Democrats push for tax cuts they once opposed

Democrats seeking a deal to avert the year-end “fiscal cliff” are trying to etch into stone the signature economic achievement of Republican President George W. Bush by permanently extending tax cuts enacted during his tenure.

President Obama has put the extension of the tax cuts for most Americans at the top of his domestic agenda, a remarkable turnaround for Democrats, who had staunchly opposed the tax breaks when they were written into law about a decade ago.

With Obama leaving his Hawaii vacation for Washington on Wednesday and lawmakers returning Thursday, the main dividing line between Republicans and Democrats has come down to whether tax rates should increase for top earners at the end of the year, when the Bush-era tax cuts are set to expire. While Republicans want to extend all the cuts, Democrats are pushing to maintain lower rates on household income below $250,000. Those lower rates significantly reduce the taxes of nearly all American households that earn less than $250,000 — and many who earn more, even if tax rates are allowed to increase on income above that figure.

While it is increasingly unlikely that the two parties will reach an agreement to avoid the fiscal cliff before Jan. 1, it is all but certain that their ultimate deal, whenever it comes, will make permanent the lower rates for most Americans.

R. Glenn Hubbard, dean of the Columbia Business School and an architect of the Bush tax cuts, said it is “deeply ironic” for Democrats to favor extending most of them, given what he called their “visceral” opposition a decade ago. Keeping the lower rates even for income under $250,000 “would enshrine the vast bulk of the Bush tax cuts,” he said.

Democrats say they have reconsidered their opposition to the Bush tax cuts for several reasons. The cuts were written into law from 2001 to 2003 after a decade in which most Americans saw robust income growth. Over the past decade, by contrast, median wages have declined, after adjusting for inflation, amid a weak economy. Allowing tax cuts for the middle class to expire would further reduce take-home pay.

“We’ve had these tax cuts in place since 2001. The world changes, and the economy is where it is,” said Steven Elmendorf, who was chief of staff to former House minority leader Richard A. Gephardt (D-Mo.), a primary opponent of the Bush tax cuts. “With people’s economic status, we should not be raising taxes on people earning under $250,000.”

What’s more, income inequality has been growing. Sparing the middle class higher taxes while requiring the wealthy to pay more would tip the scales slightly in the other direction.

“The reason there’s been this movement toward broad consensus on renewing the tax cut for working- and middle-class families is that will give us a sharper progressivity in the tax system that is very much desired by Democrats and progressives who’ve seen an income distribution more and more distorted toward the wealthy,” said Betsey Stevenson, former chief economist in Obama’s Labor Department and a professor at the University of Michigan, who added that taxes may have to rise even more than currently contemplated to meet the country’s needs.

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London transport strike fails to deter bargain hunters

LONDON: Strike action heavily disrupted London's Underground train network on Wednesday, as hundreds of thousands of bargain hunters headed to the shops for the traditional Boxing Day sales.

All 13 of the Tube lines were running a reduced service after just a third of drivers turned up for work in a dispute between the Aslef union and the network operators over payments for working on national holidays.

Howard Collins, London Underground's chief operating officer, said: "This strike action is completely unnecessary.

"Train drivers are paid a salary that reflects some bank holiday working, but the Aslef leadership is demanding to be paid twice for the same work and has rejected our attempts to resolve the matter."

Despite the transport problems, shoppers formed long queues from the early hours of the morning outside London's top department stores including Harrods and Selfridges.

Many of the bargain hunters were Chinese, with Harrods creating a separate queue outside its store in the upmarket district of Knightsbridge for those looking for reductions on designer goods such as Gucci.

Sue West, director of operations at Selfridges, said handbags and menswear were particularly popular items in the sale at its flagship branch on London's main shopping thoroughfare of Oxford Street.

She said: "Of the people queuing to get inside 60 percent or 70 percent were men. It's a great day for men's shopping. It's a tradition and people want to experience it.

"Online sales for us have been great but year on year people still want to experience the Boxing Day sales."

British retailers slash prices on the day after Christmas Day, with big-ticket items such as TVs and computers carrying the biggest reductions.

The price comparison site MoneySupermarket.com estimates that shoppers in Britain will spend 2.9 billion pounds ($4.7 billion, 3.55 billion euros) in the sales.

The British Retail Consortium had described high-street spending as "acceptable but not exceptional" during the Christmas period.

- AFP/de

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Cabinet gives nod to new science policy

NEW DELHI: India is set to unveil its new science policy next week which lays greater thrust on innovation, establishing research institutes and participation in mega science projects with an aim to positioning itself among the top five scientific powers in the world by 2020.

The Union Cabinet, at a meeting chaired by Prime Minister Manmohan Singh, today approved the Science, Technology and Innovation (STI) Policy-2013.

It will be released by the Prime Minister on January three at the inauguration session of the centenary edition of the Indian Science Congress in Kolkata.

"The proposed STI policy seeks to focus on both STI for people and people for STI," officials said.

The document is a revision of the 2003 policy which sought to bring science and technology together and emphasised on the need for higher investment into research and development (R&D) to address national problems.

"The (STI) policy also seeks to trigger an ecosystem for innovative abilities to flourish by leveraging partnerships among diverse stakeholders and by encouraging and facilitating enterprises to invest in innovations," the officials said.

The policy also aims at positioning India among the top five global scientific powers by 2020.

The officials said the aim of the policy is to accelerate the pace of discovery, diffusion and delivery of science-led solutions for serving the aspirational goals of India for faster, sustainable and inclusive growth.

The key features of the STI Policy, 2013 include making careers in science, research and innovation attractive and establishing world-class infrastructure for R&D for gaining global leadership in some select frontier areas of science.

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Photos: Humboldt Squid Have a Bad Day at the Beach

Photograph by Chris Elmenhurst, Surf the Spot Photography

“Strandings have been taking place with increased frequency along the west coast over the past ten years,” noted NOAA’s Field, “as this population of squid seems to be expanding its range—likely a consequence of climate change—and can be very abundant at times.” (Learn about other jumbo squid strandings.)

Humboldt squid are typically found in warmer waters farther south in theGulf of California (map) and off the coast ofPeru. “[But] we find them up north here during warmer water time periods,” said ocean sciences researcherKenneth Bruland with the University of California, Santa Cruz (UCSC).

Coastal upwelling—when winds blowing south drive ocean circulation to bring cold, nutrient-rich waters up from the deep—ceases during the fall and winter and warmer water is found closer to shore. Bruland noted that climate change, and the resulting areas of low oxygen, “could be a major factor” in drawing jumbo squid north.

Published December 24, 2012

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Federal workers feel unease over potential layoffs, furloughs unleashed by ‘fiscal cliff’

Federal employees have been skeptical for months that the biggest cuts to government spending in history could really happen. But with the “fiscal cliff” a week away, workers are now growing increasingly alarmed that their jobs and their missions could be on the line.

President Obama and members of Congress headed out of town late last week for a Christmas break without reaching a deal to avoid $110 billion in automatic across-the-board spending cuts, which would hamstring operations ranging from weather forecasting and air traffic control to the purchase of spare parts for weapons systems. So civil servants are bracing for the blow, wondering whether their work will be upended — and whether they may be forced to take unpaid days off.

“This could change day by day,” said Antonio Webb, 25, who works in the mail service that handles correspondence for the Department of Homeland Security. “You could come into work and the next day they say, ‘We don’t need you because we have to cut so much.’ ”

Many federal workers have become jaded after a two-year pay freeze and congressional fights over spending that keep agencies lurching from one stopgap budget to another. Until recently, few employees thought it could come to this: Budget cuts of 8 to 10 percent divided equally between military and domestic agencies. Only a few programs, like Social Security, veterans benefits and some services for the poor, are exempted.

“Sure, we continue to do our jobs,” said Carl Eichenwald, who works in enforcement at the Environmental Protection Agency. “But all of this uncertainty is disruptive for our mission. A lot of time gets spent spinning wheels. We won’t know whether we can do inspections. Do we have 100 percent of our budget, or 85 percent?”

Top congressional aides said Monday that discussions of how to avert the fiscal cliff had come to a virtual standstill. Obama and House Speaker John A. Boehner (R-Ohio) had not spoken since Friday.

Each side in the negotiations urged the other to come up with a way around the impasse. A senior Democratic aide said Boehner needs to return from the holiday with a “cleared head and a readiness to deal.” The aide said that there is no time for Democrats to unilaterally advance a bill in the Senate, adding that they can press forward with legislation only if they are assured by Republican leaders of GOP support.

A senior Senate Republican aide insisted, however, that it is now up to Senate Majority Leader Harry M. Reid (Nev.) and his fellow Democrats to figure out what they can pass in the Senate without worrying about the Republican-controlled House.

As the year-end deadline approaches, federal employees have been told very little by their bosses about how their agencies are preparing to carry out huge spending reductions.

“It seemed like we were almost immune to thinking that something real was going to come of it,” said Fernando Cutz, an analyst for the U.S. Agency for International Development.

Then came an e-mailed memo on Thursday from agency heads to employees. The cuts would be “significant and harmful to our collective mission.” Furloughs “or other personnel actions” — layoffs — remain a real possibility.

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More local production companies gaining recognition overseas

SINGAPORE: Singapore production companies say they see a growing trend of collaborations with international companies.

The Media Development Authority (MDA) says there are currently 60 production companies that are actively producing broadcast content both locally and abroad.

Channel NewsAsia spoke to two local production houses to find out what makes Singapore attractive as a co-production hub.

The Moving Visuals Company came onto the scene in 1998, during a period when Singapore was trying to promote independent production.

At the same time, many cable television channels were moving their headquarters to the region.

Moving Visuals wasted no time trying to gain a foot in the door by marketing its documentaries overseas.

Its strategy was to focus on factual programming as opposed to drama and sitcoms, which tended to be more localised.

Galen Yeo, CEO of The Moving Visuals Company, said: "When we started, we wanted to focus on factual programming or documentaries as well as kids' programming, primarily because we felt that these genres would travel better. Whereas if you look at certain genres like drama and sitcoms, they tend to be more localised."

It was one of the first production houses to co-produce a programme on the Hungry Ghost Festival with international channel National Geographic and local broadcaster MediaCorp's TV12.

Since then, it has distributed its productions throughout Asia, the United States, Europe and Latin America.

But the company feels more can be done in terms of making headways for more co-productions between local and international broadcasters.

Galen Yeo added: "If I could suggest something for the industry, it would be to be bolder, take more risk, experiment a bit. I think in Asia we sometimes shy away from difficult subjects, or subjects we perceive as being difficult. I think people are more exposed now. And I think we are sort of second guessing and holding ourselves back a little bit sometimes."

Other production houses in Singapore say what attracts overseas players is an Asian story that's packaged for an international audience.

Jocelyn Little, Managing Director of Beach House Pictures, said: "The trend that we are finding is that originally it was more traditional documentaries, with a host or hostess, sort of lifestyle shows. Now it's different. Now everything is more about the character-driven type shows. People want to see real lives, and big characters - which is a trend in the US and Europe, but not so much in Asia yet, but I think it's coming."

Beach House Pictures has produced about 30 overseas projects.

Its latest co-production project is with ABC TV and Northern Pictures to explore the wilderness of Kakadu National Park. And it says the best advice it can give to indie companies starting up is to find strong stories.

Currently, Singapore has five official co-production treaties with Canada, Australia, New Zealand, Korea and China, which facilitated about 20 projects across TV, film and animation. But MDA says there is still untapped potential, which can be harvested from countries like Indonesia and Malaysia.

- CNA/de

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HC allows transfer of Gayatri Devi's shares to grand children

NEW DELHI: The legal battle over transfer of late Maharani Gayatri Devi's shares in royal family's firms has been decided in favour of her grandchildren, Devraj and Lalitya Kumari with the Delhi high court ordering rectification of share registers of the companies.

Jagat Singh, son of Gayatri Devi and Sawai Man Singh, held 99 per cent shares in firms including Jai Mahal Hotels Pvt Ltd and later died leaving behind a will that his mother would be the owner of all his properties.

Gayatri Devi, who died on 29 July 2009, left a will saying all her properties, including the shares in the firms, would be inherited by her grand children Devraj and Lalitya Kumari.

The transfer of shares in favour of Gayatri Devi's grand children was opposed by other heirs of late Maharaja Sawai Man Singh. They were his (Sawai Man Singh) other sons, Prithviraj Singh, Jai Singh and his maternal grand daughter Urvashi Devi.

Justice Indermeet Kaur, deciding the dispute between members of Rajasthan's royal family, set aside an order of the Company Law Board (CLB) which had refused to direct rectification in share registers of Jai Mahal Hotels Pvt Ltd, Rambagh Place Hotels Pvt Ltd, SMS Investment Corporation Pvt Ltd and Sawai Madhopur Lodge Pvt Ltd.

Earlier, the grand children of Gayatri Devi had moved the CLB for rectification that the shares pertaining to their father and grand mother be transferred to them.

"The CLB returning a finding apposite has committed an illegality which is liable to be set aside. It is accordingly set aside. The order dated March 16, 2011 is set aside; the member register of the companies be rectified in the name of the petitioner group and petitioners i.e. Devraj and Lalitya Kumari be substituted in lieu of Jagat Singh," the court said.

The royal family has key income-generating properties such as Rambagh Place Hotel and Jai Mahal Hotel.

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Photos: Humboldt Squid Have a Bad Day at the Beach

Photograph by Chris Elmenhurst, Surf the Spot Photography

“Strandings have been taking place with increased frequency along the west coast over the past ten years,” noted NOAA’s Field, “as this population of squid seems to be expanding its range—likely a consequence of climate change—and can be very abundant at times.” (Learn about other jumbo squid strandings.)

Humboldt squid are typically found in warmer waters farther south in theGulf of California (map) and off the coast ofPeru. “[But] we find them up north here during warmer water time periods,” said ocean sciences researcherKenneth Bruland with the University of California, Santa Cruz (UCSC).

Coastal upwelling—when winds blowing south drive ocean circulation to bring cold, nutrient-rich waters up from the deep—ceases during the fall and winter and warmer water is found closer to shore. Bruland noted that climate change, and the resulting areas of low oxygen, “could be a major factor” in drawing jumbo squid north.

Published December 24, 2012

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Newtown Christmas: 'We Know They'll Feel Loved'

As residents prepared to observe Christmas less than two weeks after a gunman killed 20 children and six educators at an elementary school, people sharing in the town's mourning brought offerings of cards, handmade snowflakes and sympathy.

Tiny empty Christmas stockings with the victims' names on them hung from trees in the neighborhood where the children were shot. On Christmas Eve, residents said they would light luminaries outside their homes in memory of the victims.

"We know that they'll feel loved. They'll feel that somebody actually cares," said Treyvon Smalls, a 15-year-old from a few towns away who arrived at town hall with hundreds of cards and paper snowflakes collected from around the state.

At the Trinity Episcopal Church, less than 2 miles from the school, an overflow crowd of several hundred people attended Christmas Eve services. They were greeted by the sounds of a children's choir echoing throughout a sanctuary hall that had its walls decorated with green wreaths adorned with red bows.

The church program said flowers were donated in honor of Sandy Hook shooting victims, identified by name or as the "school angels" and "Sandy Hook families."

Julio Cortez, File/AP Photo

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The service, which generally took on a celebratory tone, made only a few vague references to the shooting. Pastor Kathie Adams-Shepherd led the congregation in praying "that the joy and consolation of the wonderful counselor might enliven all who are touched by illness, danger, or grief, especially all those families affected by the shootings in Sandy Hook."

Police say the gunman, Adam Lanza, killed his mother in her bed before his Dec. 14 rampage and committed suicide as he heard officers arriving. Authorities have yet to give a theory about his motive.

While the grief is still fresh, some residents are urging political activism in the wake of the tragedy. A grassroots group called Newtown United has been meeting at the library to talk about issues ranging from gun control, to increasing mental health services to the types of memorials that could be erected for the victims. Some clergy members have said they also intend to push for change.

"We seek not to be the town of tragedy," said Rabbi Shaul Praver of Congregation Adath Israel. "But, we seek to be the town where all the great changes started."

Since the shooting, messages similar to the ones delivered Monday have arrived from around the world. People have donated toys, books, money and more. A United Way fund, one of many, has collected $3 million. People have given nearly $500,000 to a memorial scholarship fund at the University of Connecticut. On Christmas Day, police from other towns have agreed to work so Newtown officers can have the time off.

At Washington's National Cathedral, the 20 children who were killed also were remembered. Angels made of paper doilies were used to adorn the altar in the children's chapel. They'll be displayed there through Jan. 6.

In the center of Newtown's Sandy Hook section Monday, a steady stream of residents and out-of-towners snapped pictures, lit candles and dropped off children's gifts at an expansive memorial filled with stuffed animals, poems, flowers, posters and cards.

"All the families who lost those little kids, Christmas will never be the same," said Philippe Poncet, a Newtown resident originally from France. "Everybody across the world is trying to share the tragedy with our community here."

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New and creative light-ups add festive cheer in Tokyo

TOKYO: It's beginning to look a lot like Christmas in central Tokyo, even if December 25 is not a national holiday in Japan.

Some new and creative light-ups have added festive cheer in the capital.

Tokyo Station's Marunouchi side had a makeover recently to revive its pre-war splendour, before parts of it were destroyed by US bombs in World War Two.

The renovations took more than five years to complete and cost US$593 million.

Much of this side of Tokyo Station is the Tokyo Station Hotel. It was designed in the classic Meiji style by architect Kingo Tatsuno. In 2001, it was designated a national cultural asset.

The station's allure is shining bright, especially now, with a special light-up.

This is the result of a collaboration between classic and hi-tech methods, using projection mapping technology.

Ryotaro Muramatsu, video creator of Tokyo Hikari Vision, said: "The theme is a voyage of the lights. It begins with complete darkness. Light is born. That light expands to all over the world. The lights express the beautiful world of colour. That's the story. I hope people are able to take in that experience."

Well, it seems they are - many visitors were mesmerised.

Other light-ups in the Marunouchi area also drew crowds.

Toshio Nakamura, Head of Tokyo Michiterasu 2012 Committee, said: "Due to Tokyo Station's makeover the entire area is becoming an attraction. We would like very much for that to be noticed."

This installation was created by local school children.

One girl wrote: "Everyone's smile is the source of happiness for tomorrow. Let's laugh."

Starlight walk, as the project is called, is on the way to the Imperial Palace ground.

The display can be enjoyed until December 28th.

And the one million LED lights in champagne gold will adorn the street of Marunouchi NakaDori until February 17.

- CNA/de

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