Boehner opens door to tax hikes, shifts U.S. fiscal cliff talks

WASHINGTON (Reuters) – U.S. House of Representatives Speaker John Boehner‘s offer to accept a tax rate increase for the wealthiest Americans knocks down a key Republican road block to a deal resolving the year-end “fiscal cliff.”

The question now boils down to what President Barack Obama offers in return. Such major questions, still unanswered so close to the end of the year suggest, however, that no spending and tax agreement is imminent.

A source familiar with the Obama-Boehner talks confirmed that Boehner proposed extending low tax rates for everyone who has less than $ 1 million in net annual income, meaning tax rates would rise on all above that line.

Under current law, the 35 percent top tax rate is scheduled to expire on January 1, and would automatically go to 39.6 percent. Boehner’s proposal would allow that rate to rise as scheduled at a threshold of $ 1 million – putting it back to where it was during the Clinton administration.

The White House has not accepted the proposal and the source could not confirm any additional talks were held on Sunday between Obama and Boehner.

With just over two weeks before the fiscal cliff’s $ 600 billion in automatic tax hikes and spending cuts are triggered, threatening a new recession, there is little time to craft a comprehensive deal that will satisfy both Democrats and Republicans.

Until the latest Republican offer, made on Friday, Boehner had insisted on extending all of the Bush era’s lower tax rates, resisting Obama’s demand to let the marginal rates rise on income above $ 250,000. A rising chorus of business executives also had urged Republicans to agree to this.

Some lawmakers and congressional aides had predicted that Republicans, once serious negotiations began, might try to raise the $ 250,000 threshold, say to $ 500,000 or $ 1 million. They also speculated that Republicans, if forced into a tax rate hike on the upper-income groups, might seek a smaller increase, say to around 37 percent.

Although the White House has not accepted Boehner’s gambit, it could push negotiations away from entrenched, ideological positions.

“Boehner has now accepted the premise of higher rates. So now we’re just arguing over details. I think it’s a significant step,” said Greg Valliere, chief political strategist at Potomac Research Group.

A framework deal spelling out tax revenue and spending cut targets to be finalized in the new year could be possible, Valliere said.

“Boehner’s offer to allow tax rates to go up for taxpayers earning over $ 1 million fundamentally transforms fiscal cliff negotiations,” added Sean West, U.S. policy analyst at Eurasia Group, a political risk consultancy.

In a note to clients, West wrote that it signals, significantly, that Boehner ultimately believes a deal to avoid the cliff is still possible.

“The political burden is now shifted back to the president, who must be willing to take on his party in order to get a deal Boehner can ultimately pass. We do not think the president will overreach: Obama will work with Boehner to get to a deal.”

There are still several critical elements to a deal besides a tax rate increase on the wealthy, including Republican demands to cut spending on social programs.

Changes to the expensive Medicare and Medicaid health care programs for the elderly and the poor could be central to any deal, which must also include an increase in the federal debt limit needed by the end of February.

DEMANDS SOCIAL PROGRAM CUTS

Boehner conditioned his tax rate increase offer on Obama’s agreement to cuts in social program spending, often called entitlements.

Many Republican lawmakers want to raise the eligibility age for Medicare to 67 from 65. They also want to link Medicare to the income of recipients, making wealthier retirees pay more for their care.

Currently, Medicare does have some means testing, charging higher premiums for coverage of doctors visits and prescription drugs to individuals earning more than $ 85,000 and married couples earning more than $ 170,000. Only about 5 percent of recipients pay these higher premiums.

Thus far, Obama has offered only about $ 400 billion in 10-year entitlement savings, mostly through small adjustments in reining in health care costs – not fundamental changes such as raising the eligibility age.

And just as Boehner faces opposition in his own party to raising any tax rates, Obama faces opposition to cuts to Medicare, Medicaid and Social Security from Democrats, who pledged in election campaigns they would protect these programs.

A major bloc of congressional Democrats has already signaled they will not accept major cutbacks in Medicare as part of any fiscal cliff deal.

House Minority Leader Nancy Pelosi of California and Maryland Representative Chris Van Hollen of Maryland are among the high ranking Democrats in the House who have come out forcefully in recent days against raising the age for eligibility for Medicare to 67 years of age.

“Given the level of savings that is being talked about from Medicare, you can’t get it all from providers and drug makers,” said Paul Heldman, an analyst at Potomac Research, which tracks Washington policy for investors.

“So opponents of raising the eligibility age have reason to believe beneficiaries will take some sort of hit if a mega-deal is cut,” he said.

If Republicans are not successful in securing entitlement program cuts in exchange for a tax-rate increase on the wealthy, they are adamant about using a debt-limit increase as leverage to overhaul Social Security and Medicare.

The U.S. Treasury expects to reach its $ 16.4 trillion statutory debt cap by year-end, and will exhaust its remaining borrowing capacity around mid-February, risking a potential default.

Louisiana Republican Representative John Fleming, a member of the conservative Tea Party caucus who has never voted to increase the debt ceiling, said he would support a debt limit hike if it were part of a deal to make Medicare and Social Security sustainable.

The pace of activity could pick up the coming week.

House Republicans were told to prepare for a possible weekend session next week, potentially interrupting travel plans for the long Christmas holiday weekend.

House Majority Leader Eric Cantor scheduled “possible legislation related to expiring provisions of law,” a reference to the expiring tax cuts, for the end of the week, portending a weekend session. Cantor has said the House would meet through the Christmas holidays and beyond.

(This story was fixed to correct current top tax rate to 35 percent from 36 percent)

(Additional reporting by Thomas Ferraro, Richard Cowan and Kim Dixon; Editing by Fred Barbash, Todd Eastham and Jackie Frank)

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Obama: ‘We can’t tolerate this anymore’

President Barack Obama assured the grieving, shell-shocked Newtown community on Sunday that "you are not alone" and vowed sternly to wield "whatever power this office holds" in a quest to prevent future mass shootings.

"We can't tolerate this anymore," Obama said from behind a podium on the stage of a Newton High School auditorium, as adults wept, or hugged, or sat quietly, many hugging small children. "These tragedies must end. And to end them, we must change."

"In the coming weeks, I'll use whatever power this office holds to engage my fellow citizens -- from law enforcement, to mental health professionals, to parents, and educators -- in an effort aimed at preventing more tragedies like this, because what choice do we have?"he said.

The speech, broadcast nationwide, offered the bold suggestion that Obama might engage lawmakers on the subject of gun control -- a topic that has not been among his top priorities during his presidency.

"We can't accept events like this as routine. Are we really prepared to say that we're powerless in the face of such carnage?" Obama said.  That the politics are too hard? Are we prepared to say that such violence visited on our children year, after year, after year is somehow the price of our freedom?"

There were sobs from the crowd as the president read the first names of the 20 children slaughtered at Sandy Hook Elementary School on Friday and paid tribute to the six adults who died defending them. Twenty-six candles in twenty-six shining glass vases shone from the base of the podium.

Obama anticipated — and dismissed — some of the time-honored arguments against stricter restrictions on guns. "We will be told that the causes of such violence are complex, and that is true," he said. "No single law no set of laws can eliminate evil from the world or prevent every senseless act of violence in our society."

"But that can't be an excuse for inaction. Surely we can do better than this," he said. 

Across the country, people grieved for the 20 children — six and seven years old — and six adults killed in one of the worst mass shootings in America's history.

In Newtown and elsewhere, mourners gently piled notes, stuffed animals and American flags, balloons and flowers, in makeshift memorials where candles fluttered.

New York Giants wide receiver Victor Cruz played wearing a shoe that read "R.I.P. Jack Pinto" in black marker, an homage to a child slain in the massacre. Flags from coast to coast flew at half-staff. As the president's motorcade climbed the hill up the school, he could glimpse a few homes with Christmas lights -- but most were dark.

"Here in Newtown, I come to offer the love and prayers of a nation," the president said. "I am very mindful that mere words cannot match the depths of your sorrow, nor can they heal your wounded hearts."

"I can only hope it helps for you to know you are not alone in your grief that our world too has been torn apart. That all across this land of ours, we have wept with you. We've pulled our children tight," Obama said. "And you must know that whatever measure of comfort we can provide, we will provide. Whatever portion of sadness that we can share with you to ease this heavy load, we will gladly bear it."

In the auditorium where the president spoke, the audience included a large number of elementary school-age children, some carrying cuddly toys like teddy bears, according to pool reporter Stephen Collinson of Agence France-Presse.

Before the service, Obama met privately for more than an hour with families of the victims and emergency workers who responded to the crisis. As those workers entered the auditorium, the crowd erupted in a standing ovation. Some traded long hugs with members of the audience.

"We needed this. We needed to be together," said Rev. Matt Crebbin, the senior minister at Newtown Congregational Church. "These darkest days of our community shall not be the final word heard from us."

Connecticut Governor Dannel Malloy, describing his meeting with Obama, said that the president had called Friday "the most difficult day of  his presidency."

By 4 p.m., the line cars trying to reach the interfaith vigil stretched more than 2 miles from Newtown High School back through Sandy Hook -- and its growing makeshift memorial -- to Saint Rose church, the site of several vigils for (and hoax threats related to) Friday's massacre.

In Sandy Hook center, a lawn displayed lights with the phrase "FAITH. HOPE. LOVE." Across the street, a sign wrapped around a street lamp read, "Heaven must have been short on 27 angels."

The president spoke about the shooting on Friday,  his voice choked with emotion, one finger wiping away tears as they welled up. He vowed to "take meaningful action, regardless of the politics" to try to prevent future such tragedies. But hours before,  White House press secretary Jay Carney had decreed that "today's not the day" to discuss possible gun control measures.

The Obama administration has reportedly considered new gun restrictions in the past, only to shelve them.

The White House has shied from seeking tough new action from Congress — where new restrictions on gun purchases would likely run into stiff Republican opposition.

Obama's speech was the fourth in his presidency to memorialize a mass shooting. After the January 2011 rampage in Tucson, AZ, where then-Rep. Gabrielle Giffords was critically injured, the president spoke at a memorial for the six people killed, including Christina Taylor Green, 9.

Dylan Stableford contributed from Newtown

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Nigeria governor, 5 others die in helicopter crash

LAGOS, Nigeria (AP) — A navy helicopter crashed Saturday in the country’s oil-rich southern delta, killing a state governor and five other people, in the latest air disaster to hit Africa’s most populous nation, officials said.

Nigeria‘s ruling party said in a statement that the governor of the central Nigerian state of Kaduna, Patrick Yakowa, died in the helicopter crash in Bayelsa state in the Niger Delta. The People’s Democratic Party’s statement described Yakowa’s death as a “colossal loss.”

The statement said the former national security adviser, General Andrew Azazi, also died in the crash. Azazi was fired in June amid growing sectarian violence in Nigeria, but maintained close ties with the government.

Yushau Shuaib, a spokesman for Nigeria’s National Emergency Management Agency, said four other bodies had been found, but he could not immediately give their identities.

The crash occurred at about 3:30 p.m. after the navy helicopter took off from the village of Okoroba in Bayelsa state where officials had gathered to attend the burial of the father of a presidential aide, said Commodore Kabir Aliyu. He said that the helicopter was headed for Nigeria’s oil capital of Port Harcourt when it crashed in the Nembe area of Bayelsa state.

Aviation disasters remain common in Nigeria, despite efforts in recent years to improve air safety.

In October, a plane made a crash landing in central Nigeria. A state governor and five others sustained injuries but survived.

In June, a Dana Air MD-83 passenger plane crashed into a neighborhood in the commercial capital of Lagos, killing 153 people onboard and at least 10 people on the ground. It was Nigeria’s worst air crash in nearly two decades.

In March, a police helicopter carrying a high-ranking police official crashed in the central Nigerian city of Jos, killing four people.

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“Modern Family” star’s dad granted control of her estate

LOS ANGELES (Reuters) – The father of “Modern Family” star Ariel Winter was given temporary control over the teenage actress’ estate on Wednesday in a court-approved settlement in Los Angeles after allegations that her mother had abused her.

Winter, 14, who plays the brainy and precocious teenager Alex Dunphy on the Emmy-winning ABC comedy, will remain under temporary guardianship of her older sister, Shanelle Gray, under the settlement, court officials said.

Los Angeles Superior Court Judge Michael Levanas scheduled a hearing for March 29 in which he could hand permanent guardianship over to Gray and control of Winter’s estate to her father, Glenn Workman.

Gray, 34, was first awarded temporary guardianship of the actress in October.

Winter’s mother, Chrisoula Workman, has denied allegations, earlier submitted in court documents, that she verbally and physically abused her daughter.

Messages left with Winter’s publicist and attorney seeking comment were not immediately returned.

“Modern Family” portrays the lives of three zany families and has won three consecutive Emmy awards as American television’s best comedy series.

(Reporting By Eric Kelsey; Editing by Nick Zieminski)

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White House won’t accept new tax offer from Republican leader

WASHINGTON (Reuters) – President Barack Obama is not ready to accept a new offer from the Republican leader of the U.S. the House of Representatives to raise taxes on top earners in exchange for major cuts in entitlement programs, a source said late Saturday.

The shape and details of Boehner‘s offer were uncertain Saturday night, as was the exact reason the president was prepared to reject it.

The source said Obama sees the offer made on Friday by U.S. House Speaker John Boehner as a sign of progress, but simply believes it is not enough and there is much more to be worked out before Obama can reciprocate.

Tax rates and entitlements are the two most difficult issues in the so-far unproductive negotiations to avert the “fiscal cliff” of steep tax hikes and spending cuts set for the new year unless Congress and the president reach a deal to avoid them.

The Boehner offer is the first significant sign of a shift in the Republican insistence that low tax rates set to expire on December 31 be extended for all taxpayers, and comes at some risk to the speaker.

Conservatives, particularly Tea Party-supported Republicans, see opposition to tax increases for anyone as an abandonment of party principles, and of the Republican base.

Obama wants high earners – those earning roughly $ 250,000 a year or more – to pay higher taxes in order to put the burden of deficit reduction on those he says can best afford it.

Republicans have privately spoken of coming back at Obama with a threshold of $ 1 million. Obama has previously called that unacceptable because it would not raise enough money on its own to cut the deficit significantly or provide enough money to avert across-the-board spending cuts.

On entitlements, the president faces pressures of his own from Democrats, who see protecting Medicare, the government health insurance program for seniors, as a bedrock principle.

A major bloc of congressional Democrats has already signaled they will not accept major cutbacks in Medicare as part of any deal.

It was unclear on Saturday if the president had communicated his response to Boehner.

NOT A COMPLETE SURPRISE

Boehner’s shift did not come as a complete surprise. Recent polls have suggested little public support for his position and he has been getting pressure from Senate Republicans to be more flexible.

The massacre in Connecticut silenced fiscal cliff talk in public on Saturday as the both sides got ready for a final scramble, with sessions of the House now scheduled just days before Christmas.

Obama canceled a trip he had planned to make next Wednesday to Portland, Maine, to press his case for tax hikes for the wealthy. He is heading on Sunday to Newtown, the site of Friday’s school shootings, in which a gunman killed 20 children and six adults before taking his own life. The gunman also killed his mother, according to police.

Boehner of Ohio canceled the standard Republican radio response on Saturday to Obama “so that President Obama can speak for the entire nation at this time of mourning,” he said in a statement issued late on Friday.

The moratorium on cliff pronouncements masked a growing recognition the two sides could remain deadlocked at the end of the year on the key sticking points – taxes and entitlements.

Senate Republicans prodded their counterparts in the House to beat a retreat on tax hikes, in a fashion that would allow Obama’s proposal to pass the Republican-controlled House while allowing Republicans to cast a face-saving vote against it.

Republicans could then shift the debate onto territory they consider more favorable to them, cutting government spending to reduce the deficit.

“Just about everyone is throwing stuff on the wall to see if anything sticks,” one Republican aide said in reference to various proposals being discussed on how to proceed.

Alluding to public opinion polls, the aide added: “We know if there is no deal, we will get blamed.”

“We could win the argument on spending cuts,” said a Republican senator who asked not to be identified. “We aren’t winning the argument on taxes.”

However, Republican leaders in both chambers are leery about seeming to cave on taxes. “There’s concern that if we did that, Obama would simply declare victory and walk away and not address spending,” said one aide. “We don’t trust these guys.”

‘A BALANCED PLAN’

Some of the prodding was coming from Senate Minority Leader Mitch McConnell of Kentucky.

Don Stewart, a McConnell spokesman, said the minority leader in the Democratic-controlled Senate hasn’t embraced any single plan, but has discussed and circulated measures offered by fellow Senate Republicans.

“Senator McConnell does not advocate raising taxes on anybody or anything,” Stewart said.

“We’re focused on getting a balanced plan from the White House that will begin to solve the problem of our debt and deficit to improve the economy and create American jobs,” said Boehner spokesman Michael Steel.

“Right now, all the president is offering is massive tax hikes with little or no spending cuts and reforms,” Steel said.

House Majority Leader Eric Cantor scheduled “possible legislation related to expiring provisions of law,” a reference to the expiring tax cuts, for the end of the week, portending a weekend session.

Cantor has said the House would meet through the Christmas holidays and beyond.

Hopes expressed after the November 6 general election of some “grand bargain” on deficit reduction have all but disappeared, at least for this year.

This is partly because time is running out and partly the result of growing warnings from Democrats in Congress that they would not support big changes in the Medicare program, the government-run health insurance program for seniors that is a major contributor to the government’s debt.

House Democratic Minority Leader Nancy Pelosi of California ruled out one frequently mentioned proposal – raising the age of eligibility for Medicare, in a December 12 CBS television interview.

Asked if she was drawing a “red line” around that idea, Pelosi said her comments were “something that says, ‘don’t go there,’ because it doesn’t produce money.

(Reporting by Thomas Ferraro, Richard Cowan and Kim Dixon; Editing by Fred Barbash and Todd Eastham)

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'Always smiling': Portraits of Connecticut victims

Most died at the very start of their young lives, tiny victims taken in a way not fit for anyone regardless of age. Others found their life's work in sheltering little ones, teaching them, caring for them, treating them as their own. After the gunfire ended Friday at Sandy Hook Elementary School, the trail of loss was more than many could bear: 20 children and six adults at the school, the gunman's mother at home, and the gunman himself.

A glimpse of some of those who died:

Olivia Engel, 6, student

The images of Olivia Engel will live far beyond her short lifetime. There she is, visiting with Santa Claus, or feasting on a slice of birthday cake. There's the one of her swinging a pink baseball bat, and another posing on a boat. In some, she models a pretty white dress, in others she makes a silly face.

Dan Merton, a longtime friend of the girl's family, says he could never forget the child, and he has much to say when he thinks of her.

"She loved attention," he said. "She had perfect manners, perfect table manners. She was the teacher's pet, the line leader."

On Friday, Merton said, she was simply excited to go to school and return home and make a gingerbread house.

"Her only crime," he said, "is being a wiggly, smiley 6-year-old."

Victoria Soto, 27, teacher

She beams in snapshots. Her enthusiasm and cheer was evident. She was doing, those who knew her say, what she loved.

And now, Victoria Soto is being called a hero.

Though details of the 27-year-old teacher's death remained fuzzy, her name has been invoked again and again as a portrait of selflessness and humanity among unfathomable evil. Those who knew her said they weren't surprised by reports she shielded her first-graders from danger.

"She put those children first. That's all she ever talked about," said a friend, Andrea Crowell. "She wanted to do her best for them, to teach them something new every day."

Photos of Soto show her always with a wide smile, in pictures of her at her college graduation and in mundane daily life. She looks so young, barely an adult herself. Her goal was simply to be a teacher.

"You have a teacher who cared more about her students than herself," said Mayor John Harkins of Stratford, the town Soto hailed from and where more than 300 people gathered for a memorial service Saturday night. "That speaks volumes to her character, and her commitment and dedication."

Ana Marquez-Greene, 6, student

A year ago, 6-year-old Ana Marquez-Greene was reveling in holiday celebrations with her extended family on her first trip to Puerto Rico. This year will be heartbreakingly different.

The girl's grandmother, Elba Marquez, said the child's family moved to Connecticut just two months ago, drawn from Canada, in part, by Sandy Hook's pristine reputation. The grandmother's brother, Jorge Marquez, is mayor of a Puerto Rican town and said the child's 9-year-old brother was also at the school, but escaped safely.

Elba Marquez had just visited the new home over Thanksgiving and finds herself perplexed by what happened.

"It was a beautiful place, just beautiful," she said. "What happened does not match up with the place where they live."

Jorge Marquez confirmed the girl's father is saxophonist Jimmy Greene, who wrote on Facebook that he was trying to "work through this nightmare."

"As much as she's needed here and missed by her mother, brother and me, Ana beat us all to paradise. I love you sweetie girl," he wrote.

Dawn Hochsprung, 47, principal

Dawn Hochsprung's pride in Sandy Hook Elementary was clear. She regularly tweeted photos from her time as principal there, giving indelible glimpses of life at a place now known for tragedy. Just this week, it was an image of fourth-graders rehearsing for their winter concert, days before that the tiny hands of kindergartners exchanging play money at their makeshift grocery store.

She viewed her school as a model, telling The Newtown Bee in 2010 that "I don't think you could find a more positive place to bring students to every day." She had worked to make Sandy Hook a place of safety, too, and in October, 47-year-old Hochsprung shared a picture of the school's evacuation drill with the message "Safety first." When the unthinkable came, she was ready to defend.

Officials said she died while lunging at the gunman in an attempt to overtake him.

"She had an extremely likable style about her," said Gerald Stomski, first selectman of Woodbury, where Hochsprung lived and had taught. "She was an extremely charismatic principal while she was here."

Mary Sherlach, 56, school psychologist

When the shots rang out, Mary Sherlach threw herself into the danger.

Janet Robinson, the superintendent of Newtown Public Schools, said Sherlach and the school's principal ran toward the shooter. They lost their own lives, rushing toward him.

Even as Sherlach neared retirement, her job at Sandy Hook was one she loved. Those who knew her called her a wonderful neighbor, a beautiful person, a dedicated educator.

Her son-in-law, Eric Schwartz, told the South Jersey Times that Sherlach rooted on the Miami Dolphins, enjoyed visiting the Finger Lakes, relished helping children overcome their problems. She had planned to leave work early on Friday, he said, but never had the chance. In a news conference Saturday, he told reporters the loss was devastating, but that Sherlach was doing what she loved.

"Mary felt like she was doing God's work," he said, "working with the children."

Lauren Gabrielle Rousseau, 30, teacher

Lauren Rousseau had spent years working as a substitute teacher and doing other jobs. So she was thrilled when she finally realized her goal this fall to become a full-time teacher at Sandy Hook.

Her mother, Teresa Rousseau, a copy editor at the Danbury News-Times, released a statement Saturday that said state police told them just after midnight that she was among the victims.

"Lauren wanted to be a teacher from before she even went to kindergarten," she said. "We will miss her terribly and will take comfort knowing that she had achieved that dream."

Her mother said she was thrilled to get the job.

"It was the best year of her life," she told the paper.

Rousseau has been called gentle, spirited and active. She had planned to see "The Hobbit" with her boyfriend Friday and had baked cupcakes for a party they were to attend afterward. She was born in Danbury, attended Danbury High, college at the University of Connecticut and graduate school at the University of Bridgeport.

She was a lover of music, dance and theater.

"I'm used to having people die who are older," her mother said, "not the person whose room is up over the kitchen."

Anne Marie Murphy, 52, teacher

A happy soul. A good mother, wife and daughter. Artistic, fun-loving, witty and hardworking.

Remembering their daughter, Anne Marie Murphy, her parents had no shortage of adjectives to offer Newsday. When news of the shooting broke, Hugh and Alice McGowan waited for word of their daughter as hour by hour ticked by. And then it came.

Authorities told the couple their daughter was a hero who helped shield some of her students from the rain of bullets. As the grim news arrived, the victim's mother reached for her rosary.

"You don't expect your daughter to be murdered," her father told the newspaper. "It happens on TV. It happens elsewhere."

Chase Kowalski, 7, student

Chase Kowalski was always outside, playing in the backyard, riding his bicycle. Just last week, he was visiting neighbor Kevin Grimes, telling him about completing — and winning — his first mini-triathlon.

"You couldn't think of a better child," Grimes said.

Grimes' own five children all attended Sandy Hook, too. Cars lined up outside the Kowalski's ranch home Saturday, and a state trooper's car idled in the driveway. Grimes spoke of the boy only in the present tense.

Emilie Parker, 6, student

Quick to cheer up those in need of a smile, Emilie Parker never missed a chance to draw a picture or make a card.

Her father, Robbie Parker, fought back tears as he described the beautiful, blonde, always-smiling girl who loved to try new things, except food.

Parker, one of the first parents to publicly talk about his loss, expressed no animosity for the gunman, even as he struggled to explain the death to his other two children, ages 3 and 4. He's sustained by the fact that the world is better for having had Emilie in it.

"I'm so blessed to be her dad," he said.

Nancy Lanza, 52, gunman's mother

She was known before simply for the game nights she hosted and the holiday decorations she put up at her house. Now Nancy Lanza is known as her son's first victim.

Authorities say Lanza's 20-year-old son Adam gunned his mother down before killing 26 others at Sandy Hook. The two shared a home in a well-to-do Newtown neighborhood, but details were slow to emerge of who she was and what might have led her son to carry out such horror.

Kingston, N.H., Police Chief Donald Briggs Jr. said Nancy Lanza once lived in the community and was a kind, considerate and loving person. The former stockbroker at John Hancock in Boston was well-respected, Briggs said.

Court records show Lanza and her ex-husband, Peter Lanza, filed for divorce in 2008. He lives in Stamford and is a tax director at General Electric. A neighbor, Rhonda Cullens, said she knew Nancy Lanza from get-togethers she had hosted to play Bunco, a dice game. She said her neighbor had enjoyed gardening.

"She was a very nice lady," Cullens said. "She was just like all the rest of us in the neighborhood, just a regular person."

Catherine Hubbard, 6, student

A family friend turned reporters away from the house but Catherine's parents released a statement expressing gratitude to emergency responders and for the support of the community.

"We are greatly saddened by the loss of our beautiful daughter, Catherine Violet and our thoughts and prayers are with the other families who have been affected by this tragedy," Jennifer and Matthew Hubbard said. "We ask that you continue to pray for us and the other families who have experienced loss in this tragedy."

Madeleine Hsu, 6, student

Dr. Matthew Velsmid was at Madeleine's house on Saturday, tending to her stricken family. He said the family did not want to comment.

Velsmid said that after hearing of the shooting, he went to the triage area to provide medical assistance but there were no injuries to treat.

"We were waiting for casualties to come out and there was nothing. There was no need unfortunately," he said. "This is the darkest thing I've ever walked into by far."

Velsmid's daughter, who attends another school, lost three of her friends.

___

Associated Press writers Denise Lavoie, Mark Scolforo, Allen Breed and Danica Coto contributed to this report.

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NKorea rocket launch shows young leader as gambler

PYONGYANG, North Korea (AP) — A triumphant North Korea staged a mass rally of soldiers and civilians Friday to glorify the country’s young ruler, who took a big gamble this week in sending a satellite into orbit in defiance of international warnings.

Wednesday’s rocket launch came just eight months after a similar attempt ended in an embarrassing public failure, and just under a year after Kim Jong Un inherited power following his father’s death.

The surprising success of the launch may have earned Kim global condemnation, but at home the gamble paid off, at least in the short term. To his people, it made the 20-something Kim appear powerful, capable and determined in the face of foreign adversaries.

Tens of thousands of North Koreans, packed into snowy Kim Il Sung Square, clenched their fists in a unified show of resolve as a military band tooted horns and pounded on drums.

Huge red banners positioned in the square called on North Koreans to defend Kim Jong Un with their lives. They also paid homage to Kim Jong Un’s father, Kim Jong Il, and his grandfather, North Korean founder Kim Il Sung.

Pyongyang says the rocket put a crop and weather monitoring satellite into orbit. Much of the rest of the world sees it as a thinly disguised test of banned long-range missile technology. It could bring a fresh round of U.N. sanctions that would increase his country’s international isolation. At the same time, the success of the launch could strengthen North Korea’s military, the only entity that poses a potential threat to Kim’s rule.

The launch’s success, 14 years after North Korea’s first attempt, shows more than a little of the gambling spirit in the third Kim to rule North Korea since it became a country in 1948.

“North Korean officials will long be touting Kim Jong Un as a gutsy leader” who commanded the rocket launch despite being new to the job and young, said Kim Byung-ro, a North Korea specialist at Seoul National University in South Korea.

The propaganda machinery churned into action early Friday, with state media detailing how Kim Jong Un issued the order to fire off the rocket just days after scientists fretted over technical issues, ignoring the chorus of warnings from Washington to Moscow against a move likely to invite more sanctions.

Top officials followed Kim in shrugging off international condemnation.

Workers’ Party Secretary Kim Ki Nam told the crowd, bundled up against a winter chill in the heart of the capital, that “hostile forces” had dubbed the launch a missile test. He rejected the claim and called on North Koreans to stand their ground against the “cunning” critics.

North Korea called the satellite a gift to Kim Jong Il, who is said to have set the lofty goal of getting a satellite into space and then tapped his son to see it into fruition. The satellite, which North Korean scientists say is designed to send back data about crops and weather, was named Kwangmyongsong, or “Lode Star” — the nickname legendarily given to the elder Kim at birth.

Kim Jong Il died on Dec. 17, 2011, so to North Koreans, the successful launch is a tribute. State TV have been replaying video of the launch to “Song of Gen. Kim Jong Il.”

But it is the son who will bask in the glory, and face the international censure that may follow.

Even while he was being groomed to succeed his father, Kim Jong Un had been portrayed as championing science and technology as a way to lift North Korea out of decades of economic hardship.

“It makes me happy that our satellite is flying in space,” Pyongyang citizen Jong Sun Hui said as Friday’s ceremony came to a close and tens of thousands rushed into the streets, many linking arms as they went.

“The satellite launch demonstrated our strong power and the might of our science and technology once again,” she told The Associated Press. “And it also clearly testifies that a thriving nation is in our near future.”

Aside from winning him support from the people, the success of the launch helps his image as he works to consolidate power over a government crammed with elderly, old-school lieutenants of his father and grandfather, foreign analysts said.

Experts say that what is unclear, however, is whether Kim will continue to smoothly solidify power, steering clear of friction with the powerful military while dealing with the strong possibility of more crushing sanctions. The United Nations says North Korea already has a serious hunger problem.

“Certainly in the short run, this is an enormous boost to his prestige,” according to Marcus Noland, a North Korea analyst at the Peterson Institute for International Economics in Washington.

Noland, however, also mentioned the “Machiavellian argument” that this could cause future problems for Kim by significantly boosting the power of the military — “the only real threat to his rule.”

Successfully firing a rocket was so politically crucial for Kim at the onset of his rule that he allowed an April launch to go through even though it resulted in the collapse of a nascent food-aid-for-nuclear-freeze deal with the United States, said North Korea analyst Kim Yeon-su of Korea National Defense University in Seoul.

The launch success consolidates his image as heir to his father’s legacy. But it could end up deepening North Korea’s political and economic isolation, he said.

On Friday, the section at the rally reserved for foreign diplomats was noticeably sparse. U.N. officials and some European envoys stayed away from the celebration, as they did in April after the last launch.

Despite the success, experts say North Korea is years from even having a shot at developing reliable missiles that could bombard the American mainland and other distant targets.

North Korea will need larger and more dependable missiles, and more advanced nuclear weapons, to threaten U.S. shores, though it already poses a shorter-range missile threat to its neighbors.

The next big question is how the outside world will punish Pyongyang — and try to steer North Korea from what could come next: a nuclear test. In 2009, the North conducted an atomic explosion just weeks after a rocket launch.

Scott Snyder, a Korea specialist for the Council on Foreign Relations, wrote recently that North Korea‘s nuclear ambitions should inspire the U.S., China, South Korea and Japan to put aside their issues and focus on dealing with Pyongyang.

If there is a common threat that should galvanize regional cooperation, “it most certainly should be the prospect of a 30-year-old leader of a terrorized population with his finger on a nuclear trigger,” Snyder said.

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Jon Chol Jin in Pyongyang, and Foster Klug and Sam Kim in Seoul, South Korea, contributed to this report. Follow Jean H. Lee on Twitter: (at)newsjean.

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Microsoft, Motorola file to keep patent case details private

SEATTLE (Reuters) – Microsoft Corp and Google Inc‘s Motorola Mobility unit have requested a federal judge in Seattle to keep secret from the public various details from their recent trial concerning the value of technology patents and the two companies’ attempts at a settlement.

Microsoft and Motorola, acquired by Google earlier this year, are preparing post-trial briefs to present to a judge as he decides the outcome of a week-long trial last month to establish what rates Microsoft should pay Motorola for use of standard, essential wireless technology used in its Xbox game console and other products.

The case is just one strand of litigation in an industry-wide dispute over ownership of the underlying technology and the design of smartphones, which has drawn in Apple Inc, Samsung Electronics Co Ltd, Nokia and others.

In a filing with the Western District of Washington federal court in Seattle on Friday, Microsoft and Motorola asked the judge to allow them to file certain parts of their post-trial submissions under seal and redact those details in the public record.

The details concern terms of Motorola‘s licenses with third parties and Microsoft‘s business and marketing plans for future products. During the trial, which ran from November 13-20, U.S. District Judge James Robart cleared the court when such sensitive or trade secret details were discussed.

“For the same compelling reasons that the court sealed this evidence for purposes of trial, it would be consistent and appropriate to take the same approach in connection with the parties’ post-trial submissions,” the two companies argued in the court filing.

The judge has so far been understanding of the companies’ desire to keep private details of their patent royalties and future plans, although that has perplexed some spectators who believe trials in public courts should be fully open to the public.

In addition, Motorola asked the judge to seal some documents relating to settlement negotiations between the two companies, arguing that keeping those details secret would encourage openness in future talks and make a settlement more likely.

Judge Robart is not expected to rule on the case until the new year.

The case in U.S. District Court, Western District of Washington is Microsoft Corp. vs. Motorola Inc., 10-cv-1823.

(Reporting by Bill Rigby; Editing by Richard Chang)

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Owner of Rivera plane being investigated by DEA

PHOENIX (AP) — The company that owns a luxury jet that crashed and killed Latin music star Jenni Rivera is under investigation by the U.S. Drug Enforcement Administration, and the agency seized two of its planes earlier this year as part of the ongoing probe.

DEA spokeswoman Lisa Webb Johnson confirmed Thursday the planes owned by Las Vegas-based Starwood Management were seized in Texas and Arizona, but she declined to discuss details of the case. The agency also has subpoenaed all the company’s records, including any correspondence it has had with a former Tijuana mayor who U.S. law enforcement officials have long suspected has ties to organized crime.

The man widely believed to be behind the aviation company is an ex-convict named Christian Esquino, 50, who has a long and checkered legal past. Corporate records list his sister-in-law as the company’s only officer, but insurance companies that cover some of the firm’s planes say in court documents that the woman is merely a front and that Esquino is the one in charge.

Esquino’s legal woes date back decades. He pleaded guilty to a fraud charge that stemmed from a major drug investigation in Florida in the early 1990s and most recently was sentenced to two years in federal prison in a California aviation fraud case. Esquino, a Mexican citizen, was deported upon his release. Esquino and various other companies he has either been involved with or owns have also been sued for failing to pay millions of dollars in loans, according to court records.

The 43-year-old California-born Rivera died at the peak of her career when the plane she was traveling in nose-dived into the ground while flying from the northern Mexican city of Monterrey to the central city of Toluca early Sunday morning. She was perhaps the most successful female singer in grupero, a male-dominated Mexico regional style, and had branched out into acting and reality television.

It remained unclear Thursday exactly what caused the crash and why Rivera was on Esquino’s plane. The 78-year-old pilot and five other people were also killed. Esquino was not on the plane.

The late singer’s brother, Pedro Rivera Jr., said that he didn’t know anything about the owner or why or how she ended up in his plane.

Esquino told the Los Angeles Times in a telephone interview from Mexico City earlier this week that the singer was considering buying the aircraft from Starwood for $ 250,000 and the flight was offered as a test ride. He disputed reports that he owns Starwood, maintaining that he is merely the company’s operations manager “with the expertise.”

In response to an email from The Associated Press, Esquino said he did not want to comment. Calls to various phone numbers associated with him rang unanswered.

Esquino is no stranger to tangles with the law. He was indicted in the early 1990s along with 12 other defendants in a major federal drug investigation that claimed the suspects planned to sell more than 480 kilograms of cocaine, according to court records. He eventually pleaded guilty to conspiring to conceal money from the IRS and was sentenced to five years in prison, but much of the term was suspended for reasons that weren’t immediately clear.

He served about five months in prison before being released.

Cynthia Hawkins, a former assistant U.S. attorney who handled the case and is now in private practice in Orlando, remembered the investigation well.

“It was huge,” Hawkins said Thursday. “This was an international smuggling group.”

She said the case began with the arrest of Robert Castoro, who was at the time considered one of the most prolific smugglers of marijuana and cocaine into Florida from direct ties to Colombian drug cartels in the 1980s. Castoro was convicted in 1988 and sentenced to life in prison, but he then began cooperating with authorities, leading to his sentence being reduced to just 10 years, Hawkins said.

“Castoro cooperated for years,” she said. “We put hundreds of people in jail.”

He eventually gave up another smuggler, Damian Tedone, who was indicted in the early 1990s along with Esquino and 11 others in a conspiracy involving drug smuggling in Florida in the 1980s at a time when the state was the epicenter of the nation’s cocaine trade.

Tedone also cooperated with authorities and has since been released from prison. Telephone messages left Thursday for both Tedone and Castoro were not returned.

Esquino eventually pleaded guilty to the lesser offense of concealing money from the IRS.

Joseph Milchen, Esquino’s attorney at the time, said Thursday the case eventually revolved around his client “bringing money into the United States without declaring it.”

However, Milchen acknowledged that a plane purchased by Esquino was “used to smuggle drugs.”

He denied his former client has ever had anything to do with illegal narcotics.

“The only thing he has ever done is with airplanes,” Milchen said.

Court filings also indicate Esquino was sentenced to two years in federal prison after pleading guilty in 2004 to committing fraud involving aircraft he purchased in Mexico, then falsified the planes’ log books and re-sold them in the United States.

Also in 2004, a federal judge ordered him and one of his companies to pay a creditor $ 6.2 million after being accused of failing to pay debts to a bank.

As the years passed, Esquino’s troubles only grew.

In February this year, a Gulfstream G-1159A plane the government valued at $ 500,000 was seized by the U.S. Marshals Service on behalf of the DEA after landing in Tucson on a flight that originated in Mexico

Four months later, the DEA subpoenaed all of Starwood’s records dating to Dec. 13, 2007, including federal and state income tax documents, bank deposit information, records on all company assets and sales, and the entity’s relationship with Esquino and more than a dozen companies and individuals, including former Tijuana Mayor Jorge Hank-Rhon, a gambling mogul and a member of one of Mexico’s most powerful families. U.S. law enforcement officials have long suspected Hank-Rhon is tied to organized crime but no allegations have been proven. He has consistently denied any criminal involvement.

He was arrested in Mexico last year on weapons charges and on suspicion of ordering the murder of his son’s former girlfriend. He was later freed for lack of evidence.

The subpoena was obtained by the U-T San Diego newspaper.

A Starwood attorney listed on the subpoena, Jeremy Schuster, declined Thursday to provide details.

“We don’t comment on matters involving clients,” he said.

In September, the DEA seized another Starwood plane — a 1977 Hawker 700 with an insured value of $ 1 million — after it landed in McAllen, Texas, from a flight from Mexico.

Insurers of both aircraft have since filed complaints in federal court in Nevada seeking to have the Starwood policies nullified, in part, because they say Esquino lied in the application process when he noted he had never been indicted on drug-related criminal charges. Both companies said they would not have issued the policies had he been truthful.

Another attorney for Starwood has not responded to phone and email messages seeking comment, and no one was at the address listed at its Las Vegas headquarters. The address is a post office box in a shipping and mailing store located between a tuxedo rental shop and a supermarket in a shopping center several miles west of the Las Vegas Strip.

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Associated Press writers Elliot Spagat in San Diego and Ken Ritter in Las Vegas contributed to this report.

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How to talk to your children about a school shooting

(Reuters) – When parents ask how they can comfort and reassure their children after a tragedy that receives extensive news coverage, the usual advice is to be supportive and reassuring but don’t offer false assurance, experts say.

“Children want to know they’re safe and will stay safe. Parents can convey that by what they say and how they behave,” said Dr. Victor Fornari, director of child and adolescent psychiatry at North Shore-LIJ Health System in New Hyde Park, New York.

But after a school shooting – especially one as horrific as that in Newtown, Connecticut, on Friday – the challenge of helping kids cope is enormously greater than after, say, a tornado wipes out a distant town. It also poses a much greater risk that children who hear about it will suffer a traumatic reaction.

“Schools are supposed to be safe and nurturing environments for children,” said Fornari. “This shatters that belief. Restoring the sense of security in school will take time.”

The way to do that isn’t to offer false assurances, experts say.

“I wouldn’t lie, because your credibility is very, very important,” said Dr. Michael Brody, a child psychiatrist and chairman of the Television and Media Committee of the American Academy of Child and Adolescent Psychiatry. “To say this would never happen to you, I don’t think that is reasonable.”

But while parents need to be honest, they should also make clear that such tragedies are exceedingly rare.

“Parents can say emphatically, ‘your school is a very safe place,’” said David Finkelhor, professor of sociology and director of the Crimes Against Children Research Center at the University of New Hampshire in Durham. “It’s a vanishingly rare occurrence, and schools are still the safest places kids can hang out in terms of violence.”

Parents should not let young children watch news coverage of the shootings, and might warn older children and teenagers away from looking for news and disturbing video of the tragedy on Twitter, Facebook and other sites they can access via smartphones.

AVOID UPSETTING DETAILS

As parents talk to their children about Newtown, they should avoid dwelling on upsetting details, such as exactly what the gunman did where and to whom. Younger children should be reassured that the shooting is over. With older children, parents might talk about their school’s safety protocols and emergency plans.

If a teenager argues that school wasn’t safe for Newtown’s children, parents can offer statistics. U.S. Centers for Disease Control and Prevention data show that school homicides have fallen in the last 20 years from about 30 a year in the 1990s to 17 in 2010, the last year with complete data.

If the child has questions, parents should answer directly and in a straightforward way, said Dr. Joshua Kellman, clinical associate of psychiatry at the University of Chicago Medicine, matching the level of the response to the level of the child. If an 8 year old asks how someone could open fire on little kids sitting at their school desks, simply explaining that “sometimes something goes wrong with people and they are not thinking right,” should suffice, he said.

It can also be helpful to show children that normalcy prevails. The best way to do that is by sticking to standard weekend activities, said child psychologist Dr. Harold Koplewicz, president of Child Mind Institute, a nonprofit treatment, research and education organization in New York City. “Go Christmas shopping, go to church or synagogue, play a game, watch a video.”

Parents should keep in mind that grief, distress, anxiety and worse are normal human reactions to news that little children have been gunned down in their classroom, not signs of psychological illness. In other words, don’t assume that children who become clingy or withdrawn, who demand more parental attention, stop doing schoolwork, have trouble sleeping or regress (parents can expect young children to ask to sleep in their beds, said Fornari) need counseling.

“If their reactions do not seriously interfere with their lives, you shouldn’t necessarily seek out professional help,” said Fornari. “Children are resilient. Most will be able to cope with this traumatic event and be fine.”

The children who will have the hardest time coping are the 10 percent or so who already suffer from anxiety, typically as a result of an earlier trauma such as witnessing violence or losing a close relative, said Fornari. “Parents know if this describes their child, and should expect stronger reactions.”

That, of course, holds especially true for the survivors of the shooting. These children — and adults — are more likely to be psychologically traumatized, suffering flashbacks, nightmares and intrusive thoughts, re-living the sounds of gunshots and the chaos of being rushed out of their classrooms by police officers.

For them, said Fornari, “their lives will forever be marked as before and after December 14.”

(Reporting by Julie Steenhuysen and Sharon Begley; Editing by Julian Mincer and Lisa Shumaker)

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