Food labels multiply, some confuse consumers

FRESNO, Calif. (AP) — Want to avoid pesticides and antibiotics in your produce, meat, and dairy foods? Prefer to pay more to make sure farm animals were treated humanely, farmworkers got their lunch breaks, bees or birds were protected by the farmer and that ranchers didn't kill predators?

Food labels claim to certify a wide array of sustainable practices. Hundreds of so-called eco-labels have cropped up in recent years, with more introduced every month — and consumers are willing to pay extra for products that feature them.

While eco-labels can play a vital role, experts say their rapid proliferation and lack of oversight or clear standards have confused both consumers and producers.

"Hundreds of eco labels exist on all kinds of products, and there is the potential for companies and producers to make false claims," said Shana Starobin, a food label expert at Duke University's Nicholas School of the Environment.

Eco-labels have multiplied in recent years in response to rising consumer demand for more information about products and increased attention to animal and farmworker welfare, personal health, and the effects of conventional farming on the environment.

"Credible labels can be very helpful in helping people get to what they want to get to and pay more for something they really care about," said Urvashi Rangan, director of consumer safety at Consumer Reports. "The labels are a way to bring the bottom up and force whole industries to improve their practices."

The problem, Rangan and other said, is that few standards, little oversight and a lot of misinformation exist for the growing array of labels.

Some labels, such as the USDA organic certification, have standards set by the federal government to which third party certifiers must adhere. Some involve non-government standards and third-party certification, and may include site visits from independent auditors who evaluate whether a given farm or company has earned the label.

But other labels have little or no standards, or are certified by unknown organizations or by self-interested industry groups. Many labels lack any oversight.

And the problem is global, because California's products get sold overseas and fruits and vegetables from Europe or Mexico with their own eco-labels make it onto U.S. plates.

The sheer number of labels and the lack of oversight create a credibility problem and risk rendering all labels meaningless and diluting demand for sustainably produced goods, Rangan said.

Daniel Mourad of Fresno, a young professional who likes to cook and often shops for groceries at Whole Foods, said he tends to be wary of judging products just by the labels — though sustainable practices are important to him.

"Labels have really confused the public. Some have good intentions, but I don't know if they're really helpful," Mourad said. "Organic may come from Chile, but what does it mean if it's coming from 6,000 miles away? Some local farmers may not be able to afford a label."

In California, voters this week rejected a ballot measure that would have required labels on foods containing genetically modified ingredients.

Farmers like Gena Nonini in Fresno County say labels distinguish them from the competition. Nonini's 100-acre Marian Farms, which grows grapes, almonds, citrus and vegetables, is certified biodynamic and organic, and her raisins are certified kosher.

"For me, the certification is one way of educating people," Nonini said. "It opens a venue to tell a story and to set yourself apart from other farmers out there."

But other farmers say they are reluctant to spend money on yet another certification process or to clutter their product with too much packaging and information.

"I think if we keep adding all these new labels, it tends to be a pile of confusion," said Tom Willey of TD Willey Farms in Madera, Calif. His 75-acre farm, which grows more than 40 different vegetable crops, carries USDA organic certification, but no other labels.

The proliferation of labels, Willey said, is a poor substitute for "people being intimate with the farmers who grow their food." Instead of seeking out more labels, he said, consumers should visit a farmers' market or a farm, and talk directly to the grower.

Since that's still impossible for many urbanites, Consumer Reports has developed a rating system, a database and a web site for evaluating environmental and food labels — one of several such guides that have popped up recently to help consumers.

The guides show that labels such as "natural" and "free range" carry little meaning, because they lack clear standards or a verification system.

Despite this, consumers are willing to pay more for "free range" eggs and poultry, and studies show they value "natural" over "organic," which is governed by lengthy federal regulations.

But some consumers and watchdog groups are becoming more vigilant.

In October, the Animal Legal Defense Fund filed a lawsuit against Petaluma, Calif., organic egg producer of Judy's Eggs over "free range" claims. The company's packaging depicts a hen ranging on green grass, and the inside reads "these hens are raised in wide open spaces in Sonoma Valley..."

Aerial photos of the farm suggest the chickens actually live in factory-style sheds, according to the lawsuit. Judy and Steve Mahrt, owners of Petaluma Farms, said in a statement that the suit is "frivolous, unfair and untrue," but they did not comment on the specific allegations.

Meanwhile, new labels are popping up rapidly. The Food Justice label, certified via third party audits, guarantees a farm's commitment to fair living wages and adequate living and working conditions for farmworkers. And Wildlife Friendly, another third-party audited program, certifies farmers and ranchers who peacefully co-exist with wolves, coyotes, foxes and other predators.

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Follow Gosia Wozniacka at http://twitter.com/GosiaWozniacka

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Two senators restart talks on U.S. immigration reform plan

(Reuters) - Two U.S. senators launched a fresh move to put together a bipartisan immigration reform plan on Sunday, restarting talks on a proposal that includes a path to citizenship for illegal immigrants already in the country.


Since President Barack Obama was re-elected last week with overwhelming support from Hispanic voters, many Republicans have expressed a new willingness to work with Democrats to pass immigration reform after years of legislative inaction.


Appearing on NBC's "Meet the Press," Democratic Senator Charles Schumer said he and Republican Senator Lindsey Graham have agreed to resume talks on immigration reform that broke off two years ago.


"And I think we have a darned good chance using this blueprint to get something done this year. The Republican Party has learned that being ... anti-immigrant doesn't work for them politically. And they know it," Schumer said.


Obama in 2010 called the proposal backed by Graham and Schumer a "promising framework," but it made no headway.


There are an estimated 12 million illegal immigrants in the United States, most of them Hispanics.


Speaking on the CBS program "Face the Nation," Graham said the tone and rhetoric used by members of his party on immigration "built a wall between the Republican Party and the Hispanic community."


He noted that Republican presidential candidates have been steadily losing the support of Hispanic voters since 2004.


"This is an odd formula for a party to adopt: the fastest-growing demographic in the country, and we're losing votes every election cycle. And it has to stop. It's one thing to shoot yourself in the foot. Just don't reload the gun. ... I intend to tear this wall down and pass an immigration reform bill that's an American solution to an American problem," Graham said.


PATH TO CITIZENSHIP


The Graham and Schumer plan has four components: requiring high-tech, fraud-proof Social Security cards to ensure that illegal workers cannot get jobs; strengthening border security and enforcement of immigration laws; creating a process for admitting temporary workers; and implementing a path to legal status for immigrants already in the country.


Schumer said the plan embraces "a path to citizenship that's fair, which says you have to learn English, you have to go to the back of the line, you've got to have a job, and you can't commit crimes."


Graham added, "Sixty-five percent of the people in the exit poll of this election supported a pathway to citizenship."


Many Republican leaders have taken a hard position against illegal immigrants. Obama's unsuccessful Republican challenger, Mitt Romney, during the campaign advocated "self-deportation" of illegal immigrants. Republicans in Arizona and other states have passed tough laws cracking down on illegal immigrants.


Since the election, some influential conservative voices, including television commentator Sean Hannity, have announced support for immigration reform that includes a path to citizenship for illegal immigrants with no criminal record.


"We have nobody to blame but ourselves when it comes to losing Hispanics, and we can get them back with some effort on our part," Graham said.


House of Representatives Speaker John Boehner, the top Republican in Congress, said on Friday the U.S. immigration system is broken. He has expressed confidence Republicans could find common ground with Obama.


The Obama administration announced in June it would relax U.S. deportation rules so that many young illegal immigrants who came to the United States as children can stay and work. The change would allow illegal immigrants who, among other criteria, are younger than 30 years old and have not been convicted of a felony to apply for work permits.


(Editing by Doina Chiacu)


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US computer graphics scientist wins Kyoto Prize

TOKYO (AP) — An American regarded as a father of computer graphics, an Indian literary critic and a Japanese molecular cell biologist have received the Kyoto Prize, Japan's highest private award for global achievement.

The Inamori Foundation awarded its advanced technology prize on Saturday to U.S. computer scientist Ivan Sutherland, who developed the graphic interface program Sketchpad in 1963.

Gayatri Chakrovoty Spivak , an Indian literary critic and professor at Columbia University, won the arts and philosophy prize.

Yoshinori Ohsumi, a molecular biologist at the Tokyo Institute of Technology, received the basic sciences prize for his work on autophagy, a cell-recycling system that could be used to help treat neurodegenerative and age-related diseases such as Alzheimer's and cancer.

The Kyoto-based Inamori Foundation was set up in 1984 by Kyocera Corp.'s founder, Kazuo Inamori.

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Madonna fan guilty in NYC resisting arrest trial

NEW YORK (AP) — A former firefighter with a crush on Madonna has been convicted of resisting arrest outside her former New York City apartment building as he spray-painted poster boards with love notes.

A jury delivered its verdict Friday in Robert Linhart's trial. He could face up to a year in jail.

Defense lawyer Lawrence LaBrew tells the New York Post (http://bit.ly/ZgI4jl) that Linhart will appeal.

Linhart was arrested in September 2010. Police say he parked his SUV outside the singer's Manhattan apartment, laid out a tarp and wrote out such messages as "Madonna, I need you."

Jurors told the Post they felt it was fine for Linhart to express himself to the Material Girl. But they said they believed police testimony that he resisted arrest by flailing his arms.

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Malaria vaccine a letdown for infants

LONDON (AP) — An experimental malaria vaccine once thought promising is turning out to be a disappointment, with a new study showing it is only about 30 percent effective at protecting infants from the killer disease.

That is a significant drop from a study last year done in slightly older children, which suggested the vaccine cut the malaria risk by about half — though that is still far below the protection provided from most vaccines. According to details released on Friday, the three-shot regimen reduced malaria cases by about 30 percent in infants aged 6 to 12 weeks, the target age for immunization.

Dr. Jennifer Cohn, a medical coordinator at Doctors Without Borders, described the vaccine's protection levels as "unacceptably low." She was not linked to the study.

Scientists have been working for decades to develop a malaria vaccine, a complicated endeavor since the disease is caused by five different species of parasites. There has never been an effective vaccine against a parasite. Worldwide, there are several dozen malaria vaccine candidates being researched.

In 2006, a group of experts led by the World Health Organization said a malaria vaccine should cut the risk of severe disease and death by at least half and should last longer than one year. Malaria is spread by mosquitoes and kills more than 650,000 people every year, mostly young children and pregnant women in Africa. Without a vaccine, officials have focused on distributing insecticide-treated bed nets, spraying homes with pesticides and ensuring access to good medicines.

In the new study, scientists found babies who got three doses of the vaccine had about 30 percent fewer cases of malaria than those who didn't get immunized. The research included more than 6,500 infants in Africa. Experts also found the vaccine reduced the amount of severe malaria by about 26 percent, up to 14 months after the babies were immunized.

Scientists said they needed to analyze the data further to understand why the vaccine may be working differently in different regions. For example, babies born in areas with high levels of malaria might inherit some antibodies from their mothers which could interfere with any vaccination.

"Maybe we should be thinking of a first-generation vaccine that is targeted only for certain children," said Dr. Salim Abdulla of the Ifakara Health Institute in Tanzania, one of the study investigators.

Results were presented at a conference in South Africa on Friday and released online by the New England Journal of Medicine. The study is scheduled to continue until 2014 and is being paid for by GlaxoSmithKline and the PATH Malaria Vaccine Initiative.

"The results look bad now, but they will probably be worse later," said Adrian Hill of Oxford University, who is developing a competing malaria vaccine. He noted the study showed the Glaxo vaccine lost its potency after several months. Hill said the vaccine might be a hard sell, compared to other vaccines like those for meningitis and pneumococcal disease — which are both effective and cheap.

"If it turns out to have a clear 30 percent efficacy, it is probably not worth it to implement this in Africa on a large scale," said Genton Blaise, a malaria expert at the Swiss Tropical and Public Health Institute in Basel, who also sits on a WHO advisory board.

Eleanor Riley of the London School of Hygiene and Tropical Medicine, said the vaccine might be useful if used together with other strategies, like bed nets. She was involved in an earlier study of the vaccine and had hoped for better results. "We're all a bit frustrated that it has proven so hard to make a malaria vaccine," she said. "The question is how much money are the funders willing to keep throwing at it."

Glaxo first developed the vaccine in 1987 and has invested $300 million in it so far.

WHO said it couldn't comment on the incomplete results and would wait until the trial was finished before drawing any conclusions.

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How 'poor judgment' felled military star Petraeus

WASHINGTON (Reuters) - David Petraeus was a star on the battlefield, commanding the Iraq and Afghanistan wars, but was undone by "poor judgment" in engaging in an extramarital affair that led to his downfall as CIA director.


Just two days after his 60th birthday, Petraeus stepped down from the spy agency where he had held the top office since September 6, 2011.


"After being married for over 37 years, I showed extremely poor judgment by engaging in an extramarital affair. Such behavior is unacceptable, both as a husband and as the leader of an organization such as ours. This afternoon, the President graciously accepted my resignation," Petraeus told the shadow warriors he commanded at CIA.


It was a stunning downfall for a revered military man who was seen as one of the top American leaders of his generation and was once considered a potential contender for the White House.


Petraeus was credited with pulling Iraq from the brink of all-out civil war and for battlefield successes in Afghanistan after overseeing a surge of 30,000 troops ordered by President Barack Obama in late 2009. He became known for counter-insurgency strategies that were seen as gaining ground against the Taliban in Afghanistan.


"I don't think he was professionally overrated. His were genuine accomplishments," said James Carafano, a war historian with the conservative Heritage Foundation think tank.


At the time of his nomination to the CIA post, some Washington insiders had said the White House wanted to find a prominent position for Petraeus to ensure he would not be recruited by Republicans as a challenger to the 2012 Obama-Biden ticket.


When he was nominated to lead the CIA there were some concerns in intelligence circles that the high-profile four-star Army general might not be able to lead from the shadows as appropriate for a spy chief.


But once he took over the head office at the U.S. spy agency, Petraeus kept a decidedly low public profile.


Senate Intelligence Committee Chairman Dianne Feinstein, a Democrat, expressed regret about the resignation of "one of America's best and brightest" and said it was an "enormous loss" for the country.


"At CIA, Director Petraeus gave the agency leadership, stature, prestige and credibility both at home and abroad. On a personal level, I found his command of intelligence issues second to none," she said.


RESIGNATION ACCEPTED


After accepting his resignation about a year-and-a-half after nominating Petraeus to the CIA post, Obama said: "By any measure, he was one of the outstanding General officers of his generation, helping our military adapt to new challenges, and leading our men and women in uniform through a remarkable period of service in Iraq and Afghanistan, where he helped our nation put those wars on a path to a responsible end."


Earlier this week, in a Newsweek article entitled "General David Petraeus's Rules for Living," he listed 12 lessons for leadership. Number 5 was: "We all will make mistakes. The key is to recognize them and admit them, to learn from them, and to take off the rear­ view mirrors - drive on and avoid making them again."


In 2010 Petraeus stepped into the breach as the new commander of U.S. forces in Afghanistan to replace General Stanley McChrystal who was fired by Obama in a scandal over an article in which McChrystal and his aides made mocking comments about the president and some of his top advisers.


In 2009 Petraeus was diagnosed with early-stage prostate cancer and underwent radiation treatment. The media-friendly general joked at that time at a Washington event that reporters were only gathered "to see if the guy is still alive."


Petraeus, born in Cornwall, New York, lives in Virginia with his wife Holly. They have two grown children, a son who was an Army Ranger who served in Afghanistan, and a daughter.


Petraeus's wife, Holly, is an activist and volunteer who champions military families, and she continued that work after her husband retired from the military and moved to the CIA.


She currently is assistant director of the office of servicemember affairs at the Consumer Financial Protection Bureau, where she tries to keep unscrupulous lenders from taking advantage of military personnel. The bureau was championed by Harvard law professor Elizabeth Warren, who was elected to the Senate from Massachusetts this week.


Holly Petraeus is the daughter of four-star General William Knowlton, who was superintendent of the U.S. Military Academy at West Point when Petraeus was a cadet.


She briefed the press at the Pentagon on her efforts recently and was introduced by Defense Secretary Leon Panetta, who called her "a true friend of the Department of Defense and a dedicated member of our military family."


Petraeus has four Defense Distinguished Service Medal awards, three Distinguished Service Medal awards, the Bronze Star Medal for valor, and the State Department Distinguished Service Award.


He has a doctorate in international relations from Princeton University.


(Additional reporting by David Alexander, Matt Spetalnick and Diane Bartz; Editing by Warren Strobel and Jackie Frank)

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Transgender Pakistanis face society's scorn

RAWALPINDI, Pakistan (AP) — Dressed up in elaborate, feminine outfits and artfully applied makeup, they are showered with money while dancing at all-male wedding parties. But the lives of transgender people in Pakistan are also marked by harassment, rejection and poverty.

Transgender people live in a tenuous position in conservative Pakistan, where the roles of the sexes are traditionally starkly drawn. Families often push them out of the home when they're young, forcing many to prostitute themselves to earn a living.

One role where they are tolerated is as dancers at weddings and other celebrations at which men and women are strictly segregated. In between the dancing and showers of rupee notes, they must fend off groping from drunken guests.

"I don't understand why people feel it is their duty to tease and taunt us," said one transgender Pakistani who goes by the name Symbal. Many in the transgender community pick a name for themselves and do not use their last name to protect their family.

Others beg on the streets or earn money by blessing newborn babies. The blessings reflect a widespread belief in Pakistan and other South Asian nations that God answers the prayers of someone who was born underprivileged, said Iqbal Hussain, a Pakistani researcher who has studied the transgender community. But he cautioned that didn't mean people were ready to give them equal rights.

In recent years the community has gained some government protection. A Supreme Court ruling in 2011 allowed them to get national identity cards recognizing them as a separate identity — neither male or female — and allowing them to vote. In neighboring India, the election commission ruled in 2009 that transgender people could register to vote as "other," rather than male or female.

In other parts of the region and Muslim world, the attitude toward transgenders is also complex. In Thailand, the community is very visible and broadly tolerated. Transgender people are regularly seen on TV soap operas, working at department store cosmetics counters or popular restaurants and walking the runways in numerous transgender beauty pageants.

Many transgender Indonesians publicly wear women's clothes and makeup and work as singers. But societal disdain still runs deep. They have taken a much lower profile in recent years, following a series of attacks by Muslim hard-liners.

In Malaysia, Muslim men who wear women's clothes can be prosecuted in Islamic courts.

In the Arab world, there is little opportunity for transgender people to openly show their identity in public. In 2007, Kuwait made "imitating members of the opposite sex" a crime, leading to the arrest of hundreds of transgender women, Human Rights Watch said. In Iraq, extremists have targeted and killed people perceived of being gay or effeminate.

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Roger Waters plays with band of wounded veterans

NEW YORK (AP) — Roger Waters honored wounded veterans in New York by performing with them at the annual Stand Up for Heroes benefit, Thursday night.

The founding member of Pink Floyd took to the stage of the Beacon Theater with 14 wounded soldiers he met recently at the Walter Reed Army Medical Center in Washington, D.C. He rehearsed with them at the hospital, and for the past few days in New York.

The event benefited the Bob Woodruff Foundation, which helps returning veterans and their families, and featured Waters, Bruce Springsteen, Ricky Gervais, Robin Williams, and others.

Before the show, Waters chatted with veterans and called the experience "fantastic." He says he's "looking forward to pulling for the rest of these guys with their comrades" during the healing process.

He says that he shares "enormous empathy with the men."

"I lost my grandfather in 1916 and my father in 1944, so I've been around the sense of loss and what loss from war can do to people," Waters said.

"I never talk about the politics because it's not relevant to me. I'm not interested in it," he said. "What I am interested in is the burdens these guys bear and would never question motive or even dream of talking about any of the politics."

He added: "If any of us have a responsibility in our lives it is to tear down the walls of indifference and miscommunication between ourselves and our fellow men."

Waters said he rehearsed with many of the soldiers at the hospital in between their medical procedures. Before the show, he walked the red carpet with Staff Sgt. Robert Henline, who was not in the band. In 2007, Henline was the sole survivor of a roadside bombing north of Baghdad. As a result, he suffered burns over 38 percent of his body and his head was burned to the skull.

Henline, who fought for his life after the attack, has endured more than 40 surgeries.

Still, he maintains a sense of humor. On the open red carpet on a chilly night, Waters pushed closer to Henline for warmth.

"Get next to the burn guy. I'm good. I'm heated up," Henline joked.

No surprise. The retired soldier says he's been doing stand-up comedy for the past year and a half.

Waters performed three songs with the veterans, including the Pink Floyd classic, "Wish You Were Here."

Waters said he didn't think there would be a reunion with his former band.

"I think David (Gilmour) is retired by and large. I shouldn't speak for him. But that's the impression I get."

Waters then added: "Hey whatever. All good things come to an end."

While his mammoth tour of "The Wall" ended this summer, Waters promised the theatrical version would hit the Broadway stage in the near future.

The Bob Woodruff Foundation has supported more than 1 million veterans, service members, and their families since it began in 2008.

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John Carucci covers entertainment for The Associated Press. Follow him at —http://www.twitter.com/jcarucci_ap

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Malaria vaccine a letdown for infants

LONDON (AP) — An experimental malaria vaccine once thought promising is turning out to be a disappointment, with a new study showing it is only about 30 percent effective at protecting infants from the killer disease.

That is a significant drop from a study last year done in slightly older children, which suggested the vaccine cut the malaria risk by about half — though that is still far below the protection provided from most vaccines. According to details released on Friday, the three-shot regimen reduced malaria cases by about 30 percent in infants aged 6 to 12 weeks, the target age for immunization.

Dr. Jennifer Cohn, a medical coordinator at Doctors Without Borders, described the vaccine's protection levels as "unacceptably low." She was not linked to the study.

Scientists have been working for decades to develop a malaria vaccine, a complicated endeavor since the disease is caused by five different species of parasites. There has never been an effective vaccine against a parasite. Worldwide, there are several dozen malaria vaccine candidates being researched.

In 2006, a group of experts led by the World Health Organization said a malaria vaccine should cut the risk of severe disease and death by at least half and should last longer than one year. Malaria is spread by mosquitoes and kills more than 650,000 people every year, mostly young children and pregnant women in Africa. Without a vaccine, officials have focused on distributing insecticide-treated bed nets, spraying homes with pesticides and ensuring access to good medicines.

In the new study, scientists found babies who got three doses of the vaccine had about 30 percent fewer cases of malaria than those who didn't get immunized. The research included more than 6,500 infants in Africa. Experts also found the vaccine reduced the amount of severe malaria by about 26 percent, up to 14 months after the babies were immunized.

Scientists said they needed to analyze the data further to understand why the vaccine may be working differently in different regions. For example, babies born in areas with high levels of malaria might inherit some antibodies from their mothers which could interfere with any vaccination.

"Maybe we should be thinking of a first-generation vaccine that is targeted only for certain children," said Dr. Salim Abdulla of the Ifakara Health Institute in Tanzania, one of the study investigators.

Results were presented at a conference in South Africa on Friday and released online by the New England Journal of Medicine. The study is scheduled to continue until 2014 and is being paid for by GlaxoSmithKline and the PATH Malaria Vaccine Initiative.

"The results look bad now, but they will probably be worse later," said Adrian Hill of Oxford University, who is developing a competing malaria vaccine. He noted the study showed the Glaxo vaccine lost its potency after several months. Hill said the vaccine might be a hard sell, compared to other vaccines like those for meningitis and pneumococcal disease — which are both effective and cheap.

"If it turns out to have a clear 30 percent efficacy, it is probably not worth it to implement this in Africa on a large scale," said Genton Blaise, a malaria expert at the Swiss Tropical and Public Health Institute in Basel, who also sits on a WHO advisory board.

Eleanor Riley of the London School of Hygiene and Tropical Medicine, said the vaccine might be useful if used together with other strategies, like bed nets. She was involved in an earlier study of the vaccine and had hoped for better results. "We're all a bit frustrated that it has proven so hard to make a malaria vaccine," she said. "The question is how much money are the funders willing to keep throwing at it."

Glaxo first developed the vaccine in 1987 and has invested $300 million in it so far.

WHO said it couldn't comment on the incomplete results and would wait until the trial was finished before drawing any conclusions.

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Obama to call for deal to avert 'fiscal cliff'





President Obama will today call upon Congress to work with him on preserving the lower tax rates first pushed by President Bush for those Americans who earn under $200,000 a year, but he will state his belief that voters were clear in re-electing him that they support a "balanced approach" to deficit reduction - meaning that the lower tax rates for higher wage earners should expire.



The president, aides tell ABC News, will argue that the tax cuts for the middle class are something everyone agrees on, so there's no reason for them to be linked to tax cuts for wealthier Americans, about which there's more disagreement. This will be the president "setting the table" for negotiations with Congress, one White House official told ABC News, just as House Speaker John Boehner, R-Ohio, did yesterday when he expressed his determination to stop any de facto tax increase on higher wage earners.



A report issued yesterday by the non-partisan Congressional Budget Office warned about the consequences to the U.S. economy if no deal was struck and the Bush tax cuts expired in addition to all the other issues related to the so-called "fiscal cliff" - including the expiration of a payroll tax cut, indexing the alternative minimum tax for inflation, continuing emergency unemployment benefits, and spending cuts forced on the budget because of the failure of the poorly-titled "Super-Committee" to come up with $1.2 trillion in deficit reduction.



Get More News at ABC Politics and a Different Spin at OTUS News



The CBO predicted that should no deal be struck, "real (inflation-adjusted) gross domestic product (GDP) will drop by 0.5 percent in 2013? causing "employment to decline and the unemployment rate to rise to 9.1 percent in the fourth quarter of 2013."



The president will note that the CBO report states that most of the impact of the tax cuts relates to those wage-earners who make less than $200,000 a year. Extending all the Bush-initiated lower rates would boost GDP by 1.4% and help create 1.8 million jobs, the CBO report states, while allowing their expiration for those higher wage earners while maintaining the lower rates for those making $200,000 a year and less would boost GDP by 1.3% and generate 1.6 million jobs. The .1% in GDP growth and 200,000-job difference is already being described by progressive pundits as "minimal."



White House officials insist that they're confident that a deal will be struck. One top Obama adviser, however, told ABC News that if the House GOP refuses to cut a deal with the president that includes some tax increases on the wealthy, the tax cuts will expire. One scenario the official discussed included the president barn-storming the country, telling the public that Democrats will put forward a bill to restore middle class tax cuts as soon as Congress convenes, and calling on them to pressure Republican congressional leaders to stop holding those tax cuts hostage in exchange for tax cuts for wealthier Americans.



-Jake Tapper


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