House GOP has fiscal cliff counteroffer

NEW: The White House rejects the basis of the House Republican plan House GOP leaders call for some revenue, more spending cuts House Speaker John Boehner rejects any increase in tax rates The tax issue has stymied deficit reduction talks for two years Washington (CNN) -- Negotiations on a deal to avoid the fiscal cliff got a jump-start on Monday with House Republicans offering a counter-proposal to President Barack Obama, but continuing to reject his call for higher tax rates on the wealthy. The GOP proposal would result in $2.2 trillion in deficit savings over the next decade, including $800 billion from tax reform, $600 billion from Medicare reforms and other health savings, and $600 billion in other spending cuts, House GOP leadership aides told reporters. House Speaker John Boehner called it a "credible plan that deserves serious consideration by the White House." House GOP offers fiscal cliff counterproposal CEOs talk fiscal cliff Fiscal cliff worries defense contractors Carlos Gutierrez on fiscal cliff Mack: Neither side has credible plan The move followed a weekend of accusations by both sides that the other was not serious about reaching a deal to avoid the automatic tax hikes and spending cuts scheduled to take effect January 1 -- what is known as the fiscal cliff that economists say will damage U.S. growth. An initial White House response to the offer, which was contained in a letter from GOP House leaders, said the proposal would increase the tax burden on the middle class while lowering rates for the wealthy. "Until the Republicans in Congress are willing to get serious about asking the wealthiest to pay slightly higher tax rates, we won't be able to achieve a significant, balanced approach to reduce our deficit," said the statement by White House Communications Director Dan Pfeiffer. Earlier, White House spokesman Jay Carney made clear that Obama would reject any proposal that extended tax cuts from the Bush administration to the wealthiest Americans. "He will not sign a bill that extends those tax rates for the top 2%," Carney told reporters. "We can't afford it. It is not a wise economic policy. It's not wise fiscal policy and it would defeat the principle of balance that he has embraced so clearly throughout these negotiations." A Senate Democratic leadership aide told CNN on condition of not being identified that Republicans must first agree to increased tax rates on the wealthy, saying "don't look for any concessions from the White House until the GOP pulls the Band-Aid off on rates." The Republican move came as pressure increased for Boehner to hold a vote in the House on a Senate measure that would extend the Bush-era tax cuts for income up to $250,000 for families while allowing rates to return to higher levels of the 1990s on the rest. Fresh off his re-election victory, Obama demands House passage of the Senate measure, which he says would avoid a fiscal cliff tax hike for 98% of Americans. Opinion: A tax we could learn to love A central theme of Obama's first term and re-election campaign, the plan would increase revenue by almost $1 trillion over 10 years, providing a significant portion of the $4 trillion in overall deficit reduction sought by both sides. However, Republicans led by Boehner object to any increase in tax rates, even for higher levels of income earned by 2% of Americans. Instead, the counter-offer Monday proposed $800 billion in deficit savings through tax reform, including raising an unspecified amount of revenue by eliminating tax deductions and loopholes. The GOP letter noted that the new offer was based on a framework proposed last year by Erskine Bowles, a Democrat and one-time White House chief of staff who co-chaired a deficit reduction commission appointed by Obama in 2010. "This is by no means an adequate long-term solution, as resolving our long-term fiscal crisis will require fundamental entitlement reform," the letter said. "Indeed, the Bowles plan is exactly the kind of imperfect, but fair middle ground that allows us to avert the fiscal cliff without hurting our economy and destroying jobs. We believe it warrants immediate consideration." Pfeiffer's response, however, said the GOP plan "includes nothing new and provides no details on which deductions they would eliminate, which loopholes they will close or which Medicare savings they would achieve." "Independent analysts who have looked at plans like this one have concluded that middle class taxes will have to go up to pay for lower rates for millionaires and billionaires," his statement said. Bowles later denied any direct connection to the GOP proposal, saying it reflected his view of a middle-ground approach a year ago but that "circumstances have changed since then." "It is up to negotiators to figure out where the middle ground is today," Bowles said in a statement. "Every offer put forward brings us closer to a deal, but to reach an agreement, it will be necessary for both sides to move beyond their opening positions and reach agreement on a comprehensive plan which avoids the fiscal cliff and puts the debt on a clear downward path relative to the economy." The tax fight continues to stymie congressional negotiations on reducing chronic federal deficits and debt. This time, the public brinksmanship comes with a looming year-end deadline for the fiscal cliff. Without a deal, taxes for everyone go up on January 1 when the Bush tax cuts are set to expire. "Nobody wants to raise taxes on the middle class, and there the president's got a lot of leverage," noted CNN Chief Political Analyst Gloria Borger. For the GOP, an agreement must include major reforms of entitlement programs such as the Medicare and Medicaid government-run health care programs for senior citizens, the disabled and the poor. On Sunday, House Democratic leader Nancy Pelosi threatened a procedural move that would, at the least, require Republicans to publicly state their opposition to avoiding the fiscal cliff tax hike on everyone. "If Speaker Boehner refuses to schedule this widely-supported bill for a vote, Democrats will introduce a discharge petition to automatically bring to the floor the Senate-passed middle class tax cuts," Pelosi said in a statement. "We must find a bold, balanced and fair agreement to avoid the fiscal cliff. The clock is ticking and stalemates are a luxury we cannot afford." GOP, break Grover Norquist's grip on you Under a "discharge petition," a bill can be brought to the floor without going through a committee or without approval of House leadership. The bill would need majority support -- or 218 votes -- to pass. In the current lame-duck session of Congress, there are 192 Democrats in the House, so at least 26 Republicans would have to defect for Pelosi's motion to succeed. Some House Republicans, including Rep. Tom Cole of Oklahoma and other conservative voices, have called for passing the tax plan sought by Obama and Democrats to allow the broader negotiations to move forward. Cole and fellow conservative Rep. Tim Scott both said last week they believed that Senate tax measure would pass if brought to a vote in the House. However, Cole made clear he would follow the directions of the leadership, tamping down the chances of a GOP revolt against Boehner over the issue. Boehner has so far rejected any increase in tax rates, even if only for the wealthiest Americans, saying his offer to include additional revenue by eliminating some loopholes and deductions was a major concession. On Sunday, he described the latest Democratic proposal for a broader deficit reduction plan as one-sided and unworthy of discussion. "The president's idea of a negotiation is, 'Roll over and do what I ask,'" Boehner told Fox News Sunday, describing himself as "flabbergasted" by the plan put forward last week by Treasury Secretary Timothy Geithner. "I looked at him and I said, 'You can't be serious.'" Such posturing on both sides reflects the mistrust built up over two years of deficit wars that have left Congress with a reputation of dysfunction. 5 ways you would stop the fiscal cliff Failure to reach a deal to avert the fiscal cliff and devise a framework for a broader deficit reduction package to be negotiated when the new Congress is seated in January would cause certain economic turmoil and threaten the U.S. credit rating. The Bush tax cuts of 2001 and 2003 already were extended by two years as part of budget negotiations earlier in Obama's term. In addition, spending cuts of $1 trillion over 10 years also kick in next year, the result of the Republican-led standoff over raising the federal debt ceiling in 2011 that led to a U.S. credit rating downgrade. Sharp tax increases and automatic spending cuts would cut the projected federal budget deficit nearly in half -- but also would threaten millions of jobs, especially those dependent on government contracting, and risk a return to recession, according to the non-partisan Congressional Budget Office. The non-partisan Tax Policy Center estimates middle class families would pay about $2,000 a year more in taxes without another extension of all the Bush tax cuts, as sought by Republicans. Without a deal in the lame-duck Congress, each side wants the other to get the lion's share of public blame for higher taxes and economic uncertainty. The plan that Geithner presented to Republicans last week called for $1.6 trillion in new taxes, including the rate hike for income over $250,000. "There's not going to be an agreement without rates going up," Geithner told CNN in an interview aired on Sunday. "If they are going to force higher rates on virtually all Americans because they're unwilling to let tax rates go up on 2 percent of Americans, then, I mean that's the choice they're going to have to make. Listen: WWJD...about taxes? Obama also wants to close loopholes, limit deductions, raise the estate tax rate to 2009 levels and increase taxes on capital gains and dividend taxes. In addition, the Obama proposal calls for a new $50 billion stimulus package, a home mortgage refinancing plan, and an extension of unemployment insurance benefits. It also would extend the payroll tax cut passed early in Obama's administration. In return, multiple sources told CNN that Obama is offering $400 billion in new cuts to Medicare and other entitlement programs -- with specifics decided next year. According to a CNN/ORC International Poll released last week, 56% of people said taxes should be kept high to help lower-income people, while 36% said taxes should be kept low to create jobs. Another survey, by ABC News and the Washington Post, showed two-thirds of respondents supported Obama's call for holding down tax rates for everyone but the wealthiest Americans. Mark Zandi, chief economist for Moody's Analytics, predicted on the CBS program "Face the Nation" that lawmakers would reach a short-term deal that would limit the economic damage, extend the U.S. debt ceiling to avoid another standoff like the one in 2011 and lay down a framework for future deficit reduction talks. Defense companies see cuts coming even with a budget deal CNN's Ashley Killough, Adam Levy, Deirdre Walsh and Jessica Yellin contributed to this report.

Toll authority quick to dun drivers; not so good at refunds

A North Texas Tollway Authority bank account contains more than $57,000 collected from customers who have overpaid their ZipCash bills. By Scott Friedman NBCDFW The North Texas Tollway Authority is quick to send drivers a bill for using toll roads in North Texas, but the agency is not so fast in tracking down customers when it owes them money. An NBC 5 investigation has discovered that money from drivers who overpay on ZipCash bills is deposited into what the NTTA calls the Overpayment Account -- not refunded or credited toward a future trip on a toll road. The NTTA has not previously made the bank account public. It contains more than $57,000 collected from ZipCash users who have overpaid. NTTA toll roads are cashless. Drivers without TollTags are billed by ZipCash, the agency's pay-by-invoice system. The NBC 5 Investigates team filed an open records request to find out how many people have money sitting in the account. The list of names is more than 950 pages long. The list NTTA provided to NBC 5 Investigates did not include any identifying information beyond the drivers' names. Follow Open Channel on Twitter and Facebook. Haskell Tilson's name appears on the list. NBC 5 Investigates got Tilson's license plate number and sent it to the NTTA to confirm that he is the same person with money in the overpayment account. Tilson's $2.22 in the account is certainly not a lot of money, but he said it's the principle that concerns him. "Why don't they just credit it to the next bill or be honest about it and just send me a check for $2.22?" he said. While the agency spends money sending bills to collect small toll amounts, the NTTA doesn't want to spend money to send out small refunds. "And if that costs more to return it, we can't be using dollars to chase dimes," NTTA spokesman Michael Ray said. "That's not a good use of toll-payer money. They expect us to be good stewards of their money." Watch NBCDFW.com's video report on the toll authority Drivers have no way of knowing if their money is stuck in the overpayment account. Even though NTTA posts lists of people who owe the most in tolls, it has never publicly shared the list of people stuck in limbo. NBC 5 Investigates asked Rey why the NTTA won't post the list and let people know about the account so they can call and ask that the money be credited to their ZipCash account. "Well, because I think it makes good financial sense not to be starting a conversation over money that would cost us more to refund than it would be to send," he said. While the money sits in the NTTA's hands, the agency is collecting interest on the $57,812.42 currently in the overpayment account. The NTTA said it would refund money to customers with more than $2.50 in the overpayment account. But NBC 5 Investigates found that more than 1,500 people who are owed more than $2.50 have not received a refund or credit. The NTTA claims it did not have enough information to find those people or set up an account for them. If the money isn't claimed within three years, it will be sent to the Texas State Comptroller's unclaimed property division, which may ultimately notify people about their missing money. The comptroller publicly posts a list of people with money in its account. The tollway authority said it's just not worth the agency's time to post its own list because most of the people on the list are owed only pennies. "And, honestly, that's what this is -- it's a lot of nickels and dimes, a lot of pennies and two cents," Rey said. The NTTA says there is currently $57,812.42 in the overpayment account. Search the NTTA overpayment database The account was created in August of 2009. But the NTTA has only provided NBC 5 Investigates with a detailed spreadsheet documenting transactions from May 2010 to Nov. 26, 2012. Customers who find their names on the list can call the NTTA customer service center at 972-818-NTTA (927-818-6882). The agency says it will credit the money to their account if the customers can provide proper identifying information.

Photo may show Zimmerman bleeding

The photo shows Zimmerman apparently bleeding on the night of Martin's killing Prosecutors previously provided a black-and-white copy, Zimmerman's defense says Zimmerman claims he killed Trayvon Martin in self-defense Martin's defense team says he was killed "in cold blood" (CNN) -- A photo posted online Monday shows George Zimmerman with blood on his nose and lips. His attorneys say it was taken the night unarmed teen Trayvon Martin was killed in Sanford, Florida. Zimmerman says he shot Martin in self-defense. Martin's attorneys say he was shot and killed "in cold blood." Prosecutors have charged Zimmerman with second-degree murder for the February 26 killing. The picture, posted Monday on Zimmerman's defense website, was taken by a police officer, Zimmerman's attorneys wrote. The state had previously provided a black-and-white copy of the image, the attorneys wrote on the website. "This high resolution digital file was finally provided to the defense on October 29." A police report from the night of the incident said Zimmerman was "bleeding from the nose and back of his head." The 28-year-old volunteer neighborhood watchman was driving through his gated community when the incident occurred. Martin was walking through the neighborhood to his father's girlfriend's house. Zimmerman has claimed that after the two exchanged words, Martin charged at him, knocked him to the ground and banged his head repeatedly against a concrete sidewalk. Martin's family says Zimmerman attacked the teen, who had done nothing wrong. Martin's death sparked nationwide protests and inflamed public passions over race relations and gun control, as well as Florida's controversial "stand your ground" law, which allows the use of deadly force when a person perceives a threat to safety. In August, a new judge was named to oversee the case, after an appeals court agreed to a request from Zimmerman's defense team. The attorneys had argued the previous judge had made remarks putting Zimmerman in reasonable fear of an unfair trial.

SeaWorld defends its employees after dolphin bites Georgia girl's hand

Jillian Thomas, 8, suffered puncture wounds from a dolphin bite at SeaWorld in Orlando, Fla., as she was feeding the animal. SeaWorld says Jillian did not follow directions given by a park employee. NBC's Kerry Sanders reports. By NBC News staff SeaWorld is defending the actions of its employees in Orlando, Fla., after an 8-year-old girl from Georgia was injured by a dolphin. Jillian Thomas of Alpharetta was participating in the feeding at the dolphin facility Nov. 21. When she held a paper fish container up  so the dolphin could grab it, the animal lunged at her and bit her hand. Her father, Jamie Thomas, captured the attack on camera. The video shows the girl's face contorting in pain as the dolphin briefly grabs her left hand. Jillian suffered three puncture wounds, but her mother said she didn't think park employees took her injuries seriously. In a statement, SeaWorld officials said they addressed the incident appropriately. "Nothing is more important to us than the health and safety of our guests, employees and animals," the statement said. "Educators and animal care staff were at the attraction when this happened and immediately connected with the family. In addition, a member of our health services team was in the area at Dolphin Cove and quickly responded and treated the young girl. "The video had not been previously shared with us and we have not had a chance to assess it, but certainly take the situation seriously." Food for the dolphins comes on small trays. In a video from the exhibit, an announcer warns visitors not to hold them up, as the dolphins will reach for them. In the video, Jillian can clearly be seen picking up the tray, but her mother claims she never heard the warning. SeaWorld said guests are given clear instructions on how to feed the dolphins, including specific directions not to pick up the paper trays. More content from NBCNews.com: Florida guide uses hunting as rustic therapy for combat veterans Police: Kansas City Chiefs linebacker kills girlfriend, then himself Cuba pushes swap: its spies jailed in US for American contractor held in Havana Passengers killed when tour bus hits Miami airport overpass Women warriors pass elite Army training course Teacher lured boys online to get nude pics, cops say 66 species of coral proposed for protection by US Follow US news from NBCNews.com on Twitter and Facebook

5 ways you'd stop the fiscal cliff

Congress and President Obama have until December 31 to come to avert the fiscal cliff iReporters say Congress can learn a thing or two about budgeting the country's finances One possible projected consequence of the fiscal cliff is rising taxes for many Americans Some iReporters urge Congress to work with only the money it has, stop borrowing money (CNN) -- The clock is ticking as the December 31 deadline approaches for Congress and President Obama to come to some sort of agreement over the infamous fiscal cliff. But what happens when the country finally reaches the fiscal edge? Tax increases for everyone? Deep spending cuts? Another recession? As President Obama puts pressure on House Republicans to come to a compromise over the fiscal cliff, it seems like everyone wants to know: What is the best solution? Adults often have to make compromises to make ends meet financially. CNN iReport invited people to share their stories of financial compromise, and what advice they would give to Congress on the fiscal cliff based on the lessons they've learned. 1. Use cash, not credit A couple years back, Val Stayskal found herself in a financial conundrum. As a single mother, she said immediate needs such as bills, food and gas would pile up, so she started putting a lot of her expenses on credit. "And when I could not pay off my credit cards, I would go to the bank and get a loan to pay them off," she said. "It was a terrible cycle." She was finally able to break the cycle with help from a financially savvy friend who helped limit her credit usage. "She only worked with cash and she helped me create a budget," she said. Credit cards "are so dangerous. We are paying so much interest. You think you have all this money, but it is not your own." Since that time, Stayskal has gotten married and she and her husband own three small businesses in Chicago. They made a pledge to not use credit cards after they nearly lost their home to foreclosure during the recession four years ago. "We only use cash," she said. Stayskal, 58, believes the president and Congress could learn something from her journey to free herself of credit card debt. "I definitely feel like our nation's reliance on credit has put us in this fiscal cliff crisis," she said. She advised Congress to "hold fast and push for spending cuts as well as balancing the budget in combination with increasing revenue in whatever way makes sense," she advised. Learning to prioritize spending is something she says was a tough, but an invaluable lesson. "My life has improved tremendously and I attribute much of it to getting my finances straightened out," she said. "We've had our own financial hiccups with the recession, and each time we apply the same principles and we are back on our feet, even when things were out of our control. It works." 2. Take responsibility for your actions The optimist within 34-year-old Swathi Ravichandran believes Congress and the president will come to an agreement over the fiscal cliff. The associate professor at Ohio's Kent State University said past incidents such as Standard & Poor's 2011 downgrading of the U.S. credit rating should serve as a reminder that there are consequences to not reaching a financial resolution. "I have to take responsibility for my actions," she said when reflecting on her finances, and she said Congress should do the same. Owning up to financial responsibility is a life lesson she tried to keep in mind when purchasing a home with her husband last year. "We decided not to let our future incomes dictate the amount of mortgage," she said. "We took the opposite approach and thought, 'Will we be able to afford payments if one of us loses our job?' " Ravichandran said the bottom line for avoiding the fiscal cliff is for the government to cut spending. "If I spend too much, I have to curtail the rest of the month to reach my savings goal," she said. She said she always looks at discretionary expenses first when limiting personal spending. "I'd cut back on the frequency of eating out, and purchasing clothing and accessories," she said. She thinks Congress should do the same. "It is time to curb spending and increase revenues. Not one or the other." 3. Stop wasting Like many people, Savita Naraine said when finances get tight, frivolous spending goes out the window. "This means packing a lunch and snacks and making coffee at home instead of splurging on Starbucks coffee," he said. The San Bernardino, California, resident and recent college graduate knows what it is like to work with a strict budget, especially since he is still looking for full-time employment. Cutting back on wasteful spending is a lesson he said Congress needs to learn. He said he was frustrated when he read a financial report back in 2011 about the Justice Department spending $16 a piece on muffins and other exuberant amounts of money on lavish business lunches. "In this economy, it is somewhat shocking to me that people are willing to spend that amount of money when it clearly isn't necessary," the 29-year-old said. Naraine does not believe Congress and the president will come to an agreement on the fiscal cliff before the December 31 deadline. "In recent years, when facing budget deadlines, the only agreement made is to extend the deadline," he said. He blames this on the stubbornness of politicians and their unwillingness to compromise, which worries him if taxes were to rise as a result of the fiscal cliff crisis. "I imagine I would need to look for two jobs instead of one so that I could pay off debt incurred during college, pay my bills, and survive," he said. His advice for Congress is simple: Stop wasteful spending. For starters, he suggests that Congress could try hosting a potluck working lunch next time. 4. You can't please everyone Brian Chandler's family is growing. He and his wife are expecting a second child, and their Georgia home is getting a little cramped. He'd like to buy a new house, but if taxes were to rise because of the fiscal cliff, he said he would reconsider purchasing a new home. "It's more of a want versus a need," he said. Chandler was raised in a household where his parents made a combined $45,000 in the 1990s. He said growing up he didn't get everything he wanted, "but we got everything we needed." Chandler worked his way through college and got an entry-level position in data security. Now at the age of 34, he has a high-level managerial position. Despite his salary increase, he said the growth of his income does not change his spending habits. Decades later, he still maintains the want-versus-need mentality he learned growing up. "I never go over my monthly income," he said. "I don't drive a Porsche, even though I could afford one." The Georgia resident believes Congress should apply the same philosophy when it comes to the fiscal cliff. "Too often I feel our government tries to appease everyone, which clearly can't happen," he said. He said the best advice he could give Congress is to not delay the process any longer. "Make the tough decision" and "understand that you won't be popular with all groups of Americans when you make a decision," he said. 5. Learn to live with less A few years ago, Bobbie Bosworth and her husband retired from teaching. Now at the age of 61, Bosworth is working again in order to pay for rising health care costs. She hopes that President Obama's Affordable Care Act will not only lower the cost of medical care, but also increase jobs in America, as she and others across the country will finally be able to retire for good. Despite the rising cost of living, and going back to work after retirement, she is hopeful about the economy. She also believes Congress and the president will come to some agreement over the fiscal cliff before the deadline at the end of this month. She thinks the fiscal cliff agreement should include raising taxes for the wealthy. "I would rather (Congress) go over the cliff than not raise taxes on the rich," she said. Over the years, Bosworth has learned to live on a tight budget. If taxes rise as a result of the fiscal cliff, she said she and her husband will have to cut back on things like traveling and eating out, which they've done in the past. She said one of the best financial lessons she learned is to spend no more than what you have. "Learn to live with less," she advised. "We don't need a lot to be happy."

Q&A: Who can inherit the British throne

Newly-weds Catherine, Duchess of Cambridge, and her husband Prince William on a royal tour of Canada in July. The marriage of William and Catherine brought the succession back into focus Sons and daughters of British monarchs will now have an equal right to the throne Roman Catholics are still barred from holding the crown Both the UK laws and those of 15 other Commonwealth states will have to be amended London (CNN) -- Prince William's glittering wedding to Catherine Middleton captivated a global audience earlier this year. But up until now, any daughter born to the Duke and Duchess Cambridge would not have enjoyed an equal right to inherit the British throne. Rules dating back centuries decree that the crown passes to the eldest son and is only bestowed on a daughter when there are no sons. All this changed at a meeting of the leaders of 16 Commonwealth countries in Perth, Australia, where they unanimously agreed to amend the succession rules. CNN examines the background to a controversial and long-running debate. Why has this change come about now? The issue has been discussed in the UK for many years -- and changes have been proposed before -- but it requires an act of parliament and the agreement of the 15 other realms where British royalty is the head of state to alter the rules of succession. Princesses to get fair share of throne Successive UK governments have failed to find parliamentary time to debate proposals to change the law. A spokesman at UK Prime Minister David Cameron's office said it had often been thought of as "too thorny and complicated to deal with quickly." The marriage of William and Catherine in April has brought the issue back into focus. David Cameron referred directly to the couple in his speech to Commonwealth leaders Friday, saying the succession rules were "outdated." "The idea that a younger son should become monarch instead of an elder daughter simply because he's a man... this way of thinking is at odds with the modern countries that we've all become," he said. So what has been agreed? The leaders of the 16 Commonwealth countries that have Queen Elizabeth II as head of state unanimously agreed that sons and daughters of British monarchs will have an equal right to the throne. They also agreed that a future British monarch can marry a Roman Catholic -- something that is currently banned. What was the historical basis for the old rules? The tradition of favoring the male heir -- called male primogeniture -- goes back many centuries and can be seen in the extensive family tree of the British monarchy. But a key law which governs the way British monarchs are chosen is the 1701 Act of Settlement which has its roots in the religious strife of the age. The official British Monarchy website explains that the act was designed to secure the protestant succession to the throne. Royal commentator and former editor of the International Who's Who, Richard Fitzwilliams, explained that this has been a divisive issue ever since the English Tudor King Henry VIII split with the Catholic Church in Rome in the 16th Century, leading to decades of religious persecution. The Act of Settlement decreed that no Roman Catholic or anyone married to a Catholic could hold the English crown. This is now to be amended so that an heir to the throne can still be monarch even if they marry a Catholic. The British Monarchy website gives two examples of the current royal family who were removed from the line of succession because they married Roman Catholics -- George Windsor, Earl of St Andrews, and Prince Michael of Kent. How are William and Catherine affected? The changes mean that if the couple start a family and the first born is a girl, she will eventually become queen. Previously, a younger son would have taken precedence. However, this could be many years in the future. Prince Charles is first in line to the throne when Queen Elizabeth II dies, and his son William would ascend after his reign. David Cameron's speech makes it clear that the new rules are not retroactive , so Prince Charles's eldest sibling, Anne, will not be in line to the throne in front of her younger brothers Andrew and Edward. It also means that any heir born to the Duke and Duchess of Cambridge can marry a Catholic and retain the crown. What isn't changing? The British sovereign is also head of the Church of England -- part of the Anglican church - and retains the title Defender of the Faith. David Cameron said at Friday's Commonwealth meeting that "the monarch must be in communion with the Church of England because he or she is the head of that church." This would currently bar a Catholic holding the crown. Prince Charles caused controversy in 1994 when he said in a TV interview that he would rather be seen as "defender of faiths" to include Catholic subjects of the sovereign which he described as "equally as important as the Anglican ones or the protestant ones." He went on to list other faiths as also being equally important. What happens next? David Cameron explained in his speech to Commonwealth leaders that "for historic reasons" the UK legislation needs to be published first but the necessary measures would be implemented at the same time across the Commonwealth. A spokesman for his office said the changes will be presented to UK MPs in the next session of parliament but added that they enjoy cross-party support. However, the process is a complex one. The Downing Street spokesman said that in addition to the Act of Settlement, many other archaic laws will have to be amended -- these include the Bill of Rights 1689, the Coronation Oath Act 1688, the Acts of Union and the Royal Marriage Act 1772. Each of the 15 other Commonwealth members will then have to amend their own legislation. So which countries are affected? The Commonwealth consists of 54 independent states, most of which have ties to the United Kingdom, but Queen Elizabeth II is head of state to only 16 of them including the UK. Those nations are Antigua and Barbuda, Australia, Bahamas, Barbados, Belize, Canada, Grenada, Jamaica, New Zealand, Papua New Guinea, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Solomon Islands, and Tuvalu.

Prince William and Kate expecting royal child

Britain's Prince William, Duke of Cambridge and Britain's Catherine, Duchess of Cambridge on November 28, 2012. Catherine is in a central London hospital with acute morning sickness The birth would bring the first grandchild for Prince Charles and the late Diana London (CNN) -- Britain's Prince William and Catherine Middleton are expecting their first child after 19 months of marriage, the palace announced Monday. In photos: Duchess of Cambridge at 30 Kate, Duchess of Cambridge: Part 1 The royal revelation came as Catherine, Duchess of Cambridge, was admitted to a central London hospital with acute morning sickness. She is expected to be there for several days, the palace announcement said. William and Catherine were married on April 29, 2011, in London's biggest royal wedding in three decades. The baby would be the first grandchild for the heir to the British throne, Prince Charles, and the late Diana, Princess of Wales.