Argentina presses claim to Falklands

Cristina Fernandez de Kirchner during the 30th anniversary of the Falklands war, in Ushuaia, Argentina on April 2, 2012.

STORY HIGHLIGHTS

• Argentina says Britain stripped the Falkland Islands away 180 years ago


• The countries went to war over the islands in 1982, when Argentina put troops there


• Argentina, which calls the islands Las Malvinas, wants sovereignty negotiations


• British government says there won't be sovereignty talks unless islanders want them

London (CNN) -- Argentinian President Cristina Fernandez de Kirchner is once again calling on the UK to hand back the Falkland Islands -- known in Argentina as Las Malvinas -- accusing Britain of blatant colonialism.

In an open letter to British Prime Minister David Cameron, which was published in the British press, she says that Britain stripped the islands away from Argentina 180 years ago on Thursday's date: January 3.

Read more: Falkland Islands will vote on political status

The two countries went to war over the territory in 1982, when the then-Argentinian military government landed troops on the islands.

Argentina put its death toll from the conflict at around 645. Britain's civil and military losses amounted to 255.

Falklands war wounds still fresh, 30 years later

In the letter, which was copied to U.N. Secretary-General Ban Ki-moon, the Argentinian president writes: "The Argentines on the Islands were expelled by the Royal Navy and the United Kingdom subsequently began a population implantation process similar to that applied to other territories under colonial rule.

"Since then, Britain, the colonial power, has refused to return the territories to the Argentine Republic, thus preventing it from restoring its territorial integrity."

She quotes a 1965 U.N. resolution inviting the two countries to negotiate a solution to the sovereignty dispute and calls on the British to abide by the resolution.

Read more: Why tensions are rising over Falklands

Located in the South Atlantic Ocean, about 480 kilometers (298 miles) east of the tip of South America, the Falklands have long been coveted as a strategic shipping stopover and potential wellspring of natural resources.

The Falklands, which raise their own taxes but rely on the United Kingdom for defense and foreign policy, are one of 14 British overseas territories and have been under British rule since 1833.

Read more: Chavez, allies call for sanctions against Britain over Falklands

The British government swiftly rejected the idea of negotiations, saying the Falkland Islanders have chosen to be British.

In a statement, the British Foreign Office said the islanders remain free to choose their own futures and "have a right to self-determination as enshrined in the U.N. Charter. This is a fundamental right for all peoples."

The statement added: "There are three parties to this debate, not just two as Argentina likes to pretend. The islanders can't just be written out of history.

"As such, there can be no negotiations on the sovereignty of the Falklands Islands unless and until such time as the islanders so wish."

The islanders are due to hold a referendum on their political status this March but were also quick to dismiss the Argentinian position.

"We are not a colony," said Barry Elsby, a member of the Legislative Assembly of the Falkland Islands. "Our relationship with the United Kingdom is by choice."

The exchange comes amid rising tension over the islands, which are home to about 3,000 people.

In February of last year, the Argentinian leader accused the British of militarizing the South Atlantic after the Royal Navy sent its warship HMS Dauntless to the region. Then, in June of 2012, Fernandez confronted Cameron at the G-20 meeting and tried to hand him a letter about the islands -- something he refused to accept.

Argentinian leader denounces 'militarization' of the South Atlantic

The dispute flared again ahead of the London 2012 Olympics, when Argentina released a video boosting its Olympic team that was filmed on the islands. The advertisement showed Argentinian field hockey star Fernando Zylberberg training in the streets of Port Stanley in the Falklands. The video ends with the slogan: "To compete on English soil, we train on Argentine soil."

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Crises averted, but more fights loom

STORY HIGHLIGHTS

• NEW: Reid accused Boehner of "dictatorship" Friday; Boehner responded with profanity


• The vote prevents tax increases for more than 98% of Americans


• It also wards off $110 billion in automatic cuts to domestic and military spending


• Most Americans will still see a payroll tax increase after a 2011 cut expires

Washington (CNN) -- After exhaustive negotiations that strained the country's patience, the House approved a bill to avert the dreaded fiscal cliff, staving off widespread tax increases and deep spending cuts.

In the 257-167 vote late Tuesday, 172 Democrats and 85 Republicans favored the bill; 16 Democrats and 151 Republicans opposed it.

The plan approved Tuesday maintains tax cuts for individuals earning less than $400,000 per year and couples earning less than $450,000. It will raise tax rates for those who make more, marking the first time in two decades the rates jump for the wealthiest Americans.

Just hours before the bill passed, House Speaker John Boehner pitched to fellow Republicans the idea of amending the Senate-approved bill to add a package of spending cuts. He cautioned about the risk in such a strategy, saying there was no guarantee the Senate would act on it.

By the end of the night, he was among the Republicans who voted for the bill as written.

President Barack Obama said he would sign the bill into law, but he did not say when. After the vote, he flew to Hawaii to rejoin his wife and daughters on their winter vacation.

Had the House not acted, and the Bush-era tax cuts that were set last decade expired fully, broad tax increases would have kicked in. In addition, $110 billion in automatic cuts to domestic and military spending would have taken place.

The combined effect could have dampened economic growth by 0.5%, possibly tipping the U.S. economy back into a recession and driving unemployment from its current 7.7% back over 9%, according to economists' estimates.

While the package provides some short-term certainty, it leaves a range of big issues unaddressed.

It doesn't mention the $16.4 trillion debt ceiling that the United States reached Monday.

It also delays for two months the so-called sequester, a series of automatic cuts in federal spending that would have taken effect Wednesday and reduced the budgets of most agencies and programs by 8% to 10%.

Come late February, Congress will have to tackle both those thorny issues.

Obama warned Congress that he will not tolerate another act of prolonged brinksmanship.

"While I will negotiate over many things, I will not have another debate with this Congress over whether or not they should pay the bills that they've already racked up through the laws that they've passed," he said after the Tuesday night vote.

"We can't not pay bills that we've already incurred. If Congress refuses to give the United States government the ability to pay these bills in time, the consequences for the entire global economy would be catastrophic -- far worse than the impact of the fiscal cliff."

How they voted: House | Senate

A partial victory

While the deal gives Obama bragging rights for raising taxes on the wealthiest Americans, it also leaves him breaking a promise.

Obama had vowed to raise tax rates for the top-earning 2% of Americans, including those with household income above $250,000 and individuals earning more than $200,000.

Raising the threshold for higher tax rates shrinks the number of Americans affected.

While nearly 2% of filers have adjusted gross incomes over $250,000, only 0.6% have incomes above $500,000, according to the Tax Policy Center.

Some House Republicans weren't exactly overjoyed in voting for the plan.

"I'm a very reluctant yes," said Rep. Nan Hayworth, an outgoing Republican representative from New York.

"This is the best we can do, given the Senate and the White House sentiment at this point in time, and it is at least a partial victory for the American people," she said. "I'll take that at this point."

Conservative lobbyist Grover Norquist, whose Americans for Tax Reform pushes candidates to sign a pledge never to raise taxes, said the plan preserves most of the Bush tax cuts and won't violate his group's beliefs.

"The Bush tax cuts lapsed at midnight last night," Norquist tweeted Tuesday. "Every (Republican) voting for Senate bill is cutting taxes and keeping his/her pledge."

The timing of the vote was crucial, as a new Congress is set to be sworn in Thursday. And without a breakthrough, the entire process would have had to start over.

Specifics of the plan

The legislation will raise roughly $600 billion in new revenues over 10 years, according to various estimates.

According to the deal:

-- The tax rate for individuals making more than $400,000 and couples making more than $450,000 will rise from the current 35% to the Clinton-era rate of 39.6%.

-- Itemized deductions will be capped for individuals making $250,000 and for married couples making $300,000.

-- Taxes on inherited estates will go up to 40% from 35%.

-- Unemployment insurance will be extended for a year for 2 million people.

-- The alternative minimum tax, a perennial issue, will be permanently adjusted for inflation.

-- Child care, tuition and research and development tax credits will be renewed.

-- The "Doc Fix" -- reimbursements for doctors who take Medicare patients -- will continue, but it won't be paid for out of the Obama administration's signature health care law.

The Democratic-led Senate overwhelmingly approved the bill early Tuesday before passing it to the House.

As news about the fiscal cliff's deflection spread across the world, several markets reacted positively Wednesday.

Australia's ASX All Ordinaries index added 1.2%. South Korea's KOSPI gained 1.5%, and the Hang Seng in Hong Kong advanced 1.9%. Tokyo's Nikkei and the Shanghai Composite remain closed for holiday celebrations but will reopen later in the week.

More fiscal cliffs loom

Payroll taxes still set to go up

Despite the last-minute fiscal cliff agreements, Americans are still likely to see their paychecks shrink somewhat because of a separate battle over payroll taxes.

The government temporarily lowered the payroll tax rate in 2011 from 6.2% to 4.2% to put more money in the pockets of Americans. That adjustment, which has cost about $120 billion each year, expired Monday.

Now, Americans earning $30,000 a year will take home $50 less per month. Those earning $113,700 will lose $189.50 a month.

With the latest battle round over, lawmakers will next set their sights on the other items on their docket of congressional squabbles over money: the debt ceiling and resolving the sequester.

Obama said he hopes leaders in Washington this year will focus on "seeing if we can put a package like this together with a little bit less drama, a little less brinksmanship (and) not scare the heck out of folks quite as much."

He thanked bipartisan House and Senate leaders for finally reaching a resolution Tuesday, but said Congress' work this year is just beginning.

"I hope that everybody now gets at least a day off I guess, or a few days off, so that people can refresh themselves, because we're going to have a lot of work to do in 2013."

Read more: 5 things to know about the fiscal cliff

Angry rhetoric flew

In the tense days leading up to the deal, heated words flew between some Democrats and Republicans.

On Friday, after Democratic Senate Majority Leader Harry Reid accused Boehner of holding a "dictatorship" in his chamber, the House speaker responded with a profanity.

"Go f— yourself," Boehner said to Reid, according to a source with knowledge of the exchange in a White House lobby.

Dana Bash reported from Washington, and Holly Yan reported from Atlanta. CNN's Rich Barbieri, Charles Riley, Josh Levs, Dana Ford, Matt Smith, Jessica Yellin, Deirdre Walsh and Ted Barrett contributed to this report.

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Senate passes fiscal cliff deal; House makes no promises

STORY HIGHLIGHTS

• The measure now goes to the House where a vote could come Tuesday


• A statement from House leadership made no promises


• Under the Senate package, taxes would stay the same for most Americans


• It leaves a range of big issues unaddressed.

As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNN iReport to share your video.

(CNN) -- A full two hours after a midnight deadline, the Senate overwhelmingly passed a deal Tuesday to avert the feared fiscal cliff on an 89-8 vote.

The Senate package would put off budget cuts for two months and preserve Bush-era income tax cuts for individuals earning less than $400,000 or couples earning less than $450,000.

The measure now goes to the House where it faces an uncertain future in the Republican-controlled body.

"Glad it's over," said Senate Majority Leader Harry Reid, D-Nevada, after the vote. "We'll see if the Republicans in the House can become functional instead of dysfunctional."

A statement from House leadership made no promises.

"Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members -- and the American people -- have been able to review the legislation," the statement said.

A vote could come as early as New Year's Day. The House is scheduled to convene at noon.

Sen. John Hoeven, R-North Dakota, was hopeful the House will follow suit.

"The vote was 89 to 8. Bipartisan vote. 89 votes," he said. "I think it sends a strong message and I think it will be approved by the House."

What the package proposes

Read the bill (pdf)

Under the Senate package:

-- Taxes would stay the same for most Americans. But it will rise for individuals making more than $400,000 and couples making more than $450,000. For them, it will go from the current 35% to the Clinton-era rate of 39.6%.

-- Itemized deductions would be capped for those making $250,000 and for married couples making $300,000.

-- Taxes on inherited estates will go up to 40% from 35%.

-- Unemployment insurance would be extended for a year for 2 million people.

-- The alternative minimum tax -- a perennial issue -- would be permanently adjusted for inflation.

-- Child care, tuition and research and development tax credits would be renewed.

-- The "Doc Fix" -- reimbursements for doctors who take Medicare patients -- will continue, but it won't be paid for out of the Obama administration's signature health care law.

-- Prevents a spike in milk prices. Agriculture Secretary Tom Vilsack said milk prices would have doubled to $7 a gallon because a separate agriculture bill had expired.

What's not addressed

While the package provides some short-term certainty, it leaves a range of big issues unaddressed.

It doesn't mention the debt ceiling, and temporarily puts off for two months the so-called sequester -- a series of automatic cuts in federal spending that would have taken effect Wednesday. It would have reduced the budgets of most agencies and programs by 8% to 10%.

This means that, come late February, Congress will have to tackle both those thorny issues.

"We're going to have to deal with the sequester, that's true," said Sen. Max Baucus, D-Montana, "but look, this is better than nothing."

Reid said the agreement was a win for average Americans.

"I've said all along that our most important priority was to protect the middle class families," he said. "This legislation does that."

And maybe a bit more.

According to the U.S. Census Bureau, median household income in 2011 was $50,054, which is well below the tax cut threshold approved by the Senate.

Senate Minority Leader Mitch McConnell, R-Kentucky, praised the effort, but said it shouldn't have taken so long to get an agreement.

"We don't think taxes should be going up on anyone but we all knew that if we did nothing they would be going up on everyone today," he said. "We weren't going to let that happen."

All eyes on the House

As lawmakers left the chamber around 2 a.m., there was no sentiment of celebration, more a sense of relief that the vote was done.

One of the last members to leave was 88-year-old retiring Hawaii Senator Daniel Akaka. He walked down the steps bent over his cane, assisted by an aide, but smiling.

Others rubbed their eyes from lack of sleep. It was the end to a very long, down-to-the wire day -- and all eyes now turn to the House.

There's a lot at stake.

If the House doesn't act and the Bush administration's 2001 and 2003 tax cuts expire, broad tax increases will kick in as will $110 billion in automatic cuts to domestic and military spending.

The nonpartisan Congressional Budget Office has predicted the combined effect could dampen economic growth by 0.5%, possibly tipping the U.S. economy back into a recession and driving unemployment from its current 7.7% back over 9%.

President Barack Obama urged House members to pass the package "without delay."

GOP sources said House members saw little practical difference in settling the issue Monday night versus Tuesday.

But if tax-averse House Republicans approve the bill on Tuesday -- when taxes have technically gone up -- they can argue they've voted for a tax cut to bring rates back down, even after just a few hours, GOP sources said. That could bring some more Republicans on board, one source said.

Read more: Why your paycheck is getting smaller, no matter what

Concerns persist

Read more: What if there's no deal on fiscal cliff

The White House budget office noted in September that sequestration was designed during the 2011 standoff over raising the federal debt ceiling as "a mechanism to force Congress to act on further deficit reduction" -- a kind of doomsday device that was never meant to be triggered. But Congress failed to substitute other cuts by the end of 2012, forcing the government to wield what the budget office called "a blunt and indiscriminate instrument."

In its place, the Senate plan would use $12 billion in new tax revenue to replace half the expected deficit reduction from the sequester and leave another $12 billion in spending cuts, split half-and-half between defense and domestic programs.

Despite the progress, the White House cautioned that deficit reduction still requires more work.

"But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans," Obama said.

Read more: Medicare patients may suffer if country goes over fiscal cliff

Conservative lobbyist Grover Norquist, whose Americans for Tax Reform pushes candidates to sign a pledge never to raise taxes, said the plan "right now, as explained" would preserve most of the Bush tax cuts and wouldn't violate his group's pledge.

"Take the 84% of your winnings off the table," Norquist told CNN. "We spent 12 years getting the Democrats to cede those tax cuts to the American people. Take them off the table. Then we go back and argue about making the tax cuts permanent for everyone."

But Robert Reich, who served as labor secretary in the Clinton administration, said the $450,000 threshold "means the lion's share of the burden of deficit reduction falls on the middle class, either in terms of higher taxes down the road or fewer government services." In addition, he said, the plan does nothing to raise the federal debt ceiling just as the federal government bumps up against its borrowing limit.

And that, Arizona GOP Sen. John McCain told CNN, is likely to be "a whole new field of battle."

"We just added 2.1 trillion in the last increase in the debt ceiling, and spending continues to go up," McCain said. "I think there's going to be a pretty big showdown the next time around when we go to the debt limit."

CNN's Matt Smith, Mike Pearson, Jessica Yellin, Dana Bash, Deirdre Walsh, Lisa Desjardins, Ted Barrett and Ashley Killough contributed to this report.

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Secretary of State Clinton hospitalized with blood clot

From Elise Labott, CNN

updated 7:38 AM EST, Mon December 31, 2012

STORY HIGHLIGHTS

• The clot was discovered in a follow-up exam related to her concussion


• Clinton is expected to remain hospitalized for at least the next 48 hours


• She was scheduled to return to work this week after recovering from the concussion

(CNN) -- Secretary of State Hillary Clinton was hospitalized Sunday after doctors discovered a blood clot during a follow-up exam related to a concussion she suffered this month, her spokesman said.

She is expected to remain at New York Presbyterian Hospital for the next 48 hours so doctors can monitor her condition and treat her with anti-coagulants, said Philippe Reines, deputy assistant secretary of state.

"Her doctors will continue to assess her condition, including other issues associated with her concussion," Reines said. "They will determine if any further action is required."

Reines did not specify where the clot was discovered.

Hillary Clinton through the years

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Clinton, 65, was suffering from a stomach virus earlier this month when she fainted due to dehydration, causing the concussion.

Clinton spent the holidays with her family last week after working from home.

She was scheduled to return to work at the State Department this week after being sidelined for the past three weeks. Her illness forced her to bow out of testifying December 20 before the House Foreign Affairs Committee on the deadly attack on the U.S. Consulate in Benghazi, Libya. Deputies Thomas Nides and Bill Burns appeared in her place.

The medical setback comes as Clinton is wrapping up her busy tenure as secretary of state, during which she has logged more than 400 travel days and nearly a million miles. She plans to step down from the post if and when Sen. John Kerry -- President Barack Obama's choice to replace her -- is confirmed by the Senate.

Read more: Hillary Clinton fast facts

CNN White House Correspondent Jessica Yellin contributed to this report.

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'Fiscal Cliff' countdown: Two more days

STORY HIGHLIGHTS

• Last minute negotiations are underway in Congress to avoid a ''fiscal cliff''


• Without a deal, an end of the year deadline triggers takes hikes and cuts in spending


• President Barack Obama is calling for a House and Senate vote, if negotiations fail


• "We'll let you know as soon as we have some news to make," the Senate minority leader says

As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNNiReport to share your video.

Washington (CNN) -- The Senate's top Democrat and Republican were working Sunday to forge a last minute compromise to stop the U.S. economy from going over a "fiscal cliff" that would trigger large tax increases and sweeping spending cuts in the new year.

At stake in the negotiations, according to a number of economists, is the fate of a still fragile U.S. economy that could be pushed back into a recession by the broad tax hikes and automatic $110 billion cuts to domestic and military spending spelled out by the "fiscal cliff" legislation.

Aides for Senate Majority Leader Harry Reid, D-Nevada, and Minority Leader Mitch McConnell, R-Kentucky, said no details on the negotiations were expected until at least early afternoon when the Senate convenes a session at 1 p.m. ET.

"We've been trading paper all day, and the talks continue into the evening," McConnell told reporters Saturday night. "We've been in discussions all day. We'll let you know as soon as we have some news to make."

Even so, it was unknown if Reid and McConnell could come up with a deal that would be acceptable to House Republicans, who refused just before Christmas to take up a compromise bill because it raised taxes and had no chance of passing the Senate.

President Barack Obama was widely expected during his scheduled appearance Sunday on NBC's "Meet the Press" to call for an immediate vote by Congress on a scaled back plan that would only extend middle class tax breaks and unemployment benefits, if the congressional negotiations fail.

The president's appearance on a political talk show is his first in three years, and clearly appears timed to put pressure on lawmakers to get a deal done or take a vote.

The principal dispute continues to be over taxes, specifically over Democrats' demand to extend tax cuts passed under President George W. Bush for families making less than $250,000 a year, while raising the rates on those making more than that.

The expectation is Republicans will try to raise that income threshold to $400,000 and push to keep estate taxes low; Democrats have said they might be open to one such scenario, but not both.

Obama and Democrats have leverage, based on the president's re-election last month and Democrats' gains in the House and Senate in the new Congress. In addition, polls consistently show majority support for Obama's position on taxes, and Democrats insist the House would pass the president's plan with Democrats joined by some Republicans if House Speaker John Boehner, R-Ohio, allowed a vote on it.

"We're now at a point where, in just a couple of days, the law says that every American's tax rates are going up. Every American's paycheck will get a lot smaller, and that would be the wrong thing for our economy," the president said in his weekly address broadcast Saturday.

On Friday, following a meeting with congressional leaders and top administration officials, Obama said he was "modestly optimistic" the Senate leaders would reach an agreement. At the same time, he conceded, "Nobody's going to get 100% of what they want."

However, conservative activist Grover Norquist has vowed to back primary challenges against Republicans who violate his widely signed pledge not to raise taxes. Even if a deal is reached, Norquist has predicted yet more budget showdowns every time the government needs additional money to operate.

The House will reconvene Sunday, and the chamber's Republicans will get together sometime early Sunday night, according to a note sent Saturday to legislators and staffers.

Republicans have opposed any increase in tax rates, and Boehner suffered a political setback by offering a compromise -- a $1 million threshold for the higher rates to kick in -- that his GOP House colleagues refused to support.

The saga has fueled disdain for politicians by many Americans. Such contempt is deserved, said Rep. Steven LaTourette, an Ohio Republican, who is retiring from Congress.

"I think America should be embarrassed by its leadership in D.C.," he told CNN on Friday. "The fact that we have been unable to do things, and instead worried about our next elections. ... I think it's sinful."

CNN's Jessica Yellin, Tom Cohen, Dana Bash, Deirdre Walsh, Lisa Desjardins and Kevin Liptak contributed to this report.

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Senate leaders tackle fiscal cliff deal

STORY HIGHLIGHTS

• Chiefs of staff for the Senate's top Democrat and Republican will lead fiscal cliff talks


• McConnell hopes there will be a plan to present to the Senate "as early as Sunday"


• If there isn't one, Reid says that he'll put an Obama-backed bill up for a vote


• Some congressmen say Americans have a right to be frustrated by the stalemate

As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNNiReport to share your video.

Washington (CNN) -- The Senate's top Democrat and Republican are working this weekend to forge a compromise to prevent the country from going over the fiscal cliff, the combination of sweeping spending cuts and widespread tax increases that will otherwise take effect in days.

Senate Majority Leader Harry Reid, D-Nevada, on late Friday afternoon called the next 24 hours "very important" in the grueling effort to avert a crisis that has been two years in the making. House Speaker John Boehner has called on the Senate to go first, and then his chamber -- which reconvenes Sunday -- will act.

Sen. Mitch McConnell of Kentucky, the Senate Minority Leader, expressed hope that he and Reid will agree on a plan to present to their respective caucuses "as early as Sunday."

Early Friday evening after a meeting involving him, congressional leaders and top administration officials, President Barack Obama said he was "modestly optimistic" the Senate leaders would reach an agreement. At the same time, he conceded, "Nobody's going to get 100% of what they want."

The two senators' chiefs of staff -- David Krone for Reid, and Sharron Soderstrom for McConnell -- will lead the talks, much of which will be carried on over the phone and by e-mail, aides said. Neither of their bosses is expected to be in the Capitol on Saturday, though that could change.

Staffers for Boehner, the top man in Republican-led House of Representatives, won't directly take part in the negotiations, but they'll be kept informed by McConnell's staff, a GOP aide said. The White House will learn what's going on through Reid's staff.

Democrats believe Republicans should make the "first move" -- basically by saying what changes should be made to the president's proposal, which calls for tax rates to stay the same for all annual family income below $250,000. The expectation is that Republicans will try to raise that income threshold to $400,000 and push to keep estate taxes low; Democrats said they might be open to one such scenario, but not both.

If the offer is "laughable," a Democratic aide said it will probably be leaked to the media. If it is reasonable, it should remain private -- which would mean, for Saturday at least, that no news may be good news.

And if the two sides don't agree on a bill over the weekend, Obama said he wants his latest proposal to be put up for a vote in both the Senate and House. He predicted his plan -- which, in addition to his tax rate proposal, would extend unemployment benefits and "lay the groundwork" for deficit reduction -- would pass in both chambers with bipartisan support.

As members of Congress and their staffs talk, Obama will make his case to the public by appearing Sunday on NBC's "Meet the Press," his first appearance on a Sunday political talk show in three years.

Reid said, at the very least, that he'd prepare legislation that includes elements favored by for a vote by Monday. Still, he insisted he'd first work with his GOP colleagues.

"I look forward to hearing any good-faith proposals Sen. McConnell has for altering this bill," the Nevada Democrat said.

If no legislation passes both chambers and therefore remains unsigned by the president by year's end, the fiscal cliff will go into effect -- something economists warn could trigger a recession.

The lack of political movement thus far, and lack of confidence Washington politicians can get anything done with so little time left, has spurred consumer confidence to sag and stock market values to sink.

Some like Democratic Sen. Chuck Schumer of New York expressed cautious optimism Friday that the looming deadline, and the key players renewed engagement, would spur a deal. But others, like Republican Sen. Bob Corker of Tennessee, derided the process so far as "a total dereliction of duty on every level."

"I've been very surprised that the president has not laid out a very specific plan to deal with this," he said on CBS "This Morning."

"But candidly, Congress should have done the same. And I think the American people should be disgusted."

The principal dispute continues to be over taxes, specifically Democrats' demand to extend most tax cuts passed under President George W. Bush while allowing higher rates of the 1990s to return on top income brackets. During his re-election campaign, Obama said this would protect 98% of Americans and 97% of small businesses from tax hikes.

Republicans have opposed any kind of increase in tax rates, and Boehner suffered the political indignity last week of offering a compromise -- a $1 million threshold for the higher rates to kick in -- that his GOP colleagues refused to support because it raised taxes and had no chance of passing the Senate.

Obama and Democrats have leverage, based on the president's reelection last month and Democrats' gains in the House and Senate in the new Congress. In addition, polls consistently show majority support for Obama's position on taxes, and Democrats insist the House would pass the president's plan with Democrats joined by some Republicans if Boehner allowed a vote on it.

However, influential anti-tax crusader Grover Norquist has vowed to back primary challenges against Republicans who violate his widely signed pledge not to raise taxes. Even if a deal is reached, Norquist has predicted yet more budget showdowns every time the government needs additional money to operate.

The two sides seemingly had made progress early last week on forging a $2 trillion deficit reduction deal that included new revenue sought by Obama and spending cuts and entitlement changes desired by Boehner.

Boehner appeared to move on increased tax revenue, including higher rates on top income brackets and eliminating deductions and loopholes. But his inability to rally all House Republicans behind his plan raised questions about his role and what comes next.

All this has fueled disdain for politicians by many Americans. Such contempt is deserved, said Rep. Steven LaTourette, an Ohio Republican, who is retiring from Congress.

"I think America should be embarrassed by its leadership in D.C.," he told CNN on Friday. "The fact that we have been unable to do things, and instead worried about our next elections. ... I think it's sinful."

What happens to the economy if we go over the cliff?

CNN's Jessica Yellin, Tom Cohen, Dana Bash, Deirdre Walsh, Ted Barrett, Greg Botelho and Kevin Liptak contributed to this report.

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Top 12 tech stories of the year

Microsoft's big Windows 8 push

SOPA backlash

Live-tweeting war

Apple maps stumble

Apple vs. Samsung

Facebook's botched IPO

The Instagram boom

Megaupload and Kim Dotcom

Mid-sized tablets make their mark

Nintendo launches Wii U

Yahoo hires Marissa Mayer

Tech's role in the 2012 election

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STORY HIGHLIGHTS

• In 2012, older tech companies such as Microsoft tried to revamp their brands


• The year kicked off with a huge online protest against SOPA


• Facebook bought photo-sharing app Instagram, but its IPO was a disappointment


• Apple released its iPhone 5 and iPad Mini but bungled its new mobile maps app

(CNN) -- In the tech world, 2012 was the year of the reboot. Older, established tech companies such as Microsoft, Yahoo and Nintendo all tried to restart their brands with bold new products and fresh blood in the executive suites.

Facebook struggled with its new life as a publicly traded company, and Instagram, the photo-sharing network it acquired in April, was dragged along for the ride.

There were inspiring stories, such as the Internet coming together to protest anti-piracy legislation. And there was darker news, like the Israeli military live-tweeting its strikes against Gaza.

And as always, the world's dominant and most closely watched tech company was all over the news. Apple did a little bit of everything in 2012, from hit new products (the iPad Mini) to high-profile failures (Apple Maps) to some old-fashioned courtroom drama in its patent war with Samsung.

Here are our picks for the top 12 tech stories of 2012. What did we leave out? Let us know in the comment section below.

Microsoft's big push

This was the year Microsoft took a big, bold and surprisingly fun step with a new version of Windows, an updated mobile operating system and its very own iPad rival.

The company, best known for its efficient but stodgy desktop software, needed to do something fresh to get customers' attention in 2012 and started with its flagship product. Windows 8 is a complete overhaul of the Windows operating system. Microsoft nixed the Start button and mixed a playful touchscreen interface with a more traditional desktop experience that runs on tablets, traditional computers, and hybrid machines.

The company also made a leap into the hardware market, releasing its first tablet, the Microsoft Surface, which ran a truncated version of the new Windows 8 operating system. And finally, there was Windows Phone 8, a major revamp of its smartphone operating system, which Microsoft hopes can compete with Apple's iOS and Google's Android.

It's still too soon to judge any of the new releases as successes or failures, but give Microsoft credit for taking chances.

SOPA backlash

In January, a pair of anti-piracy bills united the Internet in outrage. The proposed legislation, the Stop Online Piracy Act, or SOPA, and the Protect IP Act, or PIPA, would have restricted access to sites associated with pirated content, including the search engines and ad networks that do business with them.

The Internet cried censorship, and on January 18 some of the most popular sites blacked out their pages in protest. Reddit, Craigslist, Boing Boing, The Oatmeal, the English-language version of Wikipedia and thousands of other sites went dark. Even Google put a black censorship box over its logo. There were also petitions and organized boycotts of companies that supported the bills.

The protests worked, as both SOPA and PIPA were shelved. It was an impressive demonstration of the power of an organized Internet community.

Live-tweeting war

Violence and war have long been documented on Twitter and other social networks -- typically by journalists and by regular people on the ground (notably the Pakistani witness to the 2011 raid that killed Osama bin Laden).

But in November, the Israeli military took this concept to a new level. During its conflict with Palestinian forces in Gaza, the Israel Defense Force tweeted updates, including the news it had "eliminated" Hamas leader Ahmed Jabari. The military arm of Hamas responded on Twitter with its own provocations.

The back-and-forth between the warring sides signaled a jarring evolution in how war is broadcast in real time.

iPhone 5 and Apple Maps stumble

Every Apple hardware release is a big news story, starting with rumors months in advance and peaking with a well-oiled Apple press event, followed by usually glowing reviews and huge sales numbers. But in 2012, Apple made a major misstep when it released the iPhone 5 and its new operating system, iOS 6.

The company dropped the Google-powered maps that had come pre-installed on every iPhone since 2007. In its place, Apple introduced its own mapping app. Apple Maps looked stunning, with 3-D graphics and neat features like Flyover and turn-by-turn directions. All it was missing was transit directions and accuracy -- the maps were riddled with mistaken locations and outdated information.

The resulting criticism inspired an apology from CEO Tim Cook and led to an executive shakeup at Apple. Customers turned to third-party map apps until Google finally released an iOS version of its popular maps in December.

Apple vs. Samsung

It was the biggest tech trial of the year. Two of the top phone and tablet manufacturers went to war when Apple accused Samsung of infringing on its iPad and iPhone patents for a variety of tablets and smartphones. The drama culminated in a federal jury trial over the summer that offered a rare peek into how notoriously secretive Apple operates.

The story became huge because of the large amount of money at stake and the implications that its verdict would have on Samsung's business and the Android platform.

The jury decided in Apple's favor, awarding the company just over $1 billion in damages. But the case is far from over. Lawyers for both sides will continue bickering over potential appeals for months and possibly years to come.

Facebook's botched IPO

It was the most anticipated IPO of the year, and one of the largest ever for a tech company. Social-media darling Facebook looked primed for a big public opening: The company was valued at $104 billion, snapped up popular photo-sharing app Instagram and was still growing.

But then an array of problems and misjudgments led to a botched IPO in May, and the company's stock plummeted. The initial offer price of $38 was too high, too many shares were issued, its opening day was marred by Nasdaq's technical glitches, and underwriter Morgan Stanley was fined for improperly influencing share sales.

The stock price dropped significantly, hitting a low of $17.55 on September 4. Facebook is still struggling to recover some of its early-2012 luster.

The Instagram boom

Instagram started out scrappy two years ago as a fun little app for sharing sepia-shaded photos with friends. But when its user base skyrocketed, Facebook bought it for $1 billion in cash and shares of Facebook stock. That amount later dropped to $735 million as the value of Facebook shares plummeted.

By September, Instagram had more than 100 million users. The app capped off its big year with a rite of passage for social networks: a bungled update to its terms of service that sparked user outrage and led to a hasty backtrack by founder Kevin Systrom.

Instagram's challenge for 2013 is to figure out how to grow its free service into a business that makes money so that Facebook can begin to get its money's worth.

Megaupload and Kim Dotcom

The Megaupload case would have been mildly interesting on its own. A popular file-sharing company and its various sites were shut down by the F.B.I for piracy. But when Megaupload founder Kim Dotcom was arrested in January at his lavish New Zealand estate, he went from unknown entrepreneur to a flamboyantly rich cult hero.

Dotcom (he legally changed his last name from Schmitz in 2005) did what any self-respecting boy video-game nerd would do with millions of dollars. He bought a yacht, helicopter, luxury cars and motorcycles. He lived with his model wife in a $24 million rented mansion in New Zealand where he spent hours playing "Call of Duty: Modern Warfare 3," earning a spot as the top-ranked player in the world.

But after Dotcom was jailed and his assets were seized, he slowly emerged as a leader for Internet freedom activists who thought he was unfairly targeted. He's still fighting the charges and using his newfound fame to launch new projects. His current plans include a new file-sharing site that encrypts all its files, and a streaming music service called Megabox.

Mid-sized tablets take off

It was the rare case of Apple following a trend instead of setting it. Apple introduced its 7.9-inch iPad Mini in October to take on its new rivals in the tablet market: cheaper 7-inch devices from Google and Amazon. While the Kindle Fire and Nexus 7 were only selling modestly compared to the iPad, Apple quickly recognized the growing demand for a smaller, more portable device.

The iPad Mini proved especially notable because Apple's late CEO, Steve Jobs, famously stated a 7-inch tablet would never make it in the market because it was "too big to compete with a smartphone; too small to compete with an iPad." This may have been one of those rare cases in which Jobs was wrong.

Nintendo launches Wii U

In November, Nintendo released a new version of its popular Wii game console, which while groundbreaking when launched in 2006 was badly in need of a refresh.

The Wii U's most novel feature is a touchscreen tablet controller called a GamePad, which communicates with the main console. Inside the tablet are motion control sensors, speakers, a camera, buttons and other bells and whistles -- all of which the gamer uses to interact with what's happening on the larger screen.

It's a bold move for the company and brings a new perspective to console gaming, although the Wii U has received mixed reviews so far.

Yahoo hires Marissa Mayer

Aging Internet giant Yahoo was facing slumping revenues and internal strife in July when it hired Google exec Marissa Mayer as its new chief executive. The hire made headlines for many reasons: Mayer was a bold choice that showed Yahoo was serious about shaking things up. She was also young, a Silicon Valley power player, and a woman who was expecting her first child.

There was much media hand-wringing over her pregnancy, with some pundits wondering aloud whether Mayer could juggle a newborn baby and a demanding new job. Many saw her as a role model for working mothers.

But when the news settled, the real question returned: Could Mayer save the floundering Yahoo? So far she has shaken up Yahoo's executive team, given employee morale a much-needed boost and begun to improve the company's mobile offerings, including a stunning new Flickr app.

It will take a while to properly gauge her impact, but investors seem optimistic. Yahoo's stock price has risen $4 a share since her hiring was announced.

Tech's role in the presidential election

Technology issues such as net neutrality weren't discussed much during the 2012 presidential election, but tech played a huge role in rallying supporters and getting out the vote. President Obama, arguably the most tech-savvy of U.S. presidents, went on Google Plus and Reddit to take questions from voters.

And both his campaign and that of his GOP challenger, Mitt Romney, sent social media messages almost daily in attempts to sway media reports and public opinion.

But the most impressive use of tech took place behind the scenes, where both sides used new and powerful computer databases to target voters. The Romney campaign's get-out-the-vote program, called Orca, suffered technical glitches on Election Day and was perceived to have been outflanked by Obama campaign software which compiled massive amounts of data on voters and dispatched volunteers to pinpoint locations across the country.

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Decluttering before the New Year

Time off work during the holidays is a perfect time to tidy up your home and work spaces to start the New Year right.

STORY HIGHLIGHTS

• Do your New Year's resolutions include a push to clean up? Here are some tips to start


• Being organized is about being in control, says professional organizer Susan Fleischman


• Cleaning clutter can eliminate the need to buy what you simply can't find

(CNN) -- Whatever other resolutions we make leading up to the New Year -- to call Mom more often, lay off the late-night snacks -- getting ourselves organized is likely near the top of the list. And that often means clearing out the clutter that keeps us from functioning efficiently, whether we're at work or at home.

Many employees -- whether they go to actual offices or do their jobs from home -- find the last week of the calendar year is ideal for sorting through e-mails, clearing their desks, and reorganizing their work spaces. Sorting through stuff is rarely fun, but those who tackle it now will find themselves a step ahead when their now-vacationing colleagues and clients come staggering back after the holidays.

According to the National Association of Professional Organizers, which sponsors the annual "Get Organized Month" each January to help folks take control of their time, tasks and possessions, 83% of members polled say that "paper organization" ranks highest on their individual and corporate clients' to-do lists. For people taking time off between Christmas and New Year's, this week offers a chance to get things in order before 2013 arrives.

Devoting time to both physically and mentally clearing out the "old" and embracing the "new" is about more than just getting rid of stuff. Being organized is really about being in control, says Susan Fleischman, a Chicago-based professional organizer, home stager and founder of clutterfree.

"As joyous as the holidays can be, the period between Thanksgiving and New Year's is probably one of the most stressful of the year for people," she says. That's why spending the week after Christmas decluttering "really helps you recover and detox from the hustle and bustle of the holidays.

"It's very symbolic -- we're ramping up to the ultimate do-over. We all get to turn the calendar page and make a fresh start."

For those at work, says Fleischman, "the phone stops ringing, there are fewer meetings. Real work probably comes to a screeching halt. There are far fewer reasons to keep letting getting organized fall to the bottom of the to-do list." And these days, when employees often feel compelled to work harder and longer, being organized can be a real competitive advantage.

NAPO Industry Member Director Mary Dykstra says that on average, Americans waste time amounting to between six and 12 weeks a year searching for things in their offices and homes. "Just imagine if you could get out from under that clutter and spend that time helping your company build their business and ultimately, your career," says Fleischman, who was a public relations and marketing executive before launching her professional organizing business.

"Every minute counts when it comes to impressing the boss, your colleagues and clients. At work, we strive to project that we're knowledgeable, in control and experts. We're constantly accessing, sharing, reacting to information. Being able to put your hands on the information or generate some information means the better you'll be able to rise to the top and have clarity of thought and creativity and maximize productivity."

But what about moving from work to the home front? Cynthia Ewer, the Washington state-based editor of OrganizedHome.com and the author of "The Complete Idiot's Guide to Getting Organized Fast-Track," suggests we use this in-between-holidays week to step back and reflect on our habits and how well they're working for us at home.

It's important to remember, says Ewer, that "there are different personality types. "Organized" is what works for you. There are filers -- people who love folders. They want the serenity of knowing where things are. Pilers like to keep their eyes on their stuff. Deniers have bags of paperwork shoved into closets. Instead of using a "What-does-it-look-like?" yardstick, it's a "How-will-it-work?" question. Know yourself, and come up with solutions that reflect who you are, she says.

After all, she says, " 'It's here somewhere' is the most frustrating phrase in the English language."

Cutting clutter also can boost the bottom line. "How many times do you go to the store and buy the things you couldn't find?" asks Fleischman. But cleaning up and cleaning out also can generate money, says Ewer.

"It can be a real fun process to turn your clutter into cash."

Nab tax deductions by donating cleared-out items to nonprofit organizations. Declutterers can send usable books, DVDs, video games and music to third-party merchants in exchange for gift cards through the Amazon Trade-In Program. Even computer manufacturers like Apple offer gift cards to customers who send in an old iPhone, iPad or computer for reuse or recycling, if those devices still have monetary value.

"Leading an orderly life is about saving time, saving money, reducing stress," says Fleischman, who also blogs about organizing tips and clutter makeovers. "And that's energy you can spend on leisure pursuits, which is very important to emotional well-being."

Some tips for cutting through the workplace and home clutter this holiday week:

• Stockpile your supplies. Fleischman advises making sure you've got the right trash bins, shredders, file folders and markers at your fingertips before you start sorting and tossing.
• Take it a zone at a time. Your office, home and car didn't become a mess overnight, so declutter in increments. Fleischman suggests starting with desktops, then floors, then moving on to file cabinets and bookcases.
• Go from horizontal to vertical piles. If you're purging papers, clear those piles from your desk and the floor by placing newly sorted files in a cabinet or an upright vertical file. This way, your eyes can quickly scan and identify what you need at a glance.
• Free up the fridge. "Get the ghosts of Christmas past out of there -- all those little cans of this and that, the beef sticks from the gift basket no one can bear to throw out," says Ewer. Besides, this clean-up also will save you some calories.
• Be realistic. If you really write out bills at the kitchen table and not in the home office, says Ewer, get yourself a wheeled cart you can roll where the work gets done. If your kids' toys actually live in the family room -- not in the bedroom toy box -- create a storage solution there.

"Look at your patterns of living and organize yourself accordingly."

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Zelizer: Six political lessons of 2012

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STORY HIGHLIGHTS

• Julian Zelizer: 2012 was a year of bitter domestic battles, turbulence overseas


• He says the weakness of GOP, renewed strength of liberalism were apparent


• Zelizer says the year also highlighted the influence of new immigrants in America


• Zelizer: Year ended with a tragic reminder about need to act on gun control

Editor's note: Julian Zelizer is a professor of history and public affairs at Princeton University. He is the author of "Jimmy Carter" and of the new book "Governing America."

(CNN) -- 2012 has been a tumultuous year in American politics. With the presidential election capping off the year, Americans have witnessed a series of bitter domestic battles and turbulent events overseas. As the year closes out, it is worth thinking about some of the most important lessons that politicians and voters can learn from this year as they prepare for 2013.

Here are six:

The Republican brand name is in trouble: The GOP took a drubbing in 2012. To be sure, Mitt Romney ran a problematic campaign. His inability to connect with voters and a number of embarrassing gaffes hurt the chances for Republicans to succeed.

Julian Zelizer

Just as important to the outcome was the party that Romney represented. Voters are not happy with the GOP. Public approval for the party has been extremely low. Congressional Republicans have helped to bring down the party name with their inability to compromise.

Recent polls show that if the nation goes off the fiscal cliff, the Republicans would be blamed. According to a survey by NBC and the Wall Street Journal, 65 percent of people asked for a short word or phrase to describe the GOP came up with something negative. The Republican Party was also the lowest-rated political institution.

The exit polls in November showed that the GOP is out of step with the electorate on a number of big issues, including immigration and gay marriage. If Republicans don't undertake some serious reforms and offer fresh voices, all the new messaging in the world won't help them as the competition starts for 2016.

Opinion: Madness in the air in Washington

America has grown more liberal on cultural and social issues: The election results confirmed what polls have been showing for some time. If the 1960s was a battle over conservative "traditional family values" and liberal ideals of social relations, liberals eventually won. Throughout the year, polls showed, for example, that the public was becoming more tolerant of gay marriage and civil unions. Americans support the view that gay sex should be legal by a margin of 2-1, compared to 1977 when the public was split.

In the election, same-sex marriage was approved in three states, voters in Wisconsin sent to office the first openly gay senator, and two states approved of referendums to legalize the recreational use of marijuana. Americans are accepting of social diversity, and expect that the pluralism of the electorate will be reflected by the composition of elected officials in Washington.

While there are some conservative voices who lament these changes and warn of a nation that is veering toward Sodom, a majority are more than comfortable that some of the taboos and social restrictions of earlier eras are fading and that we live in a nation which is more tolerant than ever before. These social and cultural changes will certainly raise more questions about restrictive practices and policies that remain in place while creating pressure for new kinds of leaders who are responsive to these changes.

The Middle East remains a tinderbox: In the years that followed Barack Obama's election, there was some hope that the Middle East could become a calmer region. When revolutions brought down some of the most notorious dictators in the region, many Americans cheered as the fervor for democracy seemed to be riding high.

But events in 2012 threw some cold water on those hopes. The Muslim Brotherhood won control of the Egyptian government. In Syria, the government brutally cracked down on opponents, reaching the point in December where Obama's administration has started to talk about the possibility of the al-Assad regime using chemical weapons, though the severity of the threat is unclear. The battles between Palestinians and Israel raged with rockets being fired into Tel Aviv and Israelis bombing targets in Gaza.

Although national attention is focused on domestic policy, it is clear that the Middle East has the capacity to command national attention at any moment and remains as explosive as ever.

Our infrastructure needs repair: Hurricane Sandy devastated the Northeast in November, leaving millions of Americans on the East Coast without power and with damaged property. Soon after the hurricane hit, New York Gov. Andrew Cuomo made an important point. The infrastructure of our cities is outdated and needs to be revamped so that it can withstand current weather patterns. Speaking of the need for levees in New York, Cuomo said: "It is something we're going to have to start thinking about ... The construction of this city did not anticipate these kinds of situations."

Regardless of whether Congress takes action on the issue of climate change, in the short term cities and suburbs must do more work to curtail the kind of damage wreaked by these storms and to mitigate the costs of recovery -- building underground power lines, increasing resources for emergency responders, building state-of-the-art water systems, and constructing effective barriers to block water from flooding.

The new immigrants are a powerful political and social force: As was the case in the turn of the twentieth century when Eastern and Southern Europeans came into this county, massive waves of immigration are remaking the social fabric of the nation. Latino-Americans, Asian-Americans and other new portions of the electorate who have been coming into the country since the reform of immigration laws in 1965 are coming to represent a bigger and bigger portion of the electorate.

Not only are their numbers growing as a voting bloc, but they are more organized and active than ever before, both on election day as well as in policy making.

Soon after the election, The New York Times reported that 600 members of United We Dream, a network of younger immigrants who don't have their papers, met for three days to plan how to lobby for a bill that would enable 11 million illegal immigrants to become legal. One of the leaders, Christina Jimenez, explained: "We have an unprecedented opportunity to engage our parents, our cousins, our abuelitos in this fight." They have both parties scrambling as Democrats are working to fulfill the promises that brought these voters to their side in November, while some Republicans are desperate to dampen the influence of hardline anti-immigration activists in their party.

We need to do something about guns. The year ended with a horrific shooting at an elementary school in Connecticut. When a 20-year-old went on a rampage apparently using guns that had been legally purchased by his mother, the world watched with horror. Several prominent conservative advocates of gun rights, including former congressman and television host Joseph Scarborough as well as Sen. Joe Manchin, made statements indicating that the time has come to impose stricter controls and regulations on the purchase of weapons. "I don't know anybody in the sporting or hunting arena that goes out with an assault file," Manchin said.

Over the next few weeks, there will certainly be a big debate about what caused this shooting. People from different perspectives will highlight different issues but making it more difficult for people to get their hands on certain kinds of weapons, while not a cure-all, can only diminish the chances of this happening again.

There are many more lessons but these six stand out. After the trauma of the past week, let's hope the new year starts off with better days.

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The opinions expressed in this commentary are solely those of Julian Zelizer.

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Afghan police officer kills American contractor

By Masoud Popalzai, CNN

updated 7:55 AM EST, Mon December 24, 2012

Afghan policemen stand guard at the site where a female police officer shot dead a foreign civilian adviser.

STORY HIGHLIGHTS

• NEW: The shooter was a police officer, an Interior Ministry spokesman said


• On Sunday, a police commander killed five officers


• Monday's incident is the first insider attack involving a female shooter


• A Pentagon report says there has been an overall increase in "insider attacks"

Kabul, Afghanistan (CNN) -- A female Afghan police officer shot and killed an American contractor in the Kabul police headquarters early Monday, authorities said.

The shooting death comes a day after five policemen were killed by their commander in Jawzjan province, in the north.

The incidents add to the rising number of insider attacks by Afghan soldiers and police officers -- or attackers dressed like them.

More than 50 people have been killed in Afghanistan in similar attacks this year, which the Afghan government calls acts of terrorism.

Read more: SEAL commander's death in Afghanistan an apparent suicide, military says

Monday's incident was unusual because it was the first time that such an attack involved a female shooter, said Hagen Messer, a spokesman for NATO's International Security Assistance Force.

Sediq Seddiqi, a spokesman for Afghan Interior Ministry, said that the suspect has been a member of the police force for two years. The woman, around 40 years old, was arrested and has been questioned, he said.

The victim was a civilian contractor for ISAF who was working as an adviser to Afghan police, said Maj. Martyn Crighton, another ISAF spokesman. A coalition official, who was not authorized to speak on the record, said the contractor was an American.

Read more: Britain's Cameron pays surprise visit to troops in Afghanistan

A biannual Pentagon report to Congress this month said there's been an overall increase in "insider attacks" on U.S. or coalition training forces.

"The rise in insider attacks has the potential to adversely affect the coalition's political landscape," according to the report. "It remains clear that the insider threat is both an enemy tactic and has a cultural component," according to the report.

No group immediately claimed responsibility for Monday's attack. But a Taliban spokesman said it carried out Sunday's attack on the five policemen.

Read more: Karzai welcomes UK troop withdrawal plan

In that incident, the police commander who killed the men was a Taliban insurgent who had infiltrated the Afghan police, said Abdul Aziz Ghairat, police chief of Jawzjan province.

The Taliban spokesman said the commander was in touch with the militant group before the attack, and is now in a safe place in their midst.

The Pentagon report said Taliban insurgents have lost some of their punch since their 2010 peak, but they remain "resilient and determined" and "will likely attempt to regain lost ground and influence" through assassinations, high-profile attacks, the use of roadside bombs and other violence.

Also Monday, an ISAF service member was killed in an insurgent attack in eastern Afghanistan.

Per policy, ISAF did not release the service member's name or nationality.

Read more: Landmine kills 10 girls collecting firewood

CNN's Samira Said and Neda Farshbaf contributed to this report.

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