tax cut compromise. an election year compromise by republicans and a victory for president obama. ad wars. mitt romney and rick santorum go head to head in michigan with this month's primary is all of a sudden up for grabs. mitt romney's ugly attacks are going to backfire. and nuclear worry. iran claims progress in its nuclear program and threatens to iran claims progress in its nuclear program and threatens to cut oil exports to europe. captioning funded by cbs this is the "cbs morning news" for thursday, february 16, 2012. and good morning everyone. i'm terrell brown.

it took a little longer than expected. but house and senate negotiators reached an agreement. late last night. there's an agreement to renew the payroll tax cut. the price, $150 billion over the coming year. congress is expected to vote on o the legislation this week. besides extending the payroll tax cut to the end of the year, the bill renews long-term jobless benefits and protects doctors from huge cuts in medicare payments. >> lot of people, 160 million americans are now going to maintain their payroll tax cut. a lot of folks have lost their jobs. they're going to receive unemployment benefits. seniors are going to be able to see their doctors and get medicare. it's good for the country. >> republicans not so thrilled about the agreement. but they didn't want to make it a campaign issue. to the race now for the gop presidential nomination. three weeks ago the consensus was that the michigan primary was a gimme for mitt romney.

this morning, romney finds himself battling rick santorum. santorum is wooing conservative romney is attacking the bailout in his own state, taking heat for it. susan mcginnis has more. susan good morning. >> good morning, terrell. everyone is watching michigan right now. this is the biggest head to head battle in the republican race so far. mitt romney needs to win michigan to dispel any doubts about him being the favorite. but there's no doubting the numbers. rick santorum is in the lead. gop hopeful mitt romney is rallying supporters across the state where he grew up. >> got lot of old friends here. >> this afternoon, he's expect today get a key endorsement from michigan's governor snyder. it could give romney a much-needed boost. he's trailing rick santorum in the polls and is taking some heat for criticizing the auto bailout which many credit for saving the state's largest industry. >> my view from the very beginning was that the auto

companies should go through managed bankruptcy and get help comes out of bankruptcy. >> romney said when president obama signed off on the bailout he caved in to michigan's union. the president took an apparent swipe at romney's position in wisconsin on wednesday. >> there were some folks who said we should let it die. with a million jobs at stake, i refused to let that happen. >> michigan has turned into a battleground state. romney is spending more than a million dollars on television ads there. rick santorum has launched his own tv campaign to capitalize on his momentum. >> mitt romney's negative attack machine it back. >> santorum's latest ad calls it a mud slinger. >> the attacks are going to backfire. but on wednesday in north dakota. santorum focused on job creation and eliminating the corporate tax for manufacturers. >> we want the jobs that are going overseas to china and

mexico to come back to the united states and create real jobs again. >> santorum is expected to bring his job creation message to michigan today. and santorum is also leading in the most recent national poll. as forewt gingrich, he's in california today. he'll be in georgia tomorrow. and ron paul is going to hit both idaho and washington state today. terrell? >> it's getting interesting. susan, thank you. rick santorum released his tax returns for the last several years. after losing his bid for reelection in 2006, santorum worked as a corporate consultant and media commentator. he and his wife made 660,000 in 2007. in 2009 over a million dollars. in 2010, $923,000. santorum said he paid between 25 and 28% in taxes. syrian troops have expanded their attacks on anti-government groups. this morning's target was on the borderith jordan. it follows deadly results on strongholds of hama and homs. homs has been under attack for

13 days in a row. president assad offered to hold elections within 90 days but he made it clear he'll continue to use force to put down the anti-government uprising. it's reported the taliban has begun peace talks with the united states and afghanistan. the wall street journal report that hamid karzai said the taliban are definitely interested in a peace settlement. karzai said the talks were held last month to prepare for further negotiations aimed at ending the decade-long war. to the latest on the iranian nuclear program. this morning iran's a.m. bass dar to russia said iran would flat-out reject any pre-conditions prior to possible negotiations with european leaders. yesterday iran threatened to cut off oil sales to countries then backed down. all the while iran is touting new nuclear accomplishments. danielle nottingham reports. >> state tv showed iranian president mahmoud ahmadinejad front and center as his country's scientists marked a

step forward with their nuclear program. they inserted the first nuclear fuel rod made in iran into a reactor on wednesday. officials say they have a new generation of centrifuges up and running. they're designed to speed up the production of enriched uranium. >> this is a moment for iran to demonstrate in the face of international pressure and for its own people that it continues to march towards a nuclear weapons program. >> but iran maintains its nuclear program is for creating energy and medical research, not weapons. >> the white house says iran's claims are designed to distract attention from the damage that tough new sanctions are having on the country's economy. >> state department officials insist tehran's announcement is not that impressive. >> we frankly, don't see a lot new here. this is not big news. >> iranian officials signaled they're ready to return to talks with world leaders about their nuclear program, but several countries see this as a stalling tactic.

the u.s. government is also keeping an eye on iran's oil. the country is reportedly taking steps to cut off oil exports to some european countries before the european union's ban on oil takes effect in july. danielle nottingham, cbs news, the white house. to honduras, one of the worst prison fires was started by an inmate. the blaze started tuesday night and spread throughout the overcrowded facility. at least 358 inmates were killed, either suffocated or burned in their locked cells. firefighters said they were kept outside for half an hour as the fire burned. guards thought those firefighters were actually involved in a breakout. cbs "moneywatch" time now. oil prices spike and former executives are arrested jennifer lewis hall is here with more. >> good morning shall terrell. eurozone leaders say a final decision on a new bailout of greece will be made monday. on wednesday finance officials

praised the latest austerity plan to put forward by greek politicians. but they are demanding more oversight in greece's economy in exchange for the $170 billion rescue package. the unresolved greek issue sent stocks falling overseas. nikkei lost a quarter percent. the hang seng slipped nearly a half percent. the greek debt crisis took a toll on wall street. the dow had its worst day of the year. sinking 97 points. the nasdaq lost 16. general motors is freezing its pension plan for long-time employees. the automaker will move those workers into a traditional 401(k) type plan. gm will also give salaried employees bonuses, but won't pay for raises. it's part of an effort by gm to keep costs down. ongoing tensions with iran are sending oil prices higher. oil futures in new york rose to nearly $102 a barrel.

the spike came after iran threatened to cut off oil exports to six european countries. europe is imposing an oil embargo in pons to the development of its nuclear program. three former executives of olympus have been arrested japanese prosecutors say the former execs covered up losses of more than a billion dollars dating back to the 1990s. olympus will cooperate with the investigation. terrell? >> jennifer lewis hall in new york. good to see you. thank you. fans of whitney houston will be will be given a chance to stay their final farewells to the singer. first though, scott pelley has a preview of tonight's "cbs evening news." the taxpayer bailout helped drive general motors back from the brink. now that they're number one in the auto industry again, why aren't the taxpayers getting their money back? we'll ask gm's ceo tonight on the "cbs evening news." s. when my asthma symptoms returned, my doctor prescribed dulera to help prevent them.

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♪ a new challenge waits for you ♪ ♪ ♪ jumpin' into something new ♪ you really see all you can do ♪ ♪ ♪ the best part of wakin' up ♪ is folgers in your cup ♪ the best part of wakin' up sears big presidents day sale is on now. and we do mean big. with huge savings across the store. points, perks, and privileges. members get more. sears. security video here of a drug gang attacking a newspaper

office in a city in southern mexico. the newspaper is known for its fierce opposition to drug cartel violence. after terrorizing the staff, the gang members doused the office in gasoline and set it on fire. about 20 people were inside. all escaped with only minor injuries reported. it happened late last year but the pictures were held until recently. whitney houston funeral saturday will be private by invitation only but millions of fans can watch online and on some tv stations. a camera will be set up inside the church in newark, new jersey. there will be pictures fed to the internet and by satellite to broadcasters. outside the church shall hundreds of fans continue to expand the impromptu memorial to houston's memory. some are criticizing governor chris christie's plan to lower flags to honor houston. critics say it sets a bad example because of her drug abuse. christy responded in a statement

saying i am disturbed by people who believe that because of her history of drug abuse somehow she's forfeited the good things she's done in her life. i just reject that on a human level. controversy continues over where josh powell is to be buried. he's a seattle area man who killed his two young sons and himself. powell is also a suspect in the disappearance and presumed death of the boys' mother. powell's family wants to bury him near the boys' graves. the maternal grandparents are asking to prevent that. a local group bought gravesites surrounding the two boys so their father can't be placed next to them. >> the plan is for us not to own gravesite, it's to stop josh powell or anybody that doesn't deserve next to those boys there. >> the group says if the remains of the boys' mother are found, she'll be given a plot next to theirs. take a quick break. coming up on your thursday, your weather forecast and in sport, we know he can shoot and score. but nba sensation jeremy lin

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man: try turbotax now. get free, one-on-one, expert tax advice live, by phone or chat. so we made ocean spray cranberry juice cocktail with a splash of lime. it's so refreshing, your taste buds will thank you. mm... oh, you're welcome. what? my taste buds -- they're thanking me. uh-huh. what if the first step on that road is a bowl of soup? delicious campbell's soups fill you with vegetable nutrition, farm-grown ingredients, and can help you keep a healthy weight. campbell's -- it's amazing what soup can do. here's a look at the forecast. afternoon rain and 48 in new york. sunny, 80 degrees in miami. mostly cloudy, 43 in chicago. partly sunny, 58 in dallas and sunny, 70 degrees in los angeles. a check of your national forecast. storm system will push rain from the plains across the mississippi valley with some

snow in the northern great lakes. rain and mountain snow will fall throughout the west. southern california will experience santa ana winds gusting to 60 miles per hour. rain and some snow will fall on northern new york and new england. in sports this morning, as long as jeremy lin keeps winning, he'll be the star of the moment. it happened again last night. we'll get to the game in a second. first, there's a run on new york knicks jerseys and t-shirts with lin's name and number, 17. at one store a group of taiwanese tourists were planning to bring dozens home to give to family and friends. to that game now. sacramento and new york knicks. early on, lin running around for a layup. wasn't a big scoring night for the 23-year-old point guard. instead, he showed off passing skills, handing off to amar'e stoudemire. flipping a pass to fields. a back door layup. ten points, 13 assis, he led the nicks to a 100-85 win. the seventh straight since he became a starter.

lin's named spawned count last bad puns. david letterman's top ten list featured some of the worst. >> number 4, does this look lin-fected to you? there you go. back to basketball. oklahoma city at houston. big game for rockets kevin martin. made a nice spinning drive for a layup. kevin durant missed three shots in the last seconds. houston gets the w in this one. 96-95. take a quick break. when we come back, a case of how in world did this happen? a little girl finds herself trapped inside a vending machine. we'll show you how she got out. look at all this stuff for coffee.

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here's a look at the forecast for some cities.

d.c., drizzle, 47 degrees. morning thunderstorms and 66 in atlanta. morning rain, 42 degrees in detroit. sunny, 43 in denver. drize in seattle, 50 degrees. china's likely future president will wrap up his visit. the most memorable stop was in iowa. chinese vice president jinping got a warm welcome. he first visited the town in 1985 as the communist leader studying u.s. farming methods. the main purpose of the visit was talks in washington on u.s.-china relations. especially trade. two countries differ widely in some areas, including the manufacture of solar power panels for homes and businesses. bill whitaker has that story. >> business is heating up for randy bishop, owner of a solar company. one of the top solar panel installers in california.

fueling the growth, these inexpensive panels from china, significantly cheaper than ones made in the usa. >> for a house like this, it would probably be on the order of $3,000 to $5,000 more expensive to. >> go with u.s. panels? >> to go with u.s. panels. >> while installers welcome them, american panel makers say the chinese are unfairly dumping panels on the u.s. killing good american manufacturing jobs. the biggest u.s. panel maker closed this plant near l.a., 100 jobs were lost. last year. a dozen american manufacturers have gone bankrupt, cled down or downsized. >> just a few years ago, chinese products were less than the 10%. of the u.s. market. today they average about half of the u.s. market. >> this attorney represents seven american manufacturers suing to have the u.s. commerce department slap import tax on chinese panels. they say the solar industry in china propped up by huge

government subsidies, a violation of international trade rules. >> the energy department estimated that china grants more than $30 billion of subsidies to its industry and all u.s. subsidies amount to only about $1 billion. >> randy bishop says a trade war could be a disaster just as record numbers of american are turning to the sun for energy. >> we would significantly slow our growth if the solar panel costs were to get more expensive. >> a commerce department decision whether to levy new taxes on chinese panels is expected this summer. bill whitaker, cbs news, los angeles. a little girl is home safe in kentucky after an ordeal her mother will never forget. take a look at this. the two-year-old had to be rescued tuesday night after she was trapped inside a game machine filled with stuffed toys. look at her. the machine has a chute big enough for the toddler to crawl in. she couldn't get back out. where is her mama? took lexington firefighters more than 20 minutes to cut the

machine and no, you can't put two quarters in the machine and get her out. ha, ha, ha. coming up after your local news on "cbs this morning," dr. phil mcgraw on his number one show in daytime tv. i'm terrell brown. this is the "cbs morning news." tv. i'm terrell brown. this is the "cbs morning news." [ lane ] is your anti-wrinkle cream gone... but not your wrinkles? neutrogena® rapid wrinkle repair. its retinol formula visibly reduces wrinkles in just one week. why wait if you don't have to. neutrogena®. why wait if you don't have to. sears big presidents day sale is on now. and we do mean big. with huge vings across the store. points, perks, and privileges. members get more. sears.

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this tuesday morning. it is know at a damp day start here. marty is over in the first warning weather center. >> it is a mild day start, let's take a look at first warning doppler weather radar. shower activity in the area, keep an umbrella handy, rain with temperatures about a notch below 50. don, take it away. >> the front runners battle there. new changes there and a new report on the natural disasters in the state of maryland.

already in the news the hazmat nighttime nightmare here on i- 95 as the tractor-trailer overturned spilling ink. we are live as the driver is taken into custody. the baltimore grand prix is saved and they zero in on a ,,,

this is wjz tv, wjz hd, and wjz.com, baltimore. >> good morning, maryland, now don scott, marty bass and the latest breaking news from wjz's news team, your first warning weather and wjz traffic control with sharon gibala, it is wjz, maryland's news station.