john hendron has the latest from washington. >> president obama is under fire. friendly fire from democrats. >> there are times to make deals but usually it follows a long, tough fight. i don't know but it seems i missed that part of this equation. >> critics complain h caved cutting a deal to extend the bush tax cuts for two more years for everyone deste campaigning the end of tax breaks for the wealthy. >> how can we rationalize tax cuts for the most wealthy americans when we're facing this kind of a deficit. the prident did get concessions extending unemployment benefits for 13 months for 9 million americans saving 2 million jobless workers from losing their benefits ove the holays, extending tax

john hendron, abc news. >> meteorologist lisa argen in for mike nicco. all we care about is new year's eve. >> yeah. already the sunshine has faded across the bay area. sure is a pretty shot but even some showers popping up right now around south. i'll show you that and a look at the first weekend of the new year next. >> lost luggage and storm delays. now height restrictions? the man who says airlines tell him he's too tall to fly. >> feeling lucky on the last day of 2010? the megamillions jackpot that could make it a good start to the new year. you can see [honking] they were having a sale! announcer: the ikea sale. i'm going back for more! announcer: december 26th through january 9th. save up to 60%. ikea. the life improvement store. [ female announcer ] martinelli's gold medal sparkling cider is the perfect choice for holiday gatherings. martinelli's is non-alcoholic festive like champagne and tastes great! martinelli's: since 1868. ♪ >>> and it's over. it's over! u.conn wins straight games at 90. and the streets of -- >> the stanford women's baske

john hendron, abc news. >> meteorologist lisa argen in for mike nicco. all we care about is new year's eve. >> yeah. already the sunshine has faded across the bay area. sure is a pretty shot but even some showers popping up right now around south. i'll show you that and a look at the first weekend of the n year next. >> lost luggage and storm delays. now height restrictions? the man who says airlines tell him he's too tall to fly. >> feeli lucky on the last day of 2010? the megamillions jackpot that could make it a good start to the new year. ♪ >>> and it's over. it's over! u.conn wins straight games at 90. and the streets of -- >> the stanford women's basketball team put on a big show for a sold out crowd at home last night ending contct's 90-day winning street. former secretary of state condoleezza rice was in the stands. >> stanford very happy about that yesterday. >> congratulations to them. >> as we count down to new year's eve, good news about the rest of the week from lisa. >> you know, wouldn'tou know the timing is for warmer weather and less r

john hendron, abc news, washington. >> democrats are demanding a vote today on a bill that would let gays openly serve in the military. any vote would be procedural. it would pave the way for a future bill if approved. at least three senate republicans said they would support repealing the law. they found overturning "don't ask, don't tell" could be done without hurting military effectiveness. >> removing an unwanted item from a backyard. that's a toyota sedan pulling out of the yard it had plunged some 600 feet down a hillside coming to rest on an orange tree and a pool. no one was in the car at the time. crews spent yesterday trying to remove the car which was a rental but they couldn't. that's when saratoga tree service came to the rescue. we're told the orange tree is going to be fine and the rental car agency will be picking up the tab. >> hope they took on the insurance, right? why the city of berkeley might soon be calling the army private accused of leaking thousands of documents a hero. >> also wikileaks fans trike back. the online instructions that appear to be retaliation

john hendron has the latest from washington. >> some democrats think the white house just blinked. >> tax cuts for the wealthiest individuals have led us into this recession, cost us 15 million jobs, have utterly failed. >> it looks like a break in the impasse over tax cuts but is it a compromise. democrats wanted a catch cut just for the middle class. that failed in the senate. >> the motion is not agreed to. >> under agreement in the works, republicans would get what they want: tax cuts extended for everyone for two years forcing the president to break a key campaign had promise. >> we don't want no tax increases or no bite. that may be poor grammar but it's great economics. >> unemployment benefits for one year. >> if you don't force fast action, what you'll end up doing, just kickin' the cab down the road and the only thing though jobless americans get is a really kicked can. >> a tax credit proposed for those earning under $75,000 a year. a deal the white house has negotiated with largely with the republicans. >> more conversations in the last two weeks than the last two years. >

john hendron has the latest from washington. >> some democrats think the white house just blinked. >> tax cuts for the wealthiest individuals have led us into this recession, cost us 15 million jobs, have utterly failed. >> it looks like a break in the impasse over tax cuts but is it a compromise. democrats wanted a catch cut just for the middle class. that failed in the senate. >> the motion is not agreed to. >> under agreement in the works, republicans would get what they want: t cuts extended for everne for two years forcing the president to break a key campaign had promise. >> we don't want no tax increases or no bite. that may be poor grammar but it's great economics. >> unemployment benefitsor one year. >> if you don't force fast action, what you'll end up doing, just kickin' the cab down the road and the only thing though jobless americans get is a really kicked can. >> a tax credit proposed for those earning under $75,000 a year. a deal the white house has negotiated with largely with the republicans. >> more conversations in the last two weeks than the last two years. >> man

john hendron, abc news, washington. >> democrats are demanding a vote today on a bill that would let gays openly serve in the military. any vote would be procedural. it would pave th way for a future bill if approved. at least three senate republicans said they would support repealing the law. they found overturning "don't ask, don tell" could be done without hurting military effectiveness. >> removing an unwanted item from a backyard. that's a toyota sedan pulling out of the yard it had plunged some 600 feet down a hillside coming to rest on an orange tree and a pool. no one was in the car at the time. crews spent yesterd trying to remove the car which was a rental but they couldn't. that's when sarato tree service came to the rescue. we're told the orange tree is going to be fine and the rental car agency will be picking up the tab. >> hope ey took on the insurance, right? why the city of berkeley might soon be calling the army prive accuseof leaking thousands of documents a hero. >> also wikileaks fans trike back. the online instructions that appear to be retaliation for the arres

john hendron reports. >> it's a kind of congressional shutdown. all 42 republican senators say they will block most other bills until the bush year tax cuts are extended for everyone, including the wealthy. >> we're going to extend the current stock rates. we're not going to raise taxes on anybody. the only thing we're discussing now is just how long that extension will be. >> democrats want them extended only for those earnings under a quarter million dollars. they say republicans are holding struggling americans hostage by blocking an extension of unemployment benefits to save tax breaks for the rich. >> where is the moral outrage? >> president obama awaiting arising republican tide on capitol hill on january is struggling to broker a compromise before the tax cuts expire. >> nobody wants to see taxes on middle class families go up starting january 1st. >> he's appointed secretary tim geithner to find common ground. 65,000 will lose benefits. by christmas 1.6 million without and 2 million by new year. the ended of january three and tae quarter m

john hendron reports. >> it was an all-night rhetorical assault. >> the greedy will prevail. >> the guns pointed at the head of our taxpayers. it will go off january 1st unless congress acts. >> after hours of heated debate, the house passed the bill extending the bush tax cuts and adding a few more, easily as it turned out. >> the yeas are 277, the nays are 148. the motion is adopted. >> the warning did not pass it were near apocalyptic. >> paychecks and jobs will burn while washington fiddles. >> our small businesses will be crushed. >> this tax increase will basically hit economic growth, hit prosperity in this country like a category 5 hurricane. >> the warnings about passing it were equally catastrophic. >> unemployed were being held as hostage. the 112 congress will say insufficient funds. it engangers the very fabric of social security. >> warns it will now be tested. the bill will extend all the bush income tax incuts for two years, cut the payroll tax, extend unemployment benefits for an additional 13 months, reduce inheritance tax from 55 to 35% and there will be no tax on esta

john hendron reports >> it was an all-night rhetorical assault. >> the greedy will prevail. >> the guns pointed at the head of our taxpars. it will go off january 1st unle congress acts. >> after hours of heated debate, the house passed the bill exteing the bush tax cuts and adding a few more, easily as it turned out. >> the yeas are 277, the nays are 148. the motion is adopted. >> the warning did not pass it were near apocalyptic. >> paychecks and jobs will burn while washington fiddles. >> our small businesses will be crushed. >> this tax increase will basically hit economic growth, hit pr in this country like a category 5 hurricane. >> the warnings about passing it were equally catastrophic. >> unemployed were being held as hostage. the 112 congress will say insufficie funds. it engangs the very fabric of social security. >> warns it willow be tested. the bill will extend all the bush income tax incuts for two years, cut the payroll tax, extend unemployment benefits for an additional 13 months, reduce inheritance tax from 55 to 35% and there will be no tax on estates under $5 million

john hendron has the latest from washington. >> president obama is under fire. friendly fire from democrats. >> there are times to make deals but usually it follows a long, tough fight. i don't know but it seems i missed that part of this equation. >> critics complain he caved cutting a deal to extend the bush tax cuts for two more years for everyone despite campaigning the end of tax breaks for the wealthy. >> how can we rationalize tax cuts for the most wealthy americans when we're facing this kind of a deficit. the president did get concessions extending unemployment benefits for 13 months for 9 million americans saving 2 million jobless workers from losing their benefits over the holidays, extending tax credits for working families including college tuition and children and a 2% payroll tax holiday for every american. what's it all mean? an average household earning under $50,000 keeps the bush tax cut and gives nearly $1,000 more plus $1,000 tax credit per child and a tax credit of up to $2500 for college tuition. >> i have no doubt everyone will find somet

john hendron reports. >> it's a kind of congressional shutdown. all 42 republican senators say they will ock most other bills until the bush year tax cuts are extended for everyone, including the wealthy. >> we're going to extend the current stock rates. we're not going to raise taxes on anybody. the only thing we'r discussing now is just howong that extension will be. >> democrats want them extended only for those earnings under a quarter million dollars. they say republicans are holding struggling americans hostage by blocking an extension of unemployment benefits to save tax breaks for the rich. >> where is the moral outrage? >> presidt obama awaiting arising republican tide on capitol hill on january is struggling to broker a compromise before the tax cuts expire. >> nobody wants to see taxes on middle class families go up starting janry 1st. >> he's appointed secretary tim geithner to find common ground. 65,000 will lose benefit by christmas 1.6 million without and 2 million by new year. the ended of january the and tae quarter million will b