tax cut compromise. the white house and congressional republicans appear closer to a deal to extend the bush-era tax breaks. murder mystery. a person of interest in the murder of a hollywood publicist kills himself as police close in. and out of the woods? positive economic news and a blockbuster day on wall street suggests the economy may finally be getting back on track. this is the "cbs morning news" for thursday, december 2nd, 2010. good morning, everybody. thanks for joining us. i'm betty nguyen. talks between the obama administration and congressional leaders resume today on extending the bush-era tax cuts.

it now appears likely some sort of deal will be reached. meanwhile, the house votes today on legislation that would extend just the middle-class tax breaks. whit johnson is in washington with the details on all of this. good morning, whit. >> betty, good morning. more political posturing on capitol hill. today's house vote just another example of that. the real tax cut negotiations are going on in a place more familiar to lawmakers, behind closed doors. republicans and democrats appear closer to striking a deal on extending bush-era tax cuts. >> we are not going to raise taxes on anybody. the only thing we're discussing now is just how long that extension will be. >> reporter: officials close to the negotiations say a one to three-year extension for all americans is becoming increasingly likely. still, that isn't stopping house democrats from trying to push through their proposal today. it would extend cuts for individuals making less than $200,000 and couples making less than $250,000. higher-income earners would see

their cuts disappear. >> tax cuts for the rich do not create jobs. they haven't throughout the bush administration. >> reporter: but senate republicans warn a bill that does not include an extension for the wealthy would be dead on arrival. the gop has threatened to hold up any legislation until the tax cut issue is resolved. the white house is optimistic an agreement can be reached. >> there're going to be ups and downs to this process but i'm confident we'll be able to get it done. >> reporter: if it doesn't get done by the end of the year, all americans will see their paychecks shrink. >> we need the help. it's recession, we need something. >> i think they should definitely be extended to the middle-class. wealthy, they are wealthy. what do they need a tax break for? >> reporter: republicans have little incentive to make concessions during this lame duck session. when the new congress convenes in january, the gop will have much more clout. permanently extending tax cuts for just the low and middle class would cost about $3 trillion over the next decade. if you include the wealthy, it

would be an additional 700 billion. betty? >> we'll see how it shakes out today. whit johnson in washington for us. whit, thank you. the house also votes today on censoring long-time representative charles rangel. a vote to censor him is all but certain. the house ethics committee says it is justified because of his long pattern of financial misdeeds. he would be required to stand on the house floor while a resolution is read condemning his behavior. the obama administration has reversed its decision to open new areas of the eastern seaboard and gulf coast to oil drilling. just before the massive bp leak in the gulf, the president announced plans to open up drilling from delaware to central florida. wednesday, interior secretary ken salazar said we are adjusting our strategy. the oil and gas industry says the decision locks up much of america's energy resources. tomorrow, a commission appointed by the president votes on a plan to cut the nation's budget deficit.

the deficit currently stands at $13.8 trillion. the plan proposed by the commission chairmen calls for sweeping changes to tax laws and social security. it's already being sharply criticized. joel brown has the details. >> reporter: the leaders of the president's deficit commission unveiled a plan to bring down the deficit that even they admit few are going to like. >> those are the groups waiting out there in temples around the city to shred this baby to bits! >> reporter: the plan would cut $3.9 trillion from the deficit by 2020. it gradually raises the age to collect social security to 69 by the year 2075. it slashes spending, including cuts in the military budget. and a ban on earmarks. and there are tax hikes including a 15-cent increase on the gas tax. democrats and republicans have found plenty not to like but the commission's leaders say there's no other choice. >> this debt is like a cancer.

it is going to destroy us from within. >> reporter: right now the commission's proposals are just recommendations but if 14 of the panel's 18 members sign off on them, congress has agreed to take them up. at this point, that seems unlikely. liberal democrats argue cuts to social programs put the burden on the nation's neediest. >> sacrifice, in fact, has not been shared. >> reporter: conservative republicans don't like the tax hikes or the plans embraced in the new health care law. >> guess what, our debt problem is the health care problem. >> reporter: so far, only two lawmakers are declared "yes" votes, but some commission members say just getting the conversation started is an important first step. joel brown, cbs news, washington. there has been a dramatic twist in the investigation into the murder of hollywood publicist ronni chasen. a man described as a person of interest killed himself when he was approached by police. last night, detectives in l.a. tried to serve a search warrant to the man at his apartment.

>> the suspect produced a handgun and there was a self-inflicted gunshot wound at that point in time and the suspect was pronounced at the scene. >> chasen, a well-known hollywood figure was shot last month as she drove home from a movie premiere. police have not released a possible motive. this morning, a british newspaper reports that wikileaks founder julian assange is in britain but police are holding off arresting him. assange is on interpol's most wanted list for alleged sexual crimes in sweden. "the independent" reports police won't arrest assange until they clarify the european arrest warrant. a deadly snowstorm has engulfed parts of europe. the sub-zero temperatures blamed for eight deaths in poland. major airports in britain, france and switzerland have been forced to shut down causing severe flight delays. and thousands of auto accidents have also been reported. australian investigators say a manufacturing defect may have

caused an engine on one of its super jumbo jets to explode. the roles royce trenton 900 engine on the airbus 380 blew apart in midair last month. australian investigators say a misaligned oil pipe caused that failure. they recommended all three airlines that fly the 380 to conduct more checks. on the "cbs moneywatch" a strong showing by asian stocks this morning. ashley morrison is here in new york with much more on that. good morning, ashley. >> good morning to you, betty. asian markets followed the dow's lead, japan's nikkei leaping nearly 2%, while hong kong's hang seng added nearly 1%. today, wall street gets the latest on homes sales and weekly jobless claims. wednesday, stocks started december off with a big bang. the dow shot up almost 250 points, its biggest one-day gain in three months, while the nasdaq added 51. a string of positive reports suggests the economic recovery is gaining steam.

private companies added 93,000 jobs in november, the biggest monthly gain in three years. most of the hiring came from small businesses. the auto industry's recovery is also gaining traction, major automakers including ford, gm and chrysler all reported double-digit sales gains in november, only toyota, which has been hurt by a string of safety recalls had a sales drop. retail spending rose last month as holiday shoppers jumped on discounted deals, especially online where sales were up 13%. construction spending and manufacturing output were also up. verizon taking broadband to the next level. sunday the wireless carrier will launch its 4g or fourth generation service in 38 cities. the company says it will be ten times faster than their current 3g network. only pc and laptop users will be able to take advantage of the higher data speeds. verizon hopes to have a smartphone available on the network by next summer. and the friendly skies now have a happy hour. on wednesday, american airlines will begin offering discounted

alcoholic drinks onboard domestic flights that take off between 5:00 and 6:00 p.m. the savings aren't huge. the carrier is knocking one dollar off beer and two bucks off liquor and wine first and business class customers still get their drinks for free. according to one of my dad's favorite lines, especially on vacation, it is always 5:00 somewhere, right, betty? >> this is true. who would have thought, happy hour on an airline. >> yep, there you go. >> all right. ashley morrison in new york, thank you for that. just ahead on the morning news a promising test to identify autism plus recovery for rapper eminem as he leads the grammy patch with the most nominations. you are watching the "cbs mortgage -- morning news."

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by 23 zeros, the latest estimate published by astronomers this week three times as many as previously believed. won't be quite as many stars at next year's grammy awards, but we know this morning some that will be there, those nominees were announced last night right here on cbs. and kendis gibson reports. >> reporter: with star-studded performances, the grammys named its nominees in grand style, a one-hour concert from downtown los angeles. this year's number one seller was, also, tops among grammy voters. >> -- by eminem. >> reporter: leading the list of nominees with ten including album of the year for "recovery." newcomer bruno mars received seven nominations including one for record of the year. back stage the 25-year-old hawaiian-born singer was clearly overwhelmed. >> we worked so hard on -- on

just trying to make a living doing music and the fact that we're here, like i said, is -- is an incredible, incredible feeling. >> reporter: lady antebellum and lady gaga share a first name and six nominations apiece. the grammy televised a live one-hour special to announce the nominees three years now and it just keeps getting bigger and bigger, with more and more star power. best new artist nominee justin bieber appeared from london performing one of his hits. as did country star miranda lambert. >> grammys are something that's so historical and so influential in music's past and in the future and presently i'm just glad to be here, you know, representing country. >> reporter: from a recovering wrapper to island newcomer to country's top act among the top nominees, it's clear music's biggest night, february 13th, will also be a very diverse evening. kendis gibson, cbs news, los angeles.

>> you can watch the 53rd annual grammy awards sunday, february 13th at 8:00 p.m. right here on cbs. in health news, scientists say they are closing in on developing a test for autism. researchers report they can now detect the disorder with 94% accuracy. they use mri scanners to measure areas of the brain that deal with language, social and emotional functions. researchers say the test may someday replace the subjective techniques now used to identify autism. straight ahead, your thursday morning weather. and in sports, king james prepares for his first game in cleveland since leaving for miami. mi. (greenery) hey cheese log. (cheese log) hello centerpiece. (greenery) fruit cake. how are ya? [fruit cake] dry. (greenery) who's the new guy?

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here's a look at weather in some cities around the country. new york, sunny, 43 degrees. miami a sunny 74. chicago, flurries there, 30 degrees. dallas, it's going to be a sunny 65. and 73 and sunny in l.a. time now for a check of the national forecast. the latest satellite picture shows a few areas of clouds in the midwest. skies are clear from the southwest to the southeast. later today, a cold breeze blows through the northeast dropping temperatures into the 30s and 40s. more snow and rain in the northwest and the south enjoys a mild day. in sports the nba's miami heat will warm up chilly cleveland tonight as lebron james returns for the first time since leaving the cavaliers. cleveland fans are still angry

he left and james knows it. >> it's going to be tough but, you know, i'm there for a basketball game and understand -- you know, i understand how passionate fans are about sports. so, you know, i'm ready for whatever response i'm going to get. you know, it's going to be funny, though, just being in a different uniform, being in the visitor locker room, starting off on the other end of the court, standing on the other end of the bench. it's going to be kind of weird, honestly. >> he says he hasn't decided yet whether he will do his trademark talcum toss as last night in miami. in that game he scored 18 points to lead the heat to an easy win over the detroit pistons. 97-72. in houston the lakers kobe bryant scored 27 including a slick fadeaway jumper just before the half, but the rockets came on strong in the final minutes of the game to hand l.a. its fourth loss in a row 109-99. when we return, another look at this morning's top stories, plus prisoner payout. tax cheaters who are committing

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the decision today that could impact dozens of lawsuits against pg and e. plus... the battle for the oakland a's heats up. why one city's missed opportunity could help oakland keep its team. adding insult to injury. why drivers stuck in that bay bridge standoff.. are now getting slapped with tickets! plus.. christmas comes early for bart riders. how to get a free ride today. join us for cbs 5 early edition ... beginning at five. a major step in the legal battle over the san bruno exp,,,,

on the "cbs morning news," here's a look at today's weather. cold weather from the northern plains are starting to spread through the rest of the country. scattered bands of snow on the move through the great lakes and the northwest seeing a mix of snow and rain. here's another look at this morning's top stories. stocks surged wednesday following a series of encouraging economic reports. the federal reserve says the u.s. economy improved in 10 of its 12 regions. the obama administration and congressional republicans seem closer on a deal to extend the bush-era tax cuts. another meeting is scheduled for today. from tax cuts to tax scams, a new report out today reveals tens of thousands of prison inmates have been collecting fraudulent tax refunds.

the problem is getting worse over the years and it's costing the government millions. armen keteyian has this report. >> reporter: while working in prison inmates learn the meaning of hard time. pay is limited to an average of just 35 cents an hour, well below what's required to file a federal tax return. but cbs news has learned that hasn't stopped tens of thousands of prisoners from ripping off the irs at tax-payer expense. >> you're in prison anyway. what are they going to do to you? >> reporter: prisoners like this man are filing bogus tax returns from behind bars, a scam so big, cbs news has learned prisoners last year collected a staggering $130 million in tax refunds they didn't deserve. >> they were just filling out the forms. >> reporter: using basic tax forms available inside all prisons, state and federal inmates claimed phony income or tax credits, often with no supporting documents. the refund checks they collect

range from a few hundred dollars to as much as $8,000 each. some prisoners filed multiple returns, year after year. >> the irs is processing these returns. it makes no sense. >> reporter: jay russell george, the treasury inspector general for tax administration. he's releasing this detailed report seen here for the first time. it finds more than a quarter million tax returns filed by prisoners for 2009 were never reviewed by the irs. that's 88%. >> the irs could have easily, in our view, identified these people and yet failed to do so. >> reporter: the irs refused to talk to us about this scam. but in response to the inspector general's report said it's not practical to verify every prisoner tax return and that other fraud takes priority. so, for now, when it comes to doing time, it appears crime really does pay. armen keteyian, cbs news, new

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take a look at this. in san diego, a dog trapped under some boulders along a beach was finally pulled to safety last night. fugi, his name, a jack russell terrier, had run off from his owner tuesday. wednesday, someone heard him crying from the cracks of the big rocks. life guards and firefighters worked all day to free that little dog and they even had to tranquilize him to calm him down. vets say he was cold but in good shape. this is the time of the year for holiday cheer but for people down on their luck, that might be hard to come by. in san francisco, the singers of the street choir are helping some homeless people feel a little better.

jennifer mistroe of our san francisco station kpix reports. ♪ ♪ >> i thought i was stupid. i thought i was just going to be disconnected with everybody. >> reporter: patrick burton is no ordinary choirboy. but, this isn't an ordinary choir. ♪ the sign said long-haired freaky people need not apply ♪ >> reporter: it isn't a church. ♪ silent night >> reporter: and they do sing hymns. but patrick and some others here belong to a particular club many of us will never sing with. they have been homeless. >> i would say three times, three times in my life. >> reporter: homelessness is a polarizing issue in san francisco. the idea behind the singers of the street choir is two-fold.

first, provide a safe space for homeless to sing out about their feelings of isolation. second, get people singing side by side with people who are homeless and those who are not. >> one of the things that's missing for homeless people in cities is a chance for socialization and for community. san francisco's definitely a place that needs that. >> reporter: this three-month-old choir is modeled after similar programs in places like australia. kathleen says this fellowship helps people get sober, find jobs and also find places to live. skeptics might say that all of that remains to be seen and even participants aren't sure where this is all going to go. still -- >> we all seek joy and happiness and even if it's only for a brief moment, it's good. >> and that's the end! >> reporter: in san francisco

jennifer mistroe, cbs 5. coming up later on "the early show" we'll hear from south carolina republican senator jim demint on the tax cut negotiations. also online holiday shoppers be ware, tips how to protect yourself from internet scammers. and multi-platinum singer k.t. tunsel performs from her cd live in the studio. that's the "cbs morning news" for this thursday. thanks for watching. i'm betty nguyen. thanks for watching. i'm betty nguyen. have a great day! -- captions by vitac -- www.vitac.com

your realtime captioner is linda marie macdonald. caption colorado, l.l.c. a major step in the legal battle over the san bruno explosion. what a decision today could mean for dozens of lawsuits against pg&e. plan