prime minister julia gillard announced the tax proposal on thursday. flood victims would be excluded and the supplemental income tax would only apply to australians with annual income over $50,000. gillard said the flood tax would be in effect for one year from july, and the rate would be 0.5% to 1% according to level of income. >>> we put out a hand to the flood victims at the heart of the crisis when they needed us. >> the prime minister said the flood tax is designed to generate $1.8 billion australian dollars or about one third of the total cost to the federal government. her administration plans to cut spending to make up the difference. heavy rain has resulted in massive flooding in the northeastern state of queensland and surrounding areas. the death toll now stands at 33. the disaster destroyed houses and devastated infrastructure, such as roads and railways as well as coal mines and farm crops. the government is scheduled to submit new tax legislation to parliament next month. however, opposition parties are protesting the move, saying the gov

hundreds of homes are being evacuated ahead of an expected flooding later this week prime minister julia gillard says the damage will cost the economy billions of dollars. iran has invited foreign ambassadors to tour its nuclear sites ahead of talks with world powers over the country's atomic program envoys from russia china and the e.u. are included in the offer but it's not clear yet whether officials from the u.s. have been asked to join them there is international concern over iran's nuclear ambitions which the country insists are peaceful. and up to eighty african migrants including women and children are feared to have drowned after their boats capsized off the yemeni coast the first vessel carrying mostly ethiopians overturned in the red sea while another went down in the gulf of aden rescuers have found three survivors so far believed to all be from somalia thousands of africans try to reach yemen every year in shabby and overcrowded boats often run by smugglers. across the world a sky watchers have been treated to the sight of a partial solar eclipse it was seen over algeria before spre

this morning, i spoke to the australian prime minister julia gillard to send condolences of everyone in this house and everyone in the country for the appalling floods and damage that has been done in queensland, and to say the we are all thinking of ross and the australian people. >> mr. hanson. >> to take robust action on a banker bonuses. given that he has broken his first promise and is now reneging on his second, why should we trust anything that he says again? >> the reason we have had to put up a value added tax is because of the complete and utter mess we were left by the government, whom the right honorable john almon supported. i know they are now in denial about this, but the fact is, we had one of the biggest budget deficits in the g-8, one of the worst records on debt anywhere you could mention. we had to take action, and the reason we can all discuss, taxes and baker's bonuses, and we are not lining up behind greece and ireland for a pillow is because of the action the government took. -- for a bailout is because of the action the government took. >> in my constituency,

prime minister julia gillard promised help. >> we're not going to know the true dimensions of the damage until floodwaters recede and we can see what's happened with roads, what's happened with bridges, what's happened with vital infrastructure like schools. but i can say we will be working every step of the way with the queensland government. >> holman: the total cost of the flooding still is to be determined, but estimates already have reached $5 billion. more americans applied for unemployment benefits for the first time last week. the number had reached a two- year low the previous week. the news was enough to hold wall street in check, waiting for tomorrow's december unemployment report. the dow jones industrial average lost 25 points to close at 11,697. the nasdaq rose seven points to close near 2,710. those are some of the day's major stories. now, back to judy. >> woodruff: it was a busy second day for the new congress, beginning with a symbolic gesture in the house. it was a first on the floor of the house. the new republican majority had the u.s. constitution read aloud -- in a