Feds drop escape charge in downtown prison break

In a surprise move, federal prosecutors today dropped an escape charge against Joseph Jose Banks, a convicted bank robber who made a daring escape from a high-rise South Loop jail by rappelling down some 15 stories with a rope fashioned from bed sheets only to be captured three days later on the North Side.

When he made the bold break for freedom from the Metropolitan Correctional Center, Banks, 37, already faced up to 80 years in prison for his conviction the previous week for holding up two banks and trying to rob two others.

To try to obtain the stiffest sentence possible for Banks, prosecutors can use the escape as aggravation at his sentencing for the bank holdups.

The escape charge, by comparison, carried only a maximum of five additional years in prison on conviction.

By dropping the escape charge, prosecutors also avoid another trial for Banks.

After his indictment for the bank robberies, Banks changed his attorneys multiple times and flooded the court with motions, all serving to stall the start of the trial for nearly five years after his 2008 arrest.

Then at trial Banks represented himself and caused repeated interruptions by refusing to recognize the rules of the court and defying orders from the judge.

At one point, he was briefly restrained in a chair.

Banks’ cellmate, Kenneth Conley, also took part in the escape on Dec. 18 and remains at large.

asweeney@tribune.com

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Syria rebels in push to capture air base

AZAZ, Syria (Reuters) - Rebels battled on Thursday to seize an air base in northern Syria, part of a campaign to fight back against the air power that has given President Bashar al-Assad's forces free rein to bomb rebel-held towns.

More than 60,000 people have been killed in the 21-month-old uprising and civil war, the United Nations said this week, sharply raising the death toll estimate in a conflict that shows no sign of ending.

After dramatic advances over the second half of 2012, the rebels now hold wide swathes of territory in the north and east, but are limited in exerting control because they cannot protect towns and villages from Assad's helicopters and jets.

Hundreds of fighters from rebel groups were attempting to storm the Taftanaz air base, near the northern highway that links Syria's two main cities, Aleppo and the capital Damascus.

Rebels have been besieging air bases across the north in recent weeks, in the hope this will reduce the government's power to carry out air strikes and resupply loyalist-held areas.

A rebel fighter speaking from near the Taftanaz base overnight said the base's main sections were still in loyalist hands but insurgents had managed to infiltrate and destroy a helicopter and a fighter jet on the ground.

The northern rebel Idlib Coordination Committee said the rebels had detonated a car bomb inside the base.

The government's SANA news agency said the base had not fallen and that the military had "strongly confronted an attempt by the terrorists to attack the airport from several axes, inflicting heavy losses among them and destroying their weapons and munitions".

Rami Abdulrahman, head of the opposition-aligned Syrian Observatory for Human Rights which monitors the conflict from Britain, said as many as 800 fighters were involved in the assault, including Islamists from Jabhat al-Nusra, a powerful group that Washington considers terrorists.

Taftanaz is mainly a helicopter base, used for missions to resupply army positions in the north, many of which are cut off by road because of rebel gains, as well as for dropping crude "barrel bombs" of explosives on rebel-controlled areas.

"WHAT IS THE FAULT OF THE CHILDREN?"

Near Minakh, another northern air base that rebels have surrounded, government forces have retaliated by regularly shelling and bombing nearby towns.

In the town of Azaz, where the bombardment has become a near nightly occurrence, shells hit a family house overnight. Zeinab Hammadi said her two wounded daughters, aged 10 and 12, had been rushed across the border to Turkey, one with her brain exposed.

"We were sleeping and it just landed on us in the blink of an eye," she said, weeping as she surveyed the damage.

Family members tried to salvage possessions from the wreckage, men lifting out furniture and children carrying out their belongings in tubs.

"He (Assad) wants revenge against the people," said Abu Hassan, 33, working at a garage near the destroyed house. "What is the fault of the children? Are they the ones fighting?"

Opposition activists said warplanes struck a residential building in another rebel-held northern town, Hayyan, killing at least eight civilians.

Video footage showed men carrying dismembered bodies of children and dozens of people searching for victims in the rubble of the destroyed building, shouting "God is greatest". The provenance of the video could not be independently confirmed.

In addition to their tenuous grip on the north, the rebels also hold a crescent of suburbs on the edge of Damascus, which have come under bombardment by government forces that control the center of the capital.

On Wednesday, according to opposition activists, dozens of people were incinerated in an inferno caused by an air strike on a petrol station in a Damascus suburb where residents were lining up for precious fuel.

The civil war in Syria has become the longest and bloodiest of the conflicts that rose out of uprisings across the Arab world in the past two years.

Assad's family has ruled for 42 years since his father seized power in a coup. The war pits rebels, mainly from the Sunni Muslim majority, against a government supported by members of Assad's Shi'ite-derived Alawite minority sect and some members of other minorities who fear revenge if he falls.

The West, most Sunni-ruled Arab states and Turkey have called for Assad to leave power. He is supported by Russia and Shi'ite Iran.

(Additional reporting by Khaled Yacoub Oweis in Amman and Dominic Evans in Beirut; Writing by Peter Graff; Editing by Ruth Pitchford)

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Wall Street extends gains on "cliff" deal

NEW YORK (Reuters) - U.S. stocks jumped on the year's first day of trading, after Washington lawmakers cut a last-minute deal to avert automatic tax hikes that threatened to stunt economic growth.

With the gains, the S&P 500 was on target for its highest close since October 19.

The rally was broad-based, with nine stocks rising for every one falling on the New York Stock Exchange. All 10 S&P 500 industry sector indexes rose at least 1 percent, led by the S&P financial index <.gspf>, up 2.2 percent.

The S&P Information Technology index <.gspt> gained 2.1 percent. Among the strongest names in the sector was Hewlett-Packard , which climbed nearly 5 percent to $14.95. HP's gain followed a miserable 2012, when the stock fell nearly 45 percent.

On New Year's Day, while the U.S. stock market was closed, Congress passed a bill to raise taxes on wealthy individuals and families, and preserve certain benefits, while avoiding immediate austerity measures. The combination of mandatory tax hikes and reduced federal spending, which had been set to go into effect on January 1, had been known as the "fiscal cliff.

"We had three choices: We were going to be off the cliff, we were going to be on the cliff, or we were going to avoid the cliff, and we avoided it," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago.

"There's a relief rally, some progress because we raised revenue, but I think it's going to be short-lived because the relief rally today was created by politics, and the next cliff is going to be created by politics."

The vote avoided income-tax hikes for all U.S. households, but failed to resolve other political budget showdowns. Spending cuts of $109 billion in military and domestic programs were delayed for just two months, as another fight over the U.S. debt limit also looms then.

The market's surge was due to "the concrete news as opposed to a lack of specific news" that was common during the negotiations, said Stephen Carl, head of U.S. equity trading at The Williams Capital Group in New York.

U.S. stocks ended 2012 with the S&P 500 up 13.4 percent for the year, as investors largely shrugged off worries about the fiscal cliff. For the year, the Dow gained 7.3 percent and the Nasdaq jumped 15.9 percent.

The Dow Jones industrial average <.dji> gained 223.60 points, or 1.71 percent, to 13,327.74. The Standard & Poor's 500 Index <.spx> advanced 24.61 points, or 1.73 percent, to 1,450.80. The Nasdaq Composite Index <.ixic> climbed 66.87 points, or 2.21 percent, at 3,086.38.

Bank shares rose following news that U.S. regulators are close to securing another multibillion-dollar settlement with the largest banks to resolve allegations that they unlawfully cut corners when foreclosing on delinquent borrowers.

Bank of America Corp rose 3.4 percent to $11.99 and Wells Fargo shares added 2 percent to $34.87. JPMorgan Chase & Co shares rose 1.5 percent to $44.34.

Shares of Zipcar Inc jumped 48.4 percent to $12.23 after Avis Budget Group Inc said it would buy Zipcar for about $500 million in cash to compete with larger rivals Hertz and Enterprise Holdings Inc. Avis rose 4.5 percent to $20.72.

Shares of Apple rose 2.4 percent to $545, boosting technology stocks, following a report that the most valuable tech company has started testing a new iPhone and a new version of its iOS software. Apple stocks struggled in the final weeks of 2012 before a rally to end the year.

U.S. manufacturing expanded slightly in December after an unexpected November contraction, an Institute for Supply Management report showed on Wednesday.

A Commerce Department report showed U.S. construction spending fell in November for the first time in eight months, as an extended bout of weakness in the business sector outweighed modest growth in outlays on residential projects.

The stock market's reaction to both reports was muted.

(Editing by Jan Paschal)

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Ray Lewis to retire after playoffs

OWINGS MILLS, Md. (AP) — Ray Lewis spent 17 seasons deftly patrolling the middle of the football field and serving as an inspirational leader for the Baltimore Ravens.

Now he's poised and eager to become a full-time dad.

Lewis announced Wednesday that he will end his brilliant NFL career after the Ravens complete their 2013 playoff run.

Lewis has been sidelined since Oct. 14 with a torn right triceps. The 13-time Pro Bowl middle linebacker intends to return Sunday to face the Indianapolis Colts in what will almost certainly be his final home game.

"Everything that starts has an end," Lewis said. "For me, today, I told my team that this will be my last ride."

Lewis will walk away from the game because he wants to spend more time with his sons. While working to return from his injury, Lewis watched two of his boys play on the same high school football team. He intends to see Ray Lewis III perform as a freshman next year for the University of Miami, where the elder Lewis starred before the Ravens selected him in the first round of the 1996 NFL draft.

"God is calling," the 37-year-old Lewis said. "My children have made the ultimate sacrifice for their father for 17 years. I don't want to see them do that no more. I've done what I wanted to do in this business, and now it's my turn to give them something back."

That's why Lewis will pull off his No. 52 uniform for the last time after the Ravens lose or claim their second Super Bowl title.

"It's either (that or) hold onto the game and keep playing and let my kids miss out on times we can be spending together," Lewis said. "Because I always promised my son if he got a full ride on scholarship Daddy is going to be there. I can't miss that."

Lewis was the AP Defensive Player of the Year in 2000, when Baltimore won the Super Bowl title, and in 2003.

"I never played the game for individual stats. I only played the game to make my team a better team," he said.

The news of his decision quickly resounded around the rest of the NFL.

Colts coach Chuck Pagano, who served as Lewis' defensive coordinator last year, said, "I thought, shoot, the guy could play forever and would play forever. Great person, great man, great player, just an unbelievable human being — what he's done for that organization, that city and for that matter, so many people. He's obviously a first-ballot Hall of Famer and will be sorely missed."

Lewis is the key figure in a Baltimore defense that has long carried a reputation for being fierce, unyielding and downright nasty. He led the Ravens in tackles in 14 of his 17 seasons, the exceptions being those years in which he missed significant time with injuries (2002, 2005, 2012).

"It was definitely an honor just to be in his presence, but to play with him and to be in front of him is amazing," Ravens defensive tackle Haloti Ngata said. "I know we'll definitely miss him."

When Lewis tore his triceps in a game against the Dallas Cowboys, it was feared he was done for the season. But he would have none of that.

"From the time I got hurt, everything I've done up to this point has been to get back with my team to make another run at the Lombardi (Trophy)," he said.

Well, not everything. Lewis spent time watching his boys play football, which caused him to call his experience on the sideline "bittersweet."

"I got to be there every Friday," Lewis said. "Me being who I am, not having a father myself, that damaged me a lot. I didn't want my kids to relive that."

Next year, Lewis will dedicate himself to his family instead of the Ravens.

"One of the hardest things in the world is to walk away from my teammates," he said. "The only thing I ever played for is to be right there. Does that part hurt? Absolutely. But the now I'm going to step into other chapters of my life.

"I knew I couldn't split my time anymore. When God calls, he calls. And he's calling. More importantly, he calls me to be a father. It's OK to be Daddy. Yes, this chapter is closing, but the chapter that's opening is overwhelming. That's what excites me the most."

Lewis could have made the announcement during the offseason, but thought it best to do it now.

"I think my fans, my city, I think they deserved for me to just not walk away," he said. "We all get to enjoy what Sunday will feel like, knowing that this will be the last time 52 plays in a uniform in Ravens stadium."

___

Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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Congress extends wind, biofuels tax credits

DES MOINES, Iowa (AP) — The bill Congress approved Tuesday night providing tax relief for most taxpayers also helps wind energy and ethanol producers by extending tax credits designed to encourage continued development.

States like Texas, the nation’s leading wind energy producer, and Iowa, the leading ethanol maker, should benefit from the incentives. Many of the credits had expired in 2012.

The bill extends to the end of the year a production tax credit for wind energy on any facility under construction before the end of 2013.

The bill also extends a $ 1.01-per-gallon tax credit for cellulosic ethanol made from corn plants, grasses, algae, and sources other than corn kernels. The bill allows ethanol makers to depreciate equipment for new plants placed in service in 2013 and extends biodiesel production tax incentives for two years.

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Time to rebrand in Lincoln's image?

Wade Henderson thinks the modern Republican Party should look to Abraham Lincoln for some inspiration.

STORY HIGHLIGHTS

• Wade Henderson: January 1 is 150th anniversary of the Emancipation Proclamation


• He says GOP should look to Lincoln, a canny politician who led moral fight on civil rights


• He says GOP has history of civil rights support that it has largely abandoned in recent years


• Henderson: In 2012, election minority voters unimpressed; GOP should return to roots

Editor's note: Wade Henderson is the president and CEO of The Leadership Conference on Civil and Human Rights and The Leadership Conference Education Fund.

(CNN) -- On January 1, the nation will commemorate the 150th anniversary of the Emancipation Proclamation, which legally freed slaves in the secessionist Southern states. Meanwhile, thousands of theaters will still be presenting the film "Lincoln," portraying the soon-to-be-martyred president's efforts in January 1865 to persuade the House of Representatives to pass the 13th Amendment, outlawing slavery throughout the nation.

Coming at a time when many Republicans are seeking to rebrand their party, these commemorations of the first Republican president raise this question: Why not refashion the Grand Old Party in the image of the Great Emancipator?

Steven Spielberg's historical drama, as well as the biography upon which it is based, Doris Kearns Goodwin's "Team of Rivals: The Political Genius of Abraham Lincoln," both remind today's Americans that Lincoln was not only a moral leader but also a practical politician. The political identity that Lincoln forged for the fledgling Republican Party -- uniting the nation while defending individual rights -- was a winning formula for half a century, with the GOP winning 11 of 13 presidential elections from 1860 through 1908.

Wade Henderson

Moreover, support for civil rights persisted in the party throughout the last century. Among the Republican presidents of the 20th century, Theodore Roosevelt famously hosted Booker T. Washington at the White House. Dwight Eisenhower ordered federal troops to Little Rock, Arkansas, to enforce school desegregation. Richard Nixon expanded affirmative action. And George H. W. Bush signed the Americans with Disabilities Act into law.

Brazile: A turning point for freedom in America, 150 years later

In the U.S. Senate, such prominent Republicans as Edward Brooke of Massachusetts (the first African-American senator since Reconstruction), Jacob Javits of New York and Everett Dirksen of Illinois were strong supporters of civil rights, as were governors such as Nelson Rockefeller in New York, George Romney in Massachusetts and William Scranton in Pennsylvania.

Former California Gov. Earl Warren served as chief justice when the Supreme Court issued its decision in Brown v. Board of Education, ordering the desegregation of the nation's schools. As recently as 1996, the Republican national ticket consisted of two strong civil rights advocates, former Kansas Sen. Bob Dole and former New York Rep. Jack Kemp.

Unfortunately, by 2012, the Republican Party had veered far from its heritage as the party of Lincoln. Prominent Republicans supported statewide voter suppression laws that hit hardest at vulnerable minorities or called for the "self-deportation" of immigrants and their families.

While some Republican senatorial nominees needlessly offended women, leading moderates such as Maine Sen. Olympia Snowe and Ohio Rep. Steven LaTourette opted for retirement. In what I hope was rock bottom, 38 Senate Republicans rebuffed their former presidential nominee Bob Dole -- a wheelchair-bound war hero -- to block an international civil and human rights treaty for people with disabilities.

150 years later, myths persist about the Emancipation Proclamation

Not surprisingly, the GOP in the presidential race lost the black vote by 87 points, the Asian-American vote by 47 points, the Latino vote by 44 points and the women's vote by 11 points, according to CNN exit polls. As Republicans reflect on their path forward with minority voters and persuadable whites, there are opportunities to advance civil rights.

While the GOP has increasingly promoted diverse candidates, it has not yet begun to reflect the values of our diverse nation. Fiscally conservative officeholders can fight for civil and human rights.

Just a few years ago, Alabama Sen. Jeff Sessions championed a reduction in the sentencing disparity between people charged with possession of crack and powder cocaine. These are two forms of the same drug, but crack cocaine is used more by minorities and carried much harsher punishments for possession. Working with Sessions, civil rights advocates pushed to reduce this disparity significantly -- among the greatest advances in criminal justice reform in decades.

Looking toward to the 113th Congress, several civil rights initiatives would fit conservative values. They need congressional champions. Conservative lobbyist Grover Norquist and conservative strategist Richard Viguerie have called for criminal justice reforms that would reduce the number of prisoners in U.S. prisons.

The U.S. Chamber of Commerce has joined the civil rights coalition's call for federal initiatives to narrow the educational achievement gap between minority and white students. And more Republicans are joining Jeb Bush's support for comprehensive immigration reform that provides a pathway to citizenship for long-term, law-abiding residents.

Most importantly, the GOP must embrace one of Lincoln's most enduring legacies, the 15th Amendment, which guaranteed the right to vote regardless of race. The GOP must stop trying to suppress voters and begin to champion electoral reform that shortens lines and helps more people to vote.

Opinion: What Obama can learn from Lincoln

I don't expect another Abraham Lincoln or Frederick Douglass from the modern Republican Party -- I'll settle for a few more Jeff Sessions. When Republicans consider the consequences for their party's narrow appeal, they'll try to return to their roots.

I'm happy to help.

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The opinions expressed in this commentary are solely those of Wade Henderson.

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'Fiscal cliff' aftermath: Fights loom on spending cuts, debt ceiling

President Barack Obama and congressional Republicans looked ahead today toward the next round of even bigger budget fights after reaching a hard-fought "fiscal cliff" deal that narrowly averted potentially devastating tax hikes and spending cuts.

The agreement, approved late on Tuesday by the Republican-led House of Representatives after a bitter political struggle, was a victory for Obama, who had won re-election on a promise to address budget woes in part by raising taxes on the wealthiest Americans.

But it set up political showdowns over the next two months on spending cuts and on raising the nation's limit on borrowing. Republicans, angry the deal did little to curb the federal deficit, promised to use the debt ceiling debate to win deep spending cuts next time.

Republicans, who acknowledged they had lost the fiscal cliff fight by agreeing to raise taxes on the wealthy without gaining much in return, vowed the next deal would have to include significant cuts in government benefit programs like Medicare and Medicaid health care for retirees and the poor that were the biggest drivers of federal debt.

"This is going to be much uglier to me than the tax issue … this is going to be about entitlement reform," Republican Senator Bob Corker of Tennessee said on CNBC.

Obama urged "a little less drama" when the Congress and White House next address thorny fiscal issues like the government's rapidly mounting $16 trillion debt load.

While the tax package that Congress passed will protect 99 percent of Americans from an income tax increase, most of them will still end up paying more federal taxes in 2013.

That's because the legislation did nothing to prevent a temporary reduction in the Social Security payroll tax from expiring. In 2012, that 2-percentage-point cut in the payroll tax was worth about $1,000 to a worker making $50,000 a year.

The Tax Policy Center, a nonpartisan Washington research group, estimates that 77 percent of American households will face higher federal taxes in 2013 under the agreement negotiated between President Barack Obama and Senate Republicans. High-income families will feel the biggest tax increases, but many middle- and low-income families will pay higher taxes too.

Households making between $40,000 and $50,000 will face an average tax increase of $579 in 2013, according to the Tax Policy Center's analysis. Households making between $50,000 and $75,000 will face an average tax increase of $822.

"For most people, it's just the payroll tax," said Roberton Williams, a senior fellow at the Tax Policy Center.

The tax increases could be a lot higher. A huge package of tax cuts first enacted under President George W. Bush was scheduled to expire Tuesday as part of the "fiscal cliff." The Bush-era tax cuts lowered taxes for families at every income level, reduced investment taxes and the estate tax, and enhanced a number of tax credits, including a $1,000-per-child credit.

The package passed Tuesday by the Senate and House extends most the Bush-era tax cuts for individuals making less than $400,000 and married couples making less than $450,000.

Obama said the deal "protects 98 percent of Americans and 97 percent of small business owners from a middle-class tax hike. While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country."

The income threshold covers more than 99 percent of all households, exceeding Obama's claim, according to the Tax Policy Center. However, the increase in payroll taxes will hit nearly every wage earner.

Social Security is financed by a 12.4 percent tax on wages up to $113,700, with employers paying half and workers paying the other half. Obama and Congress reduced the share paid by workers from 6.2 percent to 4.2 percent for 2011 and 2012, saving a typical family about $1,000 a year.

Obama pushed hard to enact the payroll tax cut for 2011 and to extend it through 2012. But it was never fully embraced by either party, and this time around, there was general agreement to let it expire.

The new tax package would increase the income tax rate from 35 percent to 39.6 percent on income above $400,000 for individuals and $450,000 for married couples. Investment taxes would increase for people who fall in the new top tax bracket.

High-income families will also pay higher taxes this year as part of Obama's 2010 health care law. As part of that law, a new 3.8 percent tax is being imposed on investment income for individuals making more than $200,000 a year and couples making more than $250,000.

Together, the new tax package and Obama's health care law will produce significant tax increases for many high-income families.

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U.N. lifts Syria death toll to "truly shocking" 60,000

AMMAN/GENEVA (Reuters) - More than 60,000 people have died in Syria's uprising and civil war, the United Nations said on Wednesday, dramatically raising the death toll in a struggle that shows no sign of ending.

In the latest violence, dozens were killed in a rebellious Damascus suburb when a government air strike turned a petrol station into an inferno, incinerating drivers who had rushed there for a rare chance to fill their tanks, activists said.

"I counted at least 30 bodies. They were either burnt or dismembered," said Abu Saeed, an activist who arrived in the area an hour after the 1 p.m. (1100 GMT) raid in Muleiha, a suburb on the eastern edge of the capital.

U.N. Human Rights Commissioner Navi Pillay said in Geneva that researchers cross-referencing seven sources over five months of analysis had listed 59,648 people killed in Syria between March 15, 2011 and November 30, 2012.

"The number of casualties is much higher than we expected and is truly shocking," she said. "Given that there has been no let-up in the conflict since the end of November, we can assume that more than 60,000 people have been killed by the beginning of 2013."

There was no breakdown by ethnicity or information about whether the dead were rebels, soldiers or civilians. There was also no estimate of an upper limit of the possible toll.

Previously, the opposition-linked Syrian Observatory for Human Rights monitoring group put the toll at around 45,000 confirmed dead but said the real number was likely to be higher.

FATAL RUSH FOR PETROL

Muleiha, the target of Wednesday's air strike, is a residential and industrial area in the eastern Ghouta region of Damascus that also houses a Syrian air defense base.

Video footage taken by activists showed the body of a man in a helmet still perched on a motorcycle amid flames engulfing the scene. Another man was shown carrying a dismembered body.

The video could not be verified. The government bars access to the Damascus area to most international media.

The activists said rockets were fired from the base at the petrol station and a nearby residential area after the air raid.

"Until the raid, Muleiha was quiet. We have been without petrol for four days and people from the town and the countryside rushed to the station when a state consignment came in," Abu Fouad, another activist at the scene, said by phone.

In Damascus, President Bashar al-Assad's forces fired artillery and mortars at the eastern districts of Douma, Harasta, Irbin and Zamlaka, where rebels are active, activists living there said.

Assad's forces control the centre of the capital, while rebels and their sympathizers hold a ring of southern and eastern suburbs that are often hit from the air.

The Observatory said a separate air strike killed 12 members of a family, most of them children, in Moadamiyeh, a southwestern district near the centre of Damascus where rebels have fought for a foothold.

The family of an American freelance journalist, James Foley, 39, said on Wednesday he had been missing in Syria since being kidnapped six weeks ago by gunmen. No group has publicly claimed responsibility for his abduction.

Syria was by far the most dangerous country for journalists in 2012, with 28 killed there.

The conflict began in March 2011 with peaceful protests against four decades of Assad family rule and turned into an armed revolt after months of government repression.

Insurgents trying to topple Assad see his air power as their main threat. They hold swathes of eastern and northern provinces, as well as some outlying parts of Damascus, but have been unable to protect their territory from relentless attack by helicopters and jets.

In the north, rebels, some from Islamist units, attacked the Afis military airport near Taftanaz air base, firing machineguns and mortars at helicopters on the ground to try and make a dent in Assad's air might, the Observatory said.

The al Qaeda-linked al-Nusra Front, Ahrar al-Sham Brigade and other units in northwestern Idlib province were attacking the base, which is near the main north-south highway linking Damascus to Aleppo, Syria's biggest city, the Observatory said.

In recent months, rebel units have besieged military bases, especially along the highway, Syria's main artery.

The Observatory's director, Rami Abdelrahman, said the attack was the latest of several attempts to capture the base. A satellite image of the airport shows more than 40 helicopter landing pads, a runway and aircraft hangars.

Syrian state media gave no immediate account of the Damascus air strikes or the fighting in the north.

"FOR GOD'S EYES"

Both sides have been accused of committing atrocities in the 21-month-old conflict, but the United Nations says the government and its allies have been more culpable.

In the latest evidence of atrocities, Internet video posted by Syrian rebels shows armed men, apparently fighters loyal to Assad, stabbing two men to death and stoning them with concrete blocks in a summary execution lasting several minutes.

Reuters could not verify the provenance of the footage or the identity of the perpetrators and their victims. The video was posted on Tuesday but it was not clear where or when it was filmed. However it does clearly show a summary execution and torture, apparently being carried out by government supporters.

At one point, one of the perpetrators says: "For God's eyes and your Lord, O Bashar," an Arabic incantation suggesting actions being carried out in the leader's name.

The video was posted on YouTube by the media office of the Damascus-based rebel First Brigade, which said it had been taken from a captured member of the shabbiha pro-government militia.

The perpetrators show off for the camera, smiling for close-up shots, slicing at the victims' backs, then stabbing them and bashing them with large slabs of masonry.

Syria's civil war is the longest and deadliest conflict to emerge from uprisings that began sweeping the Arab world in 2011 and has developed a significant sectarian element.

Rebels, mostly from the Sunni Muslim majority, confront Assad's army and security forces, dominated by his Shi'ite-derived Alawite sect, which, along with some other minorities, fears revenge if he falls.

(Additional reporting by Oliver Holmes in Beirut; Writing by Peter Graff; Editing by Alistair Lyon/Mark Heinrich)

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"Fiscal cliff" moves to House, timing and outcome uncertain

WASHINGTON (Reuters) - Washington's last-minute scramble to step back from a recession-inducing "fiscal cliff" shifted to the Republican-controlled House of Representatives on Tuesday after the Senate approved a bipartisan deal to avoid steep tax hikes and spending cuts.

In a rare late-night show of unity, the Senate voted 89 to 8 to raise some taxes on the wealthy while keeping income taxes low on more moderate income voters.

The bill's prospects were less certain in the House, where a vote had not yet been scheduled. Many conservative Republicans have rejected tax increases on any Americans, no matter how wealthy. Some liberal Democrats were also upset with a complex deal that they thought gave away too much.

Lingering uncertainty over U.S. tax and spending policy has unnerved investors and depressed business activity for months, and lawmakers had hoped to reach a deal before Tuesday, when a broad range of automatic tax increases and spending cuts would begin to punch a $600 billion hole in the economy.

Financial markets have avoided a steep plunge on the assumption that Washington would ultimately avoid pushing the country off the fiscal cliff into a recession.

With financial markets closed for the New Year's Day holiday, lawmakers have one more day to close the deal.

"My district cannot afford to wait a few days and have the stock market go down 300 points tomorrow if we don't get together and do something," Representative Steve Cohen, a Democrat from Tennessee, said on the House floor.

The bill passed by the Senate at around 2 a.m. would raise income taxes on families earning more than $450,000 per year. Low temporary rates that have been in place for less affluent taxpayers for the past decade would be made permanent, along with a range of targeted tax breaks put in place by President Barack Obama in the depths of the 2009 recession.

However, workers would see up to $2,000 more taken out of their paychecks as a temporary payroll tax cut was set to expire.

The bill would also delay an across-the-board 8 percent spending cut to domestic and military programs for two months, and extend jobless benefits for 2 million people who otherwise would see them run out.

Obama in a statement on Monday urged the House to vote. "There's more work to do to reduce our deficits, and I'm willing to do it," he said.

Republicans had hoped to include significant spending cuts in the deal to narrow trillion-dollar budget deficits. Conservatives were already looking forward to the next battle over the debt ceiling, in late February, to extract deficit reduction measures from the Democratic president.

Vice President Joe Biden, who was instrumental in pushing through the Senate measure, was scheduled to address a closed-door meeting of House Democrats. Their support likely will be needed to pass the bill.

Republican members were to meet to discuss "a path forward," a senior aide said.

The meeting could help Republicans leaders decide when to begin consideration of the White House-backed measure. A vote could come later in the day, but was not yet scheduled.

The conservative Club for Growth urged a "no" vote on the Senate measure, saying it would be on its "congressional scorecard" used to challenge members of Congress.

Liberal groups also have urged Democrats to reject the deal.

Richard Trumka, head of the AFL-CIO labor union, wrote on Twitter that the deal does not raise taxes enough on the wealthy and "sets the stage for more hostage taking" by Republicans in future budget confrontations.

Republican Representative Tom Cole said his House colleagues should pass the Senate bill rather than try to change it.

"We ought to take this deal right now, and we'll live to fight another day," Cole said on MSNBC. "Putting to bed this thing before the markets (open on Wednesday) is really a pretty important thing to do."

(Writing by Andy Sullivan; Editing by Fred Barbash and Vicki Allen)

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NHL, union dig in for a long day of talks

NEW YORK (AP) — The NHL and the union are back at the bargaining table and seem determined to work toward a deal to save the hockey season.

A full day of talks was planned for Tuesday, one day after negotiations resumed following nearly three weeks apart. On Monday, the players' association presented a counterproposal to an offer made by the league late last week. The NHL spent Monday night reviewing the document, then got together again with the union Tuesday.

Small groups from each side were to meet or confer by conference call during the afternoon about provisions of a potential collective bargaining agreement. A full meeting of negotiating teams wasn't expected at the league office before 5 p.m. EST.

What is clear is that time has become a real factor.

"We've said we need to drop the puck by Jan. 19 if we're going to play a 48-game season," Commissioner Gary Bettman said. "We don't think it makes sense to play a season any shorter than that."

That leaves a little less than two weeks to reach an agreement and hold one week of training camp before starting the season. All games through Jan. 14 have been canceled, claiming more than 50 percent of the original schedule.

The NHL is the only North American professional sports league to cancel a season because of a labor dispute, losing the 2004-05 campaign to a lockout. A 48-game season was played in 1995 after a lockout stretched into January.

The NHL was supposed to be celebrating its annual outdoor Winter Classic between the Toronto Maple Leafs and Detroit Red Wings on Tuesday — the 108th day of the lockout — at Michigan Stadium. But that game was canceled long ago along with the All-Star game.

Monday's talks marked the first time the NHL and union met in person since Dec. 13. Bettman says a deal must be reached by Jan. 11 so the season can begin eight days later.

When the sides met Monday, the union brought a condensed counterproposal in response to the NHL's 288-page contract offer. There were some discussions between the negotiators and some time spent apart in internal meetings.

Neither side would elaborate on what was offered in either proposal or characterize any of Monday's discussions that union executive director Donald Fehr said "weren't terribly long."

"There was an opportunity for the players to highlight the areas they thought we should focus on based on their response, and that's something we've got to look at very closely in addition to the myriad of other issues," Bettman said. "The process continues and we're anticipating getting back together."

That neither offer was quickly dismissed could be taken as a positive sign that perhaps the gap has narrowed.

"I'm out of the prediction business," Fehr said. "You get up every day and you try to figure out how to make an agreement that day, and if it fails you try and do it the next day. That's exactly where we are."

Bettman also reserved judgment when asked if progress was made.

"I think it would be premature for me to characterize it and not particularly helpful to the process," he said.

It is still possible this dispute eventually could be settled in the courts if the sides can't reach a deal on their own.

The NHL filed a class-action suit this month in U.S. District Court in New York in an effort to show its lockout is legal. In a separate move, the league filed an unfair labor practice charge with the National Labor Relations Board, contending bad-faith bargaining by the union.

Those moves were made because the players' association took steps toward potentially declaring a "disclaimer of interest," which would dissolve the union and make it a trade association. That would allow players to file antitrust lawsuits against the NHL.

Union members voted overwhelmingly to give their board the power to file the disclaimer by Wednesday. If that deadline passes, another authorization vote could be held to approve a later filing.

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