House Republicans say resigned to tax hike in fiscal cliff

 Republicans in the U.S. House of Representatives are resigned to seeing some sort of income tax increase in legislation to avoid a "fiscal cliff," but such efforts could be doomed in the absence of spending cuts, some Republican lawmakers say.
Congress and President Barack Obama are gearing up for a last-ditch attempt to avoid $600 billion in tax increases and spending cuts that could halt progress in the U.S. economy, which lately has been showing signs of gaining ground.
The White House said Obama will host a meeting on Friday with the four top congressional leaders - Senate Majority Leader Harry Reid, Senate Minority Leader Mitch McConnell, House of Representatives Speaker John Boehner and House Minority Leader Nancy Pelosi. The Republicans have a majority in the House, while Obama's Democrats control the Senate.
House Speaker John Boehner informed his 241 Republican members on Thursday that the House would come back into session late on Sunday in anticipation of possible fiscal-cliff votes.
This Sunday's session "was about the only thing decided" during a half-hour conference call among House Republicans, said Representative Jeff Flake of Arizona, who will leave the House at the year-end to join the Senate.
In an interview shortly after the phone call, Flake said Republicans in the House and Senate were resigned to seeing some sort of increase in top income-tax rates, although he did not specify a dollar threshold.
While he said he did not want to see any income tax rates go up, Flake said: "I've felt we should've moved a week or two ago to accept the top rate going up and tell the president 'congratulations.'"
The bigger problem in avoiding the fiscal cliff, Flake said, would be if Obama demanded cancellation of the $109 billion in automatic spending cuts set to begin on January 2 without alternative spending cuts to replace them.
"There will be resistance from a lot of House conservatives to a deal that does that," Flake said.
Asked if the days leading up to next Monday, December 31 could thus be fruitless, Flake said, "That is what I am afraid of."
A Senate Democratic aide did not discount the possibility of some spending cuts being included in a limited bill to avert the fiscal cliff - even if they fell far short of the $1 trillion or so in cuts over 10 years that at one point was being discussed in talks between Boehner and Obama.
'TIRED OF WAITING'
Representative Tom Cole of Oklahoma, who also participated in Thursday's House Republican conference call, said its overarching theme was that the Senate should take the bill passed by the House earlier this year to extend all expiring income tax rates and amend it in a way senators see fit.
The House could then either accept that measure, or amend it, and bounce it back to the Senate.
"People are tired of waiting on the Senate to do things," Cole said.
Senate Democrats counter that last July they passed a bill extending the Bush-era tax cuts - except on net household income above $250,000 a year.
Nevertheless, the Senate must still couple its tax-cut bill with Obama's request for extending jobless benefits and possibly some other budget or tax measures.
"I assume the House would want to come back on Sunday knowing that we (the Senate) were going to do something on Friday or Saturday," said Senator Roy Blunt of Missouri, a member of the Senate's Republican leadership.
House Republican leaders informed their members that the chamber could stay in session dealing with the fiscal cliff through Wednesday, January 2 - the last day of the current Congress and a day before the new Congress is sworn in.
Cole said Boehner "made very apparent he is not interested in passing a bill that didn't have a majority of Republicans" supporting it.
But Cole said this was "not quite as elusive to achieve" as many people thought. He said Boehner had "over 200 votes" out of 241 Republicans for his failed "Plan B" - a bill extending lower tax rates except for millionaires - which everyone knew would not become law.
Thus, a bill with prospects of being enacted could attract more support, Cole suggested.
If a new bill came to the House floor to raise taxes on upper incomes, Boehner could force passage with a combination of Democratic and Republican votes.
With public opinion polls showing that Republicans would get most of the blame if the country were to go over the fiscal cliff, some House Republicans have become nervous about their political fortunes.
Both Flake and Cole told Reuters that during Thursday's conference call, some Republicans urged Boehner to bring the House back to Washington sooner than Sunday - a request Flake described as being aimed at improving the "optics" of House Republicans being absent from Washington so close to the December 31 deadline.
But Boehner stuck with his promise to give members at least 48 hours notice of a return.
Cole remained upbeat about a positive end to the fiscal-cliff mess that has gripped Washington for two months now.

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French government says will propose a rejigged 75 percent tax plan

 The French government will redraft a proposal for a 75 percent upper income tax band and resubmit it, the prime minister's office said on Saturday, after the Constitutional Council rejected the measure included in the 2013 budget.
"It will be presented as part of the next budget law," Prime Minister Jean-Marc Ayrault's office said in a statement, without giving a time frame. The statement said the Council's rejection of the 75 percent tax would not affect efforts to trim the public deficit.

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French court rejects 75 percent millionaires' tax

PARIS (Reuters) - France's Constitutional Council on Saturday rejected a 75 percent upper income tax rate to be introduced in 2013 in a setback to Socialist President Francois Hollande's push to make the rich contribute more to cutting the public deficit.
The Council ruled that the planned 75 percent tax on annual income above 1 million euros ($1.32 million) - a flagship measure of Hollande's election campaign - was unfair in the way it would be applied to different households.
Prime Minister Jean-Marc Ayrault said the government would redraft the upper tax rate proposal to answer the Council's concerns and resubmit it in a new budget law, meaning Saturday's decision could only amount to a temporary political blow.
While the tax plan was largely symbolic and would only have affected a few thousand people, it has infuriated high earners in France, prompting some such as actor Gerard Depardieu to flee abroad. The message it sent also shocked entrepreneurs and foreign investors, who accuse Hollande of being anti-business.
Finance Minister Pierre Moscovici said the rejection of the 75 percent tax and other minor measures could cut up to 500 million euros in forecast tax revenues but would not hurt efforts to slash the public deficit to below a European Union ceiling of 3 percent of economic output next year.
"The rejected measures represent 300 to 500 million euros. Our deficit-cutting path will not be affected," Moscovici told BFM television. He too said the government would resubmit a proposal to raise taxes on high incomes in 2013 and 2014.
The Council, made up of nine judges and three former presidents, is concerned the tax would hit a married couple where one partner earned above a million euros but it would not affect a couple where each earned just under a million euros.
UMP member Gilles Carrez, chairman of the National Assembly's finance commission, told BFM television, however, that the Council's so-called wise men also felt the 75 percent tax was excessive and too much based on ideology.
FRANCE UNDER SCRUTINY
Hollande shocked many by announcing his 75 percent tax proposal out of the blue several weeks into a campaign that some felt was flagging. Left-wing voters were cheered by it but business leaders warned that talent would flee the country.
Set to be a temporary measure until France is out of economic crisis, the few hundred million euros a year the tax was set to raise is a not insignificant sum as the government strives to boost public finances in the face of stalled growth.
Hollande's 2013 budget calls for the biggest belt-tightening effort France has seen in decades and is based on a growth target of 0.8 percent, a level analysts view as over-optimistic.
Fitch Ratings this month affirmed its triple-A rating on France but said there was no room for slippage. Standard & Poor's and Moody's have both stripped Europe's No. 2 economy of its AAA badge due to concern over strained public finances and stalled growth.
The International Monetary Fund recently forecast that France will miss its 3 percent deficit target next year and signs are growing that Paris could negotiate some leeway on the timing of that goal with its EU partners.
The INSEE national statistics institute this week scaled back its reading of a return to growth in the third quarter to 0.1 percent from 0.2 percent, and the government said it could review its 2013 outlook in the next few months.
Saturday's decision was in response to a motion by the opposition conservative UMP party, whose weight in fighting Hollande's policies has been reduced by a leadership crisis that has split it in two seven months after it lost power.
The Constitutional Council is a politically independent body that rules on whether laws, elections and referenda are constitutional.

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Rejected French tax measures worth 300-500 million euros: finance minister

The French Constitutional Council's rejection on Saturday of a 75 percent upper income tax rate and other minor measures in the 2013 budget will affect some 300-500 million euros worth of tax revenues, Finance Minister Pierre Moscovici said.
"The rejected measures represent 300 to 500 million euros. Our deficit-cutting path will not be affected," Moscovici told BFM television.
He added that the Socialist government would resubmit a proposal to raise taxes on high incomes in 2013 and 2014.

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AP Sources: 'Fiscal cliff' deal emerging

 Working with Congress against a midnight deadline, President Barack Obama said Monday that a deal to avert the "fiscal cliff" was in sight but not yet finalized. The emerging deal would raise tax rates on family income over $450,000 and individual income over $400,000 a year, increase the estate tax rate and extend unemployment benefits for one year.
"There are still issues left to resolve but we're hopeful Congress can get it done," Obama said at a campaign-style event at the White House. "But it's not done."
In the building New Year's Eve drama, the parties still were at an impasse over whether to put off the automatic, across-the-board spending cuts set to take effect at the beginning of the year and if so, how to pay for that.
One official said talks were focused on a two-month delay in the across-the-board cuts but negotiators had yet to agree on about $24 billion in savings from elsewhere in the budget. Democrats had asked for the cuts to be put off for one year and be offset by unspecified revenue.
The president said that whatever last-minute fixes are necessary, they must come from a blend of tax revenue and constrained spending, not just budget cuts.
And a little more than an hour after Obama spoke, Senate Republican leader Mitch McConnell said it was time to decouple the two major issues.
"We'll continue to work on smarter ways to cut spending, but let's not let that hold up protecting Americans from a tax hike that will take place in about ten hours," he said.
Officials emphasized that negotiations were continuing and the emerging deal was not yet final. And a confident Obama, flanked by cheering middle class Americans in a White House auditorium, jabbed Congress, saying lawmakers were prone to last-minute delays.
"One thing we can count on with respect to this Congress is that if there's even one second left before you have to do what you're supposed to do, they will use that last second," he said.
Speaking shortly afterward on the Senate floor, Sen. John McCain said that "at a time of crisis, on New Year's Eve...you had the president of the United States go over and have a cheerleading, ridiculing-of-Republicans exercise." The Arizona Republican lost the 2008 presidential race to Obama.
Unless an agreement is reached and approved by Congress at the start of the New Year, more than $500 billion in 2013 tax increases will take effect immediately and $109 billion in cuts will be carved from defense and domestic programs
Though the tax hikes and budget cuts would be felt gradually, economists warn that if allowed to fully take hold, their combined impact — the so-called fiscal cliff — would rekindle a recession.
The current proposal in the works would raise the tax rates on family income over $450,000 and individual income over $400,000 from 35 percent to 39.6 percent, the same level as under former President Bill Clinton. Also, estates would be taxed at 40 percent after the first $5 million for an individual and $10 million for a couple, up from 35 percent to 40 percent.
Unemployment benefits would be extended for one year. Without the extension, 2 million people would lose benefits beginning in early January.
A Republican official familiar with the plans confirmed the details described to The Associated Press.
The officials requested anonymity in order to discuss the internal negotiations.
The president said his hopes for a larger, more sweeping deal have been dashed and said that such an accommodation was not possible "with this Congress at this time."
But even with this fight not finished, Obama warned Republicans, specifically, about the battles still ahead. He said he would not accept any debt-reduction deals in the new year that rely on slashing spending without raising taxes, too. Cuts alone won't happen anymore "at least as long as I'm president, and I'm going to be president for the next four years."
Urgent talks were continuing Monday afternoon between the White House and congressional Republicans, with longtime negotiating partners Vice President Joe Biden and Senate Republican leader Mitch McConnell at the helm. Underscoring the flurry of activity, another GOP aide said the two men had conversations at 12:45 a.m. and 6:30 a.m. Monday.
An agreement on the proposed deal would also shield Medicare doctors from a 27 percent cut in fees and extend tax credits for research and development, as well as renewable energy.
The deal would also extend for five years a series of tax credits meant to lessen the financial burden on poorer and middle-class families, including one credit that helps people pay for college.
The deal would achieve about $600 billion in new revenue, the officials said.
Despite the progress in negotiations, Senate Majority Leader Harry Reid warned that time was running out to finalize the deal.
"Americans are still threatened with a tax hike in just a few hours," said Reid, D-Nev., as the Senate began an unusual New Year's Eve session.
Liberal Sen. Tom Harkin, D-Iowa, took to the Senate floor after Reid to warn Democratic bargainers against lowering levies on large inherited estates and raising the income threshold at which higher tax rates would kick in.
"No deal is better than a bad deal. And this look like a very bad deal the way this is shaping up," said Harkin.
Letting tax rates rise for couples with incomes of $450,000 a year is a concessions for Obama, who campaigned for re-election on a pledge to set the levels at $200,000 for individuals and $250,000 for couples. It also marked a significant concession by Republican leaders who pledged to continue the George W. Bush-era tax cuts for all income earners. .
The hope of the White House and lawmakers was to seal an agreement, enact it and send it to Obama for his signature before taxpayers felt the impact of higher income taxes or federal agencies began issuing furloughs or taking other steps required by spending cuts.
Regardless of the fate of the negotiations, it appeared all workers would experience a cut in their take-home pay with the expiration of a two-year cut in payroll taxes.
In a move that was sure to irritate Republicans, Reid was planning — absent a deal — to force a Senate vote Monday on Obama's campaign-season proposal to continue expiring tax cuts for all but those with income exceeding $200,000 for individuals and $250,000 for couples.
As the New Year's Eve deadline rapidly approached, Democrats and Republicans found themselves at odds over a host of issues, including taxing large inherited estates. Republicans wanted the tax left at its current 35 percent, with the first $5.1 million excluded, while Democrats wanted the rate increased to 45 percent with a smaller exclusion.
The two sides were also apart on how to keep the alternative minimum tax from raising the tax bills of nearly 30 million middle-income families and how to extend tax breaks for research by business and other activities.
Republicans were insisting that budget cuts be found to pay for some of the spending proposals Democrats were pushing.
These included proposals to erase scheduled defense and domestic cuts exceeding $200 billion over the next two years and to extend unemployment benefits. Republicans complained that in effect, Democrats would pay for that spending with the tax boosts on the wealthy.
"We can't use tax increases on anyone to pay for more spending," said Sen. Kay Bailey Hutchison, R-Texas.

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Obama election tweet most repeated but Olympics tops on Twitter

An election victory tweet from President Barack Obama -- "Four more years" with a picture of him hugging his wife -- was the most retweeted ever, but the U.S. election was topped by the Olympics as the most tweeted event this year.
Obama's tweet was retweeted (repeated) more than 810,000 times, Twitter said as it published a list of the most tweeted events in 2012. (http://2012.twitter.com/)
"Within hours, that Tweet simultaneously became the most retweeted of 2012, and the most retweeted ever. In fact, retweets of that simple message came from people in more than 200 countries around the world," Twitter spokeswoman Rachael Horwitz said.
Twitter users were busiest during the final vote count for the presidential elections, sending 327,452 tweets per minute on election night on their way to a tally of 31 million election tweets for the day.
The 2012 Olympic Games in London had the most overall tweets of any event, with 150 million sent over the 16 days.
Usain Bolt's golden win in the 200 meters topped 80,000 tweets per minute but he did not achieve the highest Olympic peak on Twitter. That was seen during the closing ceremony when 115,000 tweets per minute were sent as 1990s British pop band the Spice Girls performed.
Syria, where a bloody civil war still plays out, was the most talked about country in 2012 but sports and pop culture dominated the tally of tweets.
Behind Obama was pop star Justin Bieber. His tweet, "RIP Avalanna. i love you" sent when a six-year-old fan died from a rare form of brain cancer, was retweeted more than 220,000 times.
Third most repeated in 2012 was a profanity-laced tweet from Green Bay Packers NFL player TJ Lang, when he blasted a controversial call by a substitute referee officiating during a referee dispute. That was retweeted 98,000 times.
This was the third year running that the microblogging site published its top Twitter trends, offering a barometer to assess the biggest events in social media.
Superstorm Sandy, which slammed the densely populated U.S. East Coast in late October, killing more than 100 people, flooding wide areas and knocking out power for millions, attracted more than 20 million tweets between October 27 and November 1.
European football made the list of top tweets when Spain's Juan Mata scored as his side downed Italy 4-0 in the Euro 2012 final -- sparking 267,200 tweets a minute.
News of pop star Whitney Houston's death in February generated more than 10 million tweets, peaking at 73,662 per minute.
Romantic comedy "Think Like a Man" was the most tweeted movie this year, topping "The Hunger Games", "The Avengers" and "The Dark Knight Rises."
Rapper Rick Ross who notched his fourth No. 1 album on the Billboard 200 chart this year, was the most talked about music artist.

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Publisher Bonnier, Flingo partner to make Smart TV Apps

 Bonnier, the publisher of magazines like Savuer and Popular Science, and Flingo, the largest publisher of apps for Smart TVs, have partnered to create a series of apps extending Bonnier's titles onto Internet-enabled TV sets and set-tops boxes like the Roku.
Together, they will release a new app for each magazine, offering videos, images and archival content for fans. Savuer has a couple of web series, including "The Test Kitchen" which helps home chefs learn how to peel garlic or dice an onion. Those videos, currently on Saveur's website YouTube channel, will resurface in the apps, which will be distributed for free in app markets thanks to advertising and sponsors.
Though smart TVs remain a small segment of the TV market, Bonnier believes it is an ideal platform for leading media companies to extend their brand.
"This is about going after new technologies and being at the forefront," Sean Holzman, Bonnier's Chief Brand Development Officer, told TheWrap. "We don't look closely at what other publishing companies may be doing. Flingo has a universe of 15 million devices and that should double in 2013."
The emphasis will be on video since research demonstrates that it remains the top activity, even more than gaming.
Ashwin Navin, CEO of Flingo, said that while many media companies are putting secondary titles on Internet-enabled TVs, Bonnier is using its top titles.
"Major media companies aren't putting their crown jewels on smart TVs," Navin told TheWrap. He added that when they measure how long users spend online with certain brands, websites register just a few minutes.

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Facebook unveils new privacy controls

 Facebook Inc began rolling out a variety of new privacy controls on Wednesday, the company's latest effort to address user concerns about who can see their personal information on the world's largest social network.
New tools introduced on Wednesday will make it easier for Facebook's members to quickly determine who can view the photos, comments and other information about them that appears on different parts of the website, and to request that any objectionable photos they're featured in be removed.
A new privacy "shortcut" in the top-right hand corner of the website provides quick access to key controls such as allowing users to manage who can contact them and to block specific people.
The new controls are the latest changes to Facebook's privacy settings, which have been criticized in the past for being too confusing.
Facebook Director of Product Sam Lessin said the changes were designed to increase users' comfort level on the social network, which has roughly one billion users.
"When users don't understand the concepts and controls and hit surprises, they don't build the confidence they need," said Lessin.
Facebook, Google Inc and other online companies have faced increasing scrutiny and enforcement from privacy regulators as consumers entrust ever-increasing amounts of information about their personal lives to Web services.
In April, Facebook settled privacy charges with the U.S. Federal Trade Commission that it had deceived consumers and forced them to share more personal information than they intended. Under the settlement, Facebook is required to get user consent for certain changes to its privacy settings and is subject to 20 years of independent audits.
Facebook's Lessin said some users don't understand that the information they post on their Timeline profile page is not the only personal information about them that may be viewable by others. Improvements to Facebook's so-called Activity Log will make it easier for users to see at a glance all the information that involves them across the social network.
Facebook also said it is changing the way that third-party apps, such as games and music players, get permission to access user data. An app must now provide separate requests to create a personalized service based on a user's personal information and to post automated messages to the Facebook newsfeed on behalf of a user - previously users agreed to both conditions by approving a single request.
The revamped controls follow proposed changes that Facebook has made to its privacy policy and terms of service. The changes would allow Facebook to integrate user data with that of its recently acquired photo-sharing app Instagram, and would loosen restrictions on how members of the social network can contact other members using the Facebook email system.
Nearly 600,000 Facebook users voted to reject the proposed changes, but the votes fell far short of the roughly 300 million needed for the vote to be binding, under Facebook's existing rules. The proposed changes also would eliminate any such future votes by Facebook users.

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U.S. gun website sued for alleged ties to slayings

A prominent U.S. gun control group on Wednesday sued a gun auction website it says is linked to a mass shooting at a Wisconsin spa in October and the stalker slaying of a woman near Chicago in 2011.
The Brady Center to Prevent Gun Violence alleges that the design of armslist.com facilitates illegal online sales to unlawful gun buyers with no background checks, and enables users to evade laws that permit private sellers to sell guns only to residents of their own state.
"We as a nation are better than an anonymous Internet gun market where killers and criminals can easily get guns," said Jonathan Lowy, the Brady Center's Legal Action Project Director, in a statement.
The wrongful death lawsuit was filed in Cook County Circuit Court on behalf of the family of Jitka Vesel, 36, an immigrant from the Czech Republic who was shot and killed last year by Demetry Smirnov, a stalker.
The suit, which the Brady Center says is the first of its kind, alleges that Smirnov illegally bought the gun from a private seller he located through armslist.com.
Vesel was killed in the parking lot of the Chicago-area Czechoslovak Heritage Museum, where she was a volunteer preparing for a celebration in memory of Czech-American Chicago Mayor Anton Cermak.
Cermak was slain with a handgun during an attempted assassination of President Franklin D. Roosevelt in 1933.
A representative for website owner Armslist, LLC was not immediately available for comment. The company is based in Noble, Oklahoma, according to public records.
The website includes a "terms of use" page on which users must promise they are age 18 or older and will not use the site for illegal purposes.
The Brady Center said that the case does not infringe on the Second Amendment right to bear arms, noting that 74 percent of National Rifle Association members believe that no guns should be sold without a criminal background check.
A representative for the NRA was not immediately available for comment.
Radcliffe Haughton, who killed his estranged wife and two other women and wounded four others before killing himself in a shooting in a Milwaukee suburb on October 21, also got his weapon through armslist.com, according to Wisconsin officials.
Haughton, who was under a restraining order for domestic violence, avoided a background check through a "lethal loophole" by buying a gun through the website, according to a letter to Armslist sent by Milwaukee Mayor Tom Barrett and Wisconsin U.S. Representative Gwen Moore on October 26.
Sales conducted over the Internet also have been linked to mass killings at Virginia Tech and Northern Illinois University. In 1999 eBay announced it was prohibiting online gun sales, according to the Brady Center lawsuit.
Craigslist did the same in 2007. Amazon.com and Google AdWords also prohibits the listing of firearms for sale, the suit says.
An undercover investigation of online gun sales by New York City last year found that 62 percent of private gun sellers agreed to sell a firearm to a buyer who said he probably could not pass a background check.

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Google, U.S. regulators close to deal in patents dispute: sources

 U.S. regulators are near a settlement with Google Inc in a dispute over the search giant's efforts to stop the sale of products it says infringe essential patents, according to two sources close to the probe.
But the Federal Trade Commission is not expected to reach a deal soon on the larger, more contentious issue of whether Google tweaks its search results to disadvantage rivals in travel, shopping and other specialized searches.
Its rivals say Google fears the specialized sites will siphon away its most lucrative advertising and the revenue that goes with it.
Under the expected settlement, which could be announced this week or next, Google will be required to drop demands for injunctions in lawsuits filed using a special class of patents called standard essential patents, or SEPs, the sources said.
SEPs ensure, for example, that one brand of wireless phone can call another brand.
There would be an exception to the injunction ban, however. Google would be allowed to request injunctions if companies refuse to negotiate SEP licensing at all, the sources said.
SEPs are usually expected to be broadly licensed for a reasonable price. One view is that if a company convinces a standard-setting organization to name its patent as the standard, that company should be barred from asking for an injunction if there is infringement.
The larger investigation, which is more than a year old, addresses search bias as well as smaller items that aggravate Google's rivals in Silicon Valley and beyond.
These include taking data, such as hotel reviews, from non-Google web sites to use on Google products, and preventing the export of data on advertising effectiveness to non-Google software so ad campaigns can be evaluated.
The European Commission is investigating many of the same allegations.
Google's critics, disappointed with the trajectory of the FTC probe, appear prepared to take their grievances to the U.S. Justice Department.
At least one Google adversary met with Justice Department officials recently, pressing them to investigate if the FTC fails to get a satisfactory settlement on search or litigate against Google, according to sources with knowledge of the situation.
The Texas attorney general's office is also leading a probe into Google's practices.

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