Obama, Democrats, winning over public on 'fiscal cliff'








WASHINGTON -- Americans are increasingly doubtful that Congress and the White House will reach a budget deal as the deadline to the "fiscal cliff" approaches, according a new poll, though more said they still think a compromise will eventually be formed out of the fight.
 
According to Gallup, just 50% of those polled said they think President Obama and Congress are at least somewhat likely to reach a budget compromise, down from a high of 59% on Dec. 9. An increasing number, 48%, said they see no resolution before a deadline of Jan. 1.
 
The cliff, that self-imposed deadline set in place last year to force a deal on government expenditures and revenues, would institute broad spending cuts across government programs and allow President George W. Bush's tax cuts to expire. Both Republicans and Democrats have offered evolving proposals on how to avoid both actions.

PHOTOS: Notable moments of the 2012 presidential election
 

But as they have sparred back and forth, with House Speaker John Boehner's "Plan B" proposal notably failing prior to the shutdown in Washington for the Christmas holiday, Obama and his allies appear to be coming out on top, at least in the court of public opinion as measured by Gallup.
 
A majority of survey respondents, 54%, said they approve of the way that Obama has handled the negotiations, and 45% said they approve of Democratic leaders in Congress. Just 26% said they approve of Boehner and the Republican congressional leadership.
 
That's a sharp increase for Obama and the Democrats, 6% and 11%, respectively, since Gallup's last round of polling Dec. 15-16. Approval ratings for Boehner and the Republicans remained low, increasing by 1 point for the House speaker and decreasing by 3 points for his colleagues.
 
A majority of respondents, 68% to 22%, also said they favor compromise over strict adherence to principles in the budget negotiations.

QUIZ: How much do you know about the fiscal cliff?
 

Obama is scheduled to return to Washington by midday Thursday to restart negotiations, cutting short his holiday vacation to Hawaii. He will be met by the House and Senate, which are reconvening after the holiday, though neither chamber has any specific legislation laid out on their schedules.


The poll was conducted between Dec. 21 and 22 via telephone interviews with 1,076 people, with a margin of error of +/- 4 percentage points.


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Ouch, Charlie! YouTube Sensation Kids Talk Christmas Toys






The infamous “Charlie Bit My Finger” video has surpassed half a billion views on YouTube — not bad for a 56-second clip of a one-year-old kid biting his older brother’s finger.


Charlie and Harry, now six and eight, returned to the web earlier this year with a new series through Viral Studios. The mini-episodes focus on the boys and their younger brother, Jasper, as they talk about toys, viral videos and — of course — biting things.






[More from Mashable: 8 Festive Christmas Tumblrs, Presented by Santa Dogs]


Mashable sat down for a Skype interview with the three boys last week. Unfortunately, the Internet connection wasn’t the greatest — Harry twice referred to me as a “man made out of boxes” because of the spotty video quality — but they were still able to talk about what toys they were most excited about this holiday season. Check ‘em out below:


[More from Mashable: Now and Then: 10 Awesome Past and Present Pics]


Charlie’s Pick: Playmobil Large Pirate Ship


Price: $ 95.50


Image courtesy of Playmobil


Harry’s Pick: Thomas & Friends Take-n-Play The Great Quarry Climb


Price: $ 19.99


Image courtesy of Fisher-Price


Jasper’s Pick: Turbo Snake Remote Control


Price: £38.45 (only available in the U.K.)


Image courtesy of Amazon


You can catch all the episodes on the “Charlie Bit Me!” series on their YouTube page. Which toys or gadgets did you score this year? Tell us below.


BONUS: 10 Gifts for People You Hate


1. 50 Used Toilet Paper Rolls


Price: $ 19.99 Mother Earth appreciates a little holiday upcycling. Your mother-in-law, on the other hand, may not. Cheaper DIY alternative: Your own toilet paper rolls.


Click here to view this gallery.


Image courtesy of Viral Studios


This story originally published on Mashable here.


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Ticket rush: Film fans hand Hollywood record cash


LOS ANGELES (AP) — The big deal for Hollywood is not the record $10.8 billion that studios took in domestically in 2012. It's the fact that the number of tickets sold went up for the first time in three years.


Thanks to inflation, revenue generally rises in Hollywood as admission prices climb each year. The real story is told in tickets, whose sales have been on a general decline for a decade, bottoming out in 2011 at 1.29 billion, their lowest level since 1995.


The industry rebounded this year, with ticket sales projected to rise 5.6 percent to 1.36 billion by Dec. 31, according to box-office tracker Hollywood.com. That's still well below the modern peak of 1.6 billion tickets sold in 2002, but in an age of cozy home theater setups and endless entertainment gadgets, studio executives consider it a triumph that they were able to put more butts in cinema seats this year than last.


"It is a victory, ultimately," said Don Harris, head of distribution at Paramount Pictures. "If we deliver the product as an industry that people want, they will want to get out there. Even though you can sit at home and watch something on your large screen in high-def, people want to get out."


Domestic revenue should finish up nearly 6 percent from 2011's $10.2 billion and top Hollywood's previous high of $10.6 billion set in 2009.


The year was led by a pair of superhero sagas, Disney's "The Avengers" with $623 million domestically and $1.5 billion worldwide and the Warner Bros. Batman finale "The Dark Knight Rises" with $448 million domestically and $1.1 billion worldwide. Sony's James Bond adventure "Skyfall" is closing in on the $1 billion mark globally, and the list of action and family-film blockbusters includes "The Hunger Games," ''The Twilight Saga: Breaking Dawn — Part Two," ''Ice Age: Continental Drift," ''Madagascar 3: Europe's Most Wanted," ''The Amazing Spider-Man" and "Brave."


Before television, movies were the biggest thing going, with ticket sales estimated as high as 4 billion a year domestically in the 1930s and '40s.


Movie-going eroded steadily through the 1970s as people stayed home with their small screens. The rise of videotape in the 1980s further cut into business, followed by DVDs in the '90s and big, cheap flat-screen TVs in recent years. Today's video games, mobile phones and other portable devices also offer easy options to tramping out to a movie theater.


It's all been a continual drain on cinema business, and cynics repeatedly predict the eventual demise of movie theaters. Yet Hollywood fights back with new technology of its own, from digital 3-D to booming surround-sound to the clarity of images projected at high-frame rates, which is being tested now with "The Lord of the Rings" prelude "The Hobbit: An Unexpected Journey," shown in select theaters at 48 frames a second, double the standard speed.


For all of the annoyances of theaters — parking, pricy concessions, sitting next to strangers texting on their iPhones — cinemas still offer the biggest and best way to see a movie.


"Every home has a kitchen, but you can't get into a good restaurant on Saturday night," said Dan Fellman, head of distribution for Warner Bros. "People want to escape. That's the nature of society. The adult population just is not going to sit home seven days a week, even though they have technology in their home that's certainly an improvement over what it was 10 years ago. People want to get out of the house, and no matter what they throw in the face of theatrical exhibition, it continues to perform at a strong level."


Even real-life violence at the movie theater didn't turn audiences away. Some moviegoers thought twice about heading to the cinema after a gunman killed 12 people and injured 58 at a screening of "The Dark Knight Rises" in Colorado last summer, but if there was any lull in attendance, it was slight and temporary. Ticket sales went on a tear for most of the fall.


While domestic revenues inch upward most years largely because of inflation, the real growth areas have been overseas, where more and more fans are eager for the next Hollywood blockbuster.


Rentrak, which compiles international box office data, expects 2012's foreign gross to be about $23 billion, 3 percent higher than in 2011. No data was yet available on the number of tickets sold overseas this past year.


International business generally used to account for less than half of a studio film's overall receipts. Films now often do two or even three times as much business overseas as they do domestically. Some movies that were duds with U.S. audiences, such as "Battleship" and "John Carter," can wind up being $200 million hits with overseas crowds.


Whether finishing a good year or a bad one, Hollywood executives always look ahead to better days, insisting that the next crop of blockbusters will be bigger than ever. The same goes this time as studio bosses hype their 2013 lineup, which includes the latest "Iron Man," ''Star Trek," ''Hunger Games" and "Thor" installments, the Superman tale "Man of Steel" and the second chapter in "The Hobbit" trilogy.


Twelve months from now, they hope to be talking about another revenue record topping this year's $10.8 billion.


"I've been saying we're going to hit that $11 billion level for about three years now," said Paul Dergarabedian, a box-office analyst for Hollywood.com. "Next year I think is the year we actually do it."


___


Online:


http://www.hollywood.com


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Op-Ed Contributor: Our Failed Approach to Schizophrenia



TOO many pendulums have swung in the wrong directions in the United States. I am not referring only to the bizarre all-or-nothing rhetoric around gun control, but to the swing in mental health care over the past 50 years: too little institutionalizing of teenagers and young adults (particularly men, generally more prone to violence) who have had a recent onset of schizophrenia; too little education about the public health impact of untreated mental illness; too few psychiatrists to talk about and treat severe mental disorders — even though the medications available in the past 15 to 20 years can be remarkably effective.


Instead we have too much concern about privacy, labeling and stereotyping, about the civil liberties of people who have horrifically distorted thinking. In our concern for the rights of people with mental illness, we have come to neglect the rights of ordinary Americans to be safe from the fear of being shot — at home and at schools, in movie theaters, houses of worship and shopping malls.


“Psychosis” — a loss of touch with reality — is an umbrella term, not unlike “fever.” As with fevers, there are many causes, from drugs and alcohol to head injuries and dementias. The most common source of severe psychosis in young adults is schizophrenia, a badly named disorder that, in the original Greek, means “split mind.” In fact, schizophrenia has nothing to do with multiple personality, a disorder that is usually caused by major repeated traumas in childhood. Schizophrenia is a physiological disorder caused by changes in the prefrontal cortex, an area of the brain that is essential for language, abstract thinking and appropriate social behavior. This highly evolved brain area is weakened by stress, as often occurs in adolescence.


Psychiatrists and neurobiologists have observed biochemical changes and alterations in brain connections in patients with schizophrenia. For example, miscommunications between the prefrontal cortex and the language area in the temporal cortex may result in auditory hallucinations, as well as disorganized thoughts. When the voices become commands, all bets are off. The commands might insist, for example, that a person jump out of a window, even if he has no intention of dying, or grab a set of guns and kill people, without any sense that he is wreaking havoc. Additional symptoms include other distorted thinking, like the notion that something — even a spaceship, or a comic book character — is controlling one’s thoughts and actions.


Schizophrenia generally rears its head between the ages of 15 and 24, with a slightly later age for females. Early signs may include being a quirky loner — often mistaken for Asperger’s syndrome — but acute signs and symptoms do not appear until adolescence or young adulthood.


People with schizophrenia are unaware of how strange their thinking is and do not seek out treatment. At Virginia Tech, where Seung-Hui Cho killed 32 people in a rampage shooting in 2007, professors knew something was terribly wrong, but he was not hospitalized for long enough to get well. The parents and community-college classmates of Jared L. Loughner, who killed 6 people and shot and injured 13 others (including a member of Congress) in 2011, did not know where to turn. We may never know with certainty what demons tormented Adam Lanza, who slaughtered 26 people at an elementary school in Newtown, Conn., on Dec. 14, though his acts strongly suggest undiagnosed schizophrenia.


I write this despite the so-called Goldwater Rule, an ethical standard the American Psychiatric Association adopted in the 1970s that directs psychiatrists not to comment on someone’s mental state if they have not examined him and gotten permission to discuss his case. It has had a chilling effect. After mass murders, our airwaves are filled with unfounded speculations about video games, our culture of hedonism and our loss of religious faith, while psychiatrists, the ones who know the most about severe mental illness, are largely marginalized.


Severely ill people like Mr. Lanza fall through the cracks, in part because school counselors are more familiar with anxiety and depression than with psychosis. Hospitalizations for acute onset of schizophrenia have been shortened to the point of absurdity. Insurance companies and families try to get patients out of hospitals as quickly as possible because of the prohibitively high cost of care.


As documented by writers like the law professor Elyn R. Saks, author of the memoir “The Center Cannot Hold: My Journey Through Madness,” medication and treatment work. The vast majority of people with schizophrenia, treated or untreated, are not violent, though they are more likely than others to commit violent crimes. When treated with medication after a rampage, many perpetrators who have shown signs of schizophrenia — including John Lennon’s killer and Ronald Reagan’s would-be assassin — have recognized the heinousness of their actions and expressed deep remorse.


It takes a village to stop a rampage. We need reasonable controls on semiautomatic weapons; criminal penalties for those who sell weapons to people with clear signs of psychosis; greater insurance coverage and capacity at private and public hospitals for lengthier care for patients with schizophrenia; intense public education about how to deal with schizophrenia; greater willingness to seek involuntary commitment of those who pose a threat to themselves or others; and greater incentives for psychiatrists (and other mental health professionals) to treat the disorder, rather than less dangerous conditions.


Too many people with acute schizophrenia have gone untreated. There have been too many Glocks, too many kids and adults cut down in their prime. Enough already.


Paul Steinberg is a psychiatrist in private practice.



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Hedge fund manager Whitney Tilson also shorts Herbalife









Another hedge fund manager is joining Bill Ackman in the ranks of Herbalife haters.


Whitney Tilson, who helps run three hedge funds and two mutual funds through T2 Partners, said in a mass email Wednesday that he’s short “a tiny smidge” of Herbalife and other so-called multilevel marketers who sell products through individual distributors.


Herbalife, the Los Angeles provider of health supplements, has seen its stock tumble 40% in four trading days after Ackman last week accused the company of operating as a pyramid scheme.





Ackman, the head of Pershing Square Capital Management, said he was shorting, or betting against, Herbalife and laid out his allegations in a detailed presentation in New York.


Tilson’s email message called Ackman’s argument “the most remarkable piece of investment analysis I have ever seen. Simply astonishing,” according to ValueWalk.


In the missive, Tilson wrote that he hopes Ackman’s campaign against the multilevel marketer “results in massive reform of this whole sector, which has preyed upon MILLIONS of vulnerable people all over the world for decades.”


In the last 52 weeks, Herbalife shares have lost about half of their value. Most of that plunge came after Ackman’s attack. In Wednesday trading, however, the stock was recovering, up as much as 8.8% to $28.35 a share.


Herbalife said last week that it will wait until next month to respond to Ackman’s allegations.


ALSO:


Hedge fund manager alleges Herbalife is 'pyramid scheme'


Herbalife stock tumbles for a 4th day on 'pyramid scheme' claims


Herbalife to answer 'pyramid scheme' claim; stock slide continues





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U.S. drone strategy in Yemen is fraught with peril









AL SARRAIN, Yemen — The U.S. drone flew over a cluster of mud houses on a ridge and, according to Yemeni officials, locked onto Adnan Qadhi, a mercurial man of many guises, including radical militant, peace mediator, preacher of violence and army general.


Villagers said Qadhi climbed out of his utility vehicle the night of Nov. 7 to make a cellphone call shortly before the missile struck. His photo — broad face peering from beneath a tilted red beret, stars on his epaulets — now hangs in a small grocery store in a land where farmers work narrow fields below the villas of politicians, tribal leaders and a former president that rise like fortresses on nearby hilltops.


Some here call him a martyr, others a fanatic. But the life and death of Qadhi, a senior officer in the 1st Armored Division who preached holy war in mosques and donned government-issued fatigues, epitomizes the political instability, tribal intrigue, crisscrossing allegiances and radical Islamist passions the United States must sort out when targeting militants in Yemen. At times, Washington risks being drawn into internal conflicts and becoming increasingly despised in the Arab world's poorest nation.





PHOTOS: A new breed of drones


Extremists here have a history of shifting tactics and circumstances. They were pressed into service by the government of former President Ali Abdullah Saleh when needed, then arrested and jailed when the political winds changed. Later they vanished from prisons by the scores, set loose across tribal lands. Yemeni security officials say that era is ending, and they're stepping up military offensives to rout extremists — fighters from Libya, Somalia and other nations, and assassins on motorcycles intent on killing intelligence officials.


At the same time, the Obama administration has intensified airstrikes against the Yemeni group Al Qaeda in the Arabian Peninsula, which plotted in 2009 and 2010 to blow up American airliners. A 2011 drone attack killed Anwar Awlaki, an American-born Muslim preacher and militant recruiter. Weeks later, a U.S. airstrike killed Awlaki's 16-year-old son, who tribesmen and relatives say had no links to terrorism.


The Long War Journal, a website that tracks U.S. drone activity, reports that since 2002, America has launched 57 airstrikes in Yemen, killing 299 militants and 82 civilians. The number of strikes has risen dramatically from four in 2010 to 40 so far this year.


FULL COVERAGE: Drones


"Why do these Americans come and interfere in Yemen?" said Radhwan Dahrooj, the grocer in Al Sarrain. "Why do they kill our people? If they have charges against someone why do they not arrest him and bring him to justice?"


Qadhi was sentenced to prison four years ago for plotting an attack on the U.S. Embassy in Sana, the capital, that killed at least 16 people, no Americans among them. With the help of clansmen and army officials, he was released shortly afterward and resumed his old life: militant and officer in the 1st Armored Division, led by Maj. Gen. Ali Mohsin Saleh Ahmar, a commander described in a 2005 U.S. diplomatic cable as "dealing with terrorists and extremists."


When uprisings against President Saleh swept the country in 2011, the brigade mutinied and battled with competing tribes and security units for control of Sana.


What began as a peaceful revolution against Saleh tipped the nation — already fighting a rebellion in the north and a secessionist movement in the south — into deeper turmoil. Al Qaeda in the Arabian Peninsula and its affiliate Ansar al Sharia exploited the unrest, taking over territory in the south. That gave Qadhi an opportunity to expand his militant ambitions even as he slipped into another of his guises, currying favor with the government by mediating a truce between Yemeni officials and an Al Qaeda faction.


The U.S., which this year has given Yemen $337 million in military and security aid, would not confirm that a drone targeted Qadhi. Yemeni officials and villagers, who heard a plane circling that night, said a U.S. airstrike killed him not far from his home in Beit al Ahmar. Though Qadhi was an active Al Qaeda recruiter and often accused Washington in his sermons of wanting to keep Yemen divided and in chaos, it is not clear what specific danger he was seen as presenting to the United States.


Washington has no precise rules on the criteria for targeting militants with drone strikes. But President Obama has said that an extremist must present an imminent threat to the U.S. or its allies, as Yemen's Al Qaeda branch is considered to do, and that arrest would be impossible.


A former senior U.S. intelligence official said Qadhi's arrest for the 2008 embassy attack would not have been enough to put him on an assassination list. White House counter-terrorism advisor John Brennan has said that militants battling solely to overthrow the government in Sana are not targeted. But Qadhi's 1st Armored Division was certainly a threat to the Yemeni government and the country's stability.


Yemeni officials said the nation's new president, Abdu Rabu Mansour Hadi, approved the strike against Qadhi after determining that an attempt to arrest him in his neighborhood could have led to more deaths. The officials said they were unaware of intelligence linking Qadhi to any active plot.


The danger in the drone program is the potential for U.S. intelligence and airstrikes to be manipulated by Yemenis seeking to weaken the competing clans and political factions. For example, Obama and his top generals felt misled in 2010 when Obama signed off on an airstrike against a senior militant that killed six people, including the deputy governor of Mareb province. The strike was based entirely on intelligence provided by the Yemenis, who had not told the U.S. that the governor would be there, a former senior U.S. official said.


Since Hadi took office in February, the cooperation and trust between the Yemeni government and the U.S. has vastly improved, U.S. and Yemeni officials say.


There are many potential drone targets. For decades, young men have left Yemen to become foot soldiers and bomb makers among the militants in Afghanistan, Algeria, Pakistan, Iraq and Libya. Some of them have come home.


One was Rashad Mohammed Saeed, who left at 15 and became a confidant of Osama bin Laden, fighting beside him in Afghanistan. He returned to Yemen around 2000 and in an interview said he had put aside his weapons to start the Renaissance Union Party, made up of former militants who run for parliament seats.





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China may require real name registration for internet access






BEIJING (Reuters) – China may require internet users to register with their real names when signing up to network providers, state media said on Tuesday, extending a policy already in force with microblogs in a bid to curb what officials call rumors and vulgarity.


A law being discussed this week would mean people would have to present their government-issued identity cards when signing contracts for fixed line and mobile internet access, state-run newspapers said.






“The law should escort the development of the internet to protect people’s interest,” Communist Party mouthpiece the People’s Daily said in a front page commentary, echoing similar calls carried in state media over the past week.


“Only that way can our internet be healthier, more cultured and safer.”


Many users say the restrictions are clearly aimed at further muzzling the often scathing, raucous – and perhaps most significantly, anonymous – online chatter in a country where the Internet offers a rare opportunity for open debate.


It could also prevent people from exposing corruption online if they fear retribution from officials, said some users.


It was unclear how the rules would be different from existing regulations as state media has provided only vague details and in practice customers have long had to present identity papers when signing contracts with internet providers.


Earlier this year, the government began forcing users of Sina Corp’s wildly successful Weibo microblogging platform to register their real names.


The government says such a system is needed to prevent people making malicious and anonymous accusations online and that many other countries already have such rules.


“It would also be the biggest step backwards since 1989,” wrote one indignant Weibo user, in apparent reference to the 1989 pro-democracy protests bloodily suppressed by the army.


Chinese internet users have long had to cope with extensive censorship, especially over politically sensitive topics like human rights, and popular foreign sites Facebook, Twitter and Google-owned YouTube are blocked.


Despite periodic calls for political reform, the ruling Communist Party has shown no sign of loosening its grip on power and brooks no dissent to its authority.


(Reporting by Ben Blanchard and Huang Yan; Editing by Michael Perry)


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Reaction to the death of actor Jack Klugman


Celebrities on Monday reacted to the death of "Odd Couple" star Jack Klugman, who died Monday at age 90. Here are samples of sentiments expressed on Twitter:


___


"R.I.P. Jack Klugman, Oscar, Quincy a man whose career spanned almost 50 years. I first saw him on the Twilight Zone. Cool guy wonderful actor." — Whoopi Goldberg.


___


"You made my whole family laugh together." — Actor Jon Favreau, of "Swingers," ''Iron Man" and other films.


___


"I worked with Jack Klugman several years ago. He was a wonderful man and supremely talented actor. He will be missed" — Actor Max Greenfield, of the "New Girl" on Fox.


___


"So sorry to hear that Jack Klugman passed away. I learned a lot, watching him on television" — Dan Schneider, creator of Nickelodeon TV shows "iCarly," ''Drake and Josh" ''Good Burger," ''Drake & Josh."


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Corporate tax rate overhaul may be part of a 'fiscal cliff' deal









WASHINGTON — Amid the wrangling over the so-called fiscal cliff, President Obama and congressional Republicans can agree on something: They want to lower the corporate tax rate.


The U.S. has the highest overall rate of any of the world's developed economies. It took the top spot in March after Japan reduced its rate, mimicking other countries that have lowered taxes to lure new businesses and keep existing companies from leaving.


Negotiations to avert automatic income tax increases and federal spending cuts scheduled to kick in Jan. 1 could provide the impetus for U.S. policymakers to tackle an overhaul of the corporate tax code next year.





The White House wants to put a corporate tax overhaul, along with changes to the individual income tax system, on a fast track as part of any deal to avoid the "fiscal cliff."


The centerpiece of an overhaul would be slashing the 35% corporate tax rate, a goal long sought by corporate executives and lobbyists.


Quiz: How much do you know about the 'fiscal cliff'?


"In the name of global competitiveness, I think that has largely been agreed to," Jim McNerney, chief executive of Boeing Co., said about how both parties view the need for major corporate tax changes.


In February, Obama proposed lowering the federal rate to 25% for manufacturing companies and to 28% for other firms. Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, has been pushing a plan to lower the rate to 25% for all corporations.


In both cases, the rate cuts would be accompanied by the elimination of some of the numerous tax breaks that allow many companies to pay a much lower effective tax rate — and sometimes to avoid paying any corporate taxes at all.


"The administration's position on this is very much in sync with what Republicans say they want, which is a lower rate and a broader base," said Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities and the former chief economist for Vice President Joe Biden.


But there still are some obstacles to a deal.


Some Democrats want to use an overhaul to increase the amount of tax revenue coming from corporations, while Republicans want to keep the amount the same. The White House and congressional Republicans also differ on how the U.S. should treat money earned abroad.


And the business community itself is divided. Many small companies file taxes as individuals. They're opposed to any "fiscal cliff" deal that would raise their rates while giving corporations a rate reduction.


Analysts said the obstacles could be overcome because there is consensus around the broader point that the U.S. needs to bring its corporate tax rate in line with other developed nations.


"Regardless of your political persuasion, it is unquestionably the case that the nominal U.S. corporate tax rate is much higher than that of peer countries," said Edward Kleinbard, a USC law professor and former chief of staff of Congress' Joint Committee on Taxation.


The case for corporate tax reform got a boost when the overall U.S. rate of 39.1%, which includes federal, state and local corporate taxes, became the highest this year among the 34 nations in the Organization for Economic Cooperation and Development. Two decades ago, the U.S. was 13th.


"At one time in the '80s, we had a competitive corporate tax rate," said Dorothy Coleman, vice president of tax and domestic economic policy for the National Assn. of Manufacturers. "We've fallen behind by standing still."


Quiz: The year in business


But the rate in the tax code isn't what many companies pay because of a host of deductions and tax credits. In 2011, the effective corporate tax rate in the U.S. was 29.2%, roughly in line with the 31.9% average of the six other largest developed economies, the Obama administration said.


The White House said that parity does not mean the statutory rate shouldn't be reduced. It simply means that many tax breaks should be eliminated, allowing the rate to be lowered without adding to the deficit.





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Two firefighters die in ambush at blazing New York house












A gunman ambushed four volunteer firefighters responding to an intense pre-dawn house fire Monday morning outside Rochester, N.Y., killing two before ending up dead himself, authorities said. Police used an armored vehicle to evacuate more than 30 nearby residents.


The gunman fired at the firefighters when they arrived shortly after 5:30 a.m. at the blaze near the Lake Ontario shore in Webster, town Police Chief Gerald Pickering said. The first Webster police officer who arrived chased the suspect and exchanged gunfire with him, authorities said.











"It does appear it was a trap" for the first responders to the fire, Pickering said at a news conference.


Authorities didn't say how the gunman died or whether anyone might have died in the fire itself.


One of the dead firefighters was also a town police lieutenant; it wasn't clear whether he returned fire. An off-duty police officer who was driving by was injured by shrapnel, Pickering said.


The fire started in one home and spread to two others and a car, officials said. The gunfire initially kept firefighters from battling the blazes. Police say four homes were destroyed and four damaged.


The West Webster Fire District learned of the fire early Monday after a report of a car and house on fire on Lake Road, on a narrow peninsula where Irondequoit Bay meets Lake Ontario, Monroe County Sheriff Patrick O'Flynn said.


The fire appeared from a distance as a pulsating ball of flame glowing against the early morning sky, flames licking into treetops and reflecting on the water, with huge bursts of smoke billowing away in a brisk wind.


Two of the firefighters arrived on a fire engine and two in their own vehicles, Pickering said. After the gunman fired, one of the wounded men managed to flee, but the other three couldn't because of flying gunfire.


A police armored vehicle was used to recover two of the men, and eventually it evacuated 33 people from nearby homes, the police chief said.


The dead men were identified as Police Lt. Michael Chiapperini, 43, the Webster Police Department's public information officer; and Tomasz Kaczowka, also a 911 dispatcher, whose age was not released.


Pickering described Chiapperini as a "lifetime firefighter" with nearly 20 years with the department, and called Kaczowka a "tremendous young man."


The two wounded firefighters, Joseph Hofsetter and Theodore Scardino, were in guarded condition in the intensive care unit at Strong Memorial Hospital, authorities said. Both were awake and alert and are expected to recover.


Hofsetter, also a full-timer with the Rochester Fire Department, was hit once in the pelvis, and the bullet lodged in his spine, authorities said. Scardino was hit in the chest and knee.


Monday's shooting and fires were in a neighborhood of seasonal and year-round homes set close together across the road from the lakeshore. The area is popular with recreational boaters but is normally quiet this time of year.


"We have very few calls for service in that location," Pickering said. "Webster is a tremendous community. We are a safe community, and to have a tragedy befall us like this is just horrendous."


O'Flynn lamented the violence, which comes on the heels of other shootings including the massacre of 20 students and six adults at Sandy Hook Elementary School in Newtown, Conn.


"It's sad to see that that this is becoming more commonplace in communities across the nation," O'Flynn said.


Webster, a middle-class suburb, now is the scene of violence linked to house fires for two Decembers in a row.


Last Dec. 7, authorities say, a 15-year-old boy doused his home with gasoline and set it ablaze, killing his father and two brothers, 16 and 12. His mother and 13-year-old sister escaped with injuries. He is being prosecuted as an adult.





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