Latin music star Jenni Rivera believed dead in plane crash

Fans of Mexican-American singing star Jenni Rivera held a vigil Sunday night in Lynwood









MEXICO CITY — Mexican American singer Jenni Rivera, the "diva de la banda" whose commanding voice burst through the limits of regional Latin music and made her a cross-border sensation and the queen of a business empire, was believed to have died Sunday when the small jet carrying her and members of her entourage crashed in mountainous terrain.


Rivera, a native of Long Beach, was 43. Mexico's ministry of transportation did not confirm her death outright, but it said that she had been aboard the plane and that no one had survived the crash. Six others, including two pilots, also were on board.


"Everything suggests, with the evidence that's been found, that it was the airplane that the singer Jenni Rivera was traveling in," said Gerardo Ruiz Esparza, Mexico's secretary of communications and transportation. Of the crash site, Ruiz said: "Everything is destroyed. Nothing is recognizable."








Word of the accident ricocheted around the entertainment industry, with performer after performer expressing shock and grief. Fans gathered outside Rivera's four-acre estate in Encino.


"She was the Diana Ross of Mexican music," said Gustavo Lopez, an executive vice president at Universal Music Latin Entertainment, an umbrella group that includes Rivera's label. Lopez called Rivera "larger than life" and said that based on ticket sales, she was by far the top-grossing female artist in Mexico.


"Remember her with your heart the way she was," her father, Don Pedro Rivera, told reporters in Spanish on Sunday evening. "She never looked back. She was a beautiful person with the whole world."


Rivera had performed a concert in Monterrey, Mexico, on Saturday night — her standard fare of knee-buckling power ballads, pop-infused interpretations of traditional banda music and dizzying rhinestone costume changes.


At a news conference after the show, Rivera appeared happy and tranquil, pausing at one point to take a call on her cellphone that turned out to be a wrong number. She fielded questions about struggles in her personal life, including her recent separation from husband Esteban Loaiza, a professional baseball player.


"I can't focus on the negative," she said in Spanish. "Because that will defeat you. That will destroy you.... The number of times I have fallen down is the number of times I have gotten up."


Hours later, shortly after 3 a.m., Rivera is believed to have boarded a Learjet 25, which took off under clear skies. The jet headed south, toward Toluca, west of Mexico City; there, Rivera had been scheduled to tape the television show "La Voz" — Mexico's version of "The Voice" — on which she was a judge.


The plane, built in 1969 and registered to a Las Vegas talent management firm, reached 11,000 feet. But 10 minutes and 62 miles into the flight, air traffic controllers lost contact with its pilots, according to Mexican authorities. The jet crashed outside Iturbide, a remote city that straddles one of the few roads bisecting Mexico's Sierra de Arteaga national park.


Wreckage was scattered across several football fields' worth of terrain. An investigation into the cause of the crash was underway, and attempts to identify the remains of the victims had begun.


Rivera, a mother of five and grandmother of two, was believed to have been traveling with her publicist Arturo Rivera, who was not related to her, as well as with her lawyer, hairstylist and makeup artist; reports of their names were not consistent. Their identities were not confirmed by authorities. The pilots were identified as Miguel Perez and Alejandro Torres.


In the world of regional Latin music — norteño, cumbia and ranchera are among the popular niches — Rivera was practically royalty.


Her father was a noted singer of the Mexican storytelling ballads known as corridos. In the 1980s he launched the record label Cintas Acuario. It began as a swap-meet booth and grew into an influential and taste-making independent outfit, fueling the careers of artists such as the late Chalino Sanchez. Jenni Rivera's four brothers were associated with the music industry; her brother Lupillo, in particular, is a huge star in his own right.


Born on July 2, 1969, Rivera initially showed little inclination to join the family business. She worked for a time in real estate. But after a pregnancy and a divorce, she went to work for her father's record label and found her voice, literally and figuratively.


She released her first studio album in 2003, when she was 34.


Her path had not been easy, but rather than running from it, she wrote it into her music — domestic violence; struggles with weight; raising her children alone, or "sin capitan," without a captain. She was known for marathon live shows that left audiences exhilarated and exhausted; by the fifth hour of one recent performance, she was drinking straight from a tequila bottle and launching into a cover of "I Will Survive."


In a witty and sometimes baffling stew of Spanish and English, she sang about her three husbands, about drug traffickers, in tribute to her father, in tribute to her gynecologist.


She became, in a most unlikely way, a feminist hero among Latin women in Mexico and the United States and a powerful player in a genre of music dominated by men and machismo. Regional Mexican music styles had long been seen as limiting to artists, but Rivera shrugged off the labels and brought traditional-laced music — some of which sounded perilously close to polka — to a massive pop audience.





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Singer feared dead in Mexican plane crash


MONTERREY, Mexico (AP) — Mexico's music world mourned Jenni Rivera, the U.S.-born singer presumed killed in a plane crash whose soulful voice and openness about her personal troubles had made her a Mexican-American superstar.


Authorities have not confirmed her death, but Rivera's relatives in the U.S. say they have few doubts that she was on the Learjet 25 that disintegrated on impact Sunday in rugged territory in Nuevo Leon state in northern Mexico.


"My son Lupillo told me that effectively it was Jenni's plane that crashed and that everyone on board died," her father, Pedro Rivera, told dozens of reporters gathered in front of his Los Angeles-area home. "I believe my daughter's body is unrecognizable."


He said that his son would fly to Monterrey Monday.


Messages of condolence poured in from fellow musicians and celebrities.


Mexican songstress and actress Lucero wrote on her Twitter account: "What terrible news! Rest in peace ... My deepest condolences for her family and friends." Rivera's colleague on the Mexican show "The Voice of Mexico," pop star Paulina Rubio, said on her Twitter account: "My friend! Why? There is no consolation. God, please help me!"


Born in Long Beach, California, Rivera was at the peak of her career as perhaps the most successful female singer in grupero, a male-dominated regional style influenced by the norteno, cumbia and ranchero styles.


A 43-year-old mother of five children and grandmother of two, the woman known as the "Diva de la Banda" was known for her frank talk about her struggles to give a good life to her children despite a series of setbacks.


She was recently divorced from her third husband, was once detained at a Mexico City airport with tens of thousands of dollars in cash, and she publicly apologized after her brother assaulted a drunken fan who verbally attacked her in 2011.


Her openness about her personal troubles endeared her to millions in the U.S. and Mexico.


"I am the same as the public, as my fans," she told The Associated Press in an interview last March.


Rivera sold 15 million records, and recently won two Billboard Mexican Music Awards: Female Artist of the Year and Banda Album of the Year for "Joyas prestadas: Banda." She was nominated for Latin Grammys in 2002, 2008 and 2011.


Transportation and Communications Minister Gerardo Ruiz Esparza said "everything points toward" the wreckage belonging to the plane carrying Rivera and six other people to Toluca, outside Mexico City, from Monterrey, where the singer had just given a concert.


"There is nothing recognizable, neither material nor human" in the wreckage found in the state of Nuevo Leon, Ruiz Esparza said. The impact was so powerful that the remains of the plane "are scattered over an area of 250 to 300 meters. It is almost unrecognizable."


A mangled California driver's license with Rivera's name and picture was found in the crash site debris.


No cause was given for the plane's crash, but its wreckage was found near the town of Iturbide in Mexico's Sierra Madre Oriental, where the terrain is very rough.


The Learjet 25, number N345MC, took off from Monterrey at 3:30 a.m. local time and was reported missing about 10 minutes later. It was registered to Starwood Management of Las Vegas, Nevada, according to FAA records. It was built in 1969 and had a current registration through 2015.


Also believed aboard the plane were her publicist, Arturo Rivera, her lawyer, makeup artist and the flight crew.


Though drug trafficking was the theme of some of her songs, she was not considered a singer of "narco corridos," or ballads glorifying drug lords like other groups, such as Los Tigres del Norte. She was better known for singing about her troubles in love and disdain for men.


Her parents were Mexicans who had migrated to the United States. Two of her five brothers, Lupillo and Juan Rivera, are also well-known singers of grupero music.


She studied business administration and formally debuted on the music scene in 1995 with the release of her album "Chacalosa". Due to its success, she recorded two more independent albums, "We Are Rivera" and "Farewell to Selena," a tribute album to slain singer Selena that helped expand her following.


At the end of the 1990s, Rivera was signed by Sony Music and released two more albums. But widespread success came for her when she joined Fonovisa and released her 2005 album titled "Partier, Rebellious and Daring."


Besides being a singer, she is also a businesswoman and actress, appearing in the indie film Filly Brown, which was shown at the Sundance Film Festival, as the incarcerated mother of Filly Brown.


She was filming the third season of "I love Jenni," which followed her as she shared special moments with her children and as she toured through Mexico and the United States. She also has the reality shows: "Jenni Rivera Presents: Chiquis and Raq-C" and her daughter's "Chiquis 'n Control."


In 2009, she was detained at the Mexico City airport when she declared $20,000 in cash but was really carrying $52,167. She was taken into custody. She said it was an innocent mistake and authorities gave her the benefit of the doubt and released her.


In 2011, her brother Juan assaulted a drunken fan at a popular fair in Guanajuato. In the face of heavy criticism among her fans and on social networks, Rivera publicly apologized for the incident during a concert in Mexico City, telling her fans: "Thank you for accepting me as I am, with my virtues and defects."


On Saturday night, Rivera had given a concert before thousands of fans in Monterrey. After the concert she gave a press conference during which she spoke of her emotional state following her recent divorce from former Major League Baseball pitcher Esteban Loaiza, who played for teams including the New York Yankees and Los Angeles Dodgers.


"I can't get caught up in the negative because that destroys you. Perhaps trying to move away from my problems and focus on the positive is the best I can do. I am a woman like any other and ugly things happen to me like any other woman," she said Saturday night. "The number of times I have fallen down is the number of times I have gotten up."


Rivera had announced in October that she was divorcing Loaiza after two years of marriage.


There have been several high-profile crashes involving Learjets, known as swift, longer-distance passenger aircraft popular with corporate executives, entertainers and government officials.


A Learjet carrying pro-golfer Payne Stewart and five others crashed in northeastern South Dakota in 1999. Investigators said the plane lost cabin pressure and all on board died after losing consciousness for lack of oxygen. The aircraft flew for several hours on autopilot before running out of fuel and crashing in a corn field.


Former Blink 182 drummer Travis Barker was severely injured in a 2008 Learjet crash in South Carolina that killed four people.


That same year, a Learjet slammed into rush-hour traffic in a posh Mexico City neighborhood, killing Mexico's No. 2 government official, Interior Secretary Juan Camilo Mourino, and eight others on the plane, plus five people on the ground.


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Associated Press Writer Galia Garcia-Palafox and Olga R. Rodriguez contributed to this report from Mexico City.


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Doping at U.S. Tracks Affects Europe’s Taste for Horse Meat





PARIS — For decades, American horses, many of them retired or damaged racehorses, have been shipped to Canada and Mexico, where it is legal to slaughter horses, and then processed and sold for consumption in Europe and beyond.







Christinne Muschi for The New York Times

A slaughterhouse in Saint-André-Avellin, Quebec, where meat is processed for sale in Europe.






Lately, however, European food safety officials have notified Mexican and Canadian slaughterhouses of a growing concern: The meat of American racehorses may be too toxic to eat safely because the horses have been injected repeatedly with drugs.


Despite the fact that racehorses make up only a fraction of the trade in horse meat, the European officials have indicated that they may nonetheless require lifetime medication records for slaughter-bound horses from Canada and Mexico, and perhaps require them to be held on feedlots or some other holding area for six months before they are slaughtered.


In October, Stephan Giguere, the general manager of a major slaughterhouse in Quebec, said he turned away truckloads of horses coming from the United States because his clients were worried about potential drug issues. Mr. Giguere said he told his buyers to stay away from horses coming from American racetracks.


“We don’t want them,” he said. “It’s too risky.”


The action is just the latest indication of the troubled state of American racing and its problems with the doping of horses. Some prominent trainers have been disciplined for using legal and illegal drugs, and horses loaded with painkillers have been breaking down in arresting numbers. Congress has called for reform, and state regulators have begun imposing stricter rules.


But for pure emotional effect, the alarm raised in the international horse-meat marketplace packs a distinctive punch.


Some 138,000 horses were sent to Canada or Mexico in 2010 alone to be turned into meat for Europe and other parts of the world, according to a Government Accountability Office report. Organizations concerned about the welfare of retired racehorses have estimated that anywhere from 10 to 15 percent of the population sent for slaughter may have performed on racetracks in the United States.


“Racehorses are walking pharmacies,” said Dr. Nicholas Dodman, a veterinarian on the faculty of Tufts University and a co-author of a 2010 article that sought to raise concerns about the health risks posed by American racehorses. He said it was reckless to want any of the drugs routinely administered to horses “in your food chain.”


Horses being shipped to Mexico and Canada are by law required to have been free of certain drugs for six months before being slaughtered, and those involved in their shipping must have affidavits proving that. But European Commission officials say the affidavits are easily falsified. As a result, American racehorses often show up in Canada within weeks — sometimes days — of their leaving the racetrack and their steady diets of drugs.


In October, the European Commission’s Directorate General for Health and Consumers found serious problems while auditing the operations of equine slaughter facilities in Mexico, where 80 percent of the horses arrive from the United States. The commission’s report said Mexican officials were not allowed to question the “authenticity or reliability of the sworn statements” about the ostensibly drug-free horses, and thus had no way of verifying whether the horses were tainted by drugs.


“The systems in place for identification, the food-chain information and in particular the affidavits concerning the nontreatment for six months with certain medical substances, both for the horses imported from the U.S. as well as for the Mexican horses, are insufficient to guarantee that standards equivalent to those provided for by E.U. legislation are applied,” the report said.


The authorities in the United States and Canada acknowledge that oversight of the slaughter business is lax. On July 9, the United States Food and Drug Administration sent a warning letter to an Ohio feedlot operator who sells horses for slaughter. The operator, Ronald Andio, was reprimanded for selling a drug-tainted thoroughbred horse to a Canadian slaughterhouse.


The Canadian Food Inspection Agency had tested the carcass of the horse the previous August and found the anti-inflammatory drug phenylbutazone in the muscle and kidney tissues. It also discovered clenbuterol, a widely abused medication for breathing problems that can build muscle by mimicking anabolic steroids.


Because horses are not a traditional food source in the United States, the Food and Drug Administration does not require human food safety information as it considers what drugs can be used legally on horses. Patricia El-Hinnawy, a spokeswoman for the agency, said agency-approved drugs intended for use in horses carried the warning “Do not use in horses intended for human consumption.”


She also said the case against Mr. Andio remained open.


“On the warning letter, the case remains open and no further information can be provided at this time,” Ms. El-Hinnawy said.


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IPhone 5S coming in June in flurry of colors, analyst says









At least one analyst is predicting the iPhone 5S will arrive next summer and will come in a flurry of colors.


Peter Misek of Jefferies, an investment banking firm, sent out a note Monday detailing some of his predictions for the next iteration of the hugely popular Apple smartphone.


According to various reports, Misek predicts the iPhone 5S, as its believed the phone will be called, will launch in June. If that indeed is the case, the iPhone 5S would be the first Apple smartphone to launch in the summer since the iPhone 4.





PHOTOS: Top 10 tech products of 2012


In addition to a launch date, Misek also predicts the iPhone 5S will come in six to eight colors.


That isn't too hard to believe considering that some of Apple's rivals -- most notably Nokia and Samsung -- have started to release their phones in numerous color options. Apple this year also released the latest version of the iPod Touch in six different colors.


Additionally, Misek predicts the iPhone 5S will have a "super HD" camera and screen, an improved battery and will finally be enabled with Near-Field Communication technology, or NFC.


NFC is a feature many Android phones already possess to let them easily share files simply by bumping each other.


So those are Misek's predictions, but whether he's right is a whole other question. Misek was recently wrong on a prediction about the iPad mini and appears to be wrong on another prediction involving the rumored Apple television set. However, as the San Francisco Chronicle points out, he has had correct predictions involving the iPhone in the past.


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Twitter may release its own Instagram-like photo filters this month





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3 killed, 4 wounded in Tulare County shooting









Three people were fatally shot and four others wounded, including two young children, Saturday night on the Tule River Reservation in Tulare County, authorities said.

The suspect, who fled with his two young daughters, was later shot by sheriff’s deputies and taken into custody, according to the Tulare County Sheriff’s Department. The two girls, who were among those shot, were rescued.

The incident began about 7:45 p.m. when the Sheriff’s Department received a 911 call about shots fired in the 100 block of Chimney Road of the Tule River Indian Reservation about 60 miles northeast of Bakersfield, according to a Sheriff’s Department statement.

In a trailer on the property, deputies discovered an adult male and an adult female who had been fatally shot, authorities said. A male juvenile who suffered a gunshot wound was transported to a hospital. 

At a shed on the property, deputies found another male victim who had been fatally shot, authorities said.

The suspect, identified as Hector Celaya, 31, of the Tule River Indian Reservation, fled the scene in a Jeep Cherokee with his two daughters, Alyssa, 8, and Linea, 5, authorities said. An Amber Alert was issued around 11 p.m.

Detectives used Celaya’s cellphone to locate him.

A deputy spotted the vehicle and after failing to make a traffic stop, a slow-speed pursuit began, authorities said.

The suspect eventually stopped and fired his weapon at deputies, who returned fire and struck the suspect twice, seriously wounding him, authorities said.

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Software guru McAfee did not have heart attack: lawyer






GUATEMALA CITY (Reuters) – Software pioneer John McAfee did not have a heart attack in Guatemala as originally thought, but is suffering from stress and hypertension, his lawyer Telesforo Guerra said on Thursday.


“He never had a heart attack. Nothing like that,” Guerra said in Guatemala City. “I’m not a doctor. I’m just telling you what the doctors told me. He was suffering from stress, hypertension and tachycardia (an abnormally rapid heartbeat).”






After being rushed to a hospital in an ambulance on Thursday, McAfee, 67, was later spirited out of the building out of sight of reporters and into a police patrol car, Guerra said.


McAfee, who is fighting deportation from Guatemala, was detained on Wednesday after crossing illegally into the country from neighboring Belize. Police in Belize want to question McAfee in connection with his neighbor’s murder.


Earlier, Guerra said McAfee had suffered two mild heart attacks in the morning.


(Reporting by Lomi Kriel; Editing by Stacey Joyce)


Internet News Headlines – Yahoo! News


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'Skyfall,' 'Guardians' duel for box-office win


LOS ANGELES (AP) — James Bond is in a box-office photo finish with Santa Claus and the Easter Bunny over what looks to be the last slow weekend of the holidays.


According to studio estimates Sunday, Sony's Bond tale "Skyfall" took in $11 million to move back to No. 1 in its fifth weekend.


That put it narrowly ahead of Paramount's "Rise of the Guardians," the animated adventure of Santa, the Easter Bunny and other mythological heroes that pulled in $10.5 million.


The two movies inched ahead of Summit Entertainment's "The Twilight Saga: Breaking Dawn — Part 2," which had been tops for three-straight weekends. The "Twilight" finale earned $9.2 million, slipping into a tight race for No. 3 with Disney's "Lincoln," which was close behind with $9.1 million.


The top movies were bunched up so closely that rankings could change once final weekend revenues are released Monday.


The weekend's only new wide release, Gerard Butler's romantic comedy "Playing for Keeps," flopped with $6 million, coming in at No. 6.


"Skyfall" raised its domestic total to $261.6 million and added $20.3 million overseas to bring its international income to $656.6 million. At $918 million worldwide, "Skyfall" has the best cash haul ever for the Bond franchise and surpassed "Spider-Man 3" at $890 million to become Sony's top-grossing hit.


The "Twilight" finale also is a franchise record-breaker, surpassing the $710 million worldwide haul of last year's "Breaking Dawn — Part 1." The finale's domestic total now stands at $268.7 million.


It was another traditionally quiet post-Thanksgiving weekend, with big November releases continuing to dominate in the lull before a pre-Christmas onslaught of movies.


The box office is expected to soar next weekend with the arrival of part one of "The Hobbit," Peter Jackson's "The Lord of the Rings" prelude. After that comes a steady rush of action, comedy and drama through year's end, including Tom Cruise's "Jack Reacher," Quentin Tarantino and Jamie Foxx's "Django Unchained," Seth Rogen's "The Guilt Trip" and Hugh Jackman and Russell Crowe's "Les Miserables."


"The last couple of weeks of the year are some of the strongest every year," said Paul Dergarabedian, an analyst for box-office tracker Hollywood.com. "We are on the cusp of some really huge box office. There's a lot of money still left in the year despite this slow period right now."


Hollywood's domestic revenues have topped $10 billion so far this year, with the industry expected to finish 2012 ahead of the all-time high of $10.6 billion set in 2009.


Trashed savagely by critics, FilmDistrict's "Playing for Keeps" stars Butler as a washed-up soccer star trying to reconnect with his ex-wife (Jessica Biel) and young son. The all-star cast includes Catherine Zeta-Jones and Uma Thurman as soccer moms with the hots for Butler.


In limited release, Bill Murray's Franklin Roosevelt drama "Hyde Park on Hudson" opened solidly with $83,280 in four theaters, averaging a healthy $20,820 a cinema. By comparison, "Playing for Keeps" averaged $2,115 in 2,837 theaters.


Released by Focus Features, "Hyde Park on Hudson" stars Murray as Roosevelt, whose intimate relations with a distant cousin (Laura Linney) become both a source of strength and distraction as the president plays host to the king and queen of England on the eve of World War II.


Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers are also included. Final domestic figures will be released Monday.


1. "Skyfall," $11 million ($20.3 million).


2. "Rise of the Guardians," $10.5 million ($26 million international).


3. "The Twilight Saga: Breaking Dawn — Part 2," $9.2 million.


4. "Lincoln," $9.1 million.


5. "Life of Pi," $8.3 million.


6. "Playing for Keeps," $6 million.


7. "Wreck-It Ralph," $4.9 million ($5.8 million international).


8. "Red Dawn," $4.3 million.


9. "Flight," $3.1 million.


10. "Killing Them Softly," $2.7 million.


___


Online:


http://www.hollywood.com


http://www.rentrak.com


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Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.


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New Taxes to Take Effect to Fund Health Care Law





WASHINGTON — For more than a year, politicians have been fighting over whether to raise taxes on high-income people. They rarely mention that affluent Americans will soon be hit with new taxes adopted as part of the 2010 health care law.




The new levies, which take effect in January, include an increase in the payroll tax on wages and a tax on investment income, including interest, dividends and capital gains. The Obama administration proposed rules to enforce both last week.


Affluent people are much more likely than low-income people to have health insurance, and now they will, in effect, help pay for coverage for many lower-income families. Among the most affluent fifth of households, those affected will see tax increases averaging $6,000 next year, economists estimate.


To help finance Medicare, employees and employers each now pay a hospital insurance tax equal to 1.45 percent on all wages. Starting in January, the health care law will require workers to pay an additional tax equal to 0.9 percent of any wages over $200,000 for single taxpayers and $250,000 for married couples filing jointly.


The new taxes on wages and investment income are expected to raise $318 billion over 10 years, or about half of all the new revenue collected under the health care law.


Ruth M. Wimer, a tax lawyer at McDermott Will & Emery, said the taxes came with “a shockingly inequitable marriage penalty.” If a single man and a single woman each earn $200,000, she said, neither would owe any additional Medicare payroll tax. But, she said, if they are married, they would owe $1,350. The extra tax is 0.9 percent of their earnings over the $250,000 threshold.


Since the creation of Social Security in the 1930s, payroll taxes have been levied on the wages of each worker as an individual. The new Medicare payroll is different. It will be imposed on the combined earnings of a married couple.


Employers are required to withhold Social Security and Medicare payroll taxes from wages paid to employees. But employers do not necessarily know how much a worker’s spouse earns and may not withhold enough to cover a couple’s Medicare tax liability. Indeed, the new rules say employers may disregard a spouse’s earnings in calculating how much to withhold.


Workers may thus owe more than the amounts withheld by their employers and may have to make up the difference when they file tax returns in April 2014. If they expect to owe additional tax, the government says, they should make estimated tax payments, starting in April 2013, or ask their employers to increase the amount withheld from each paycheck.


In the Affordable Care Act, the new tax on investment income is called an “unearned income Medicare contribution.” However, the law does not provide for the money to be deposited in a specific trust fund. It is added to the government’s general tax revenues and can be used for education, law enforcement, farm subsidies or other purposes.


Donald B. Marron Jr., the director of the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution, said the burden of this tax would be borne by the most affluent taxpayers, with about 85 percent of the revenue coming from 1 percent of taxpayers. By contrast, the biggest potential beneficiaries of the law include people with modest incomes who will receive Medicaid coverage or federal subsidies to buy private insurance.


Wealthy people and their tax advisers are already looking for ways to minimize the impact of the investment tax — for example, by selling stocks and bonds this year to avoid the higher tax rates in 2013.


The new 3.8 percent tax applies to the net investment income of certain high-income taxpayers, those with modified adjusted gross incomes above $200,000 for single taxpayers and $250,000 for couples filing jointly.


David J. Kautter, the director of the Kogod Tax Center at American University, offered this example. In 2013, John earns $160,000, and his wife, Jane, earns $200,000. They have some investments, earn $5,000 in dividends and sell some long-held stock for a gain of $40,000, so their investment income is $45,000. They owe 3.8 percent of that amount, or $1,710, in the new investment tax. And they owe $990 in additional payroll tax.


The new tax on unearned income would come on top of other tax increases that might occur automatically next year if President Obama and Congress cannot reach an agreement in talks on the federal deficit and debt. If Congress does nothing, the tax rate on long-term capital gains, now 15 percent, will rise to 20 percent in January. Dividends will be treated as ordinary income and taxed at a maximum rate of 39.6 percent, up from the current 15 percent rate for most dividends.


Under another provision of the health care law, consumers may find it more difficult to obtain a tax break for medical expenses.


Taxpayers now can take an itemized deduction for unreimbursed medical expenses, to the extent that they exceed 7.5 percent of adjusted gross income. The health care law will increase the threshold for most taxpayers to 10 percent next year. The increase is delayed to 2017 for people 65 and older.


In addition, workers face a new $2,500 limit on the amount they can contribute to flexible spending accounts used to pay medical expenses. Such accounts can benefit workers by allowing them to pay out-of-pocket expenses with pretax money.


Taken together, this provision and the change in the medical expense deduction are expected to raise more than $40 billion of revenue over 10 years.


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Leaders and their feeders









A favorite question at entrepreneurship conferences is which world city has the entrepreneurial dynamism to become a major start-up capital on par with Silicon Valley. London, Singapore, Tel Aviv, New York and Berlin are usually cited.

Seldom, however, do you hear anyone propose Boulder, Colo.

That is, unless you are in the company of Brad Feld, an early-stage investor, technology entrepreneur and author of "Startup Communities: Building an Entrepreneurial Ecosystem in Your City," published by Wiley.








Feld is a regular speaker on venture capital investing and entrepreneurship, having founded his first company in 1987. Twitter is not a perfect measure of the quality of a person's opinions, but you do not get 113,000 followers without having a degree of respect from your peer group.

He is a Texan who co-founded his first company in Boston and for 20 years has been proud to call Boulder his home.

To him, this city of just 100,000 people, nestled near Rocky Mountain National Park and a short drive from Denver, is not just the best place to live. He also sees Boulder as an excellent example for those who wish to turn their own town into a start-up community.

"Although I don't have the data to support it, Boulder may have the highest entrepreneurial density in the world," he writes.

Having said that, Feld wants to make clear that all sorts of cities across the world can become home to job-creating new businesses if only they foster the necessary culture.

He sets out a framework for a successful start-up community — that it be led by entrepreneurs with a long-term commitment to the area, that the community be inclusive of anyone who wants to participate and that there be a constant stream of activities that engage all the parties.

Feld differentiates between the entrepreneurial "leaders" of a community and the "feeders," who must support but not try to take charge.

Feeders include government agencies, lawyers, accountants, local universities and angel investors. Problems often occur and areas fail to become start-up communities, he notes, when feeders, rather than the people creating the businesses, try to control the development of an entrepreneurial ecosystem.

This should serve as a warning to Mayor Michael Bloomberg's administration in New York, which is trying to nurture the city's collection of fast-growing Web businesses, nicknamed Silicon Alley.

The book is also an insight into why the U.S. is such an entrepreneurial nation. The generosity of spirit still prevalent in U.S. society shines through Feld's writing. It is a key reason why so many have felt it is where they can achieve their dreams.

"Give before you get" is a mantra repeated several times by Feld. A key message is the power of community, which relies on people committing to their neighborhood for a couple of decades at least.

He also has a short answer for the people who ask how they can create the next Silicon Valley: They can't.

"Trying to create the next Silicon Valley is a fool's errand," he writes. "If that's really your goal, save yourself a lot of heartache and simply move to Silicon Valley."

It is clear from the way he writes about Boulder that Feld has no intention of moving farther west himself any time soon. "I can't imagine a better place to live," he says.

My only criticism is that almost all of his frame of reference is the U.S. His only mention of anywhere else in the world is a brief account of a trip to see some start-ups in Iceland.

But if more people loved and contributed to the places they live, as Feld and others have evidently done in Boulder, we probably would have more start-up communities around the world for him to visit.

Moules is the enterprise correspondent of the Financial Times of London, in which this review first appeared. He is also author of "The Rebel Entrepreneur," published by Kogan Page.





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Zynga seeks real-money gambling license in Nevada












SAN FRANCISCO (Reuters) – Social games maker Zynga Inc said on Wednesday it filed a preliminary application to run real-money gambling games in Nevada, a significant step in cracking a complex but potentially massive new market that could resuscitate its faltering business.


The Nevada Gaming Control Board will now examine whether Zynga is fit to hold a gaming license that would allow gamblers in the state to bet real money on the San Francisco-based company’s popular games like Zynga Poker, which currently involve only virtual chips with no monetary value.












Zynga is hoping that a lucrative real-money market could make up for a steep slide in revenue from its games like “FarmVille” and other fading titles that still generate the bulk of its sales.


“We anticipate that the process will take approximately 12 to 18 months to complete,” Zynga Chief Revenue Officer Barry Cottle said in a statement. “As we’ve said previously, the broader U.S. market is an opportunity that’s further out on the horizon based on legislative developments, but we are preparing for a regulated market.”


Zynga, along with many major gaming industry players, is hoping that a tide of proposed legislation to regulate gaming could sweep through states across the U.S. and open a massive new online market.


Nevada, Delaware and New Jersey are among the states that have moved or are moving toward interactive gaming after the U.S. Justice Department last year declared that only online betting on sporting contests was unlawful, presenting the opportunity for states to legalize some forms of online gambling, from lotteries to poker.


Although widespread legalization of online gaming in the United States appears years away at the minimum, obtaining a license in Nevada would be a meaningful foot in the door for Zynga’s nationwide aspirations.


Zynga has told investors in recent quarters that a concerted move into real-money gaming could represent a hefty – and badly needed – source of new revenue for the company, which has seen revenues sag and its stock plummet by more than three-quarters in the past year as gamers abandoned titles like “CityVille.”


In October, the company slashed its 2012 full-year earnings outlook for the second time and laid off employees to trim costs, while CEO Mark Pincus implored investors to give him time to turn around the company by pursuing initiatives like real-money gaming.


That month, Zynga struck a deal with bwin.party, a Gibraltar-based gaming company, to provide real money casino games like poker and slots in the United Kingdom beginning in the first half of 2013.


(Reporting By Gerry Shih; Editing by Chris Gallagher)


Gaming News Headlines – Yahoo! News


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