'Cliff' talks: Geithner invites GOP counteroffer

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WASHINGTON (AP) -- President Barack Obama is ready to entertain Republican proposals for spending cuts, but GOP lawmakers must first commit to higher tax rates on the rich and specify what additional spending cuts they want in a deal to avoid the looming "fiscal cliff," Treasury Secretary Timothy Geithner said.

"The ball really is with them now," Geithner, one of the president's chief negotiators with Capitol Hill, said during appearances on five Sunday talk shows. He acknowledged that Republicans are "having a tough time trying to figure out what they can do, what they can get support from their members for." The White House "might need to give them a little more time to figure out where they go next."

Geithner presented congressional leaders Thursday with Obama's postelection blueprint for averting the combination of hundreds of billions in tax increases and spending cuts that will take effect beginning in January if Washington doesn't act to stop it.

But House Speaker John Boehner, R-Ohio, dismissed the plan as "not serious," merely a Democratic wish list that couldn't pass his chamber.

As outlined by administration officials, the plan calls for nearly $1.6 trillion in new tax revenue over the next decade, while making $600 billion in spending cuts, including $350 billion from Medicare and other health programs. But it also contains $200 billion in new spending on jobless benefits, public works and aid for struggling homeowners — and would make it virtually impossible for Congress to block Obama's ability to raise the debt ceiling.

"I was just flabbergasted," Boehner said, describing his meeting with Geithner. "I looked at him and I said, 'You can't be serious?" The speaker, noting the short time between the Nov. 6 election and the new year, said time has been lost so far "with this nonsense."

With the George W. Bush-era tax cuts expiring and across-the-board spending cuts hitting in under a month, Boehner said, "I would say we're nowhere, period." He said "there's clearly a chance" of going over the cliff.

But Geithner, also in interviews that were taped Friday, offered a somewhat rosier view. "I think we're far apart still, but I think we're moving closer together," he said.

He called the back-and-forth "normal political theater," voicing confidence a bargain can be struck in time, and said all that's blocking it is GOP acceptance of higher tax rates on the wealthy.

"It's welcome that they're recognizing that revenues are going to have to go up. But they haven't told us anything about how far rates should go up ... (and) who should pay higher taxes?" Geithner said.

He said so far, GOP proposals demonstrate "political math, not real math."

Republican leaders have said they accept higher tax revenue overall, but only through what they call tax reform — closing loopholes and limiting deductions — and only coupled with tough measures to curb the explosive growth of Medicare, Medicaid and Social Security.

But Geithner insisted that there's "no path to an agreement (without) Republicans acknowledging that rates have to go up for the wealthiest Americans." He also said the administration would only discuss changes to Social Security "in a separate process," not in talks on the fiscal cliff.

As to spending, Geithner said if Republicans don't think Obama's cutting enough spending, they should make a counter-proposal. "They might want to do some different things. But they have to tell us what those things are," he said.

Republicans have also rejected Obama's debt ceiling proposal. Geithner noted it was Senate Minority Leader Mitch McConnell who first suggested it, as a temporary measure in the summer 2011 deficit deal. The administration would make it permanent. "It was a very smart way by a senator with impeccable Republican credentials to ... lift this ... periodic threat of default," Geithner said. "And that's an essential thing for us."

Geithner voiced sympathy for Republicans leaders, saying they're caught between the voters' endorsement of higher taxes on the rich and a House GOP caucus that thinks all tax increases are job-killers.

"They really are in a difficult position," he said. "And they're going to have to figure out their politics of what they do next."

In the past week, Obama has held a series of campaign-style appearances — including one in a swing district in Pennsylvania — urging lawmakers to accept a Senate-passed measure extending tax cuts for all but the top 2 percent of wage-earners. He'll continue the effort when he meets with governors on Tuesday and speaks to the Business Roundtable on Wednesday.

GOP leaders contend letting top-end tax cuts run out would hit small businesses and cost jobs.

Still, Sen. Lamar Alexander, R-Tenn., said Republicans will "hold our nose and raise some revenues" if the result is a deal that reins in runaway debt. But he said the onus is on Obama to knuckle down to talks.

"I'm ready for the president to get off the campaign trail, and get in the White House and get a result," Alexander told reporters in Nashville on Saturday. "Right now he's got the presidential limousine headed toward the fiscal cliff with his foot on the accelerator."

Geithner appeared on CBS' "Face the Nation," NBC's "Meet the Press," CNN's "State of the Union," ABC's "This Week," and "Fox News Sunday." Boehner was on Fox, too.

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Associated Press Writer Erik Schelzig in Nashville contributed to this report.


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Glen Campbell considering more live shows in 2013

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NASHVILLE, Tenn. (AP) — Glen Campbell may be wrapping up a goodbye tour but that doesn’t mean he’s done with the stage.


Campbell is considering scheduling more shows next year after playing more than 120 dates in 2012.












The 76-year-old singer has Alzheimer’s disease and has begun to lose his memory. He put out his final studio album, “Ghost on the Canvas,” in 2011 and embarked on the tour with family members and close friends serving in his band and staffing the tour.


Campbell’s longtime manager Stan Schneider said in a phone interview from Napa, Calif., where the tour wrapped for the year Friday night, that recent West Coast shows have been some of the singer’s strongest. Campbell will break for the holidays and if he still feels strong he’ll begin scheduling more shows.


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http://glencampbellmusic.com


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Grand jury probing meningitis-linked pharmacy: newspaper

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BOSTON (Reuters) – A grand jury is investigating the compounding pharmacy at the heart of a deadly meningitis outbreak, the Boston Globe reported on Saturday.


The grand jury has begun issuing subpoenas to people who worked for the New England Compounding Center, which closed after investigators determined it had produced the tainted injectible steroid that has killed 36 people, the newspaper reported, citing unnamed people who formerly worked for the company.












Grand jury investigations, which are conducted in secrecy, are a step prosecutors take before determining whether to press criminal charges.


Officials at the U.S. Attorney‘s office and NECC could not be reached for immediate comment on Saturday. The Globe reported that U.S. officials declined to comment.


After federal officials in October raided the Framingham, Massachusetts-based pharmacy, U.S. Attorney Carmen Ortiz confirmed her office was investigating the company.


U.S. District Court Judge Dennis Saylor, who is hearing the dozen civil lawsuits filed against NECC in federal court in Boston, said during a Wednesday hearing there may be a grand jury investigation into the company.


(Reporting By Scott Malone; Editing by Vicki Allen)


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Why Obama is pushing for stimulus in 'fiscal cliff' deal

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How about a little government economic stimulus?


That may sound incongruous considering the budget deficit and the push from Republicans to cut government spending.


But President Obama’s first offer to avoid going over the "fiscal cliff" holds out the hope of at least some stimulus. This would include extending the 2 percentage point Social Security payroll tax cut, boosting a tax incentive to businesses, establishing a $50 billion bank for long-term infrastructure projects, and extending unemployment benefits.


RECOMMENDED: 'Fiscal cliff' 101: 5 basic questions answered


The total bill: about $255 billion out of the federal government's pocket – an amount the GOP would likely say needs to be offset by spending cuts elsewhere.


The argument in favor of such stimulus? The tax measures, at least, could minimize the drag on the economy from Mr. Obama's proposed tax increases on the wealthy.


“The increases in the top two income tax brackets would put a drag on consumption, so I think, from the Obama point of view, the spending or tax cuts are designed to offset that drag to consumption,” says Michael Brown, an economist at Wells Fargo Securities in Charlotte, N.C.


But to some budget experts, Obama’s list seems more like an opening round of negotiations, where he has asked for a lot more than he will get.


“It looks to me like these are bargaining chips,” says Pete Davis of Davis Capital Ideas, which advises Wall Street firms. “Even most Democrats had given up on the prospect of getting the payroll tax cut extended.”


Mr. Davis considers the odds of most of the stimulus proposals passing Congress “very low.”


What's needed most, say others, is just buckling down and negotiating an end to the fiscal cliff. “Cancelling the fiscal cliff is economic stimulus,” says Stan Collender, a budget expert and partner at Qorvis Communications in Washington.


If Obama's stimulus were passed, however, here is a look at the impact the four elements might have.


SOCIAL SECURITY PAYROLL TAX CUT


The largest chunk of the Obama plan is the extension of the payroll tax cut. This is the money that comes out of an individual’s paycheck as a contribution to Social Security. Two years ago, in an effort to stimulate the economy, Congress decreased the individual contribution from 6.2 percent to 4.2 percent. The employer’s contribution of 6.2 percent remained unchanged.


The Obama administration estimates extending the cuts would cost the government as much as $115 billion in revenue.


The argument for extending the tax cut is that it helps lower-income workers who live paycheck to paycheck. “The difference in the paycheck might be the ability to pay the electric bill for someone or the chance to go to a sit-down restaurant once a month,” says Chris Christopher, an economist at IHS in Lexington, Mass.


The argument against continuing the cut is that it is weakening the Social Security Trust Fund. In order to make up for the loss of contributions, the government taps the general tax revenues, says Pamela Tainter-Causey, a spokeswoman for the National Committee to Preserve Social Security and Medicare.


“It sets up Social Security to compete for funding from the general fund,” she says. “It’s a perfect set up for people who are gunning for the program and claim we can’t afford it now.”


BUSINESS TAX INCENTIVE


The second largest program proposed by Obama would be the extension of accelerated depreciation for business, which would cost the US Treasury about $65 billion in fiscal year 2013, according to the Congressional Budget Office.


Two years ago, business was allowed to accelerate the write-off of 100 percent of its spending on certain capital equipment. Capital spending on equipment and computer software soared by 18.3 percent in 2011.


Then, this year, the benefit to business was cut in half to 50 percent. Capital spending sank in the third quarter by 2.7 percent compared with the same quarter the prior year. With business interest in using the tax break diminishing, economist Gregory Daco of IHS says “it’s a goner.”


INFRASTRUCTURE BANK


Obama has also proposed a $50 billion infrastructure bank. The idea is to fund roads, bridges, tunnels and other large projects that last for a long period of time. “At the moment the funding is done on a cash basis – you have to pay for it as you build it,” says Mr. Collender.


Democrats have been trying to get Congress to fund the bank for the past 10 years, he says. “It does not have a chance of getting through the House," which is controlled by the Republicans, says Mr. Collender.


UNEMPLOYMENT BENEFITS


And, finally, Obama wants to extend unemployment benefits, which would cost about $30 billion.


Under current law, if Congress does nothing, the maximum number of weeks in which an individual could receive jobless will drop to 26 from the current 73 weeks for states with unemployment over 9 percent and 63 weeks for states with unemployment over 7 percent.


If Congress does nothing about the program during the lame-duck session, some 2.1 million jobless will lose their benefits in the first week of January, says Judy Conti, a federal advocacy coordinator at the National Employment Law Project (NELP) in Washington. By the end of the March, she says, another 900,000 people will lose their benefits.


“Forty percent of the unemployed are long term unemployed,” she says. “They have been out of the workforce for over six months.”


RECOMMENDED: 'Fiscal cliff' 101: 5 basic questions answered



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African Union asks UN for immediate action on Mali

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DAKAR, Senegal (AP) — In an open letter Thursday to U.N. Secretary-General Ban Ki-moon, the president of the African Union urged the U.N. to take immediate military action in northern Mali, which was seized by al-Qaida-linked rebels earlier this year.


Yayi Boni, the president of Benin who is also head of the African Union, said any reticence on the part of the U.N. will be interpreted as a sign of weakness by the terrorists now operating in Mali. The AU is waiting for the U.N. to sign off on a military plan to take back the occupied territory, and the Security Council is expected to discuss it in coming days.












In a report to the Security Council late Wednesday, Ban said the AU plan “needs to be developed further” because fundamental questions on how the force will be led, trained and equipped. Ban acknowledged that with each day, al-Qaida-linked fighters were becoming further entrenched in northern Mali, but he cautioned that a botched military operation could result in human rights abuses.


The sprawling African nation of Mali, once an example of a stable democracy, fell apart in March following a coup by junior officers. In the uncertainty that ensued, rebels including at least three groups with ties to al-Qaida, grabbed control of the nation’s distant north. The Islamists now control an area the size of France or Texas, an enormous triangle of land that includes borders with Mauritania, Algeria and Niger.


Two weeks ago, the African Union asked the U.N. to endorse a military intervention to free northern Mali, calling for 3,300 African soldiers to be deployed for one year. A U.S.-based counterterrorism official who saw the military plan said it was “amateurish” and had “huge, gaping holes.” The official insisted on anonymity because he was not authorized to speak on the matter.


Boni, in his letter, said Africa was counting on the U.N. to take decisive action.


“I need to tell you with how much impatience the African continent is awaiting a strong message from the international community regarding the resolution of the crisis in Mali. … What we need to avoid is the impression that we are lacking in resolve in the face of these determined terrorists,” he said.


The most feared group in northern Mali is al-Qaida in the Islamic Maghreb, or AQIM, al-Qaida’s North African branch, which is holding at least seven French hostages, including a 61-year-old man kidnapped last week.


On Thursday, SITE Intelligence published a transcript of a recently released interview with AQIM leader, Abu Musab Abdul Wadud, in which he urges Malians to reject any foreign intervention in their country. He warned French President Francois Hollande that he was “digging the graves” of the French hostages by pushing for an intervention.


Also on Thursday, Islamists meted out the latest Shariah punishment in northern city of Timbuktu. Six young men and women were each given 100 lashes for having talked to each other on city streets, witnesses said.


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Associated Press writer Virgile Ahissou in Cotonou, Benin and Baba Ahmed in Bamako, Mali contributed to this report.


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Producer sues Pythons over ‘Spamalot’ royalties

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LONDON (AP) — It’s no joking matter.


A producer of the film “Monty Python and the Holy Grail” is suing the British comedy troupe over royalties from the hit stage musical “Spamalot.”












Producer Mark Forstater wants a bigger share of proceeds from the show, which is based on the Pythons’ 1975 movie spoof of the legend of King Arthur.


Lawyers for Monty Python are contesting Forstater’s claim and will present their arguments later. Python members Eric Idle, Michael Palin and Terry Jones will give evidence during a five-day hearing that began Friday at London’s High Court.


Forstater is suing the trio and the two other surviving Python members, John Cleese and Terry Gilliam. The sixth member of the troupe, Graham Chapman, died in 1989.


Forstater’s lawyer, Tom Weisselberg, said that under an agreement made when the film was produced, “for financial purposes Mr. Forstater was to be treated as the seventh Python” and entitled to the same share of “Holy Grail” merchandising and spin-off income as the other members.


But the lawyer said Forstater had not received his fair share of royalties from the stage show, which has been a hit around the world. It ran on Broadway for almost four years to 2009 and is still playing in London’s West End.


Weisselberg said Forstater, who was declared bankrupt earlier this year, had been forced to go to court because of his “difficult financial circumstances.”


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Health officials: Athens has spiraling HIV crisis

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ATHENS, Greece (AP) — Athens is seeing an alarming increase in new HIV infections, particularly among intravenous drug users, health officials warned Friday, as Greece struggles through a protracted financial crisis in which funding for health care and drug treatment programs has been slashed.


While there were about 10-14 new HIV infections per year among Athens drug users from 2008 to 2010, that number shot up to 206 new cases last year and 487 new cases by October this year — a 15-fold and 35-fold increase respectively, officials said.












“There is no doubt we have a big and rapidly developing epidemic in Athens,” said Angelos Hatzakis, an epidemiology and preventive medicine professor at Athens University.


A total of 1,049 new cases of HIV infection were recorded in Greece in the first 10 months of this year, including the 487 drug users. Of the others, 256 were homosexual men, while 108 caught the virus through heterosexual intercourse, the figures showed.


“One of the reasons is the financial crisis,” said Marc Sprenger, director of the European Center for Disease Prevention and Control. “There are more people who are vulnerable, marginalized” and who use drugs.


They turn to cheaper drugs and turn to injecting instead of smoking in order to get the same high from a smaller quantity, officials said.


“We are very concerned,” Sprenger said. “What we see now is this increase, and if you don’t really pay attention to this, it will become in the future a really huge burden.”


Greece has been hammered by a financial crisis since late 2009 that has left the country facing a sixth year of a deep recession and with a quarter of the workforce unemployed. The country relies on international rescue loans from other European countries that also use the euro and the International Monetary Fund to stay solvent.


But in return, the Greek government has imposed several rounds of spending cuts and tax hikes. Charities dealing with drug users and HIV sufferers have also struggled to find funds during the crisis.


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Who will blink first in fiscal cliff standoff?

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"Absurd" -- that's the word one top Republican Hill aide used to describe the plan that Treasury Secretary Timothy Geithner presented to GOP leaders yesterday to avoid the fiscal cliff.


And an aide to House Speaker Boehner described the White House's offer as "completely unrealistic" and "a break with reality."


Meanwhile, a top Democratic insider complained to ABC's Jonathan Karl that "the Republicans have taken to screaming at us."


Sources familiar with the phone call Wednesday night between Speaker Boehner and President Obama -- which lasted 30 minutes -- told Karl it was as "unproductive" and "blunt." One source said the president did most of the taking, explaining why he will insist that tax rates go up.


Get more pure politics at ABCNews.com/Politics and a lighter take on the news at OTUSNews.com


"No substantive progress has been made over the last two weeks," said House Speaker John Boehner at a press conference yesterday. "It's time for the president and Congressional Democrats to tell the American people what spending cuts they're really willing to make."


With few signs of optimism in Washington and just 33 days before the end-of-the-year fiscal cliff deadline, President Obama is taking his show on the road.


ABC's Mary Bruce notes that the president is bypassing the wrangling between both sides and traveling to Hatfield, Pa. today where he will tour a toy manufacturing facility and speak to workers there.


According to the White House, "the President will continue making the case for action by visiting a business that depends on middle class consumers during the holiday season, and could be impacted if taxes go up on 98 percent of Americans at the end of the year."


FROM THE SPEAKER'S OFFICE: Boehner's office gives six reasons why the Obama administration's fiscal cliff offer won't fly:


"1) Twice the Taxes: It's absolutely true that the President ran on a tax plan of raising the top two rates. That's what Americans heard from him. That yields about $800 billion in new tax revenue. He just asked for twice that. 2) Not Even the Votes in His Own Party: The Senate was barely able to pass a bill with $800 billion in new tax revenue a few months ago (51 votes). There is no chance there are votes in the Senate for anything close to $1.6 trillion. 3) Unbalanced: The President also ran on a so-called balanced approach. Apparently his idea of balance is four times as much revenue as spending cuts. 4) No Net Spending Cuts: The spending cuts they are offering (which come later) are wiped out by all the new goodies he's also requesting. (stimulus, UI, payroll, housing, etc). 5) Debt Limit Pipe Dream: Permanently doing away with the debt limit? Come on. Guess what - the debt limit is actually very popular. Raising it to infinity is not. 6) We're Far From Opening Bids: Even as an "opening bid," this offer would be ludicrous. But we're way past that. We had about seven weeks to resolve this. Three of those weeks are gone, and this is what he comes with?"


FROM THE WHITE HOUSE: White House spokesman Josh Earnest: "Right now, the only thing preventing us from reaching a deal that averts the fiscal cliff and avoids a tax hike on 98 percent of Americans is the refusal of Congressional Republicans to ask the very wealthiest individuals to pay higher tax rates. The President has already signed into law over $1 trillion in spending cuts and we remain willing to do tough things to compromise, and it's time for Republicans in Washington to join the chorus of other voices -- from the business community to middle class Americans across the country -- who support a balanced approach that asks more from the wealthiest Americans."

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Lindsay Lohan arrested on assault charge in NYC

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NEW YORK (AP) — Actress Lindsay Lohan was arrested Thursday after police said she hit a woman during an argument at a New York City nightclub.


The “Mean Girls” and “Freaky Friday” star was arrested at 4 a.m. and charged with third-degree assault.












She left a police precinct nearly four hours later with a black jacket pulled over her head. She was wearing leggings, a green mini skirt and high-heels, and drove off in a black SUV with a driver and another man who was seen going in and out of the precinct.


She allegedly got into the spat with another woman at Club Avenue, in Manhattan‘s Chelsea section. She struck the woman in face with her hand, police said. The woman did not require medical attention.


Lohan’s publicist did not immediately return a call for comment.


The arrest is Lohan’s latest brush with law enforcement in New York City.


She was involved in a NYPD investigation in September after alleging a man had assaulted her in a New York hotel, but charges against the man were later dropped.


Also in September, the actress was accused of clipping a man with her car outside another Manhattan nightclub, but prosecutors chose not to move ahead with charges.


In October, police were called to her childhood home on Long Island after a report of fight between her and her mother. An investigation revealed “no criminality.”


The actress was also involved in a car accident in California this summer that sent her and an assistant to a hospital, but didn’t result in serious injuries for anyone. The accident remains under investigation.


In May, she was cleared of allegations that she struck a Hollywood nightclub manager with her car.


Lohan remains on informal probation for taking a necklace from a jewelry store without permission last year. That means she doesn’t have to check in with a judge or probation officer but could face a jail term if arrested again.


Her latest film, “Liz & Dick,” in which she portrays screen icon Elizabeth Taylor, premiered on Lifetime on Sunday.


Lohan also recently filmed “The Canyons,” an indie film written by “Less Than Zero” and “American Psycho” author Bret Easton Ellis.


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J&J says won’t enforce AIDS drug patent in Africa

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LONDON (Reuters) – Generic manufacturers are to be given a free rein to make cheap copies of Johnson & Johnson‘s HIV/AIDS drug Prezista for sale in Africa and other poor countries.


U.S. healthcare group J&J said on Thursday it would not enforce patents, provided generic firms made high-quality versions of the drug – known generically as darunavir – for sub-Saharan Africa and Least Developed Countries.












Prezista is a relatively new drug used when patients develop resistance to older antiretrovirals. The need for it was expected to grow rapidly as more patients in Africa stop responding to existing therapies.


Pharmaceuticals head Paul Stoffels said he expected Indian drugmakers, in particular, to take advantage of the patent move, adding that competition among different companies should drive prices down further.


J&J has an existing deal with South African group Aspen Pharmacare, which makes Prezista at a discounted price of $ 2.22 per day for Africa – a fraction of the western market price.


Its decision to act unilaterally on Prezista patents will, however, disappoint those calling for J&J to share intellectual property rights in the new Medicines Patent Pool, which aims to streamline generic production by pooling patents.


“We have chosen to go direct … we think that is the best way,” Stoffels said in an interview.


“We want to reserve the right to reinforce patents if people are not providing the right quality of product, for example by bringing products to market that under-dose.”


International drugmakers are under growing pressure to make medicines more affordable in poor countries, after being attacked for not doing enough in the past.


J&J ranked second in a new analysis of how companies are performing in providing access to medicines – an improvement of seven places from two years earlier, following its purchase of Crucell, which makes vaccines for the developing world.


(Editing by Dan Lalor)


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