>> tom: an extension of the bush tax cuts passes the house, but not for everyone. and that's not good enough for the incoming head of the house budget writing committee. >> frankly, if it doesn't happen, i'm going to bring a bill that makes sure there's no tax hikes on any americans come the first of the year. it will be the first order of business that i have as chairman of the ways and means committee. >> susie: we talk tax cuts, deficit reduction, and china trade in our interview with michigan's dave camp. you're watching "nightly business report" for thursday, december 2. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by:

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captioning sponsored by wpbt >> tom: good evening and thanks for joining us. the u.s. house today approved an extension of the bush tax cuts, but with a catch, susie. it's just for people making less than $250,000 a year. >> susie: tom, today's vote is largely symbolic, because democrats don't have the votes needed to pass a similar measure in the senate. republicans don't want to cross party lines, unless the tax breaks are extended for everyone, including people making more than $250,000. >> tom: so what will happen to the taxes you pay? negotiations to figure that out continued late today with top obama administration officials meeting with a small group of lawmakers on capitol hill. one of those lawmakers is david camp. he'll be taking over the powerful tax-writing ways and means committee. darren gersh spoke with congressman camp early today, and asked him how the talks are going.

>> i think they're going fine. i mean we're just really beginning. they will complicated issues but we just think it's important not to have any tax increases. the economy is fragile. we've got high unemployment. we've had high unemployment for 15 months and we have to do everything we can to make sure that those people who create jobs, small businesses that invest and hire people, their taxes don't go up. but frankly taxes shouldn't go up on any americans in this recession. >> but the big question is are you going to get a deal before congress leaves. some of the tax experts i have been talking to say the odds are at best 50/50 on that, what do you think? >> well, i sure hope so i think it's important to try to get something done but i think really the policies are more important than the deal and frankly if it doesn't happen i'm going to bring a bill that makes sure there is no tax hikes on any americans, the first of the year it will be the first order of business i have as chairman of the ways and means committee. but i think we do need to

continue talking. we need to try to see if we can resolve this now. i think waiting is not a good idea after the first of the year but if it doesn't work, i'm just not going to agree to anything and i think it's very critical that we somewhere no tax increases on any americans. >> so what's the right length of extension. i mean does it have to be one year, two years, three years, what are you aiming for. >> as i travel around my district and around the country many employers and businesspeople talk to people about certainty amount of that they don't know what the tax policy is going to be and it's really frozen them. so i think as long as possible, obviously i'm for permanence. i think we have to keep that as long as we possibly can. >> a lot of people are unemployed now, facing uncertainty. they don't know if they will get benefits which will run out v run out and they will stop getting their checks in a matter of days. what is going to happen to them? are they going to get unemployment benefits extended? >> i'm for extending unemployment benefits but in a responsible way. i think we should pay for them. if we could get a bill on the floor that does that, i think it will pass.

but unfortunately we've been blocked by the democrats from doing that they won't let us bring that bill to the floor so they gamed it requiring a supermajority and then claim that somehow the bill has been blocked by republicans. >> but is the principal s that principal and that point at this point more important than getting people their unemployment benefits? >> well, one of the things we have as a member of the debt commission is learn that our debt is actually hurting the ability of our economy to grow and when our economy doesn't grow people don't get jobs. so our debt is actually hurting the ability for people to get hired. and what we are do something simply adding to the debt. and we do have the ability, either using unspent stimulus funds or finding other savings and other programs of paying for this so we don't simply keep adding to our debt. >> are you a pretty busy guy lately. are you also on that deficit commission. if you have concerns about the taxes, the tax increases that that commission have talked about, what

additional spending cuts would you recommend to replace the tax increases they're talking about? >> well, first, let me just say i think that the co-chairman of the commissioner skin bowles and alan simpson have really done yeoman's work with. they've done a greet job. they really highlighted a lot of key issues. and i think this report is going to set much of the debate whether it's voted on or not. but i think there is several concerned i have. and one is that the big driver of spending and deficits is health care spending. and we know that the new health-care bill actually increases the deficit and increases health care spending. so it didn't make it better t made it worse. and this commission report largely has left that whole area untouched. and i think that is one of the areas that is really lacking in this report. but having said that -- >> they have a couple hundred billion dollars in spending reductions in health care and medicare and they have this idea of a global health care budget

essential three would cap all federal spending on health care as a percentage of gdp is that where we where headed? would you support something like that. >> what they do is they unfortunately institutionalize the increases in health care spending and deficit by the recent health-care bill. and i think that is really an error that we need to try to redress. >> as if you didn't have enough to do you are also going to be a key leader on trade policy. will you move another bill to address china's currency wh you become chairman of the ways and means committee. >> i think when you look at china and our relationship there it is really a multifacetted one. and i think the currency issue is just one aspect of that. i think we should really approach our relationship on china in really multilarl way, engaging other countries and other issues and currency is one with of those. i think obviously piracy, intellectual property, i think those are very important issues.

and i am focusing on all of them. but i think particularly on those. >> david camp, soon to be chairman of the ways and means committee, thank you for your time. >> thank you. >> susie: here are the stories in tonight's "n.b.r. newswheel." encouraging news on jobs leads to another strong day for stocks. the dow rose 106 points, the nasdaq added 29, and the s&p 500 up 15. new york stock exchange trading volume held steady at 1.1 billion shares, but nasdaq volume down a touch from wednesday's pace. new claims for jobless benefits were up slightly in the past week, but investors zeroed in on the four-week average-- it fell to 431,000, the lowest in two years. economists say the numbers point to an improvement in the job picture. and signs of improvement in housing with more homes under contract. the realtors index of pending home sales jumped 10.4% in october. and the european central bank is

beefing up the credit markets of countries at risk there. the bank will buy more government bonds of some financially stressed countries like spain and portugal. still ahead, from "home, sweet home" to "home, tiny home, or how micro-houses are the next big thing when it comes to living in japan. >> tom: some big news from the nation's retailers today that suggests holiday sales are off to a merry start. many stores reported november sales numbers, and a closely watched index showed an average increase of 6%, almost double expectations. erika miller looks at whether sweeter holiday sales will mean more retail hiring after christmas. >> reporter: let's not sugarcoat things. sales at the chocolate boutique michel cluizel are up over last year, but store manager michele saint laurent says customers are spending less per transaction.

>> i think that they're probably looking to get as much for their dollar as they can. so they are spending maybe a little bit less, the purchases might be a little bit smaller. but buying maybe more gifts, it seems. >> reporter: given the mixed sales signals, the store has not decided whether to make any of its six seasonal workers permanent. it's a dilemma facing many merchants. barry sloane is the c.e.o. of newtek, a firm that tracks retail hiring. he does not expect a surge in retail hiring in the new year. >> sales are up marginally over last year. if you actually break down the components of the sales, the biggest percentage of sales that are up are online. and online does not use a lot of staffing. >> reporter: even if store sales are strong, there are other reasons merchants may hold back. >> between higher tax rates, healthcare issues, and government regulation, business confidence is tepid at best. >> reporter: but all is not bleak-- seasonal retail hiring has been generally strong. new data from monster.com shows

retail job postings rose 22% in november compared to a year ago. retail hiring is often viewed as an economic barometer, since consumer spending makes up two thirds of economic growth. but economist david wyss says employment in the sector is important for another reason. >> it's a big hirer of relatively low skilled people, and that's where we're having trouble getting jobs right now. college grads have jobs. those retail jobs hire the high school grad, lower educational level people. >> reporter: whether they choose to hire or not, most retailers won't make the decision until the end of the year. most want to see the sales momentum in the week before christmas, when the majority of gifts are purchased. erika miller, "nightly business report," new york.

. >> tom: december has come in like a bull with two days of strong buying for stocks. for the second day in a row, the s&p 500 was in positive territory during the entire trading session. hopefulness about tomorrow's november unemployment report and a big pop in the number of homes sales pending helped the market build on yesterday's strong gains. looking at a one-year chart, this sharp two-day rally has

taken the s&p 500 to within a few points of its highest level in more than two years. that means mutual funds mimicking the index should be close to their highest prices since september 2008. what may have been one of the motivating factors today was a strong endorsement of financial stocks by analysts at goldman sachs. the financial select exchange traded fund jumped 2.5% on very strong volume. the goldman analysis calls the sector overweight, pointing to expectations of demand for bank loans will start growing, thanks to an improving economy. the analysts also think longer term interest rates will drift higher. that helps banks, because they can borrow using short-term bonds and then charge more for longer term loans. goldman also thinks banks will be allowed to raise dividends after passing another stress test next year. among the stocks it thinks will be first to raise their dividends, j.p. morgan, u.s. bancorp, wells fargo, and p.n.c. all four saw nice rallies today.

one other note of bullishness on the sector from this opinion. it also points to a strong stock market as helping about the trading operations of banks. if that forecast holds, it may mean better business for the exchanges. we saw a pop in several exchange stocks, including futures exchanges c.m.e. group. we did learn today november trading volume was the third busiest at the c.m.e. analysts have been increasing their earnings estimates for the company. this is a six-month high for the stock. another place where there was plenty of action today-- retailers. earlier, erika reported on retail hiring into next year, but it was a tale of love and disappointment for teen retailers in november. abercrombie and fitch saw sales jump more than 20%, more than three times estimates. shares hit a new 52-week high. but competitors aeropostale and american eagle outfitters had disappointing novembers. today's stiff sell-offs in both of those stocks shows the surprise-- aeropostale falling 14%; american eagle down 6%. some big moves in the food business.

first, pepsi made its biggest move to boost its healthier food and drink business. it is buying russian juice and dairy company wimm-bill-dann. it is a $5.8 billion deal as part of pepsi's goal to grow its nutrition business to $30 billion in four years. pepsi stock was down a fraction today. meantime, grocery store kroger fell 9% on heavy volume. earnings came in as expected, but its guidance was disappointing. and that's tonight's "market focus."

>> susie: many americans put off year-end tax planning, so we're here to help with our annual tax tips. tonight, kevin mccormally suggests stopping your tax procrastination by starting with your generosity. he's editorial director at kiplinger's personal finance. >> when it comes to year-end tax planning, procrastination seems to be contagious. as december dawns, congress is still playing a game of legislative chicken over what to do about the bush tax cuts. the lawmaker's indecision has caused a lot of taxpayers to take a wait-and-see approach. but it's time to pay serious attention to some year-end tax savers. in this tough economy, lots of folks are suffering and, ironically, when the need for help is rising, the charities that exist to help often find their resources falling. that makes your generosity more important than ever this year. and i want to remind you of a way to supercharge the tax- saving power of your charitable contributions-- put away your check book and donate appreciated securities instead of cash. when you donate appreciated

stocks or bonds or mutual fund shares that you have owned over one year, you deduct the fair market value of the securities on the day of the gift, regardless of how much you actually paid for them. give stock that you bought for $1,000 that's now worth $2,000, for example, and you get to write off $2,000. and neither you nor the charity ever has to pay tax on that $1,000 gain. now, if you're concerned about the revival of the federal estate tax-- more about that tomorrow-- remember that you can reduce your taxable estate by taking advantage of the annual gift tax exclusion. you can give up to $13,000 each to any number of individuals free of the gift tax, and that amount and all future appreciation on it will be forever beyond the reach of the federal estate tax. but each year's exclusion is a use-it-or-lose-it deal. to take advantage of your 2010 exclusion, you must make those gifts before 2010 ends. i'm kevin mccormally. >> tom: here's what we're watching for tomorrow: employment-- did the economy lose or add jobs last month, and how many? the labor department's november report is out, along with

factory orders for october. tomorrow's "market monitor" calls health care stocks a bargain. we'll talk with alan lancz of the lancz letter about which ones he is buying. >> susie: former tyco c.e.o. dennis kozlowski needs to get out his checkbook. a judge says he has to repay his former employer nearly $100 million. kozlowski and tyco have been battling over his pay for years. the company sued to recover seven years of salary paid to kozlowski while he was fleecing tyco. back in 2005, kozlowski was convicted of securities fraud and grand larceny for stealing $137 million from tyco. he's now serving a prison term of up to 25 years. >> tom: the trustee recovering money for bernie madoff's victims is suing j.p. morgan chase. the bank is accused of profiting from madoff's huge ponzi scheme. a lawyer for the trustee says morgan ignored many red flags

about madoff. the suit asks for nearly $1 billion in fees and profits, and $5.5 billion in damages. j.p. morgan says the charges are "utterly baseless and demonstrably false." >> susie: when it comes to houses, americans have long embraced a "bigger is better" mentality. the average size of a new u.s.

home last year was 2,500 square feet. but in japan, where space is at a premium, "micro-houses" are all the rage. lucy craft went house-hunting and has this report. >> reporter: this new home was squeezed onto a plot of land just 400 square feet, and yet, it comfortably houses a family of five. >> ( translated ): we wanted to live downtown. since we can't afford a big house in the city, we decided to live well on a small piece of land. >> reporter: constructed in the narrowest of spaces, japanese "micro-houses" are redefining "home, sweet home." traditional furnishings, like inner walls and doors, are dumped, to free up extra space. not a single inch is wasted. staircases are often hollowed out to create closets. visual alchemy is the foundation of a tiny house. skylights and picture windows

are strategically placed to flood the home with sunlight and create the illusion of spaciousness. in the last decade, micro-houses have caught on, especially among young middle-class families, yearning for the stimulation and convenience of urban life. >> ( translated ): of course, there are advantages to living in the suburbs. but then, you end up with a long commute to work, which means less time with the family, and you're exhausted. so it's better to live downtown. >> reporter: although they're custom-built, micro-homes are relatively inexpensive, often constructed on odd or otherwise useless parcels of land, like this once-empty triangular lot on a busy tokyo street. technology has drastically lowered the cost of designing a home. number-crunching that once took a year can now be done in a matter of hours. young japanese architects like satoshi kurosaki are driving the micro-house boom, building on centuries of japanese experience

of living in small spaces to create one-of-a-kind gems. >> ( translated ): i built my first micro-house on what was originally a single parking space. we put a five-story house on it. these homes are direct expressions of their owners' personalities. the owners love them, and as architecture, they are superb. >> reporter: shindo's tiny home, for instance, still has plenty of room to showcase his collection of classic lps. >> ( translated ): japan invented "capsule hotels" and teahouses. both are small, yet cozy. we have a tradition of this kind of improvisation. lots of people want rooms that fit over them like clothing. >> reporter: japanese micro- homes are just a sliver of the total housing market. but their impact on the world of housing design has been profound. japanese micro-homes are proving that compact doesn't have to mean cramped.

lucy craft, "nightly business report," tokyo. >> we could use some of that here in new york city where we are cramped for space. >> very interesting solution to the problem. >> susie: that's "nightly business report" for thursday, december 2. we want to remind you this is the time of year your public television station seeks your support... >> tom: ...support that makes programs like "nightly business report" possible. >> susie: thanks for joining us. and don't forget to support your public television station. i'm susie gharib. good night, everyone. you, too, tom. >> tom: good night, susie. i'm tom hudson. we'll see all of you again tomorrow evening. "nightly business report" is made possible by:

this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> be more. pbs.