Iran claims shooting down two US-made RQ-11 drones

TEHRAN: Iran on Wednesday said it had shot down two US-made RQ-11 reconnaissance drones in the past 15 months, adding to a ScanEagle drone and RQ-170 Sentinel stealth aircraft it already claims to have captured.

"The army's air defence shot down two... RQ-11 drones," Rear Admiral Amir Rastegari told state television and Fars news agency, adding that the army was carrying out "research" on the downed unmanned aircraft.

He said the first had been brought down in August to September 2011 and the second in October to November 2012, but gave no details of their location.

He did not offer proof for the claim.

Iran has in the past claimed to have hunted down a number of US drones, showing detailed images of the alleged spoils.

In December it said it had captured a small US ScanEagle drone in its airspace above the Gulf, which the US navy denied.

A year before that, it claimed to have captured a much bigger and more sophisticated CIA stealth drone, an RQ-170 Sentinel.

The AeroVironment RQ-11 type aircraft that Rastegari said had been shot down is a small, hand-launched and remote-controlled drone used by US military intelligence, and has also been adopted by some US allies.

It has a range of over 10 kilometres and can fly at up to 95 kilometres per hour for 80 minutes.

Rastegari made the announcement after a six-day Iranian naval exercise in the Gulf of Oman and the Strait of Hormuz, through which a third of the world's marketed oil passes.

Several surface-to-air missiles were fired as part of the manoeuvres, according to Iranian media.

- AFP/jc

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Why I still love the Nexus 7

There's something about the holidays and the cold January that often follows in the Northeast that makes me want to curl up on the couch with a good book -- or in this day and age, a book on my e-reader or
tablet.

The
Nexus 7 debuted more than six months ago at Google's annual developer conference, but I am still a big fan of the device. And I have no trouble recommending it to tablet buyers.

In this edition of Ask Maggie, I explain why the Nexus 7 is still a good device at a decent price. One Ask Maggie reader is tired of squinting to read books on his smartphone, but he's troubled by the $200 price tag. Meanwhile, the second reader is debating whether to get the smaller 7-inch Nexus 7 mini-tablet or a bigger
Android tablet from Samsung.

Nexus 7 or e-reader?

Dear Maggie,
I am debating whether I should get the Nexus 7 or not. The primary reason is the fact that I read books from the Google Play Store on my Razr Maxx right now and would love to have a larger screen that is portable. But at this point I have managed to read on the smaller screen, and I'm not sure spending $200 for a bigger screen makes sense. I've looked at e-readers, but if I am going to spend any money on a new device, I'd like to have the ability to do other things in addition to reading books. It would be great to be able to read email, play games, watch movies, etc.

I don't like using my computer for Web browsing and reading, but my smartphone seems too small. Do you think I should spend the $200 to get another device like the Nexus 7?

Based on your experiences, what would you recommend?

Thanks,
MagicWithMeaning

Dear MagicWithMeaning,
I hear you. I also think that a smartphone is too small for reading, although I know some people who don't mind it. My colleague Stephen Shankland read the entire Steve Jobs biography on his smartphone in a single night and wrote an amazing review of the book when it came out. I am afraid if I had attempted the same thing, I would have gone blind. And I probably would have only gotten through a quarter of the book in a night.

There's an array of options when it comes to choosing a device for reading e-books.

(Credit:
Sarah Tew/CNET)

At any rate, as I said, some people really don't mind the smaller size of a smartphone. And since you can magnify the text, it's certainly doable. But it sounds like you don't find this situation ideal. And I'm with you.

I think the Nexus 7 is a terrific step up, and I highly recommend it to readers. It's very light, and the size is perfect. It's about the size of a typical paperback book and can easily be held with one hand. It fits nicely into a pocket or purse, so it's portable if you read while commuting or traveling.

And since it comes with the full Android OS, you can access just about anything from the Google Play store. I mention this because other tablets of a similar size, such as the Kindle Fire, offer only a limited catalog of books, games, and movies. Whatever is available via Amazon is what's available on the Kindle Fire. This is great if you are already using that ecosystem to purchase your books and other media. But it sounds like you are already getting books and other stuff via the Google Play store, so it makes sense for you to continue using that ecosystem.

I know the $200 price tag isn't cheap. But it's a good deal considering how much other gadgets cost. Even full-priced smartphones are $400 to $500 more than the Wi-Fi only Nexus 7 tablet.

If you're looking to do more with your device, then the mini-tablet is a good pick over something like a dedicated e-reader. But the one thing I like about e-readers is the e-ink display. I think that display is a bit easier on my eyes, and I can sit and read a book for much longer than if I am using a device like the Nexus 7, which has a backlit screen.

But that is just my personal preference. I know plenty of people who don't have a problem with backlit screens. And in fact, it makes it easier to read in the dark, something that can't be done with an e-ink device.

I agree that if you're looking for the most bang for your buck, you might as well get a tablet that will give you a full browser and access to entire an app store instead of a limited-use e-reader.

Samsung Galaxy Note 2

(Credit:
Josh Miller/CNET)

But there is one option that you didn't mention in your question. What about getting a "phablet?" If you are able to upgrade to a new smartphone soon you may want to consider something like the Galaxy Note 2. With a 5.5-inch display, it's between the size of most Android smartphones and the 7-inch Nexus 7 tablet. It costs about $300 from carriers such as AT&T with a two-year contract. This is more than other smartphones such as the Galaxy S3. And it's more than the Nexus 7. But if you did need a new smartphone and you didn't want to buy a separate device, it might be a good compromise.

If a new smartphone isn't in the cards for you right now and you really are teetering on the edge of whether to buy the Nexus 7 or not, I'd say go for it. I know that $200 is nothing to sneeze at for many people. But when compared to larger tablets and full-priced smartphones, it's a bargain.

If you are strapped for cash, you could always wait a little longer to see if Google announces a cheaper version of the device. There are some reports from Asia that Google may be readying a $99 mini-tablet.

I hope this advice was helpful. And good luck!

Nexus 7 vs. Galaxy Tab 2 10.1

Dear Maggie,
I'm getting my first Android tablet, but I'm on a strict budget. I have wanted the Nexus 7 for a while, but found a great deal ($270) for a refurbished Samsung Galaxy Tab 2 10.1. Which is better?

Thanks,
TEP

Dear TEP,
The answer to your question really depends on which screen size you like better. The Galaxy Tab 2 has a bigger 10-inch screen, while the Nexus 7 has the smaller 7-inch screen. Personally, I prefer the smaller screen to the bigger one. The smaller tablets are easier to stick in a pocket, bag, or purse. And you can hold it with one hand. I use the Nexus 7 for reading, and I find that it's fairly light and easy to hold with one hand.

Samsung Galaxy Tab 2 10.1

(Credit:
Samsung)

That said, the Galaxy Tab 2 10.1 is a fine device. And it has gotten decent marks from CNET and other tech reviewers. If you like that size device and you want an Android tablet, then that is a good device to consider. And the price certainly sounds right.

But if the size is really a toss-up, and you could go either way, then I would still choose the Nexus 7. CNET rated it as one of the best Android tablets on the market. And at $200 brand new, it's still $70 less than the refurbished Galaxy Tab 2 that you have found.

I hope this advice was helpful. Good luck. And Happy New Year!

Ask Maggie is an advice column that answers readers' wireless and broadband questions. The column now appears twice a week on CNET, offering readers a double dosage of Ask Maggie's advice. If you have a question, I'd love to hear from you. Please send me an e-mail at maggie dot reardon at cbs dot com. And please put "Ask Maggie" in the subject header. You can also follow me on Facebook on my Ask Maggie page.

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The art of the "fiscal cliff" deal

Nobody said it would be easy.

Senators voted in the pre-dawn hours of New Year's Day to pass the long-sought agreement on the "fiscal cliff" and the House readies for its turn as soon as today, which, if the House passes it, would officially avert the tax hikes and spending cuts that technically took effect at midnight (the deal, when signed by the president, will make the new tax rates and spending retroactive to midnight).

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Biden advises not to predict outcome of "cliff" deal

How did the politicians involved get to their final agreement? Here's the rundown, according to officials familiar with the talks and with the White House's thinking:

Friday through Sunday: Senate Minority Leader Mitch McConnell's opening offer Friday night to Senate Majority Leader Harry Reid was a $750,000 income tax threshold and no jobless benefits and no extension of the earned-income tax credit and other low-income tax breaks, means-testing Medicare, and the Bush era estate tax rates. Offers bounced back and forth Saturday and on Sunday, Reid opted out and handed talks over to Vice President Joe Biden (at McConnell's suggestion). President Obama, Reid and House Minority Leader Nancy Pelosi were in tandem through the talks. Delaying the federal spending cuts, or sequester, fell out of the talks on Sunday but McConnell came down to $550,000 in income tax threshold and some estate tax concessions reflected in the final deal.

Sunday, 8 p.m. ET: Mr. Obama and senior staff met in the Oval Office to discuss their final counter-offer to McConnell. The president set the $400K and $450K income threshold with one-year of jobless benefits and some delay of the sequester. Biden and McConnell talked through the night. Their last call was at 12:45 a.m.

After that, Mr. Obama and Biden met in the Oval until 2 a.m. to go over final details. Mr. Obama sent his legislative liaison Rob Nabors to Capitol Hill at 2 a.m. to begin drafting a bill with Senate Democrats. Biden and McConnell spoke again at 6:45 a.m. The rest of Monday was devoted to resolving the sequester impasse.

Monday, 9 p.m. ET: Biden and McConnell sealed the deal by telephone (Biden spoke to McConnell after clearing final details with Mr. Obama). The president then called Reid and Pelosi for one final OK and the deal was announced/leaked/confirmed.

The officials also pointed out that to get to the final deal, moving Republicans from a position of no tax increases in debt ceiling debate to tax increases through tax reform after Mr. Obama's re-election to nothing more than $1 million in higher rates and now to $400,000 and $450,000 thresholds is a significant policy and political victory (worth $620 billion over 10 years).

When the big deal talks failed before Christmas, Mr. Obama's biggest goal was to get GOP buy-in on higher tax rates for the wealthy. It is regarded as one of the most significant policy victories in two decades, the officials said.

Compromising on the two-month sequester was difficult, the officials added. The White House wanted a full year of waiving the sequester but there was no time to negotiate the difficult policy details (the sequester talks took literally all of Monday).

As for the deal's effect on the deficit, it does not cut the deficit relative to what would have occurred if all the fiscal cliff tax cuts had been erased (meaning all Bush tax cuts expired) and the sequester kicked in full force. But, relative to a baseline that assumes all existing tax policy would have continued, the deal raises $620 billion in revenue. The Alternative Minimum Tax (AMT) fix is not counted by the WH, for example, because its extension was assumed in the existing policy baseline (that doesn't mean it won't cost anything; just that the White House doesn't count the cost).

The jobless benefit extension for one year cost $30 billion and that is not paid for. The Medicare "doc fix" is paid for by savings that will be taken from other provider payouts in Medicare. It costs $31 billion, meaning those provider cuts will pay for protecting doctors from a 27 percent automatic cut in premiums.

And $12 billion in new revenue comes from allowing 401Ks and other retirement instruments into Roth IRAs. This is the revenue that forms half of the offset of the two-month sequester delay. The other $12 billion will come from a 50-50 split of non-defense and defense cuts.

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White House Revels in Fiscal Cliff 'Victory'

Jan 1, 2013 12:13pm

It’s hard to find anyone in Washington happy about the outcome of the “fiscal cliff” brinksmanship.

But inside the Obama White House, senior officials are elated by what they call a significant presidential achievement:  breaking longstanding Republican intransigence on taxes.

The deal passed by the Senate early this morning, with the endorsement of all but seven of the 47 Republicans, would raise $620 billion in new revenue, hiking tax rates on households earning more than $450,000 a year.

The income tax hike would be the first in two decades.

“Keep in mind that just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans,” President Obama said Monday. “Obviously, the agreement that’s currently being discussed would raise those rates and raise them permanently.”

The spin from the White House – casting the new revenue as a major victory – is at least partly aimed at grumbling liberals who have accused Obama of capitulating on a key campaign pledge: hiking tax rates on households making $250,000 or more.

“Anyone looking at these negotiations, especially given Obama’s previous behavior, can’t help but reach one main conclusion: Whenever the president says that there’s an issue on which he absolutely, positively won’t give ground, you can count on him, you know, giving way – and soon, too,” liberal economist Paul Krugman wrote today in the New York Times.

“The idea that you should only make promises and threats you intend to make good on doesn’t seem to be one that this particular president can grasp.”

Still, the White House believes the concessions Obama extracted from Republicans on taxes puts him in a stronger position for negotiating on the debt ceiling and “sequester” in the coming weeks.

The president now says any deal to offset the automatic “sequester” spending cuts will have to be balanced – including additional new tax revenue, not cuts alone.

But Republican leaders see the outcome, and the fiscal fights ahead, much differently.

GOPers are touting permanent extension of many of the Bush-era tax cuts as a victory in its own right. They also believe the resolution of the tax revenue debate will allow for greater focus on spending cuts and entitlement overhaul, essentially resetting the national dialogue.

“Frankly, we’ve denied [Obama], I think, his most important piece of leverage in any negotiation going forward,” Rep. Tom Cole, R-Okla., who sits on the House Budget Committee, said on MSNBC. “So I particularly like that part.

“The sequester is in front of us. The continuing resolution runs out the end of March and, obviously, the debt ceiling. All of those things honestly are Republican leverage, not Democratic,” he said.

“So I think there will be opportunities to deal with the spending issue next year.”

SHOWS: World News

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About 60 crushed to death in Ivory Coast stampede

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

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

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

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

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

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

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

She did not know if her children had escaped unhurt.

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

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

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

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Football: United start 2013 with bang to keep City at bay

LONDON: Manchester United kept a firm grip on the Premier League title race by sweeping to a 4-0 win at Wigan Athletic on the first day of 2013 to maintain their seven-point lead.

Champions Manchester City remain United's nearest rivals after a 3-0 success at home to Stoke City, while Tottenham Hotspur climbed to third by coming from behind to defeat second-bottom Reading 3-1 at White Hart Lane.

Javier Hernandez had already had a goal ruled out for offside at the DW Stadium when he put United 1-0 up against Wigan by tapping in after Ali Al Habsi saved from Patrice Evra in the 35th minute.

Robin van Persie got off the mark for the New Year eight minutes later, collecting a pass from Hernandez and sending Ivan Ramis to the turf with a dummy before curling the ball inside the right-hand post.

Hernandez added a third in the 63rd minute, swivelling to dispatch a half-volley when a van Persie free-kick arrived at his feet, before the Dutchman completed a brace of his own in the 88th minute with his 16th league goal.

City dominated the early stages at home to Stoke, who had gone into the game looking to protect a 10-match unbeaten run.

Pablo Zabeleta broke the deadlock two minutes before half-time, rolling the ball into an empty net after Asmir Begovic touched away James Milner's low cross with his foot.

Sergio Aguero was the creator of City's second in the 56th minute, with a low drive that was parried by Begovic, only for Edin Dzeko to turn the loose ball home.

Aguero scored a 74th-minute penalty after Steven Nzonzi was adjudged to have tripped David Silva, but the Argentine had to leave the fray moments later after appearing to sustain a hamstring injury.

Tottenham fell behind in the fourth minute against Reading when Pavel Pogrebnyak headed the visitors in front, but Michael Dawson's header meant the hosts were level within five minutes.

Spurs were dominant from then on, Emmanuel Adebayor putting them in front with a powerful 51st-minute header before Clint Dempsey's fortuitous deflected strike made it 3-1.

Victory took Spurs a point clear of Chelsea, who have two games in hand and host bottom club Queens Park Rangers on Wednesday.

Aston Villa put an end to a run of three straight defeats, in which they had conceded 15 goals, by drawing 2-2 at Swansea City, who equalised through Danny Graham in injury time.

Christian Benteke had put Villa ahead with an 84th-minute penalty, after Wayne Routledge's ninth-minute opener for the hosts had been cancelled out by Andreas Weimann.

West Ham United were also on the up, beating Norwich City 2-1 through goals from Mark Noble and Joey O'Brien to climb to 11th.

Earlier, Fulham shook off their slumbers from 2012 to win 2-1 at West Bromwich Albion and record only their second win in 13 matches.

Fulham striker Dimitar Berbatov had the honour of scoring the first goal of 2013 at the Hawthorns, with Alex Kacaniklic netting a 58th-minute winner after Romelu Lukaku equalised early in the second half.

Fifth-place Arsenal, 7-3 victors against Newcastle United on Saturday, visit Southampton in the evening kick-off.

- AFP/jc

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Some of my favorite iOS apps of 2012

Angry Birds Star Wars was one of my favs for the year.

(Credit:
Screenshot by Lance Whitney/CNET)

2012 was another year that kept me glued to my iPhone and
iPad checking out the latest batch of iOS games and other apps. So which ones proved to be among my favorites? In alphabetical order...

Angry Birds Star Wars
My wife and I love to play Angry Birds, and the Star Wars edition is a great take on the familiar franchise. This app could've easily taken a turn to the dark side. But Rovio knew just how to pair its birds and piggies with the classic Star Wars characters and settings that fans know and love. The challenging gameplay, the clever scenarios, and the evocative music all make this app a force to be reckoned with.

Google Maps
Following the debacle of its own maps app, Apple wisely allowed Google Maps back into its App Store. And iOS users are all the better for it.

When I'm in the
car without my GPS, this is the app I rely on to get me where I'm going. The on-screen and spoken directions are clear and easy to follow. When I'm traveling by foot and don't quite know where I am, Google Maps points me to the right spot, sometimes with a little Street View thrown in. And when I want directions, reviews, and other details for a local restaurant or business, I know I can get all of those and more from this one app.

MTA Subway Time
Trying to figure out subway arrivals in New York City was always a challenge, at least until this app arrived. Other subways apps and maps are available, but this new one provides up-to-the-minute info on just how close the next train is to your destination. It covers only a smattering of subway lines right now, but it's still a handy app for helping you travel uptown, downtown, or crosstown in Manhattan.

OnLive Desktop
Want to run Windows on your iPad? This app offers a way.

OnLive Desktop provides a virtual Windows 7 environment complete with
Microsoft Office 2010, Internet Explorer, and the usual Windows accessories. Some of the features, such as Internet Explorer, require a subscription. But you can freely take advantage of Microsoft Word, Excel, and PowerPoint to create and store your documents in the cloud.

Other apps, such as CloudOn, offer a virtual version of Office. Released in 2011, CloudOn is another one of my favorite apps. And Microsoft may unveil its own Office suite for the iPad next year. But for now, OnLive Desktop is a simple and quick way to create and access documents in the cloud.

Python Bytes
And now for something completely different.

Python Bytes is a fun app for all Monty Python fans. A selection of some of the troupe's funniest sketches are displayed in a TV screen on your iPhone where you can watch them randomly or choose a particular one. Some of the sketches include a commentary by John Cleese, Michael Palin, and other Python members. And in typical Python fashion, navigating beyond the sketches takes you to an area that makes little sense but fits in perfectly with the overall theme.

The app is pricey. Python Bytes actually comes as three separate series, each one costing you $2.99 a piece. Since you can access most of these sketches on YouTube, coughing up the cash may not make sense. But nudge, nudge, wink, wink, it's still a series of apps that any Python fan will love.

Royal Envoy 2
This proved to be a worthy sequel to one of my all-time favorite iPad games. The original Royal Envoy sent you on a journey to cultivate mythical foreign lands by building different types of homes and buildings. A large part of the fun was just watching the tiny characters scurry around the screen to chop wood, trade at the market, and negotiate with pirates, all in an attempt to build a village before the time ran out.

The sequel carries on that tradition with the same spirit of fun and adventure and even more challenging levels to complete. The attention to detail built into the game is amazing to watch. Both versions of Royal Envoy are also welcome changes from the usual shoot-em-up and combat games. I'm definitely addicted here.

SkyDrive
I use Microsoft's SkyDrive to back up and sync my local documents and other files. This app gives me the ability to view and manage all of those files from my iPhone or iPad. I can access my Word documents and Excel spreadsheets, view pictures, and play videos. I can also delete, rename, or move files and share them with other people via e-mail. This app is the ideal way to access all of my documents anywhere and anytime I'm away from my PC.

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Pregnant U.S. woman missing in Afghanistan

KABUL The father of a pregnant American woman missing in Afghanistan has broken his silence over her disappearance to make a desperate plea for her safe return.

James Coleman, father of 27-year-old Caitlan Coleman, told The Associated Press his daughter was traveling with her Canadian husband when she vanished in early October. The last communication came from Caitlan's husband, Josh, who said he was in an Internet cafe on Oct. 8, in what he described as an "unsafe" part of Afghanistan. Caitlin was due to give birth in January.

An Afghan official has claimed the couple was kidnapped in Wardak province, west of the capital Kabul. So far, however, there has been no clear evidence they were abducted. Many insurgent groups operate in the area, but none have claimed responsibility for their disappearance, or demanded a ransom.

"I'm not sure whether they have been kidnapped by the Taliban or not," Taliban spokesman Zabihullah Mujahid told CBS News on Monday. "We are still investigating."

The U.S. Embassy in Kabul would only confirm that it was in contact with Coleman's family and was "coordinating closely with the Canadian authorities."

"Due to privacy considerations we cannot provide additional information about the case," embassy spokesman David Snepp told CBS News in a written statement.

A spokesperson for the governor of Wardak province, Shahidulla Shahid, was also unable to shed much light on the couple's fate.

"We are aware that an American woman and her husband have disappeared," he told CBS News, "but our investigation has found no lead in the case."

James Coleman was at pains to even explain why his daughter was in the war-torn country to begin with. He described her to the AP as "naive" and "adventuresome," and suggested she and Josh might have been looking for an opportunity to start working for an aid agency.

Since Caitlan's disappearance, the family has become increasingly concerned about her health, as she needs regular medical attention for a liver condition.

"Our goal is to get them back safely and healthily," he said. "I don't know what kind of care they're getting or not getting. We're just an average family and we don't have good connections with anybody and we don't have a lot of money."

The couple started traveling last July, passing through Russia, Kazakhstan and Tajikistan before entering Afghanistan.

The country is generally deemed unsafe for tourists and the area where they vanished is particularly dangerous for foreigners. Last year a German tourist was killed while traveling through central Afghanistan and a Canadian tourist was kidnapped not far from where Caitlan and her husband were last heard from.

Caitlan's father said the couple liked to travel primarily in small villages, getting to know locals along the way, and had said they were "heading into the mountains" before they disappeared.

Had they done so, they would have faced danger not only from Taliban groups and criminal gangs, but also from the elements. Temperatures in Afghanistan have consistently dropped below freezing in recent weeks, and conditions in the mountains are particularly harsh at this time of year.

Caitlan's father is holding out hope for his daughter's safe return.

"We appeal to whoever is caring for her to show compassion and allow Caity, Josh and our unborn grandbaby to come home," he told the AP.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Both sides say the cost of failure is high.

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

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Senate report faults State Department, intelligence on Benghazi

WASHINGTON (Reuters) - The State Department's decision to keep the U.S. mission in Benghazi open despite inadequate security and increasingly dangerous threat assessments before it was attacked in September was a "grievous mistake," a Senate report said on Monday.

The Senate Homeland Security Committee's report about the September 11 attacks on the U.S. mission and a nearby annex, which killed four Americans, including the U.S. ambassador to Libya, faulted intelligence agencies for not having enough focus on Libyan extremists. It also faulted the State Department for waiting for specific warnings instead of acting on security.

The assessment follows a scathing report by an independent State Department accountability review board that resulted in a top security official and three others at the department stepping down.

The attack, in which U.S. Ambassador Christopher Stevens died, has put diplomatic security practices at posts in insecure areas under scrutiny and raised questions about whether intelligence on terrorism in the region was adequate.

The Senate report said the lack of specific intelligence of an imminent threat in Benghazi "may reflect a failure" in the intelligence community's focus on terrorist groups that have weak or no operational ties to al Qaeda and its affiliates.

"With Osama bin Laden dead and core al Qaeda weakened, a new collection of violent Islamist extremist organizations and cells have emerged in the last two to three years," the report said. That trend has been seen in the "Arab Spring" countries undergoing political transition or military conflict, it said.

The report recommended that U.S. intelligence agencies "broaden and deepen their focus in Libya and beyond, on nascent violent Islamist extremist groups in the region that lack strong operational ties to core al Qaeda or its main affiliate groups."

Neither the Senate report nor the unclassified accountability review board report pinned blame for the Benghazi attack on a specific group. The FBI is investigating who was behind the assaults.

President Barack Obama, in an interview on NBC's "Meet the Press" on Sunday, said the United States had some "very good leads" about who carried out the attacks. He did not provide any details.

The Senate committee report said the State Department should not have waited for specific warnings before acting on improving security in Benghazi.

It also said that it was widely known that the post-revolution Libyan government was "incapable of performing its duty to protect U.S. diplomatic facilities and personnel," but the State Department failed to take adequate steps to fill the security gap.

"Despite the inability of the Libyan government to fulfill its duties to secure the facility, the increasingly dangerous threat assessments, and a particularly vulnerable facility, the Department of State officials did not conclude the facility in Benghazi should be closed or temporarily shut down," the report said. "That was a grievous mistake."

(Editing by Warren Strobel and David Brunnstrom)

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