds

Agnes Poirier is a French journalist and political analyst who contributes regularly to newspapers, magazines and TV in the UK, U.S., France, Italy. Follow her on Twitter.

Paris (CNN) -- Since the revelation on the front page of daily newspaper Libération, on December 11, with a particularly vicious editorial talking about France's national treasure as a "former genius actor," Gérard Depardieu's departure to Belgium, where he bought a property just a mile from the French border, has deeply divided and saddened France. Even more so since, as we have learnt this week, Russian President Vladimir Putin has bestowed the actor Russian citizenship.

Back in mid-December, the French media operated along political lines: the left-wing press such as Libération couldn't find strong enough words to describe Depardieu's "desertion" while right-wing publications such as Le Figaro, slightly uneasy at the news, preferred to focus on President François Hollande's punishing taxes which allegedly drove throngs of millionaires to seek tax asylum in more fiscally lenient countries such as Belgium or Britain. Le Figaro stopped short of passing moral judgement though. Others like satirical weekly Charlie hebdo, preferred irony. Its cover featured a cartoon of the rather rotund-looking Depardieu in front of a Belgian flag with the headline: "Can Belgium take the world's entire load of cholesterol?" Ouch.

Quickly though, it became quite clear that Depardieu was not treated in the same way as other famous French tax exiles. French actor Alain Delon is a Swiss resident as is crooner-rocker Johnny Halliday, and many other French stars and sportsmen ensure they reside for under six months in France in order to escape being taxed here on their income and capital. Their move has hardly ever been commented on. And they certainly never had to suffer the same infamy.

Agnes Poirier

For Depardieu, a public war of words erupted. It started with the French Prime Minister Jean-Marc Ayrault, and many members of his government, showing their disdain, and talking of Depardieu's "pathetic move." In response the outraged actor penned an open letter to the French PM in which he threatened to give back his French passport.

The backlash was not over. Fellow thespian Phillipe Torreton fired the first salvo against Depardieu in an open letter published in Libération, insulting both Depardieu's protruding physique and lack of patriotism: "So you're leaving the ship France in the middle of a storm? What did you expect, Gérard? You thought we would approve? You expected a medal, an academy award from the economy ministry? (...)We'll get by without you." French actress Catherine Deneuve felt she had to step in to defend Depardieu. In another open letter published by Libération, she evoked the darkest hours of the French revolution. Before flying to Rome to celebrate the New Year, Depardieu gave an interview to Le Monde in which he seemed to be joking about having asked Putin for Russian citizenship. Except, it wasn't a joke.

In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit. He has been Cyrano, he has been Danton; he, better than most, on screen and off, stands for what it means to be French: passionate, sensitive, theatrical, and grandiose. Ambiguous too, and weak in front of temptations and pleasures.

In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit
Hugh Miles

For more than two weeks now, #Depardieu has been trending on French Twitter. Surveys have showed France's dilemma: half the French people understand him but there are as many who think that paying one's taxes is a national duty. In other words, a majority of French people disapprove of his action but can't help loving the man.

Putin's move in granting the actor Russian citizenship has exacerbated things. And first of all, it is a blow to Hollande who, it was revealed, had a phone conversation with Depardieu on New Year's Day. The Elysées Palace refused to communicate on the men's exchange. A friend of the actor declared that Depardieu complained about being so reviled by the press and that he was leaving, no matter what.

If, in their hearts, the French don't quite believe Depardieu might one day settle in Moscow and abandon them, they feel deeply saddened by the whole saga. However, with France's former sex symbol Brigitte Bardot declaring that she too might ask Putin for Russian citizenship to protest against the fate of zoo elephants in Lyon, it looks as if the French may prefer to laugh the whole thing off. Proof of this: the last trend on French Twitter is #IWantRussianCitizenship.

The opinions expressed in this commentary are solely those of Agnes Poirier.

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Kirin to sell its Tokyo HQs to reduce debts

TOKYO: Japanese beverage giant Kirin has decided to sell its Tokyo headquarters in order to reduce debts as it aggressively buys foreign firms in a bid to expand its global reach, a report said Sunday.

Kirin Holdings and its main subsidiary Kirin Brewery Company will sell their headquarters buildings in Tokyo to raise an estimated 15 billion to 30 billion yen ($170 million to $340 million), the Yomiuri Shimbun newspaper said.

The group will rent a different building in Tokyo as its global headquarters, the paper said.

The company will use the money to reduce debts accumulated after a series of major overseas acquisitions, according to the report.

In recent years the group has bought full or major stakes in Australian brewer Lion, Brazilian brewer Schincariol and Philippine brewer San Miguel, among others.

Many Japanese beverage firms have sought to expand overseas while the domestic market suffers chronic slow consumption, a shrinking population and younger people shunning alcohol.

- AFP/fa

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Armstrong's lawyer: No mea culpa talks

By Jillian Martin and Chelsea J. Carter

updated 1:06 PM EST, Sat January 5, 2013

STORY HIGHLIGHTS

• The New York Times report cites unnamed associates and doping officials in its report


• Cyclist's lawyer says his client was not in discussion with U.S. or world anti-doping agencies


• Armstrong was stripped of his seven Tour de France titles and banned for life


• Cyclist has repeatedly denied using banned performance-enhancing drugs

(CNN) -- Lance Armstrong's attorney denied his client was in discussion with the U.S. or world anti-doping agencies following a report by The New York Times that the disgraced cycling icon was contemplating publicly admitting he used illegal performance-enhancing drugs.

Attorney Tim Herman in an email to CNN Sports late Friday did not address whether Armstrong told associates -- as reported by the newspaper -- that he was considering the admission as a way to restore his athletic eligibility.

Armstrong was stripped of his seven Tour de France titles and banned for life last year after the U.S. Anti-Doping Agency found there was overwhelming evidence that he was directly involved in a sophisticated doping program.

Silence falls as Austin awaits Armstrong's 'last word'

Lance Armstrong over the years

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Disgraced cyclist Lance Armstrong is the subject of annual Bonfire Night celebrations in the British town of Edenbridge. An effigy of Armstrong will be burned during the celebrations, which mark the foiling of Guy Fawkes' "gunpowder plot" to blow up the Houses of Parliament and kill King James I in 1605. The Edenbridge Bonfire Soceity has gained a reputation for using celebrity "Guys," including Tony Blair, Jacques Chirac and Saddam Hussein.

Up in flames

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Armstrong has repeatedly and vehemently denied that he used banned performance-enhancing drugs as well as illegal blood transfusions during his cycling career.

In the past, Armstrong has argued that he took more than 500 drug tests and never failed. In its 202-page report that detailed Armstrong's alleged use of performance-enhancing drugs and blood transfusions, the USADA said it had tested Armstrong less than 60 times and the International Cycling Union conducted about 215 tests.

The agency did not say that Armstrong ever failed a test, but his former teammates testified as to how they beat tests or avoided the tests altogether.

The New York Times, citing unnamed associates and anti-doping officials, said Armstrong has been in discussions with USADA officials and hopes to meet with David Howman chief of the World Anti-Doping Agency. The newspaper said none of the people with knowledge of Armstrong's situation wanted to be identified because it would jeopardize their access to information on the matter.

Under World Anti-Doping Agency rules, an athlete who confesses to using performance-enhancing drugs may be eligible for a reinstatement.

Armstrong has been an icon for his cycling feats and celebrity, bringing more status to a sport wildly popular in some nations but lacking big-name recognition, big money and mass appeal in the United States.

He fought back from testicular cancer to win the Tour from 1999 to 2005. He raised millions via his Lance Armstrong Foundation to help cancer victims and survivors, an effort illustrated by trendy yellow "LiveSTRONG" wristbands that helped bring in the money.

The cyclist's one-time high-profile relationship with singer Sheryl Crow also kept him in the public eye.

But Armstrong has long been dogged by doping allegations, with compatriot Floyd Landis -- who was stripped of his 2006 Tour de France title after failing a drug test -- making a series of claims in 2011.

Armstrong sued the U.S. Anti-Doping Agency last year to stop its investigation of him, arguing it did not have the right to prosecute him. But after a federal judge dismissed the case, Armstrong said he would no longer participate in the investigation.

In October 2012, Armstrong was stripped of his titles and banned. Weeks later, he stepped down from the board of his foundation, Livestrong.

It is unclear whether Armstrong would face criminal prosecution for perjury should he confess. Armstrong was involved in several cases where he gave sworn testimony that he never used banned drugs.

Armstrong and his publicist did not immediately respond to a CNN requests late Friday and early Saturday for comment on The New York Times report.

Armstrong's demise: How he fell from grace

Part of complete coverage on

Lance Armstrong

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The International Cycling Union announces hat Lance Armstrong is being stripped of his seven Tour de France titles.

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Syrian president to give speech

BEIRUT Syrian President Bashar Assad will deliver a speech on Sunday in a rare address to the nation, state media said, as rebels fighting to topple his embattled regime pressed ahead with an offensive on the capital.

The official SANA news agency said in a brief statement Saturday that Assad will speak about the latest developments in Syria. The speech would be the first by the leader since June, and comes amid intense fighting between government troops and rebels on the outskirts of Damascus.

Assad has rarely spoken in public since the uprising against him began in March 2011. In each of his previous speeches and interviews, the president has dug in his heels even as Western powers have moved to boost the opposition in Syria's civil war.

In his last public comments, Assad vowed in an interview with Russia Today on Nov. 8 that he would "live and die in Syria."

Fighting has raged for weeks in the neighborhoods and towns around Damascus that have been opposition strongholds since the Syrian revolt began. The uprising started with peaceful protests but morphed into a civil war that has killed more than 60,000 people, according to a recent United Nations recent estimate.

The rebels are trying to push through the government's heavy defenses in Damascus, prompting the regime to unleash a withering assault on the suburbs that has included intense barrages by artillery and warplanes.

Diplomatic efforts to end the Syrian crisis have failed so far to bring an end to the bloodshed, although the international community continues to push for a peaceful settlement.

On Saturday, Saudi Arabia's Foreign Minister Saud al-Faisal told reporters after a meeting with his Egyptian counterpart in Riyadh that there should be an immediate end to the bloodshed in Syria and called for a peaceful political transition.

Play Video

A savage week in Syria

Saudi Arabia and Egypt have both called on Assad to step down, and Riyadh has also been an outspoken supporter of the rebels.

The president of the U.N. Security Council said Thursday there are important developments in efforts to find a diplomatic solution to the 21-month conflict in Syria and there could be another U.S.-Russia meeting with international envoy Lakhdar Brahimi next week.

Brahimi and Russian Foreign Minister Sergey Lavrov both said after their meeting last Saturday that the Syrian crisis can only be settled through talks, while admitting that neither the government nor the opposition has shown a desire to compromise. Neither official hinted at a possible solution that would persuade the two sides to agree to a ceasefire and sit down for talks about a political transition.

But Lavrov said Syrian President Bashar Assad has no intention of stepping down — a key opposition demand — and it would be impossible to try to persuade him otherwise. Russia is a close ally of the Syrian government, and has shielded it from punitive measures at the U.N.

It was not clear what kind of initiative, if any, Assad may offer in his speech.

Meanwhile the violence continued unabated Saturday.

Rebels and government troops clashed in suburbs south of Damascus, including Harasta and Daraya, the Britain-based Syrian Observatory for Human Rights said. Fighting in Daraya alone left 10 dead, including six rebels, according to the Observatory, which relies on reports by activists on the ground.

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Gun Show Near Newtown Goes on Despite Anger

A little more than 40 miles from Sandy Hook Elementary School, where last month 20 first graders and six staff members were massacred, gun dealers and collectors alike ignored calls to cancel a gun show, and gathered for business in Stamford, Conn.

Four other gun shows with an hour of Newtown, Conn., recently cancelled their events in the wake of the shootings, when 20-year-old Adam Lanza broke in to the elementary school with a semi-automatic assault rifle and three other guns.

The organizers in Stamford emphasized their show only displayed antique and collectible guns, not military style assault weapons like the one used by Lanza in Sandy Hook.

Still, Stamford Mayor Michael Pavia had called for the show to close its doors, calling it "insensitive" to hold so close to the murders.

Gun show participant Sandy Batchelor said he wasn't sure about whether going ahead with the show was "insensitive," but said the shooter should be blamed, not the weapons he used.

"I don't have a solid opinion on [whether it is insensitive]," Batchelor said. "I'm not for or against it. I would defend it by saying it wasnt the gun."

In nearby Waterbury, the community cancelled a show scheduled for this weekend.

"I felt that the timing of the gun show so close to that tragic event would be in bad taste," Waterbury Police Chief Chief Michael J. Gugliotti said.

National Rifle Association News Conference Interrupted by Protesters Watch Video

Gugliotti has halted permits for gun shows, saying he was concerned about firearms changing hands that might one day be used in a mass shooting.

Across the state line in White Plains, N.Y, Executive Rob Astorino also canceled a show, three years after ending a had that had been in place since the 1999 Columbine High School shooting in Colorado. He said he felt the show would be inappropriate now.

But across the country, farther away from Connecticut, attendance at gun shows is spiking, and some stores report they can hardly keep weapons on their shelves with some buyers fearful of that the federal government will soon increase restrictions on gun sales and possibly ban assault weapons altogether.

"We sold 50-some rifles in days," said Jonathan O'Connor, store manager of Gun Envy in Minnesota.

President Obama said after the Sandy Hook shooting that addressing gun violence would be one of his priorities and Rep. Nancy Pelosi, D-Calif., said she would introduce an assault weapons ban this month.

But it is not just traditional advocates of gun control that have said their need to be changes in gun laws since the horrific school shooting.

Republican Sen. Kay Bailey Hutchison of Texas and Virginia Sen. Mark Warner, a Democrat but a long-time opponent of gun control who like Hutchison has received an A rating from the NRA, have both come out in support of strengthening gun laws.

In Stamford, gun dealer Stuart English said participants at the gun show there are doing nothing wrong.

"I have to make a living. Life goes on," gun dealer Stuart English said.

ABC News asked English, what he thought about the mayor of Stamford calling the show "insensitive."

"He's wrong," English said. "This is a private thing he shouldn't be expressing his opinion on."

If you have a comment on this story or have a story idea, you can tweet this correspondent @greenblattmark.

The Associated Press contributed to this report.

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Polar ends of fight for female equality

Hillary Clinton in Kolkata, India, last May. Clinton said that women still suffered from a 'glass ceiling' in politics.

STORY HIGHLIGHTS

• Frida Ghitis: Hillary Clinton illness and New Delhi rape tell different stories about state of women


• She says women's equality faces sharp divide; some ascend, most kept powerless


• She says Egypt's new constitution presents time-bomb for new oppression of women


• Ghitis: Progress for women needs strong legislation, education, sometimes protests

Editor's note: Frida Ghitis is a world affairs columnist for The Miami Herald and World Politics Review. A former CNN producer and correspondent, she is the author of "The End of Revolution: A Changing World in the Age of Live Television." Follow her on Twitter: @FridaGColumns

(CNN) -- As the New Year approached, millions anxiously followed the news from two very different parts of the world about two very different women -- women whose lives somehow touched us, whose fate seemed, somehow, linked to all of us.

The world held its breath when word came that Secretary of State Hillary Clinton was hospitalized in New York. The news arrived at a time when we were trying to absorb, with profound sadness, a seemingly unrelated drama unfolding thousands of miles away. In New Delhi, a 23-year-old woman, a university student on her way home after watching a movie with her boyfriend, was brutally raped and beaten by a group of men. She later died from her injuries.

Frida Ghitis

The parallel stories point to a sharp divide in the worldwide struggle for women's equality. While women have made major strides, in some cases reaching the pinnacle of power, the most fundamental human rights -- such as freedom to go outside without risking harassment and physical attack -- elude millions, and full equality remains an unreached goal for most.

iReport: 'She could have been me'

Clinton, one of the world's most powerful women and an icon of the global fight for women's equality, has returned home and doctors say they expect a full recovery. In India, the plight of an anonymous woman nicknamed "Nirbhaya," Sanskrit for dauntless, has become a turning point for the country. (That we don't use Nirbhaya's real name proves the grotesque reality that being raped remains a source of shame for the victim.)

Nirbhaya's ashes have been scattered, and it seems her death was not in vain. The attack sent tens of thousands of people -- men and women -- into New Delhi's streets and pulled the thick cover from India's unspeakable rape statistics. Most rapes go unreported for good reason. Of the more than 600 cases filed with the Delhi police last year, only one resulted in conviction. Powerless rape victims often resort to suicide.

News: Clinton's future 'as good as her past,' docs say

The contrast could not be sharper with the woman many call simply Hillary. Speculation about whether she will run for president in 2016 is unending. The day she was hospitalized with a blood clot, we heard that she again came in first in Gallup's Most Admired Woman poll, finishing at the top for 11 years in a row and a total of 17 times since 1993, more than anyone in Gallup's history.

She is probably the world's best-known woman and unquestionably one of the most influential. But she is only one of many who have reached so far. Women lead some of the globe's biggest, most important countries. Chancellor Angela Merkel heads the government of Germany, Julia Gillard leads Australia, Dilma Rousseff is president of Brazil, and the list goes on.

American voters just elected 20 women to the Senate, the largest number in history. And yet, that's just 20% of the seats. It's sad we find this an accomplishment worth celebrating.

The push for equality has unleashed push-back. Rape, we are told, is about power. In traditional societies, men see improvements in the status of women as a challenge to their own. Sexual assaults by gangs of self-congratulating, hyperventilating men, whether in New Delhi, in Cairo's Tahrir Square or somewhere in Somalia, amount to chest-pounding assertions of dominance from fearful, cowardly individuals. In countries with strong laws and changing attitudes about women, the number of rapes has been plummeting.

Opinion: End global rape culture

Then there are the murders and attempted murders. Last year we saw Pakistan's Taliban try to kill Malala Yousafzai, the 14-year-old girl who demanded nothing more than the right to an education. And last month, in neighboring Afghanistan, gunmen murdered Najia Sediqi, the provincial director of women's affairs.

Between the two extremes in women's status, we have a much less dramatic -- but still crucial -- struggle.

The women of Egypt, who stood on the front lines of the revolution, will now have to live with a new constitution that commits the state to "preserve the genuine character of the Egyptian family" and vaguely notes the "duties of a woman toward her family," opening the door to who-knows-what efforts by the state to keep women in their place.

In the United States, where progress is indisputable in so many areas, women still make, in the aggregate, 76 cents for every dollar men earn.

Inequality is pervasive in areas that are subtly important. Despite having a female secretary of State, and even, possibly, a female secretary of Defense on the horizon, Washington remains a "city of men," as the writer Micah Zenko noted, with women woefully underrepresented in the corridors of power, in think tanks and in academia.

Women's minds and ideas don't receive an equal hearing on the national stage partly because, as one survey showed, only 20% of all op-eds are written by women, and just 15% of columns dealing with foreign policy and security issues.

Opinion: House GOP failed women on Violence Against Women Act

Every women walks on the path laid painstakingly and deliberately by people like Hillary Clinton, or accidentally, tragically, by women like Nirbhaya. The road to women's equality, it turns out, is paved with potholes, quicksand and death traps.

There is a reason so many feel a close connection to Hillary Clinton and to Nirbhaya. Their stories, like those of 3 billion others, are of women seeking to make it in what is still today mostly a man's world.

As Clinton recovers and as the people of India work to build a positive legacy from Nirbhaya's death, the obvious lesson is that much work remains ahead. Strong headwinds will push against women's progress, but progress can be achieved through urgent legislation, through patient education, and when necessary -- as it is now -- through mass protests and unrelentingly firm demands.

Follow @CNNOpinion on Twitter.

Join us at Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of Frida Ghitis.

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AHTC unable to verify accuracy of reasons for software sale

SINGAPORE: Chairman of Aljunied-Hougang Town Council (AHTC) Sylvia Lim has responded to the recent statement by Dr Teo Ho Pin - on the sale of the software formerly owned by the town councils managed by the People's Action Party (PAP) to Action Information Management Pte Ltd (AIM) in 2011, prior to the General Election.

She said AHTC is not able to verify the accuracy of the reasons for the sale cited in the statement on January 2 by Dr Teo, who is the coordinating chairman of PAP town councils.

Ms Lim said the documents AHTC has on hand, including the tender documents, do not disclose many of the details mentioned.

She also said the reasons given underscore three fundamental facts.

First, the PAP-managed town councils sold off the computer and financial systems developed with public monies to a vehicle of the PAP, just prior to the General Election.

Second, according to the most recent statement of AIM Chairman, Mr S Chandra Das, AIM "as a PAP company" wanted to "be helpful to the PAP Town Councils".

Third, the PAP sees no issue with an arrangement allowing them to terminate the software agreements with any town council with one month's notice, if there's a material change in the town council's membership.

Ms Lim also questioned the one-month termination clause in the AIM contract, which Dr Teo considered "reasonable".

She said he himself indicated that it would take "maybe 18 to 24 months, or even longer" to assess new software and develop a replacement system.

Ms Lim said the question of how the PAP-managed town councils acted in the public and residents' interest in relinquishing their ownership of the systems to AIM has still not been answered.

"We leave it to the public to make their own judgement," she said.

In his 26-paragraph statement on January 2, Dr Teo explained why and how the PAP-run town councils came to have a sale and lease back deal with the PAP-owned AIM.

He said it would be better for the 14 PAP-run town councils to consolidate their software rights in a single party, which would then manage them on behalf of all the town councils, as well as source vendors to improve the system and address the deficiencies.

He added there's no basis to suggest that the transaction for AIM to provide computer services to the PAP-run town councils was improper or disadvantageous to the town councils.

- CNA/fa

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Feds: 2nd inmate who escaped Chicago jail captured

This undated photo provided by the FBI shows , Kenneth Conley one of two inmates who escaped from the Metropolitan Correctional Center in downtown Chicago Tuesday, Dec. 18, 2012.

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AP Photo/FBI,HONS

(AP) CHICAGO -- The second of two bank robbers who escaped last month from a high-rise federal jail in downtown Chicago was captured Friday at an apartment complex across the street from a suburban police department, authorities said.

Kenneth Conley was arrested in Palos Hills, according to U.S. Marshals Service spokeswoman Belkis Cantor. She said someone called local police Friday morning thinking they recognized Conley. FBI spokeswoman Joan Hyde said the Palos Hills Police Department took him into custody.

Conley fled the Metropolitan Correctional Center last month with Joseph "Jose" Banks, apparently by smashing a hole in a wall at the bottom of a narrow cell window and squeezing through before scaling down about 20 stories using a knotted rope made out of bed sheets. Banks was arrested without incident two days later at a home on the city's North Side.

A man who answered the phone at a number listed for Conley's brother, Nicholas Conley, in Orland Hills refused to answer questions and asked that the family be left alone. A message left for Conley's mother was not immediately returned.

This undated photo provided by the FBI shows Jose Banks, one of two inmates who escaped from the Metropolitan Correctional Center in downtown Chicago Tuesday, Dec. 18, 2012. Chicago Police Sgt. Michael Lazarro says their disappearance was discovered at about 8:45 Tuesday morning. Lazarro says the pair used a rope or bed sheets to climb from the building. (AP Photo/FBI,HONS

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Uncredited

Jail officials did not notice for hours on the morning of the escape that Banks and Conley were gone. Surveillance video from a nearby street showed the two hopping into a cab shortly before 3 a.m. on Dec. 18. They had changed out of their orange jail-issued jumpsuits.

When the facility did discover the two men were gone around 7 a.m., what was found revealed a meticulously planned escape, including clothing and sheets shaped to resemble a body under blankets on beds, bars inside a mattress and even fake bars in the cells.

A massive manhunt involving state, federal and local law enforcement agencies was launched, as SWAT teams stormed into the home of a relative of Conley only to learn the two escapees had been there and left. The authorities searched other area homes and businesses -- even a strip club where Conley once worked.

Law enforcement officials left a host of questions unanswered, including how the men could collect about 200 feet of bed sheets and what they might have used to break through the wall of the federal facility.

Conley, 38, pleaded guilty last October to robbing a Homewood Bank last year of nearly $4,000. He wore a coat and tie during the robbery and had a gun stuffed in his waistband.

Banks, 37, known as the Second-Hand Bandit because he wore used clothes during his heists, had been convicted of robbing two banks and attempting to rob two others. Authorities say he stole almost $600,000, and most of that still is missing.

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Quadruple Amputee Gets Two New Hands on Life

It's the simplest thing, the grasp of one hand in another. But Lindsay Ess will never see it that way, because her hands once belonged to someone else.

Growing up in Texas and Virginia, Lindsay, 29, was always one of the pretty girls. She went to college, did some modeling and started building a career in fashion, with an eye on producing fashion shows.

Then she lost her hands and feet.

Watch the full show in a special edition of "Nightline," "To Hold Again," TONIGHT at 11:35 p.m. ET on ABC

When she was 24 years old, Lindsay had just graduated from Virginia Commonwealth University's well-regarded fashion program when she developed a blockage in her small intestine from Crohn's Disease. After having surgery to correct the problem, an infection took over and shut down her entire body. To save her life, doctors put her in a medically-induced coma. When she came out of the coma a month later, still in a haze, Lindsay said she knew something was wrong with her hands and feet.

"I would look down and I would see black, almost like a body that had decomposed," she said.

The infection had turned her extremities into dead tissue. Still sedated, Lindsay said she didn't realize what that meant at first.

Quadruple Amputee Undergoes Hand Transplant Surgery Watch Video

After Hand Transplant, Relearning How to Hold Watch Video

"There was a period of time where they didn't tell me that they had to amputate, but somebody from the staff said, 'Oh honey, you know what they are going to do to your hands, right?' That's when I knew," she said.

After having her hands and feet amputated, Lindsay adapted. She learned how to drink from a cup, brush her teeth and even text on her cellphone with her arms, which were amputated just below the elbow.

"The most common questions I get are, 'How do you type,'" she said. "It's just like chicken-pecking."

PHOTOS: Lindsay Ess Gets New Hands

Despite her progress, Lindsay said she faced challenges being independent. Her mother, Judith Aronson, basically moved back into her daughter's life to provide basic care, including bathing, dressing and feeding. Having also lost her feet, Lindsay needed her mother to help put on her prosthetic legs.

"I've accepted the fact that my feet are gone, that's acceptable to me," Lindsay said. "My hands [are] not. It's still not. In my dreams I always have my hands."

Through her amputation recovery, Lindsay discovered a lot of things about herself, including that she felt better emotionally by not focusing on the life that was gone and how much she hated needing so much help but that she also truly depends on it.

"I'm such an independent person," she said. "But I'm also grateful that I have a mother like that, because what could I do?"

Lindsay said she found that her prosthetic arms were a struggle.

"These prosthetics are s---," she said. "I can't do anything with them. I can't do anything behind my head. They are heavy. They are made for men. They are claws, they are not feminine whatsoever."

For the next couple of years, Lindsay exercised diligently as part of the commitment she made to qualify for a hand transplant, which required her to be in shape. But the tough young woman now said she saw her body in a different way now.

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Why U.S. lives under the shadow of 'W'

Julian Zelizer says former President George W. Bush's key tax and homeland security policies survive in the age of Obama

STORY HIGHLIGHTS

• Julian Zelizer: For all the criticism Bush got, two key policies have survived


• He says fiscal cliff pact perpetuates nearly all of Bush's tax cuts


• Obama administration has largely followed Bush's homeland security policy, he says


• Zelizer: By squeezing revenues, Bush tax cuts will put pressure on spending

Editor's note: Julian Zelizer is a professor of history and public affairs at Princeton University. He is the author of "Jimmy Carter" and of "Governing America."

Princeton, New Jersey (CNN) -- Somewhere in Texas, former President George W. Bush is smiling.

Although some Democrats are pleased that taxes will now go up on the wealthiest Americans, the recent deal to avert the fiscal cliff entrenches, rather than dismantles, one of Bush's signature legacies -- income tax cuts. Ninety-nine percent of American households were protected from tax increases, aside from the expiration of the reduced rate for the payroll tax.

Julian Zelizer

In the final deal, Congress and President Barack Obama agreed to preserve most of the Bush tax cuts, including exemptions on the estate tax.

When Bush started his term in 2001, many of his critics dismissed him as a lightweight, the son of a former president who won office as result of his family's political fortune and a controversial decision by the Supreme Court on the 2000 election.

But what has become clear in hindsight, regardless of what one thinks of Bush and his politics, is that his administration left behind a record that has had a huge impact on American politics, a record that will not easily be dismantled by future presidents.

The twin pillars of Bush's record were counterterrorism policies and tax cuts. During his first term, it became clear that Obama would not dismantle most of the homeland security apparatus put into place by his predecessor. Despite a campaign in 2008 that focused on flaws with the nation's response to 9/11, Obama has kept most of the counterterrorism program intact.

Opinion: The real issue is runaway spending

In some cases, the administration continues to aggressively use tactics his supporters once decried, such as relying on renditions to detain terrorist suspects who are overseas, as The Washington Post reported this week. In other areas, the administration has expanded the war on terrorism, including the broader use of drone strikes to kill terrorists.

Now come taxes and spending.

With regard to the Bush tax cuts, Obama had promised to overturn a policy that he saw as regressive. Although he always said that he would protect the middle class from tax increases, Obama criticized Bush for pushing through Congress policies that bled the federal government of needed revenue and benefited the wealthy.

In 2010, Obama agreed to temporarily extend all the tax cuts. Though many Democrats were furious, Obama concluded that he had little political chance to overturn them and he seemed to agree with Republicans that reversing them would hurt an economy limping along after a terrible recession.

Opinion: Time to toot horn for George H.W. Bush

With the fiscal cliff deal, Obama could certainly claim more victories than in 2010. Taxes for the wealthiest Americans will go up. Congress also agreed to extend unemployment compensation and continue higher payments to Medicare providers.

But beneath all the sound and fury is the fact that the 2001 and 2003 tax cuts, for most Americans, are now a permanent part of the legislative landscape. (In addition, middle class Americans will breathe a sigh of relief that Congress has permanently fixed the Alternative Minimum Tax, which would have hit many of them with a provision once designed to make sure that the wealthy paid their fair share.)

As Michigan Republican Rep. Dave Camp remarked, "After more than a decade of criticizing these tax cuts, Democrats are finally joining Republicans in making them permanent." Indeed, the Congressional Budget Office estimates that the new legislation will increase the deficit by $4 trillion over the next 10 years.

The tax cuts have significant consequences on all of American policy.

Opinion: Christie drops bomb on GOP leaders

Most important, the fact that a Democratic president has now legitimated the moves of a Republican administration gives a bipartisan imprimatur to the legitimacy of the current tax rates.

Although some Republicans signed on to raising taxes for the first time in two decades, the fact is that Democrats have agreed to tax rates which, compared to much of the 20th century, are extraordinarily low. Public perception of a new status quo makes it harder for presidents to ever raise taxes on most Americans to satisfy the revenue needs for the federal government.

At the same time, the continuation of reduced taxes keeps the federal government in a fiscal straitjacket. As a result, politicians are left to focus on finding the money to pay for existing programs or making cuts wherever possible.

New innovations in federal policy that require substantial revenue are just about impossible. To be sure, there have been significant exceptions, such as the Affordable Care Act. But overall, bold policy departures that require significant amounts of general revenue are harder to come by than in the 1930s or 1960s.

Republicans thus succeed with what some have called the "starve the beast" strategy of cutting government by taking away its resources. Since the long-term deficit only becomes worse, Republicans will continue to have ample opportunity to pressure Democrats into accepting spending cuts and keep them on the defense with regards to new government programs.

Politics: Are the days of Congress 'going big' over?

With his income tax cuts enshrined, Bush can rest comfortably that much of the policy world he designed will remain intact and continue to define American politics. Obama has struggled to work within the world that Bush created, and with this legislation, even with his victories, he has demonstrated that the possibilities for change have been much more limited than he imagined when he ran in 2008 or even in 2012.

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The opinions expressed in this commentary are solely those of Julian Zelizer.

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CES show to see changing of guard in tech sector

WASHINGTON: The inexorable push for mobility in gadgets has reshaped the electronics industry, a shift that reflects a changing of the guard at the world's biggest consumer technology show.

Gone from the 2013 International CES, to be held January 8-11 in Las Vegas, are giants such as Microsoft, and longtime tech stalwarts such as Intel and Hewlett-Packard are taking a back seat to firms focused on more portable, or even wearable, devices.

There will of course be big, dazzling displays of televisions that are smarter and bolder. However, a key focus is likely to be on devices that are mobile but can remain connected via the Internet cloud, from tablets to wrist watches, to Wi-Fi ski goggles.

"There is a changing of the guard," said Danielle Levitas, a consumer tech analyst at the research firm IDC.

"The shift we've seen over the past years has been on the mobile aspects of technology versus home entertainment. This continues to accelerate."

Emblematic of the shift is the choice of the main keynote speaker -- Qualcomm chief executive Paul Jacobs.

"Most people have never heard of Qualcomm. People might know they have a stadium with that name somewhere," said Roger Kay, a technology analyst and consultant with Endpoint Technologies.

Semiconductor firm Qualcomm quietly overtook Intel in market value in 2012, a sign of the growing importance of mobile chips that reduce battery drag and are popular on smartphones and tablets, mostly using ARM technology licensed by British-based ARM Holdings.

"Qualcomm is the opposite of Intel," said Kay, who points out Qualcomm's reluctance to follow its rival's strategy of branding devices with "Intel Inside."

"It has been shy of the limelight and wants its partners to get all that credit. They are a reluctant hero. So important, and yet so unknown."

With mobile devices gaining ground, "folks are interested in the services that are attached to consumer electronics at the show," said Kevin Spain of Emergence Capital Partners, among the venture capital firms attending.

Spain said delivery of video over mobile devices is just starting, opening up possibilities for new ventures.

"Everything that is cloud is obviously white-hot in the venture community," Spain said.

"People are interested in sharing content across a variety of devices and the cloud plays an integral role in that. Consumers expect to have a variety of content be available on demand: video, music, anytime, anywhere."

Another focus at CES will be improving batteries and charging for all those mobile devices, according to Stu Lipoff, fellow of the Institute of Electrical and Electronics Engineers.

"One of the major limitations of portable devices is they are getting smaller and asked to do more, so people are finding innovative and creative ways of charging," he said.

CES will feature a range of power pads on which a device can be placed for charging, Lipoff said, but other firms are eyeing technologies "where you can put a transmitter in the room and it will charge the device" from several feet away.

James McQuivey at Forrester Research said CES has evolved from a show in which manufacturers would sell their wares to a branding event.

"It is shifting to a more abstract or long-term vision of technology," he said.

"It's about branding, demonstrating you are innovating for the future."

McQuivey said old guard firms like Hewlett-Packard and Dell, which have been struggling amid a move to mobile devices must demonstrate they are still part of the future.

"It's a challenge to get back in the innovation game," he said.

McQuivey said CES is different than in the past because the industry now revolves around a handful of big companies whose platforms are a key.

"Google, Amazon, Microsoft and Apple are creating platforms on which everyone is innovating," he said. "CES is living in the shadow of these large platforms."

The 2013 CES features a record 1.87 million square feet (170,000 square meters) of exhibit space, with some 3,000 exhibitors displaying gadgets for digital health, connected cars, smart home devices and a broad array of communications and entertainment gear. Attendance is expected to be in line with last year's record 156,000.

Eight automakers will exhibit at the 2013 CES, the largest number ever, showing off "infotainment" technology, crash avoidance and other "smart" vehicle technologies.

Tech giant Apple is not a participant but 440 exhibitors will showcase accessories for Apple devices in the "iLounge."

"With the largest show floor in history, more innovative technologies and services will launch at the 2013 CES than anywhere else in the world," said Gary Shapiro, president and chief executive of the Consumer Electronics Association, which hosts the show.

The CES will also showcase areas such as sustainable technologies, the $90 billion "Mommy Tech" market for functional products from house cleaning to wearable fashions, fitness and health, mobile wallets, advances in using the Internet "cloud," gaming hardware and software, high-tech toys and devices for education.

-AFP/ac

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New locks as Newtown students return

By David Ariosto, CNN

updated 5:25 PM EST, Thu January 3, 2013

STORY HIGHLIGHTS

• Gov. Dannel Malloy forms commission to examine state's guns laws, mental health policies


• Panel has March deadline for report expected to be addressed in legislative session


• Sandy Hook students resume classes for first time since December 14 shooting

(CNN) -- As Sandy Hook Elementary School students returned to class Thursday for the first time since last month's massacre, Connecticut Gov. Dannel Malloy set a two-month deadline for a commission to address the state's gun laws, mental health policies and public security issues.

"We don't know the underlying cause of this tragedy, and we probably never will," said Malloy, who added that that is "no reason for inaction."

Malloy appointed Hamden, Connecticut, Mayor Scott Jackson to lead a special advisory commission and set a March 15 deadline for an initial report that is expected to be addressed during the next legislative session.

"We can work together to make our state a model for the rest of the nation," said Malloy, who also called on Congress to enact stricter national gun control laws.

The move comes just weeks after a gunman killed 26 people at the Newtown elementary school, including 20 children, ages 6 and 7.

The shooter, 20-year-old Adam Lanza, also killed his mother before breaking into the school with an AR-15 assault rifle.

On Thursday, Sandy Hook parents accompanied their children to an emotional first day back in school.

"There was a little bit of anxiety, but everybody was happy to be back in the swing of things," said Sarah Swansiger, the mother of a kindergarten student.

Students from Sandy Hook attended Chalk Hill Middle School in the nearby town of Monroe because the Sandy Hook building remains part of an active investigation.

Newtown Public Schools Superintendent Janet Robinson has said that part of the Chalk Hill building had been transformed to resemble an elementary school and that security had also been increased, incorporating an upgraded system of new cameras and locks.

"(We want) to have as much (of) a normal routine as possible," said Robinson. "(Thursday) is a regular schedule, and we will do the kinds of things that we know are good for kids."

Counselors were also on hand to help parents, students, teachers and administrators in coping with the emotional toll of returning to class.

Swansiger said that while there were "some emotional moments in the beginning of the day ... you couldn't walk around the corner without someone asking if you were OK."

More: Lawsuit petition withdrawn

More: Map of gun permit holders causes outcry

More: FBI background checks set record

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Venezuela's Chavez fighting severe lung infection

Venezuelan President Hugo Chavez speaks during Brazilian Foreign Minister's official visit at Miraflores Presidential Palace in Caracas, on Nov.1, 2012. / LEO RAMIREZ/AFP/Getty Images

Updated 10:35 PM ET

CARACAS, Venezuela Venezuela's government says President Hugo Chavez is being treated for "respiratory deficiency" after complications from a severe lung infection.

Information Minister Ernesto Villegas provided the update on Chavez's condition Thursday night. He read from a statement saying that Chavez's lung infection had led to "respiratory deficiency" and required strict compliance with his medical treatment.

The government expressed confidence in Chavez's medical team and condemned what it called a "psychological war" in international media surrounding the president's condition.

Chavez hasn't been seen or heard from since his Dec. 11 operation in Cuba. Venezuela's opposition has demanded more specific information from the government about his health.

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Ex-USC Player: Painkiller Injections Caused Heart Attack

Despite stated label risks of possible fatal heart attack, stroke or organ failure, college football players across the country are still being given injections of a powerful painkiller on game days so they can play while injured, an ABC News investigation has found.

The drug, a generic version of Toradol, is recommended for the short-term treatment of post-operative pain in hospitals but has increasingly been used in college and professional sports, and its use is not monitored by the NCAA, the governing body of college sports.

Only two of the country's top football programs, Oklahoma and the University of Nebraska, reported to ABC News that they have limited or stopped the use of the drug in the wake of growing concern about its risks.

Which Top-Ranked College Football Teams Use Toradol?

Oklahoma said it stopped using the painkillers in 2012 after using them repeatedly in 2010 and 2011.

Nebraska said its doctors now restrict its use.

SEND TIPS About Painkiller Use in College Sports to Our Tipline

"While team physicians reserve the option to use injectable Toradol, it is rarely prescribed, and its use has been avoided this season following reports of heightened concern of potential adverse effects," Nebraska said in a statement to ABC News.

Stephen Dunn/Getty Images

Despite Risks, College Football Still Uses Powerful Painkiller Watch Video

The top two college football programs, Notre Dame and Alabama, refused to answer questions from ABC News about the painkiller. They play for the national college championship on Jan. 7.

Controversy surrounding the drug has grown this year following claims by former USC lineman Armond Armstead that he suffered a heart attack after the 2010 season, at age 20, following shots of generic Toradol administered over the course of the season by the team doctor and USC personnel.

"I thought, you know, can't be me, you know? This doesn't happen to kids like me," Armstead told ABC News.

The manufacturers' warning label for generic Toradol (ketorolac tromethamine) says the drug is not intended for prolonged periods or for chronic pain and cites gastrointestinal bleeding and kidney failure as possible side effects of the drug.

In addition, like other drugs in its class, the generic Toradol label warns "may cause an increased risk of serious cardiovascular thrombotic events, myocardial infarction (heart attack), and stroke, which can be fatal."

"This risk may increase with duration of use," the so-called black box warning reads.

In a lawsuit against the school and the doctor, Dr. James Tibone, Armstead claims the school ignored the stated risks of the drug and never told him about them.

"He was a race horse, a prize race horse that needed to be on that field no matter what," said Armstead's mother Christa. "Whether that was a risk to him or not."

Armstead says he and many other USC players would receive injections of what was known only as "the shot" in a specific training room before big games and again at half-time.

"No discussion, just go in. He would give the shot and I would be on my way," Armstead told ABC News.

Armstead said the shot made him feel "super human" despite severe ankle, and later shoulder pain, and that without it, he never could have played in big USC games against Notre Dame and UCLA.

"You can't feel any pain, you just feel amazing," the former star player said.

USC declined to comment on Armstead's claims, or the use of Toradol to treat Trojan players.

An ABC News crew and reporter were ordered off the practice field when they tried to question USC coach Lane Kiffin about the use of the painkiller. USC says the ABC News crew was told to leave because they had not submitted the appropriate paperwork in advance to attend the practice session.

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Look beyond the fiscal cliff

STORY HIGHLIGHTS

• Dean Baker: Budget deficit is not the only top issue in our national economic policy


• Baker: Fiscal cliff debate has been a distraction of the bigger problem of a downturn


• He says fears of big deficits are preventing us from boosting the economy more


• Baker: Given the economy's weakness, the government has to run big deficits

Editor's note: Dean Baker, an economist, is co-director of the Center for Economic and Policy Research, a progressive economic policy organization. He is author of "The End of Loser Liberalism: Making Markets Progressive."

(CNN) -- We have just passed into the new year, and the distractions created by the debate over the fiscal cliff appear to be behind us. Maybe.

That debate has been part of a larger distraction -- the concern over budget deficits at a time when by far the country's most important problem remains the economic downturn caused by the collapse of the housing bubble. The obsession with budget deficits is especially absurd because the enormous deficits of recent years are entirely the result of the economic downturn.

In spite of this, the leadership of both parties has elevated the budget deficit to be the top and virtually only issue in national economic policy. This means ignoring the downturn that continues to cause enormous amount of unnecessary suffering for tens of millions of people.

Dean Baker

But fears of big deficits are preventing us from giving the same sort of boost to the economy that got us out of the Great Depression. The explanation is simple: profits have returned to prerecession levels.

Opinion: Cliff deal hollow victory for American people

This means that from the standpoint of the people who own and run American businesses, everything is pretty much fine. Moreover, they see the deficits created by the downturn as providing an opportunity to go after Social Security and Medicare.

The Campaign to Fix the Debt, a nonpartisan organization involving many of the country's richest and most powerful CEOs, sets out to do just that. It has become standard practice in Washington for Wall Street types and other wealthy interests to finance groups to push their agenda.

The Campaign to Fix the Debt involves the CEOs themselves directly stepping up to the plate and pushing the case for cutting Social Security and Medicare as well as lowering the corporate income tax rate.

It's clear what's going on here. We don't need any conspiracy theories.

iReport: What's your message for Washington?

CEOs from both political parties have openly come together to demand cuts in Social Security and Medicare, two programs that enjoy massive political support across the political spectrum. The wealthy are joining hands without regard to political affiliation to cut benefits that enjoy broad bipartisan support among everyone who is not rich.

President Barack Obama has an opportunity to show real leadership. He should explain to the public the basic facts that all budget experts know: We do not have a chronic deficit problem. The big deficits are the result of collapsed economy. The priority of the president and Congress must be to put people back to work and bring the economy back up to speed.

Fiscal cliff deal: 5 things to know

When the housing bubble burst, annual spending on residential construction fell back by more than 4% of GDP, which is $600 billion in today's economy. Similarly, consumption plunged as people drastically curtailed their spending in response to the loss of $8 trillion in housing bubble generated equity.

There is no easy way for the private sector to replace this demand. Businesses don't invest unless they see demand for their products, regardless of how much love we might shower on the "job creators." In fact, if anything, investment is surprisingly strong give the large amount of excess capacity in the economy. Measured as a share of GDP, investment in equipment and software is almost back to its prerecession level. It is hard to envision investment getting much higher, absent a major boost in demand from some other sector.

This is why it is necessary for the government to run large deficits. Ideally, the money would be spent in areas that will make us richer in the future: Education, infrastructure, research and development in clean energy, etc. There is just no way around a large role for the government given the economy's current weakness.

Big issues still pending

Obama needs to explain this simple story to the country. The rich of both parties will hate him for going down this route. They will use their powers to denounce him. But the American people support Social Security and Medicare, and they support an economy that creates jobs for ordinary workers.

Obama needs the courage to tell the truth.

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The opinions expressed in this commentary are solely those of Dean Baker.

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Delhi gang-rape suspects to be charged in court

NEW DELHI: Five men accused of gang-raping a 23-year-old student on a moving bus in New Delhi in a deadly crime that repulsed the nation are to be formally charged in court on Thursday.

Police will lay out evidence against them of rape, kidnapping and murder after the woman died at the weekend from the horrific injuries inflicted on her during an ordeal that has galvanised disgust over rising sex crimes in India.

The men, mostly residents of New Delhi slums, will face the death penalty if convicted, India's Home Minister Sushilkumar Shinde has said, amid public clamour for their execution.

"It is compulsory for all the accused to present themselves before the magistrate," explained Rana Dasgupta, a legal officer at the Saket district court complex where armed police maintained tight security on Thursday morning.

The magistrate, working from a small room with 30 chairs, "will admit the charge sheet presented by the police and then give a copy of the charge sheet to all the accused," Dasgupta added.

This document -- reportedly 1,000 pages long -- will detail the evidence collected, the most powerful of which is expected to be a statement from the victim after the attack and an account from her boyfriend who was with her at the time.

He was beaten during his attempts to save the medical student after the couple were lured onto the private bus by the reportedly drunk gang after watching a film at night.

A sixth suspect in the case who is believed to be a minor aged 17 will not be charged in the Saket court on Thursday, a Delhi police spokesman told AFP. Detectives are awaiting the results of a bone test to verify his age.

The trial of the suspects has been fast-tracked and Altamas Kabir, the chief justice of India, has cautioned against letting public anger overwhelm the due process of the law.

Lawyers at the district court in New Delhi have decided they will not defend the suspects, meaning that the government will have to appoint advocates for them.

"Let us not get carried away. A swift trial should not be at the cost of a fair trial," chief justice Kabir was quoted as saying in the local media on Thursday.

Protesters have massed in Indian cities daily since the December 16 assault demanding the government do more to combat crime against women, with tougher penalties for offenders and even chemical castration being considered.

The latest incident, though far from rare in a country where gang rapes are commonplace, has led to deep soul-searching in the media and the country's political class about the treatment of Indian women.

Analysis has focused on the deeply patriarchal Indian society, in which misogyny and sexism run deep and women are often second-class citizens, as well as the difficulty of rape victims in dealing with social stigma and the police.

On December 28, it emerged that a 17-year-old girl had committed suicide after police allegedly tried to persuade her to drop a complaint of gang-rape and instead either accept a cash settlement or even marry one of her attackers.

The government has set up three separate commissions to look into the incident and suggest changes in the law, with one minister suggesting new anti-rape legislation should be named after the victim.

This sparked a controversy as her name has not been disclosed in line with legal protections given to the victims of sex crime and their families, who face social stigma.

The brother of the victim, speaking from the family's home village in northern Uttar Pradesh state, said they would not object if the government wanted to name a new law after her.

"My father feels if they want to name the new law after her, they can go ahead, it will be like a tribute in her memory," he told the Indian Express newspaper.

The brother also pleaded that the family should be left alone to grieve their loss.

"The public anger is justified but my sister's story should not be made into a spectacle," he said.

A recent poll found India to be the worst in the G20 group of nations for women because of child marriage, abuse and female foeticide, which has led to a badly skewed sex ratio in the country of 1.2 billion people.

-AFP/ac

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Fiscal cliff averted, but fights loom

STORY HIGHLIGHTS

• Boehner undid "everything he promised he would do" in 2010, GOP lawmaker says


• Obama calls for "a little less brinksmanship" next time


• Tuesday night's vote prevents tax increases for more than 98% of Americans


• It also staves off $110 billion in automatic cuts to domestic and military spending

(CNN) -- President Barack Obama has signed into law a bill to avert the fiscal cliff, a day after the House and Senate approved the much-debated legislation.

Obama, who returned to his family vacation in Hawaii after Tuesday's House vote, signed the bill via autopen on Wednesday.

But new battles over taxes and spending await Washington in the next few weeks.

Congress averted that self-built precipice late Tuesday when the House voted to stave off widespread tax increases and deep spending cuts by accepting a brokered Senate compromise. It makes permanent the Bush administration's tax cuts for individuals earning less than $400,000 per year and couples earning less than $450,000.

It raises rates on those who make more than that from 35% to 39.6%, bringing back a top tax bracket from the Clinton administration, and will raise roughly $600 billion in new revenues over 10 years, according to various estimates.

The bill also extends unemployment insurance and delays for two months the threat of sequestration -- a series of automatic, across-the-board cuts in federal spending.

Economists had predicted the combination of those tax increases and spending cuts could have thrown the U.S. economy back into recession and driven unemployment back into the 9% range.

Meanwhile, a new Congress takes office on Thursday, and lawmakers will soon be confronted by the need to raise the federal debt ceiling and what to do about the still-hanging sequester -- a legacy of the last battle over the debt ceiling, in 2011.

Read more: Five things about the fiscal cliff

Brendan Buck, a spokesman for House Speaker John Boehner, said the legislation was sent to the White House on Wednesday. Obama said he would sign the bill into law, but he did not say when -- and after the vote, he flew to Hawaii to rejoin his wife and daughters on their winter vacation.

There's no urgency on the president's signature in practical terms. It's up to the Obama administration to implement the budget and tax changes, and since the president has said he will sign the measure, the administration can begin planning for the changes immediately.

"The sum total of all the budget agreements we've reached so far proves that there is a path forward that is possible, if we focus not on our politics but on what's right for the country," Obama told reporters late Tuesday. "And the one thing that I think, hopefully, in the new year, we'll focus on is seeing if we can put a package like this together with a little bit less drama, a little less brinksmanship, not scare the heck out of folks quite as much."

The Bush tax cuts expired at midnight Monday, while sequestration had been scheduled to start when federal offices reopened Wednesday.

World markets rose after the late-night vote. U.S. stocks jumped, too, with the Dow Jones Industrial Average rising nearly 2% by mid-afternoon.

Rum, electric vehicles and motor sports: Nuggets in the fiscal cliff bill

Tuesday night's 257-167 vote saw Boehner, R-Ohio, and about a third of the GOP majority lining up with Democrats against most of their own caucus, including Majority Leader Eric Cantor and party whip Kevin McCarthy. Rep. Nan Hayworth, an outgoing Republican representative from New York, said she was a "reluctant yes."

"This is the best we can do, given the Senate and the White House sentiment at this point in time, and it is at least a partial victory for the American people," Hayworth said. "I'll take that at this point."

The Senate plan was brokered by Vice President Joe Biden and Senate Minority Leader Mitch McConnell, R-Kentucky, and it passed that Democratic-led chamber 89-8. But many House Republicans complained the bill did too little to cut spending while raising taxes for them to support it.

Boehner's White House F-bomb

Conservative lobbyist Grover Norquist, whose Americans for Tax Reform pushes candidates to sign a pledge never to raise taxes, said the plan preserves most of the Bush tax cuts and won't violate his group's beliefs.

"The Bush tax cuts lapsed at midnight last night," Norquist tweeted Tuesday. "Every (Republican) voting for Senate bill is cutting taxes and keeping his/her pledge."

But Rep. Jeff Landry, R-Louisiana, told CNN's "Early Start" that Obama convinced Boehner "to undo everything he promised he would do" after the 2010 elections that gave the GOP control of the House.

"They did a debt ceiling deal, gave the president $2.1 trillion," Landry said. "They turned that deal off for two months. That's going to be another fight on top of the sequestration, a debt ceiling fight."

iReport: What's your message for Washington?

Other Republicans warned that as they did in 2011, they'll be demanding additional cuts before they agree to raise the federal cap on borrowing.

"The president has maxed out his credit card, and he is not going to get an unlimited credit card," Sen. John Barrasso, R-Wyoming, told CNN. "We're going to talk specifically about cuts and specifically focused on tax reform as well as helping to save and strengthen Medicare and Social Security. And that's the next discussion we're going to have in Washington."

The federal government bumped up against its $16.4 trillion debt ceiling on Monday and has about two months before it runs out of ways to shuffle money around to keep Washington within its legal borrowing limit. Obama had sought to resolve the issue as part of the fiscal cliff negotiations, but the issue never made it to a final bill.

Tuesday night, the president warned Congress that he will not tolerate another round of brinksmanship that could have "catastrophic" effects on the global economy.

"While I will negotiate over many things, I will not have another debate with this Congress over whether or not they should pay the bills that they've already racked up through the laws that they've passed," he said.

How they voted: House | Senate

The last debt-ceiling battle led to the sequester, a kind of fiscal doomsday device that Congress was supposed to disarm by agreeing to more than $1 trillion in other cuts over the next decade. They didn't, leaving federal agencies preparing to slash spending by $110 billion by the end of the 2013 budget year.

Before Tuesday night, the Defense Department had been preparing to issue furlough notices for its entire civilian work force of 800,000. Those notices were stayed on Wednesday -- but Pentagon officials say they're worried that unpaid leave may be harder to implement later in the fiscal year.

"We hope Congress can find a way to end sequester once and for all," Pentagon spokesman George Little said.

While the deal gives Obama bragging rights for raising income taxes on the wealthiest Americans -- the first rate increase for any Americans since 1993 -- it also leaves him breaking a promise.

Obama had vowed to raise tax rates for the top-earning 2% of Americans, including those with household income above $250,000 and individuals earning more than $200,000.

Raising the threshold for higher tax rates shrinks the number of Americans affected. While nearly 2% of filers have adjusted gross incomes over $250,000, only 0.6% have incomes above $500,000, according to the Tax Policy Center.

By comparison, Census Bureau figures put the median U.S. household income at just over $50,000.

And despite the last-minute fiscal cliff agreements, Americans are still likely to see their paychecks shrink somewhat because of a separate battle over payroll taxes.

The government temporarily lowered the payroll tax rate in 2011 from 6.2% to 4.2% to put more money in the pockets of Americans. That adjustment, which has cost about $120 billion each year, expired Monday.

Now, Americans earning $30,000 a year will take home $50 less per month. Those earning $113,700 will lose $189.50 a month.

Opinion: Cliff deal hollow victory for American people

The legislation also caps itemized deductions for individuals making $250,000 and for married couples making $300,000. Taxes on inherited estates over $5 million will go up to 40% from 35%, and that threshold will be indexed for inflation.

The alternative minimum tax, a perennial issue, will be permanently adjusted for inflation. Child care, tuition and research and development tax credits will be renewed. The "Doc Fix" -- reimbursements for doctors who take Medicare patients -- will continue, but it won't be paid for out of the Obama administration's signature health care law.

CNN's Dana Bash, Rich Barbieri, Charles Riley, Dana Ford, Holly Yan, Josh Levs, Jessica Yellin, Deirdre Walsh and Ted Barrett contributed to this report.

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