Senate Passes Tax Increases on Wealthy Americans

Alex Brandon/Associated Press

Vice President Joseph R. Biden Jr. on Monday after a meeting with Senate Democrats on the fiscal negotiations.

WASHINGTON — The Senate, in a predawn vote two hours after the deadline passed to avert automatic tax increases, overwhelmingly approved legislation on Tuesday that would allow tax rates to rise only on affluent Americans while temporarily suspending sweeping, across-the-board spending cuts.

The deal, worked out in furious negotiations between Vice President Joseph R. Biden Jr. and the Republican Senate leader, Mitch McConnell, passed 89 to 8, with just three Democrats and five Republicans voting no. Although it lost the support of some of the Senate’s most conservative members, the broad coalition that pushed the accord across the finish line could portend swift House passage as early as New Year’s Day.

Quick passage before the markets reopen on Wednesday would be likely to negate any economic damage from Tuesday’s breach of the “fiscal cliff” and largely spare the nation’s economy from the one-two punch of large tax increases and across-the-board military and domestic spending cuts in the New Year.

“This shouldn’t be the model for how to do things around here,” Mr. McConnell said just after 1:30 a.m. “But I think we can say we’ve done some good for the country.”

Mr. Biden, after a late New Year’s Eve meeting with leery Senate Democrats to sell the accord, said: “You surely shouldn’t predict how the House is going to vote. But I feel very, very good.”

The eight senators who voted no included Marco Rubio, Republican of Florida and a potential presidential candidate in 2016, two of the Senate’s most ardent small-government Republicans, Rand Paul of Kentucky and Mike Lee of Utah, and Senator Charles E. Grassley of Iowa, who as a former Finance Committee chairman helped secure passage of the Bush-era tax cuts, then opposed making almost all of them permanent on Tuesday. Two moderate Democrats, Thomas R. Carper of Delaware and Michael Bennet of Colorado, also voted no, as did the liberal Democrat Tom Harkin, who said the White House had given away too much in the compromise. Senator Richard C. Shelby, Republican of Alabama, also voted no.

The House Speaker, John A. Boehner, and the Republican House leadership said the House would “honor its commitment to consider the Senate agreement.” But, they added, “decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members — and the American people — have been able to review the legislation.”

Even with that cautious assessment, Republican House aides said a vote Tuesday was possible.

Under the agreement, tax rates would jump to 39.6 percent from 35 percent for individual incomes over $400,000 and couples over $450,000, while tax deductions and credits would start phasing out on incomes as low as $250,000, a clear victory for President Obama, who ran for re-election vowing to impose taxes on the wealthy.

Just after the vote, Mr. Obama called for quick House passage of the legislation.

“While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay,” he said.

Democrats also secured a full year’s extension of unemployment insurance without strings attached and without offsetting spending cuts, a $30 billion cost. But the two-percentage point cut to the payroll tax that the president secured in late 2010 lapsed at midnight and will not be renewed.

In one final piece of the puzzle, negotiators agreed to put off $110 billion in across-the-board cuts to military and domestic programs for two months while broader deficit-reduction talks continue. Those cuts begin to go into force on Wednesday, and that deadline, too, might be missed before Congress approves the legislation.

To secure votes, Senator Harry Reid, the Senate Democratic leader, also told Democrats the legislation would cancel a pending Congressional pay raise — putting opponents in the politically difficult position of supporting a raise — and extend an expiring dairy policy that would have seen the price of milk double in some parts of the country.

The nature of the deal ensured that the running war between the White House and Congressional Republicans on spending and taxes would continue at least until the spring. Treasury Secretary Timothy F. Geithner formally notified Congress that the government reached its statutory borrowing limit on New Year’s Eve. Through some creative accounting tricks, the Treasury Department can put off action for perhaps two months, but Congress must act to keep the government from defaulting just when the “pause” on pending cuts is up. Then in late March, a law financing the government expires.

Jennifer Steinhauer and Robert Pear contributed reporting.

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Afghan Army Deaths on the Rise

KABUL, Afghanistan — The Afghan government has hit a grim record in its quest to take over the country’s security from coalition forces: more than 1,000 soldiers died in 2012, a roughly 20 percent increase from 2011.

Though the Afghan Army’s death rates have outstripped those for international forces in recent years, the new figures show the widest margin yet, as more and more Afghan units have taken the field. International forces were reported to have lost about 400 soldiers in 2012, the lowest number since 2008.

The progress of the Afghan National Army in being able to fight the insurgency is crucial to the international coalition’s exit strategy as the formal end of NATO combat operations looms in 2014. Afghan officials say that Afghan forces now plan and lead 80 percent of combat operations across the country. And as the army has filled out its ranks, the number of those killed has risen as well. Since 2008, the number of enlisted soldiers has nearly tripled, to 195,000.

Depending on how one reads the numbers, the latest figures can be both hopeful and troubling. Inasmuch as the uptick in deaths indicates a more active role for the army, the data is encouraging: Afghan-led operations would be expected to result in more Afghan casualties, after all. But for some, the statistics also raise questions about whether the army is ready to take over control of the country’s security.

“These high figures send a message to Afghans as well as the international community that the Afghan security forces are not ready to take over and that we will witness even more severe casualties in the next couple of years,” said Jawid Kohistani, a military analyst based in Kabul. “The only thing preventing the Taliban from taking over a district or a province or carrying out more audacious attacks is the presence of foreign forces who are equipped with modern and advanced technology.”

Progress has been uneven on numerous fronts. Accidents make up a significant number of the Afghan Army deaths. Almost no units can operate without assistance from coalition forces. And defections and low re-enlistment rates are also troubling — the government has to replace about a third of its troops every year.

Even the Defense Ministry acknowledged weaknesses when announcing the updated figures Sunday. Gen. Zahir Azimi, the ministry’s spokesman, said that poor equipment and training left soldiers exposed. Homemade bombs and mines caused about 85 percent of the deaths this year, a figure he said would come down with proper equipment. Intelligence gathering is also a weak spot for the national army.

“We are still heavily relying on foreigners for our intelligence,” he said. “We are hopeful that by the end of 2014 our army is equipped with intelligence capabilities and equipment.”

Among other concerns the government must consider while building the army is how to keep soldiers from being killed by the Taliban. In recent weeks, the Taliban have mounted a campaign to kidnap and kill soldiers who are on leave from their jobs. On Saturday, the Taliban killed a soldier returning from vacation to his base in Laghman Province.

“They take soldiers out of their homes and brutally execute them,” General Azimi said. “Can anyone see even a small bit of respect for human rights?”

But if the general sounded somewhat chastened by the task ahead, commanders on the ground struck a more upbeat note about the future.

“The army is getting better every day and our soldiers will not face any problem next year,” said Gen. Zamarai, commander of the second brigade of the Afghan National Army in Paktika Province, who uses only one name. “As the foreign forces leave, the army is filling the districts and bases, and so far we have managed to provide tight security for the residents of the province.”

Farooq Jan Mangal contributed reporting from Khost Province, Afghanistan.

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Can Samsung survive without Android?

Samsung (005930) is the world’s top Android smartphone vendor by a staggering margin. Aside from LG (066570), which managed a small $ 20 million profit from its mobile division last quarter, no other global Android vendor can figure out how to make money selling Android phones. Meanwhile, Samsung posted a $ 6 billion profit on $ 47.6 billion in sales in the third quarter, thanks largely to record smartphone shipments and a massive marketing budget. Even as industry watchers turn sour on Apple, Samsung is seen steamrolling into 2013 and its stock is up nearly 50% on the year while Apple (AAPL) shares continue to fall from a record high hit in September. As unstoppable as Samsung appears right now, one key question remains: Is Samsung driving Android’s success or is Android driving Samsung’s success? Starting in 2013, we may finally begin to find out.

[More from BGR: Unreleased ‘BlackBerry X10′ QWERTY phone appears again in new photos]

Earlier this year, BGR wrote about Samsung’s effort to look beyond Android. Even with its own UI and application suite — and even with its own content services — Samsung will always rely on Google (GOOG) if it continues to base its devices on Google’s latest Android builds.

[More from BGR: RIM teases BlackBerry 10 launch with image of first BB10 smartphone]

This isn’t necessarily a bad thing, but it means Samsung will never truly control the end-to-end experience on its products. It also means Samsung will never truly own its smartphones and tablets. Instead, Samsung’s devices will deliver an experience that is an amalgamation of Google’s vision and its own.

But there are alternative options. One example is the path Amazon (AMZN) has taken. Amazon let Google do the grunt work and then took its open-source Android OS and built its own software and service layer on top. Kindle Fire users don’t sit around waiting for Android updates — many of them don’t even know they’re using an Android-powered tablet.

Samsung could do the same thing, but there is a great deal of prep work that would need to be done first. Amazon’s efforts were so successful (depending on your measure of success) because the company already had a massive ecosystem in place before it even launched its first device. Streaming movies and TV shows, eBooks, retail shopping and a stocked application store were all available on the Kindle Fire from day one.

Samsung doesn’t have this luxury. Yet.

Samsung could also take ownership of a new OS, and Tizen may or may not end up being that OS. Samsung is co-developing the new Linux-based mobile platform with Intel (INTC) and others, and a new rumor from Japan’s The Daily Yomiuri suggests Samsung plans to launch its first Tizen phone in 2013. “Samsung will probably begin selling the [Tizen] smartphones next year and they are likely to be released in Japan and other countries at around the same time,” the site’s sources claim.

This will be a slow process. If Samsung follows the same path it took with Bada, Samsung’s earlier Linux-based OS that was folded into the Tizen project, things will start out slow as Samsung launches regional devices that are restricted to a few Eastern markets. Testing the waters before dumping serious marketing dollars into the project isn’t a bad idea, especially considering the battle at the bottom of the smartphone OS food chain that will already be taking place in 2013.

But one thing is clear: Samsung is looking to broaden its strategy and move beyond a point where it relies entirely on another company for its smartphone software.

This article was originally published by BGR

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Chiefs fire Crennel, make no move on GM Pioli

KANSAS CITY, Mo. (AP) — The Kansas City Chiefs have fired coach Romeo Crennel after a 2-14 season marked by blowout losses, fan rebellion and a murder-suicide involving one of his players.

No decision has been made about the future of general manager Scott Pioli.

Crennel was fired Monday after one full season as coach, and one day after Kansas City lost 38-3 to the Denver Broncos to match the fewest wins in franchise history.

The Chiefs' only victories came against New Orleans and Carolina, the latter coming one day after linebacker Jovan Belcher shot his girlfriend to death and then drove to the team's practice facility and turned the gun on himself as Crennel and Pioli looked on.

Crennel's career record is 28-55 in five-plus seasons as a head coach.

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

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Chinese Firm Is Cleared to Buy American DNA Sequencing Company

Ramin Rahimian for The New York Times

DNA sequencing machines at Complete Genomics in California. The firm dismissed concerns about its acquisition.

The federal government has given national security clearance to the controversial purchase of an American DNA sequencing company by a Chinese firm.

The Chinese firm, BGI-Shenzhen, said in a statement this weekend that its acquisition of Complete Genomics, based in Mountain View, Calif., had been cleared by the federal Committee on Foreign Investment in the United States, which reviews the national security implications of foreign takeovers of American companies. The deal still requires antitrust clearance by the Federal Trade Commission.

Some scientists, politicians and industry executives had said the takeover represented a threat to American competitiveness in DNA sequencing, a technology that is becoming crucial for the development of drugs, diagnostics and improved crops.

The fact that the $117.6 million deal was controversial at all reflects a change in the genomics community.

A decade ago, the Human Genome Project, in which scientists from many nations helped unravel the genetic blueprint of mankind, was celebrated for its spirit of international cooperation. One of the participants in the project was BGI, which was then known as the Beijing Genomics Institute.

But with DNA sequencing now becoming a big business and linchpin of the biotechnology industry, international rivalries and nationalism are starting to move front and center in any acquisition.

Much of the alarm about the deal has been raised by Illumina, a San Diego company that is the market leader in sequencing machines. It has potentially the most to lose from the deal because BGI might buy fewer Illumina products and even become a competitor. Weeks after the BGI deal was announced, Illumina made its own belated bid for Complete Genomics, offering 15 cents a share more than BGI’s bid of $3.15. But Complete Genomics rebuffed Illumina, saying such a merger would never clear antitrust review.

Illumina also hired a Washington lobbyist, the Glover Park Group, to stir up opposition to the deal in Congress. Representative Frank R. Wolf, Republican of Virginia, was the only member of Congress known to have publicly expressed concern.

BGI and Complete Genomics point out that Illumina has long sold its sequencing machines — including a record-setting order of 128 high-end machines — to BGI without raising any security concerns. Sequencing machines have not been subject to export controls like aerospace equipment, lasers, sensors and other gear that can have clear military uses.

“Illumina has never previously considered its business with BGI as ‘sensitive’ in the least,” Ye Yin, the chief operating officer of BGI, said in a November letter to Complete Genomics that was made public in a regulatory filing. In the letter, Illumina was accused of “obvious hypocrisy.”

BGI and Complete said that Illumina was trying to derail the agreement and acquire Complete Genomics itself in order to “eliminate its closest competitor, Complete.”

BGI is already one of the most prolific DNA sequencers in the world, but it buys the sequencing machines it uses from others, mainly Illumina.

Illumina, joined by some American scientists, said it worried that if BGI gained access to Complete’s sequencing technology, the Chinese company might use low prices to undercut the American sequencing companies that now dominate the industry.

Some also said that with Complete Genomics providing an American base, BGI would have access to more DNA samples from Americans, helping it compile a huge database of genetic information that could be used to develop drugs and diagnostic tests. Some also worried about protection of the privacy of genetic information.

“What’s to stop them from mining genomic data of American samples to some unknown nefarious end?” Elaine R. Mardis, co-director of the genome sequencing center at Washington University in St. Louis, said in an e-mail.

Dr. Mardis could not specify what kind of nefarious end she imagined. But opponents of the deal cited a November article in The Atlantic saying that in the future, pathogens could be genetically engineered to attack particular individuals, including the president, based on their DNA sequences.

BGI and Complete Genomics dismissed such concerns as preposterous.

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2 Sides in Talks Inch Closer but No Fiscal Deal on Final Day

WASHINGTON — A frantic round of late-night negotiations on Sunday between Vice President Joseph R. Biden Jr. and Senator Mitch McConnell of Kentucky, the Republican leader, moved the Senate close to a deal to stave off hundreds of billions of dollars in tax increases and across-the-board spending cuts that would begin to kick in on Tuesday, according to people familiar with the talks.

T.J. Kirkpatrick for The New York Times

“It looks awful,” Senator Richard J. Durbin of Illinois, the second-ranking Democrat, said after tense negotiations on Sunday. More Photos »

But with almost no time on the clock and the Senate convening at 11 a.m. Monday, officials cautioned that optimism had risen in past days only to burst hours later. An objection by just one senator could derail a deal until the next Congress convenes on Thursday.

Representative Kevin McCarthy, a California Republican and the House majority whip, advised House members at 9 a.m. “to remain close to the Capitol as additional legislation and votes are possible pending action from the Senate.”

The last of a round of calls between Mr. Biden and Mr. McConnell ended around midnight, with both men promising to resume talks Monday morning.

“The leader and the V.P. continued their discussion late into the evening and will continue to work toward a solution,” Don Stewart, a spokesman for Mr. McConnell, said on Monday.

Both sides were already close Sunday on the central issue surrounding whether Congress would intervene before the nation careened off the so-called fiscal cliff: What would be the income threshold for the families that would absorb tax increases beginning Tuesday? Barely a week after House Republicans refused to vote to allow taxes to rise on income over $1 million, Senate Republicans proposed allowing tax rates to rise on income over $450,000 for individuals and $550,000 for couples. Democrats countered with a proposal to extend expiring Bush-era tax cuts for up to $360,000 for individuals and $450,000 for couples. For both sides, that meant major movement. Mr. Obama has been holding firm at a $250,000 threshold.

But Democrats were inching upward, possibly to $450,000 for all households. That had liberal Democrats nervous but centrists optimistic that a deal was in reach that could pass both the Senate and the House. The House Rules Committee on Sunday night was considering an emergency rules change that would suspend requirements that legislation be posted for at least 48 hours, so that a deal could be rushed to the floor.

The two sides are also getting closer on a new rate of taxation on inherited estates, one source said. The biggest stumbling block remains Democrats’ demand for a one-year “pause” on across-the-board spending cuts, which Republicans say can happen only with other up-front spending cuts.

In the balance are more than a half-trillion dollars in tax increases on virtually every working American and across-the-board spending cuts that are scheduled to begin Tuesday. Taken together, they threaten to push the economy back into recession.

The weekend saw a round of volatile negotiations as senators tried to reach a deal, only to be stalled for hours over a Republican demand that any accord must include a new way of calculating inflation that would mean smaller increases in payments to beneficiaries of programs like Social Security. Democrats halted the negotiations, which did not resume until Mr. McConnell made an emergency call to Mr. Biden and the White House sent the president’s chief legislative negotiator to meet with Senate Democrats. Soon after, Republicans withdrew their demand and discussions resumed, but little progress was made.

“It looks awful,” said Senator Richard J. Durbin of Illinois, the second-ranking Democrat. “I’m sure the American people are saying, with so much at stake why are they waiting so late to get this done?”

Senator Lindsey Graham, Republican of South Carolina, who had said early Sunday that he thought a deal was within reach, said later on his Twitter feed, “I think we’re going over the cliff.”

Weeks of negotiations between Mr. Obama and Speaker John A. Boehner inched toward a deal to avert the fiscal cliff, while locking in trillions of dollars in deficit reduction over 10 years and starting an effort to overhaul the tax code and entitlement programs like Medicare. But earlier this month, Mr. Boehner walked away from those talks.

Instead he tried to reach a much more modest deal to avoid a fiscal crisis by extending the expiring tax cuts for incomes under $1 million. When Mr. Boehner’s own Republican members revolted, he ceded negotiations to the Senate. But compromise has proved equally elusive in that chamber.

Absent a last-minute deal, Mr. Reid is expected to move on Monday to bring to a vote a stopgap measure pushed by Mr. Obama, which would retain lower tax rates for incomes below $250,000 and extend unemployment benefits. But it was not clear that would even get a vote. The objection of a single senator on Monday would run out the clock on the 112th Congress before a final tally could be taken.

Mr. Obama appeared on the NBC program “Meet the Press” on Sunday and implored Congress to act. “We have been talking to the Republicans ever since the election was over,” Mr. Obama said in the interview. “They have had trouble saying yes to a number of repeated offers.”

He added, “Now the pressure’s on Congress to produce.”

Robert Pear and John M. Broder contributed reporting.

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Drone War Spurs Pakistan Militants to Deadly Reprisals

ISLAMABAD, Pakistan — They are dead men talking, and they know it. Gulping nervously, the prisoners stare into the video camera, spilling tales of intrigue, betrayal and paid espionage on behalf of the United States. Some speak in trembling voices, a glint of fear in their eyes. Others look resigned. All plead for their lives.

“I am a spy and I took part in four attacks,” said Sidinkay, a young tribesman who said he was paid $350 to help direct C.I.A. drones to their targets in Pakistan’s tribal belt. Sweat glistened on his forehead; he rocked nervously as he spoke. “Stay away from the Americans,” he said in an imploring voice. “Stay away from their dollars.”

Al Qaeda and the Taliban have few defenses against the American drones that endlessly prowl the skies over the bustling militant hubs of North and South Waziristan in northwestern Pakistan, along the Afghan border. C.I.A. missiles killed at least 246 people in 2012, most of them Islamist militants, according to watchdog groups that monitor the strikes. The dead included Abu Yahya al-Libi, the Qaeda ideologue and deputy leader.

Despite the technological superiority of their enemy, however, the militants do possess one powerful countermeasure.

For several years now, militant enforcers have scoured the tribal belt in search of informers who help the C.I.A. find and kill the spy agency’s jihadist quarry. The militants’ technique — often more witch hunt than investigation — follows a well-established pattern. Accused tribesmen are abducted from homes and workplaces at gunpoint and tortured. A sham religious court hears their case, usually declaring them guilty. Then they are forced to speak into a video camera.

The taped confessions, which are later distributed on CD, vary in style and content. But their endings are the same: execution by hanging, beheading or firing squad.

In Sidinkay’s last moments, the camera shows him standing in a dusty field with three other prisoners, all blindfolded, illuminated by car headlights. A volley of shots rings out, and the three others are mowed down. But Sidinkay, apparently untouched, is left standing. For a tragic instant, the accused spy shuffles about, confused. Then fresh shots ring out and he, too, crumples to the ground.

These macabre recordings offer a glimpse into a little-seen side of the drone war in Waziristan, a paranoid shadow conflict between militants and a faceless American enemy in which ordinary Pakistanis have often become unwitting victims.

Outside the tribal belt, the issue of civilian casualties has dominated the debate about American drones. At least 473 noncombatants have been killed by C.I.A.-directed strikes since 2004, according to monitoring groups — a toll frequently highlighted by critics of the drones like the Pakistani politician Imran Khan. Still, strike accuracy seems to be improving: just seven civilian deaths have been confirmed in 2012, down from 68 the previous year, according to the Bureau of Investigative Journalism, which has been critical of the Obama administration’s drone campaign.

And civilian lives are threatened by militants, too. As the American campaign has cut deeply into the commands of both the Taliban and Al Qaeda, drone-fearing militants have turned to the local community for reprisals, mounting a concerted campaign of fear and intimidation that has claimed dozens of lives and further stressed the already fragile order of tribal society.

The video messages from accused spies are intended to send a stark message, regardless of whether innocents are among those caught up in the deadly dragnet. The confessions are delivered at gunpoint, and usually follow extensive torture, including hanging from hooks for up to a month, human rights groups say.

“In every civilized society, the penalty for spying is death,” said a senior commander with the Pakistani Taliban, speaking on the condition of anonymity from Waziristan.

Although each of myriad militant factions in Waziristan operates its own death squads, by far the most formidable is the Ittehad-e-Mujahedeen Khorasan, a shadowy group that experts consider to be Al Qaeda’s local counterintelligence wing. Since it emerged in 2009, the group, which is led by Arab and Uzbek militants, has carefully cultivated a sinister image through video theatrics and the ruthless application of violence.

Black-clad Khorasan militants, their faces covered in balaclavas, roam across North Waziristan in jeeps with tinted windows. In one video clip from 2011, Khorasan fighters are seen searching traffic under a cluster of palm trees outside Mir Ali, a notorious militant hub. Then they move into the town center, distributing leaflets to shoppers, before executing three men outside a gas station.

“Spies, your days are numbered because we are carrying out raids,” chants the video soundtrack.

Thought to number dozens of militants, the Khorasan cooperates closely with the Afghan warlord Jalaluddin Haqqani, who is based in North Waziristan. A sister organization in Afghanistan has been responsible for 250 assassinations and executions, according to American military intelligence.

Reporting was contributed by Ihsanullah Tipu Mehsud from Islamabad; Ismail Khan from Peshawar, Pakistan; Zia ur-Rehman from Karachi, Pakistan; and Scott Shane and Eric Schmitt from Washington.

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Michigan State edges TCU 17-16 in BWW Bowl

TEMPE, Ariz. (AP) — Michigan State labored on offense throughout the first half, unable to get anything going on the ground, in the air, anywhere.

For a team that had lost five games by a combined 13 points during the regular season, it was starting to feel familiar.

The Spartans changed their luck by turning to brutally effective running back Le'Veon Bell in the second half, setting up Dan Conroy for another game-winning kick in a bowl game.

Bell ran for 145 yards and a fourth-quarter touchdown, Conroy kicked a 47-yard field goal with 1:01 left and Michigan State rallied to beat Texas Christian 17-16 in the Buffalo Wild Wings Bowl on Saturday night.

"With so many close games and losing like we did during the season, to have one go our way was definitely sweet," Conroy said.

It wasn't always pretty for the Spartans.

Michigan State (7-6) managed 76 yards of offense during the first two quarters as TCU bottled up Bell.

The 237-pound junior started to wear down the Horned Frogs in the second half, grinding out 107 of his yards on a 32-carry night.

Behind Bell, the Spartans went on the longest drive in their bowl history in the third quarter, marching 90 yards to set up freshman Connor Cook's 15-yard touchdown pass to Aaron Burbridge.

Michigan State then recovered a muffed punt by TCU's Skye Dawson at the 4-yard line midway through the fourth and Bell scored two plays later by racing around left end for a 14-13 lead.

TCU (7-6) still had a little life after blowing a 13-point halftime lead, moving just far enough to set up Jaden Oberkrom for the longest field goal in the bowl's history, a 53-yarder that put the Horned Frogs up 16-14 with 2:42 left.

They just left Michigan State too much time.

Starting at their own 25-yard line, the Spartans moved 45 yards in eight plays, setting up Conroy for his second game-winner in a bowl after beating Georgia with a 28-yarder in the third overtime of the 2012 Outback Bowl.

Michigan State's defense held after that, sending the Spartans to their second straight bowl win after three consecutive losses.

"There was no doubt in my mind that after so many losses in similar fashion that we were going to come out on top in this one," Spartans linebacker Max Bullough said.

The Horned Frogs shut down Michigan State's offense in the first half and did just enough when they had the ball to put together three scoring drives.

In the second half, TCU couldn't get anything going against the Spartans' defense — 84 total yards — and its defense gave up the long scoring drive in the third quarter, along with the game-winner in the fourth.

Trevone Boykin threw for 201 yards and an interception on 13-of-29 passing for the Horned Frogs.

"A little bit empty feeling inside because we felt like we left a lot on the field," TCU coach Gary Patterson said.

TCU and Michigan State came to the desert with an awful lot of similarities.

The Horned Frogs opened their first season in the Big 12 with four straight wins before losing four of their final six games. Michigan State started 4-2, then lost four of six down the stretch.

Michigan State had the nation's fourth-best defense and was 10th in scoring defense during the regular season. TCU was 18th in total defense and 10th against the run.

Michigan State quarterback Andrew Maxwell was up-and-down in his first season as Kirk Cousins' replacement, throwing 13 touchdown passes and nine interceptions. Boykin took over after four games for Casey Pachall, who was suspended and later left the team, and threw for 15 touchdowns and nine interceptions.

The biggest difference between the teams was Bell.

He ranked third nationally with 137.3 yards rushing per game and had 1,648 on the season, second-most in Michigan State history and 242 fewer than TCU had as a team.

Early on, the Horned Frogs gave him nowhere to go.

Filling holes inside and stringing plays out toward the sidelines, TCU stuffed the bruising Bell on nearly every touch, holding him to 38 yards on 11 carries in the first half.

Of course, it didn't seem to matter what Michigan State did. The Spartans had 29 yards on 12 plays in the first quarter and weren't a whole lot better in the second, with Maxwell throwing two near-interceptions on consecutive passes and an ill-advised trick play that probably should have resulted in a turnover, too.

The Spartans still seemed to be stuck in the ruts in the third quarter before grinding out a 14-play scoring drive led by Cook, who replaced Maxwell for the second time in the game. They had their biggest play on a floating pass from Bell to fullback TyQuan Hammock (29 yards), then Cook threw his first career touchdown pass, a 15-yarder to Burbridge on a crossing route that cut TCU's lead to 13-7.

"I thought Connor did a good job on the 90-yard drive, gave us a little momentum," Spartans coach Mark Dantonio said.

TCU didn't exactly have its way with Michigan State's defense in the first half and missed some chances to build a bigger lead.

The Frogs started gashing the Spartans for decent-sized chunks with their option midway through the first quarter, setting up Matthew Tucker's 4-yard touchdown on an end-around.

Boykin had an impressive off-the-back-foot throw to freshman Kolby Listenbee for 59 yards on the last play of the first quarter and nearly had a 19-yard touchdown pass to open the second, but LaDarius Brown was bumped and dropped the ball in the end zone. Oberkrom followed with a 47-yard field goal and added another from 31 yards after Boykin hit Josh Boyce on a 61-yard pass to put TCU up 13-0 at halftime.

The Frogs couldn't keep it up in the second half.

With Michigan State clogging the running lanes and chasing Boykin around, TCU had 30 yards of offense in the third quarter and continued to struggle in the fourth. The Horned Frogs did manage the short scoring drive to set up Oberkrom's late field goal, but ended up going backward on their final drive after Conroy's kick.

"What I thought happened in the third quarter was Michigan State dialed up the heat and we didn't have an answer," Patterson said.

Michigan State did — for one of the few times this season.

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Well: Exercise and the Ever-Smarter Human Brain

Anyone whose resolve to exercise in 2013 is a bit shaky might want to consider an emerging scientific view of human evolution. It suggests that we are clever today in part because a million years ago, we could outrun and outwalk most other mammals over long distances. Our brains were shaped and sharpened by movement, the idea goes, and we continue to require regular physical activity in order for our brains to function optimally.

Phys Ed

Gretchen Reynolds on the science of fitness.

The role of physical endurance in shaping humankind has intrigued anthropologists and gripped the popular imagination for some time. In 2004, the evolutionary biologists Daniel E. Lieberman of Harvard and Dennis M. Bramble of the University of Utah published a seminal article in the journal Nature titled “Endurance Running and the Evolution of Homo,” in which they posited that our bipedal ancestors survived by becoming endurance athletes, able to bring down swifter prey through sheer doggedness, jogging and plodding along behind them until the animals dropped.

Endurance produced meals, which provided energy for mating, which meant that adept early joggers passed along their genes. In this way, natural selection drove early humans to become even more athletic, Dr. Lieberman and other scientists have written, their bodies developing longer legs, shorter toes, less hair and complicated inner-ear mechanisms to maintain balance and stability during upright ambulation. Movement shaped the human body.

But simultaneously, in a development that until recently many scientists viewed as unrelated, humans were becoming smarter. Their brains were increasing rapidly in size.

Today, humans have a brain that is about three times larger than would be expected, anthropologists say, given our species’ body size in comparison with that of other mammals.

To explain those outsized brains, evolutionary scientists have pointed to such occurrences as meat eating and, perhaps most determinatively, our early ancestors’ need for social interaction. Early humans had to plan and execute hunts as a group, which required complicated thinking patterns and, it’s been thought, rewarded the social and brainy with evolutionary success. According to that hypothesis, the evolution of the brain was driven by the need to think.

But now some scientists are suggesting that physical activity also played a critical role in making our brains larger.

To reach that conclusion, anthropologists began by looking at existing data about brain size and endurance capacity in a variety of mammals, including dogs, guinea pigs, foxes, mice, wolves, rats, civet cats, antelope, mongooses, goats, sheep and elands. They found a notable pattern. Species like dogs and rats that had a high innate endurance capacity, which presumably had evolved over millenniums, also had large brain volumes relative to their body size.

The researchers also looked at recent experiments in which mice and rats were systematically bred to be marathon runners. Lab animals that willingly put in the most miles on running wheels were interbred, resulting in the creation of a line of lab animals that excelled at running.

Interestingly, after multiple generations, these animals began to develop innately high levels of substances that promote tissue growth and health, including a protein called brain-derived neurotrophic factor, or BDNF. These substances are important for endurance performance. They also are known to drive brain growth.

What all of this means, says David A. Raichlen, an anthropologist at the University of Arizona and an author of a new article about the evolution of human brains appearing in the January issue of Proceedings of the Royal Society Biology, is that physical activity may have helped to make early humans smarter.

“We think that what happened” in our early hunter-gatherer ancestors, he says, is that the more athletic and active survived and, as with the lab mice, passed along physiological characteristics that improved their endurance, including elevated levels of BDNF. Eventually, these early athletes had enough BDNF coursing through their bodies that some could migrate from the muscles to the brain, where it nudged the growth of brain tissue.

Those particular early humans then applied their growing ability to think and reason toward better tracking prey, becoming the best-fed and most successful from an evolutionary standpoint. Being in motion made them smarter, and being smarter now allowed them to move more efficiently.

And out of all of this came, eventually, an ability to understand higher math and invent iPads. But that was some time later.

The broad point of this new notion is that if physical activity helped to mold the structure of our brains, then it most likely remains essential to brain health today, says John D. Polk, an associate professor of anthropology at the University of Illinois at Urbana-Champaign, and co-author, with Dr. Raichlen, of the new article.

And there is scientific support for that idea. Recent studies have shown, he says, that “regular exercise, even walking,” leads to more robust mental abilities, “beginning in childhood and continuing into old age.”

Of course, the hypothesis that jogging after prey helped to drive human brain evolution is just a hypothesis, Dr. Raichlen says, and almost unprovable.

But it is compelling, says Harvard’s Dr. Lieberman, who has worked with the authors of the new article. “I fundamentally agree that there is a deep evolutionary basis for the relationship between a healthy body and a healthy mind,” he says, a relationship that makes the term “jogging your memory” more literal than most of us might have expected and provides a powerful incentive to be active in 2013.

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Senate Leaders Racing to Beat Fiscal Deadline

WASHINGTON — Senate leaders and their aides spent Saturday searching for a formula to extend tax cuts for most Americans that could win bipartisan support in the Senate and final approval in the fractious House by the new year, hoping to prevent large tax increases and budget cuts that could threaten the fragile economy.

As part of the last-minute negotiations, the lawmakers were haggling over unemployment benefits, cuts in Medicare payments to doctors, taxes on large inheritances and how to limit the impact of the alternative minimum tax, a parallel income tax system that is intended to ensure the rich pay a fair share but that is increasingly encroaching on the middle class.

President Obama said that if talks between the Senate leaders broke down, he wanted the Senate to schedule an up-or-down vote on a narrower measure that would extend only the middle-class tax breaks and unemployment benefits. The Senate majority leader, Harry Reid of Nevada, said he would schedule such a vote on Monday absent a deal.

If Congress is unable to act before the new year, Washington will effectively usher in a series of automatic tax increases and a program of drastic spending cuts that economists say could pitch the country back into recession.

The president and lawmakers put those spending cuts in place this year as draconian incentives that would force them to confront the nation’s growing debt. Now, lawmakers are trying to keep them from happening, though it seemed most likely on Saturday that the cuts, known as sequestration, would be left for the next Congress, to be sworn in this week.

“We just can’t afford a politically self-inflicted wound to our economy,” Mr. Obama said Saturday in his weekly address. “The housing market is healing, but that could stall if folks are seeing smaller paychecks. The unemployment rate is the lowest it’s been since 2008, but already families and businesses are starting to hold back because of the dysfunction they see in Washington.”

The fear of another painful economic slowdown appears to have accelerated deal-making on Capitol Hill with just 48 hours left before the so-called fiscal cliff arrives. Weeks of public sniping between Mr. Reid, the Democratic leader, and Senator Mitch McConnell of Kentucky, the Republican leader, ebbed on Friday evening with pledges of cooperation and optimism from both.

On Saturday, though, that sentiment was put to the test as 98 senators waited for word whether their leaders had come up with a proposal that might pass muster with members of both parties. The first votes in the Senate, if needed, are scheduled for Sunday afternoon.

“It’s a little like playing Russian roulette with the economy,” said Senator Mark Warner, Democrat of Virginia. “The consequences could be enormous.”

Members of Congress were mostly absent from the Capitol on Saturday, after two days of Senate votes on other matters and a day before both chambers were to reconvene. However, senior aides were working on proposals in their offices or at their homes.

Speaker John A. Boehner stopped by the Capitol briefly to see his chief of staff on Saturday afternoon. Mr. McConnell spent much of the day in his office.

Aides to Mr. Reid were expecting to receive offers from Mr. McConnell’s staff, but no progress was reported by midday. Even if the talks took a positive turn, Senate aides said, no announcement was expected before the leaders briefed their caucuses on Sunday.

The chief sticking point among lawmakers and the president continued to be how to set tax rates for the next decade and beyond. With the Bush-era tax cuts expiring, Mr. Obama and Democrats have said they want tax rates to rise on income over $250,000 a year, while Republicans want a higher threshold, perhaps at $400,000.

Democrats and Republicans are also divided on the tax on inherited estates, which currently hits inheritances over $5 million at 35 percent. On Jan. 1, it is scheduled to rise to 55 percent beginning with inheritances exceeding $1 million.

The political drama in Washington over the weekend was given greater urgency by the fear that the economic gains of the past two years could be lost if no deal is reached.

Some of the consequences of Congressional inaction would be felt almost at once on Tuesday, in employee paychecks, doctors’ offices and financial markets. Analysts said the effect would be cumulative, building over time.

An early barometer would probably be the financial markets, where skittish investors, as they have during previous Congressional cliffhangers, could send the stock market lower on fears of another prolonged period of economic distress.

In 2011, the political battles over whether to raise the nation’s borrowing limit prompted Standard & Poor’s to downgrade its rating of American debt, suggesting a higher risk of default. The Dow Jones industrial average fell 635 points in a volatile day of trading after the downgrade.

This month, traders have again nervously watched the political maneuvering in Washington, and the markets have jumped or dropped at tidbits of news from the negotiations. Two weeks ago, Ben S. Bernanke, the chairman of the Federal Reserve Board, predicted that if lawmakers failed to reach a deal, “the economy will, I think, go off the cliff.”

Immediately — regardless of whether a deal is reached — every working American’s taxes will go up because neither party is fighting to extend a Social Security payroll tax cut that has been in place for two years.

Robert Pear and Jennifer Steinhauer contributed reporting.

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