Wall Street rises after post-cliff deal rally

NEW YORK (Reuters) - Stocks edged up on Thursday, adding to Wall Street's biggest single-day rally in a year on Wednesday after a deal in Washington to avert the "fiscal cliff."

Investors were more wary than in the previous sessions as they turned their focus to upcoming battles in Congress, including likely bitter fights over spending cuts and raising the federal debt ceiling.

"I would be cautious of big moves going forward. There are still some clouds over the horizon, with the fiscal issue of the government. We don't know how they're going to pan out, but in all likelihood there's not going to be a calamity," said Jeff Meyerson, head of trading at Sunrise Securities in New York.

Wednesday's rally began 2013 with Wall Street's best performance in over a year after the House of Representatives passed a measure to avert the fiscal cliff, which could have caused a recession.

The S&P Energy index <.gspe> rose the most of the major sector indexes, at 0.52 percent, led in part by CONSOL Energy , which said it expects to sell more non-core assets in 2013. CONSOL was up 3.5 percent to $32.09.

The Dow Jones industrial average <.dji> gained 6.30 points, or 0.05 percent, at 13,418.85. The Standard & Poor's 500 Index <.spx> rose 2.05 points, or 0.14 percent, at 1,464.47. The Nasdaq Composite Index <.ixic> was up 5.12 points, or 0.16 percent, at 3,117.39.

Retailers were mixed on Thursday after releasing December sales reports in an uncertain economy.

Shares in U.S. retailer Costco Wholesale Corp rose 1.4 percent to $102.88 after the company reported a better-than-expected 9 percent rise in December sales at stores open at least a year, primarily boosted by an additional sales day in the reporting period.

Gap Inc stock rose nearly 2 percent to $31.99 following news that the retailer will buy women's fashion boutique Intermix Inc for $130 million to enter the luxury clothes market, the Wall Street Journal reported.

Family Dollar Stores Inc stock dropped 11.7 percent to $56.52 on the company's report of lower-than-expected quarterly profit as its emphasis on selling more everyday items like cigarettes and soft drinks put pressure on margins.

Hiring data did not boost equity prices despite showing U.S. private employers added more jobs than expected in December.

"The report now sets the stage, as we expect a strong non-farm payroll reading on Friday," said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co in New York

The government's broader monthly payrolls report, due on Friday, is expected to show the economy created 150,000 jobs compared with 146,000 in November, according to a Reuters poll. The U.S. unemployment rate is seen holding steady at 7.7 percent.

Another report on Thursday showed that the number of Americans filing new claims for unemployment benefits rose last week, but year-end holidays likely distorted the picture of labor market conditions.

(Additional reporting by Angela Moon, Editing by Bernadette Baum and Kenneth Barry)

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NHL, union resume talks in hopes to save season

NEW YORK (AP) — After a long night of talks, the NHL and the union are returning to negotiations — just later than expected.

The sides were supposed to meet at the league office Thursday at 10 a.m. EST. That, however, did not happen. The Players Association said it was updating its members on negotiations.

Players and union staff began arriving at NHL headquarters a little before a 1 p.m., although union head Donald Fehr was not part of the group.

With the lockout in its 110th day, both sides understand the urgency to save a shortened season. They have moved closer to one another while swapping proposals, but key issues remain — pensions and salary cap, among them.

Commissioner Gary Bettman has said that the league told the union a deal needs to be in place by next week so a 48-game season can begin Jan. 19. All games through Jan. 14 along with the All-Star game have been canceled, claiming more than 50 percent of the original schedule.

The sides met in small groups throughout the day Wednesday. They then held a full bargaining session with a federal mediator at night that lasted nearly five hours and didn't wrap up until about 1 a.m. Thursday.

The biggest detail to emerge from those talks was that Fehr is still the executive director of the players' association, which passed on its first chance to declare a disclaimer that would dissolve the union and turn it into a trade association.

Last month, players voted overwhelmingly to give its executive board the right to declare the disclaimer, but that permission expired at midnight Wednesday. The disclaimer would allow individual players to file antitrust lawsuits against the NHL. Fehr wouldn't address the issue, calling it an "internal matter."

"The word disclaimer has yet to be uttered to us by the players' association," Bettman said. "It's not that it gets filed anywhere with a court or the NLRB. When you disclaim interest as a union, you notify the other side. We have not been notified and it's never been discussed, so there has been no disclaimer."

The thought was that the union wouldn't take action Wednesday if it saw progress was being made. Neither side would characterize the talks or address what, if any, movement toward common ground was reached.

"There's been some progress but we're still apart on a number of issues," Bettman said. "As long as the process continues I am hopeful."

A deal can't be done without a resolution on pensions. Bettman called the pension plan a "very complicated issue." A small group meeting on the pension issue was held Wednesday morning before the players' association presented its offer.

"The number of variables and the number of issues that have to be addressed by people who carry the title actuary or pension lawyer are pretty numerous and it's pretty easy to get off track. That is something we understand is important to the players."

The union's proposal Wednesday makes four offers between the sides since the NHL restarted negotiations Thursday with a proposal. The league presented the players with a counteroffer Tuesday night in response to one the union made Monday.

Fehr believed an agreement on a players-funded pension had been reached before talks blew up in early December. That apparently wasn't the case, or the NHL has changed its offer regarding the pension in exchange for agreeing to other things the union wanted.

The salary-cap number for the second year of the deal — the 2013-14 season — hasn't been established, and it is another point of contention. The league is pushing for a $60 million cap, while the union wants it to be $65 million.

In return for the higher cap number players would be willing to forgo a cap on escrow.

"We talk about lots of things and we even had some philosophical discussions about why particular issues were important to each of us," Bettman said. "That is part of the process."

The NHL proposed in its first offer Thursday that pension contributions come out of the players' share of revenues, and $50 million of the league's make-whole payment of $300 million will be allocated and set aside to fund potential underfunding liabilities of the plan at the end of the collective bargaining agreement.

Last month, the NHL agreed to raise its make-whole offer of deferred payments from $211 million to $300 million as part of a proposed package that required the union to agree on three nonnegotiable points. Instead, the union accepted the raise in funds, but then made counterproposals on the issues the league stated had no wiggle room.

"As you might expect, the differences between us relate to the core economic issues which don't involve the share," Fehr said of hockey-related revenue, which likely will be split 50-50.

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.

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

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

STORY HIGHLIGHTS

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


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


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


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

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

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

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

Julian Zelizer

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

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

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

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

Opinion: The real issue is runaway spending

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

Now come taxes and spending.

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

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

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

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

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

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

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

Opinion: Christie drops bomb on GOP leaders

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

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

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

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

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

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

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

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

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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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