Gaddafi loyalists launched a counterattack this morning against revolutionary fighters trying to advance on Bani Walid. The situation there has been a virtual stalemate for several days. Gaddafi troops have staked out strategic positions in the hills and buildings of the town and continue to fend off advances by the new government forces. Revolutionary fighters are having slightly more success in Sirte where they have been able to inch forward, but they are suffering heavy losses in the intense fighting. Despite public statements of optimism by interim government officials, the intensity of the pro-Gaddafi resistance is raising concern that the fighting could drag on for some time. Sean Carberry, NPR News, Tripoli.

 

President Obama will focus this week on debt reduction. He'll be releasing a plan tomorrow that includes setting a minimum tax rate for Americans earning more than $1 million a year. Former President Bill Clinton tells NBC's Meet the Press a tax on the wealthiest Americans is a good idea.

 

"Those of us in that income group, we are in the best position to make a contribution to changing the debt structure of the country."

 

Senate minority leader Mitch McConnell also on NBC's Meet the Press says a new tax on the wealthy is not a wise move.

 

"We don't want to stagnate this economy by raising taxes."

 

Mr. Obama will outline his recommendations tomorrow morning in the White House Rose Garden.

 

There are some hopeful signs today for two American hikers jailed in Iran. NPR's Peter Kenyon reports from Istanbul that a lawyer for the pair is reporting progress in the effort to free them on bail.

 

Masoud Shafiei representing Shane Bauer and Josh Fattal told reporters in Tehran that he has one judicial signature and needs one more to finalize bail arrangements set at a half million dollars each. Following a court appearance today, he told the Associated Press that he will have to wait at least a couple of days to get the second signature. Iranian President Mahmoud Ahmadinejad announced the imminent release of Bauer and Fatal last week, only to be reviewed by the head of the judiciary. Peter Kenyon, NPR News.

 

Dominique Strauss-Kahn is telling his version of what happened in a New York hotel room. The former head of the International Monetary Fund interviewed on French television today says his sexual encounter with a hotel maid did not involve violence, constraint or aggression. But he says it was a moral failing on his part and one he infinitely regrets. New York prosecutors dropped all criminal charges against him, citing concerns about the credibility of the maid.

 

The 1940s airplane that crashed Friday in Reno, Nevada, appeared to lose a piece of its tail, before slamming into a crowded tarmac. Plane parts have been recovered from the scene.

 

This is NPR News from Washington.

 

Israeli Prime Minister Benjamin Netanyahu says the Palestinian bid for statehood at the United Nations is bound to fail. Netanyahu will address the United Nations the same day as the Palestinians present their bid for statehood. Linda Gradstein reports.

 

Speaking at the cabinet meeting, Netanyahu said the Palestinian move will fail because it has to go through the UN Security Council. President Obama has already said the US will veto a Security Council resolution calling for an independent Palestinian state. A non-binding resolution in the General Assembly is expected to pass. The Israeli prime minister said Israel is ready to return to peace negotiations if the Palestinians are. He said he believes that the Palestinians will eventually "come to their senses" and resume talks. Israeli officials say they are bracing for a large Palestinian protest next Friday when Palestinian President Mahmoud Abbas speaks at the UN. Israeli officials say they have stockpiled large quantities of non-lethal weapons. Palestinian officials say they have called for non-violent protests. For NPR News, I'm Linda Gradstein in Jerusalem.

 

The Emmy Awards will be handed out tonight in Los Angeles and one burning question is, "Will Mad Men continue to dominate?" AMC's 1960s Madison Avenue saga has earned three straight Emmys as best drama series. But this year it's up against Boardwalk Empire, HBO's tale of prohibition in the 1920s. The leading men from both shows are also in a showdown for best actor in a drama series. The show will be hosted by Glee's Jane Lynch.

 

I'm Nancy Lyons, NPR News.