Wounded presage health crisis for postwar Syria






ATMEH, Syria (AP) — A baby boy joined the ranks of Syria’s tens of thousands of war wounded when a missile fired by Bashar Assad‘s air force slammed into his family home and shrapnel pierced his skull.


Four-month-old Fahed Darwish suffered brain damage and, like thousands of others seriously hurt in the civil war, he will likely need care well after the fighting is over. That’s something doctors say a post-conflict Syria won’t be able to provide.






Making things worse, there has been a sharp spike in serious injuries since the summer, when the regime began bombing rebel-held areas from the air, and doctors say a majority of the wounded they now treat are civilians.


This week, Fahed was recovering from brain surgery in an intensive care unit, his head bandaged and his body under a heavy blanket, watched over by Mariam, his distraught 22-year-old mother.


She said that after her first-born is discharged from the hospital in Atmeh, a village in an area of relative safety near the Turkish border, they will have to return to their village in a war zone in central Syria.


“We have nowhere else to go,” she said.


Even for those who have escaped direct injury, the civil war is posing a mounting health threat. Half the country’s 88 public hospitals and nearly 200 clinics have been damaged or destroyed, the World Health Organization says, leaving many without access to health care. Diabetics can’t find insulin, kidney patients can’t reach dialysis centers. Towns are running out of water-purifying materials. Many of the hundreds of thousands displaced by the fighting are exposed to the cold in tents or unheated public buildings.


“You are talking about a public health crisis on a grand scale,” said Dr. Abdalmajid Katranji, a hand and wrist surgeon from Lansing, Michigan, who regularly volunteers in Syria.


No one knows just how many people have been injured since the uprising against Assad erupted in March 2011, starting out with peaceful protests that turned into an armed insurgency in response to a violent government crackdown.


More than 43,000 have been killed in the past 21 months, said Rami Abdul-Rahman, head of the Britain-based Syrian Observatory for Human Rights, basing his count on names and details provided by activists in Syria. He said the number of wounded is so large he can only give a rough estimate, of more than 150,000.


Casualties began to rise dramatically at the start of the summer. At the time, the regime, its ground troops stretched thin, began bombing from the air to prevent opposition fighters from gaining more territory.


Seemingly random bombings have razed entire villages and neighborhoods, driving terrified civilians from their homes, with an estimated 3 million Syrians out of the country’s population of 23 million now displaced.


About 10 percent of the wounded suffer serious injuries and many of those will need long-term care and rehabilitation, said Dr. Omar Aswad of the Union of Syrian Medical Relief Organizations, an umbrella for 14 aid groups.


This includes artificial limbs and follow-up surgery. “This is of course not available and will be one of the major (health) problems in the months right after the war,” said Mago Tarzian, emergency director for the Paris-based Doctors Without Borders.


For now, aid groups are struggling to provide even emergency treatment in under-equipped clinics.


The two dozen small hospitals and field clinics in rebel-run areas of Idlib province in the north only have a few Intensive Care Unit beds between them, said Aswad. None has a CT scanner, an important diagnostic tool.


“We need generators, we need medical supplies and the most pressing is medicine,” he said.


The challenge has been compounded by new types of injuries.


The regime has begun dropping incendiary bombs that can cause severe burns, according to the New York-based Human Rights Watch, citing amateur video and witness accounts.


Ole Solvang, a researcher for the group, said he saw remnants of such a bomb on a recent Syria trip. Aswad said doctors in Idlib and nearby Aleppo province reported seeing patients with burns from such weapons.


Doctors and hospitals have also been targeted. Aswad, who fled the city of Idlib in March after regime forces entered it, said five friends in a secret association of anti-regime physicians have been arrested. Hospitals, ambulances and doctors have been attacked, Solvang said, calling it “a worrying trend that makes the medical situation even worse.”


One of the bright spots is a 50-bed emergency care clinic set up six weeks ago in a former elementary school in Atmeh.


Largely funded by a wealthy Syrian expatriate, the Orient clinic, with five ICU beds, handles some of the most serious cases in a radius of some 150 kilometers (90 miles), said its director, orthopedic surgeon Abdel Hamid Dabbak.


In the past, seriously wounded patients had to go to Turkey, risking dangerous delays at the border, he said. Now, once patients are stabilized in Atmeh, they are sent to a sister clinic across the border for follow-up care.


In Orient’s ICU, a 24-year-old rebel fighter was breathing oxygen through a mask. He had been brought in a day earlier, bleeding heavily from stomach wounds and close to death, said Dr. Maen Martini, a volunteer physician from Joliet, Illinois. After surgery, he stabilized and was taken off a respirator. A delayed crossing into Turkey would have killed him, Martini said.


The fighter’s neighbor was little Fahed, whose house had been struck by a missile on Saturday in the village of Kafr Zeita in Hama province. “The roof collapsed on us,” his mother said of the attack. “We ran out … I saw him bleeding from his head, but it was just a small cut.”


The local clinic said the injury was more serious than it seemed and the family rushed to Atmeh, more than 100 kilometers (60 miles) to the north.


Since surgery, Fahed has been nursing and has moved his arms and legs, and the doctor is hoping for a near-complete recovery.


“Clinically, he has improved dramatically,” he said.


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RIM loses BlackBerry subscribers for first time






TORONTO (AP) — Research In Motion‘s stock plunged in after-hours trading Thursday after the BlackBerry maker said it plans to change the way it charges fees.


RIM also announced that it lost subscribers for the first time in the latest quarter, as the global number of BlackBerry users dipped to 79 million.






In a rare positive sign, the Canadian company added to its cash position during the quarter as it prepared to launch new smartphones on Jan. 30. The new devices are deemed critical to the company’s survival.


RIM’s stock initially jumped more than 8 percent in after-hours trading on that news, but then fell $ 1.48, or 10.4 percent, to $ 12.65 after RIM said on a conference call that it won’t generate as much revenue from telecommunications carriers once it releases the new BlackBerry 10 platform.


RIM is changing the way it charges service fees, putting an important source of revenue at risk. RIM CEO Thorsten Heins said only subscribers who want enhanced security will pay fees under the new system.


“Other subscribers who do not utilize such services are expected to generate less or no service revenue,” Heins said. “The mix in level of service fees revenue will change going forward and will be under pressure over the next year during this transition.”


RIM’s stock had been on a three-month rally that has seen the stock more than double from its lowest level since 2003.


But Mike Walkley, an analyst with Canaccord Genuity, said BlackBerry 10 will change RIM’s services revenue model dramatically. He said that instead of getting about $ 6 per device each month from carriers and users RIM could get as little as zero.


“That’s what turned the stock from being up 10 percent to being down 10 percent,” Walkley said. “That’s been part of our worry. How do they come back with a new platform and get carriers to continue to share the higher revenue —which sounds like they are not going to— and then subsidize the phone to make it affordable for consumers and enterprises.”


“People are seeing that the services revenue has a lot of risk to it now with the BlackBerry 10 migration.”


Three months ago, RIM had 80 million subscribers. Analysts said the loss of 1 million subscribers was expected. Once coveted symbols of an always-connected lifestyle, BlackBerry phones have lost their luster to Apple’s iPhone and phones that run on Google’s Android software.


RIM is banking its future on its much-delayed BlackBerry 10 platform, which is meant to offer the multimedia, Internet browsing and apps experience that customers now demand.


“We believe the company has stabilized and will turn the corner in the next year,” Heins said. He noted that the company’s cash holdings grew by $ 600 million in the quarter to $ 2.9 billion, even after the funding of all its restructuring costs. RIM previously announced 5,000 layoffs this year.


Heins said subscribers in North America showed the largest decline, but said there is growth overseas.


Colin Gillis, an analyst with BGC Financial, said before the conference call that the company bought itself more time.


“It doesn’t mean (BlackBerry) 10 will gain traction. A lot of people said 10 would be DOA, but I don’t think that’s going to be the case,” he said.


Jefferies analyst Peter Misek also earlier called the results better than expected, noting that RIM added a significant amount of cash. RIM will need the money to advertise the new BlackBerrys and operating system.


Misek also called it a positive development that RIM said there would not be another delay to BlackBerry 10.


“The success or failure of this company will be on BlackBerry 10,” Misek said.


RIM posted net income of $ 14 million, or 3 cents per share for its fiscal third quarter, which ended Dec. 1. That compares with a profit of $ 265 million, or 51 cents per share, in the same quarter a year ago.


The latest figure includes a favorable tax settlement. Excluding that adjustment, RIM lost 22 cents per share. Analysts polled by FactSet were expecting a wider loss of 27 cents.


RIM reported revenue of $ 2.7 billion, down 47 percent from a year ago.


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Twitter post offers clue to The Civil Wars’ future






NASHVILLE, Tenn. (AP) — While there still remain questions about the future of The Civil Wars, there’s new music on the way.


Joy Williams, one half of the Grammy Award-winning duo with John Paul White, said Thursday during a Twitter chat that she was in the studio listening to new Civil Wars songs.






It’s a tantalizing clue to the future of the group, which appeared in doubt when a European tour unraveled last month due to “irreconcilable differences.”


At the time, the duo said it hoped to release an album in 2013. It’s not clear if Williams was referring Thursday to music for a new album or for a documentary score they have composed with T Bone Burnett. They’re also set to release an “Unplugged” session on iTunes on Jan. 15.


Nate Yetton, the group’s manager and Williams’ husband, had no comment — though he has supplied a few hints of his own by posting pictures of recording sessions on his Instagram account recently. The duo announced last summer it would be working with Charlie Peacock, who produced its gold-selling debut “Barton Hollow.” The photos do not show Williams or White, but one includes violin player Odessa Rose.


Rose says in an Instagram post: “Playing on the new Civil Wars record… Beautiful sounds.”


Even with its future in doubt, the duo continues to gather accolades. Williams and White are up for a Golden Globe on Jan. 13, and two Grammy Awards on Feb. 10, for their “The Hunger Games” soundtrack collaboration “Safe & Sound” with Taylor Swift.


Williams’ comments came during an installment of an artist interview series with Alison Sudol of A Fine Frenzy sponsored by The Recording Academy.


___


Online:


http://thecivilwars.com


___


Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.


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Apothecarie New York Launches New Obagi Hydrate Moisturizer for All-Day Skin Hydration






The multi-action compound provides speedy relief and rejuvenation, and continues to release active compounds for all-day moisturizing protection from wind, sun and environmental elements. Obagi Hydrate, part of the Obagi Nu-Derm System, rejuvenates and restores skin cells to health and vitality.


Brooklyn, NY (PRWEB) December 19, 2012






Apothecarie New York, a premiere provider of skin care products from around the globe, has announced the addition of the new Obagi Hydrate facial moisturizer from Obagi Medical Products to its line of premium products. The innovative moisturizer utilizes hydromanil technology, a natural moisturizing agent from the tara tree seed that works from the inside to enhance skin flexibility and smoothness.


“Most moisturizers on the market today are occlusive, meaning they’re impenetrable,” said Sandy Kohen, a licensed esthetician at Apothecarie New York. “They basically form a shield or film that is spread onto the skin to slow or prevent moisture evaporation. Obagi Hydrate actually penetrates the skin and works from within, keeping you moisturized all day long.”


The seeds have long been known for their unique properties, making them a highly sought ingredient for beauty and medical products. Obagi Medical Products is a leader in physician dispensed skin health systems and has harnessed the healing and restorative powers of the tara tree for its Obagi Hydrate.


“Our customers and their patients have been asking for a moisturizer for years and we’re happy to be bringing to market a product that is clinically proven to do what it says it will do,” said Al Hummel, CEO at Obagi. “Obagi Hydrate offers both instant and long-lasting hydration and is a great adjunct to any of our other Obagi Systems.”


Obagi Hydrate is part of the Obagi Nu-Derm System, the number one physician-dispensed prescription skincare system in the world. It provides immediate moisturizing, prevents further evaporation of moisture from delicate skin, and addresses the signs of photodamage.


The multi-action compound provides speedy relief and rejuvenation, and continues to release active compounds for all-day moisturizing protection from wind, sun and environmental elements. Obagi Hydrate rejuvenates and restores skin cells to health and vitality.


Users will experience a 92 percent improvement in their skin’s moisture content within two hours and increased moisture retention for a full eight hours. Obagi Hydrate has been clinically proven to provide immediate results, and the formula’s unique composition provides users with a 51 percent reduction in moisture loss for long-lasting effects.


The hypoallergenic serum has been allergy tested and specially formulated to be effective for all ages and skin types. Clinically proven to be non-irritating, it combines tara tree seed with Shea and mango butter, avocado and glycerin for healthy, more youthful looking skin. The non-irritating and non-sensitizing facial formula helps fight dryness without clogging pores and leaves no greasy residue.


Obagi Hydrate is available at Apothecarie New York separately or with the Obagi Nu-Derm system for just $ 45.


The addition of Obagi Hydrate to the offerings at Apothecarie New York provides users with a proven formula from a leader in physician-dispensed skin care systems. The hypoallergenic formula works with all skin types to provide immediate and long-term moisturizing from the inside out for beautiful, healthy and younger looking skin.


ABOUT APOTHECARIE NEW YORK



Apothecarie New York is committed to providing customers with advanced and effective skin care products and treatments, and education about skin care choices for their individual needs. The store provides shoppers with free consultations on beauty issues and the company’s estheticians will handpick the products that best fit the needs of the client to repair, maintain and enhance their skin from head to toe.


Apothecarie New York is an authorized partner of Obagi products and Obagi Nu-Derm systems. Purchasing Obagi products through an authorized medical practice is the only way to ensure that the Obagi product is genuine and fresh.


Max Hauer
Apothecarie New York
718.534.0013 215
Email Information


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U.S. “fiscal cliff” talks turn sour, Obama threatens veto






WASHINGTON (Reuters) – Talks to avoid a U.S. fiscal crisis stalled on Wednesday as President Barack Obama accused opponents of holding a personal grudge against him while the top Republican negotiator called the president “irrational.”


As a year-end deadline nears, Obama and House of Representatives Speaker John Boehner are locked in intense bargaining over a possible deal to avoid the so-called fiscal cliff of harsh tax hikes and automatic spending cuts that could badly damage an already weak economy.






Obama said he was puzzled over what was holding up the talks and told Boehner‘s Republicans to stop worrying about scoring “a point against the president” or forcing him into concessions “just for the heck of it.”


“It is very hard for them to say yes to me,” he told a news conference in the White House. “At some point, you know, they’ve got to take me out of it.”


The rise in tensions threatens to unravel significant progress made over the last week.


Boehner and Obama have each offered substantial concessions that have made a deal look within reach. Obama has agreed to cuts in benefits for seniors, while Boehner has conceded to Obama’s demand that taxes rise for the richest Americans.


However, the climate of goodwill has evaporated since Republicans announced plans on Tuesday to put an alternative tax plan to a vote in the House this week that would largely disregard the progress made so far in negotiations.


On Wednesday, Obama threatened to veto the Republican measure, known as “Plan B,” if Congress approved it.


Boehner’s office slammed Obama for opposing their plan, which would raise taxes on households making more than $ 1 million a year and is a concession from longstanding Republican opposition to increasing any tax rates.


“The White House’s opposition to a backup plan … is growing more bizarre and irrational by the day,” Boehner said through his spokesman, Brendan Buck.


Boehner expressed confidence the House would pass the legislation on Thursday. He urged Obama to “get serious” about a balanced deficit reduction plan.


Wall Street is on edge over the fiscal cliff talks although investors still expect a deal. The S&P 500 stock index slipped 0.76 percent on Wednesday.


Business leaders have descended on Washington to lobby for a deal to avoid going over the cliff while putting public finances on a more sustainable path. Without an agreement to narrow deficits over the long run, the United States could eventually lose investors’ trust, triggering a debt crisis.


An acrimonious presidential campaign that culminated in Obama’s re-election on November 6 has added to the bad blood in Washington between Obama and congressional Republicans.


The two sides also clashed bitterly last year over the government’s limit on borrowing – known as the debt ceiling – an episode that nearly led the nation to default on its debt.


On Wednesday, Obama said the fiscal cliff must not get bogged down with negotiations over the debt ceiling, an issue that must be dealt with again early next year.


But Boehner’s offer to raise the debt ceiling enough for another year of borrowing is facing opposition from a large group of Republicans, a House Republican aide said.


LITMUS TEST


Any fiscal cliff agreement by Obama and the Republican leadership would need the support of their parties’ rank and file in Congress, and Thursday’s vote on Plan B will be a test of Boehner’s ability to deliver votes on any eventual deal.


Boehner faces opposition from Republican Tea Party conservatives over his concession to raise tax rates. But in a sign some conservatives are coming around to Boehner’s position, anti-tax activist Grover Norquist gave his blessing to the bill.


Other conservative groups, including the influential Club for Growth, are urging Republicans to vote against Plan B.


Obama and Boehner appear to have bridged their biggest ideological differences but remain hung up on the mix of tax hikes and spending cuts meant to narrow the budget gap.


“What separates us is probably a few hundred billion dollars,” Obama said.


The White House wants taxes to rise on household incomes above $ 400,000 a year, a concession from Obama’s opening proposal for a $ 250,000 income threshold.


If a deal is not reached soon, some $ 600 billion in tax hikes and spending cuts are set to begin next month.


Senior administration officials described negotiations as at a standstill and Obama warned he would ask everyone involved in the talks, “what it is that’s holding it up?”


Still, the top Republican in the Senate said a resolution to the stalemate could come by the end of the week.


“There’s still enough time for us to finish all of our work before this weekend, if we’re all willing to stay late and work hard,” said Senate Republican leader Mitch McConnell.


Many Democrats dislike the president’s offer to reduce benefits to seniors, although some political allies of Obama have given signs they feel they could swallow this concession.


“I don’t like these particular changes,” said Democratic Representative Chris Van Hollen, a member of the House leadership from Maryland. But he added: “What people are seeing is the president willing to compromise in order to get things done.”


(Additional reporting by Roberta Rampton, Thomas Ferraro and Vicki Allen; Kim Dixon and Richard Cowan; Writing by Jason Lange; Editing by Alistair Bell and Eric Beech)


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Worries grow in east Congo with fighter buildup






DAKAR, Senegal (AP) — Aid workers warned Wednesday that armed groups are setting up new front lines in and around the city of Goma in eastern Congo, where the U.N. said it now has documented at least 126 rape cases last month.


Thousands of fighters from the M23 rebel group withdrew several weeks ago from Goma, and the fighters have since taken steps toward negotiating with the Congolese government.






However, residents in Goma say M23 and other armed fighters are now positioning themselves in an around the city — including inside camps for people displaced by the violence.


The arrival of several thousand fighters within the last week is prompting fear among civilians, who already have experienced years of fighting and rebellions, said Tariq Riebl, Oxfam’s humanitarian coordinator there.


“They are very concerned — people are seeing this and they don’t know what it means,” he said. “I think what everyone is scared about is that it seems like people are ramping up, ramping up but for what purpose?”


Oxfam warns that more than 1 million people could come under attack if violence again flares in Goma, where more than 100,000 people already have fled from elsewhere in the region.


“Goma is typically the last refuge safe haven and now it’s being directly called into question. If Goma falls in a big battle, where are people going to go?” Riebl said.


“This is very, very disconcerting because you have a population of over 1 million people and if war were to break out, we’re looking at a horrific situation.”


The M23 rebel group, which is believed to be backed by neighboring Rwanda, is made up of hundreds of soldiers who deserted the Congolese army in April.


They took control of many villages and towns in the mineral-rich east over the last seven months, culminating in the seizure of Goma on Nov. 20. It took days of negotiations and intense international pressure, including from the U.N., for the thousands of fighters from M23 to finally withdraw from the regional capital.


The U.N. mission says it’s received allegations of serious rights violations, including killings and wounding of civilians, rape, looting, and forced recruitment of children, by elements of the M23 rebels in Goma and neighboring areas.


Congo’s armed forces are also blamed for a series of attacks as they fled Goma in retreat in late November.


The U.N. said Tuesday it now has been able to document at least 126 rapes during that period in the Minova area, about 60 kilometers (40 miles) south of Goma.


U.N. spokesman Martin Nesirky said that two Congolese soldiers so far have been arrested in connection with the rapes, while seven others had been implicated in looting in the area.


“The Congolese Armed Forces have started investigating those human rights violations,” he said. “The U.N. Mission is supporting the military justice procedure in conducting thorough investigations into these allegations to ensure that the perpetrators are identified and held accountable.”


Rape has long been used as a brutal weapon of war in eastern Congo, where both soldiers and various armed groups use sexual violence to intimidate, punish and control the population.


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Apple is dominating the small and medium business market in Q4









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Leah Remini sued by former managers over “Family Tools” commissions






LOS ANGELES (TheWrap.com) – Leah Remini‘s new TV gig is already giving her a headache, months before it even starts. Former “King of Queens” star Remini is being sued by her former managers, the Collective Management Group, which claims that it’s owed $ 67,000 in commissions relating to her upcoming ABC comedy “Family Tools,” which debuts May 1.


In a complaint filed with Los Angeles Superior Court on Tuesday, the Collective says that it entered into an agreement with the actress in November 2011 that guaranteed the company 10 percent of the earnings that emerged from projects that Remini “discussed, negotiated, contemplated, or procured/booked during Plaintiff’s representation of Remini,” regardless of whether the income was earned after she and the Collective parted ways.






According to the lawsuit, that would include the $ 1 million that it says Remini will earn for the first season of “Family Tools.” (The suit allows that it isn’t owed commission on a $ 330,000 talent holding fee that Remini received from ABC prior to officially being booked on the show.)


Remini, pictured above wearing the self-satisfied smirk of someone who just might stiff her former managers out of their commission, terminated her agreement with the Collective “without warning or justification” in October, the suit says.


Alleging breach of oral contract among other charges, the suit is asking for an order stipulating that it’s owed the $ 67,000, plus unspecified damages, interest and court costs.


Remini’s agent has not yet responded to TheWrap’s request for comment.


(Pamela Chelin contributed to this report)


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Number of new drugs picks up in Europe and U.S.






LONDON (Reuters) – The number of new medicines approved or pending approval is on the rise on both sides of the Atlantic, painting an encouraging picture for the global drugs industry as it emerges from a wave of patent expiries.


European regulators said on Tuesday that they expect an increase in new drug applications to about 54 in 2013. In the United States, a total of 34 new drugs have been approved for sale so far in 2012 – the highest level in eight years.






The sector badly needs a pick-up in productivity as companies try to refill their medicine chests after a wave of patient expiries that have peaked this year, depriving leading U.S. and European drug companies of more than $ 30 billion of revenue.


“It bodes well,” said Standard & Poor’s (S&P) analyst Olaf Toelke, who predicts that strong pipelines will allow most large drugmakers to emerge unscathed from the spike in sales losses.


“It shows that companies are addressing the need to find new drugs to replace those facing patent expiration. They have done their homework and it looks as if the industry will be at least stable in future and not fall off the threatened patent cliff.”


The U.S. Food and Drug Administration (FDA), gatekeeper to the world’s biggest pharmaceuticals market, still has just over a week to add more approvals to this year’s tally – and there are signs that the number will increase further.


Three new products for leukemia, anthrax and Cushing’s disease from Ariad Pharmaceuticals, GlaxoSmithKline and Novartis were approved last Friday alone, and the FDA is scheduled to hand down decisions on a further four drugs before the end of the month.


FEWER GENERICS


A green light for all these would take the 2012 tally of new molecular entities (NMEs) approved by the agency’s Center for Drug Evaluation and Research to 38 – two more than the 2004 total of 36.


The European Medicines Agency painted a different picture of improving productivity by announcing that its work program for the year ahead included a forecast for 54 new drug applications, up from 52 in 2012, 48 in 2011 and 34 in 2010. These figures exclude medicines designated for “orphan”, or rare, diseases.


Significantly, the London-based agency is also expecting a sharp drop in the number of applications from companies to sell generic versions of drugs, to 20 in 2013 from 39 in 2012, given the slowdown in patent expiries next year.


Major U.S. drug companies will lose a total of about $ 21 billion in revenue this year from lucrative medicines coming off patent, while the hit for European businesses is about $ 10 billion, according to S&P.


This year’s expiries have included Sanofi and Bristol-Myers Squibb’s heart drug Plavix and AstraZeneca’s antipsychotic Seroquel.


Winning approval from regulators, however, is only part of the battle for drugmakers.


Investors will also be watching closely to see how the new drugs perform commercially once they reach the market, since securing payment for innovative medicines is an increasingly tough fight – especially in austerity-hit Europe.


An analysis by Deloitte and Thomson Reuters this month found that while new drug approvals were increasing, this was offset by lower expected revenues from many individual products.


(Editing by David Goodman)


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Cliff talks hit a lull with Boehner’s ‘Plan B’






WASHINGTON (AP) — Just two weeks from an economy-threatening deadline, fiscal cliff talks hit a lull Tuesday as House Speaker John Boehner announced that Republicans would also march ahead with their own tax plan on a separate track from the one he’s been pursuing with President Barack Obama.


The White House and leading congressional Democrats immediately rejected Boehner‘s “Plan B,” which would extend soon-to-expire Bush-era tax cuts for everyone making less than $ 1 million but would not address huge across-the-board spending cuts that are set to strike the Pentagon and domestic programs next year.






“Everyone should understand Boehner‘s proposal will not pass the Senate,” said Senate Majority Leader Harry Reid, D-Nev.


Boehner’s surprise move came after significant progress over the past several days in talks with Obama — talks that produced movement on tax rate hikes that have proven deeply unsettling to GOP conservatives and on cuts to Social Security benefits that have incensed liberal Democrats.


Just Monday, Obama offered concessions, including a plan to raise top tax rates on households earning more than $ 400,000 instead of the $ 250,000 threshold he had campaigned on. And the two sides had inched closer on the total amount of tax revenue required to seal the agreement. Obama now would settle for $ 1.2 trillion over the coming decade while Boehner is offering $ 1 trillion.


By contrast, protecting income below $ 1 million from a hike in the top tax rate from 35 percent to 39.6 percent would raise only $ 269 billion over the coming decade.


But the outlines of a possible Obama-Boehner agreement appeared to have shaky support at best from Boehner’s leadership team and outright opposition from key Republicans like vice presidential nominee Paul Ryan, R-Wis., a House GOP aide said. That aide spoke only on condition of anonymity because the aide was not authorized to discuss the situation publicly.


Though Obama spokesman Jay Carney had nothing good to say about Boehner‘s new option, he said, “The president is willing to continue to work with Republicans” toward a broader agreement.


The narrower Plan B faced plenty of opposition. Democrats announced they would oppose it, and many conservative Republicans continued to resist any vote that might be interpreted as raising taxes. Republicans were refining the measure Tuesday in hopes of building support among the GOP rank and file, but passing the measure exclusively with GOP votes could prove difficult.


“I think it’s a terrible idea,” said Rep. Raul Labrador, R-Idaho. “For a lot of reasons.”


Republicans noted that top Democrats like Minority Leader Nancy Pelosi of California and Sen. Charles Schumer of New York have in the recent past supported the million-dollar threshold for rates hikes. “We’ve had an election on the President’s tax plan, the President won, and Republicans can’t turn the clock back,” said Schumer spokesman Brian Fallon.


Boehner’s back-up plan would extend current income tax rates except for income exceeding $ 1 million, set a 20 percent tax rate on capital gains and dividend income for income over $ 1 million instead of 15 percent now, and retain current rules regarding the estate tax instead of tighter parameters sought by Obama.


It would also prevent an expansion of the alternative minimum tax that would otherwise hit 28 million middle- and upper-class Americans with an average $ 3,700 increase on their 2012 tax returns.


Several rank-and-file House Republicans said the message they heard at an evening caucus was that passing plan B would strengthen Boehner’s hand in negotiating steeper spending cuts with Obama.


If the Senate decides not to vote on the House bill or ignores it, “That’s not our problem,” said Rep. Patrick Tiberi, R-Ohio. “The ball’s in Harry Reid’s court.”


Democrats said Boehner’s move made it clear he was abandoning efforts to reach an agreement with Obama — much as he quit talks with Obama 18 months ago.


“Plan B is yet another example of House Republicans walking away from negotiations,” said Rep. Chris Van Hollen, D-Md., top Democrat on the Budget Committee.


At the White House, officials remained cautiously optimistic that the talks could get back on track despite Boehner’s maneuvering.


Boehner, however, said Obama is the one proving to be too inflexible, even as he held out hope that talks with Obama might yet bear fruit.


“He talked about a ‘balanced’ approach on the campaign trail,” Boehner said. “What the White House offered yesterday — $ 1.3 trillion in revenue for only $ 850 billion in spending cuts — cannot be considered balanced.”


Boehner also displayed new flexibility on the politically explosive issue of raising the Medicare retirement age from 65 to 67. Boehner said the idea — anathema to Democrats — didn’t need to be dealt with this year but could be kicked over into a broader negotiation next year.


“That issue has been on the table, off the table, back on the table,” Boehner said. “I don’t believe it’s an issue that has to be dealt with between now and the end of the year.”


Just Monday, the Capitol bristled with optimism that Boehner and Obama might strike a bargain.


In a new offer, Obama dropped his long-held insistence that taxes rise on individuals earning more than $ 200,000 and families making more than $ 250,000. He is now offering a new threshold of $ 400,000 and lowering his 10-year tax revenue goals from the $ 1.6 trillion he originally sought.


The new Obama plan seeks $ 1.2 trillion in revenue over 10 years and $ 1.2 trillion in 10-year spending reductions. Boehner aides say the revenue is closer to $ 1.3 trillion if revenue triggered by a new inflation index is counted, and they say the spending reductions are closer to $ 930 billion if one discounts about $ 290 billion in lower estimated debt interest.


The two sides also differ on the estate tax, extending unemployment benefits and how to address the need to raise the government’s borrowing cap to prevent a first-ever U.S. default and a re-run of last year’s debt crisis.


The White House was facing its own backlash, with labor, liberal and elderly advocacy groups mounting an organized campaign against any adjustments in cost-of-living for Social Security beneficiaries.


“President Obama and other Democrats campaigned saying Social Security doesn’t affect the deficit,” said Roger Hickey, co-director of the liberal Campaign for America’s Future. “Social Security recipients are going to notice and they are either going to blame John Boehner or President Obama.”


The change would reduce annual cost-of-living increases for beneficiaries of Social Security and other government programs. It also would push more people into higher tax brackets by making smaller annual adjustments to brackets.


The administration appeared confident that most Democrats would reluctantly vote for the idea in an attractive enough budget package, particularly one that has the backing of Obama.


“I think many of us still have faith that the president will ultimately, if he strikes a deal with the Republicans, give us a plan that we can vote on that provides that fairness and balance,” said Rep. Xavier Becerra, D-Calif.


White House spokesman Carney described the inclusion of the inflation adjustment as “a technical change” that was “not directed at one particular program.” He also said that if instituted, the administration would ensure that the most vulnerable beneficiaries would not be affected.


___


Associated Press writers Alan Fram, Jim Kuhnhenn and Donna Cassata contributed to this report.


Economy News Headlines – Yahoo! News





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