Bigger Tax Bite for Most Households Under Senate Plan





WASHINGTON — Only the most affluent American households will pay higher income taxes this year under the terms of a deal that passed Congress on Tuesday, but most households will face higher payroll taxes because the deal does not extend a two-year-old tax break.




The legislation, which was forged in the Senate and overcame resistance in the House late Tuesday will grant most Americans an instant reversal of the income tax increases that took effect with the arrival of the new year. Only about 0.7 percent of households will be subject to an income tax increase this year, according to the Tax Policy Center, a nonpartisan research group in Washington. The increases will apply almost exclusively to households making at least half a million dollars, the center estimated in an analysis published Tuesday.


But lawmakers’ decision not to reverse a scheduled increase in the payroll tax that finances Social Security, while widely expected, still means that about 77 percent of households will pay a larger share of income to the federal government this year, according to the center’s analysis.


The tax this year will increase by two percentage points, to 6.2 percent from 4.2 percent, on all earned income up to $113,700.


Indeed, for most lower- and middle-income households, the payroll tax increase will most likely equal or exceed the value of the income tax savings. A household earning $50,000 in 2013, roughly the national median, will avoid paying about $1,000 more in income taxes — but pay about $1,000 more in payroll taxes.


Sabrina Garcia, a 35-year-old accounting assistant from Quincy, Mass., who together with her husband made about $102,000 last year, said the payroll tax increase equated to “about $200 a month for my family.”


“That’s a lot of money for us,” Ms. Garcia said. “It means we will have to cut back.” She said in an e-mail exchange that she will most likely will postpone buying a new computer. “And forget about being able to save money,” she added.


The deal will impose larger tax increases on those who make the most. It will raise taxes in two ways: by restoring limits on the amount of income affluent Americans can shelter from federal taxation, and by returning to a top marginal tax rate of 39.6 percent. The current rate is 35 percent.


For married couples filing jointly, the deduction limits apply to income above $300,000, while the top tax rate kicks in above $450,000. But both numbers are somewhat misleading, because “income” in this context is a technical term, referring only to the portion of income subject to taxation after exemptions and deductions.


Few households with actual incomes of less than half a million dollars will face a tax increase. The Tax Policy Center calculated that less than 5 percent of families earning $200,000 to $500,000 will actually pay more.


The size of those increases will be much smaller than President Obama originally proposed. The net effect, according to the center’s estimates, is that the top 1 percent of households will see an average income tax increase this year of $62,000 rather than $94,000. “The high-income people really are doing very well in this compared to what the president wanted to do,” said Roberton Williams, a senior fellow at the Tax Policy Center.


The deal passed by the Senate and the House will impose fewer limits on deductions than the White House plan. It will also tax income from dividends at a flat rate of 20 percent, rather than the same marginal rate as earned income. And there is another important point, often misunderstood: Affluent households will pay the new 39.6 percent rate only on income above $450,000. They and everyone else will still will pay lower rates on income below that threshold.


Households making $500,000 to $1 million will pay an additional $6,700 in taxes on average. Those making more than $1 million will pay an additional $123,000 on average.


Changes in the estate tax will also benefit affluent families. The tax will not apply to the first $5 million of an inheritance, extending the current exclusion rather than reverting to the $3.5 million threshold that President Obama initially favored. However, wealth above that amount will be taxed at a rate of 40 percent rather than the previous rate of 35 percent.


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Senate Passes Tax Increases on Wealthy Americans


Alex Brandon/Associated Press


Vice President Joseph R. Biden Jr. on Monday after a meeting with Senate Democrats on the fiscal negotiations.







WASHINGTON — The Senate, in a predawn vote two hours after the deadline passed to avert automatic tax increases, overwhelmingly approved legislation on Tuesday that would allow tax rates to rise only on affluent Americans while temporarily suspending sweeping, across-the-board spending cuts.




The deal, worked out in furious negotiations between Vice President Joseph R. Biden Jr. and the Republican Senate leader, Mitch McConnell, passed 89 to 8, with just three Democrats and five Republicans voting no. Although it lost the support of some of the Senate’s most conservative members, the broad coalition that pushed the accord across the finish line could portend swift House passage as early as New Year’s Day.


Quick passage before the markets reopen on Wednesday would be likely to negate any economic damage from Tuesday’s breach of the “fiscal cliff” and largely spare the nation’s economy from the one-two punch of large tax increases and across-the-board military and domestic spending cuts in the New Year.


“This shouldn’t be the model for how to do things around here,” Mr. McConnell said just after 1:30 a.m. “But I think we can say we’ve done some good for the country.”


Mr. Biden, after a late New Year’s Eve meeting with leery Senate Democrats to sell the accord, said: “You surely shouldn’t predict how the House is going to vote. But I feel very, very good.”


The eight senators who voted no included Marco Rubio, Republican of Florida and a potential presidential candidate in 2016, two of the Senate’s most ardent small-government Republicans, Rand Paul of Kentucky and Mike Lee of Utah, and Senator Charles E. Grassley of Iowa, who as a former Finance Committee chairman helped secure passage of the Bush-era tax cuts, then opposed making almost all of them permanent on Tuesday. Two moderate Democrats, Thomas R. Carper of Delaware and Michael Bennet of Colorado, also voted no, as did the liberal Democrat Tom Harkin, who said the White House had given away too much in the compromise. Senator Richard C. Shelby, Republican of Alabama, also voted no.


The House Speaker, John A. Boehner, and the Republican House leadership said the House would “honor its commitment to consider the Senate agreement.” But, they added, “decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members — and the American people — have been able to review the legislation.”


Even with that cautious assessment, Republican House aides said a vote Tuesday was possible.


Under the agreement, tax rates would jump to 39.6 percent from 35 percent for individual incomes over $400,000 and couples over $450,000, while tax deductions and credits would start phasing out on incomes as low as $250,000, a clear victory for President Obama, who ran for re-election vowing to impose taxes on the wealthy.


Just after the vote, Mr. Obama called for quick House passage of the legislation.


“While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay,” he said.


Democrats also secured a full year’s extension of unemployment insurance without strings attached and without offsetting spending cuts, a $30 billion cost. But the two-percentage point cut to the payroll tax that the president secured in late 2010 lapsed at midnight and will not be renewed.


In one final piece of the puzzle, negotiators agreed to put off $110 billion in across-the-board cuts to military and domestic programs for two months while broader deficit-reduction talks continue. Those cuts begin to go into force on Wednesday, and that deadline, too, might be missed before Congress approves the legislation.


To secure votes, Senator Harry Reid, the Senate Democratic leader, also told Democrats the legislation would cancel a pending Congressional pay raise — putting opponents in the politically difficult position of supporting a raise — and extend an expiring dairy policy that would have seen the price of milk double in some parts of the country.


The nature of the deal ensured that the running war between the White House and Congressional Republicans on spending and taxes would continue at least until the spring. Treasury Secretary Timothy F. Geithner formally notified Congress that the government reached its statutory borrowing limit on New Year’s Eve. Through some creative accounting tricks, the Treasury Department can put off action for perhaps two months, but Congress must act to keep the government from defaulting just when the “pause” on pending cuts is up. Then in late March, a law financing the government expires.


Jennifer Steinhauer and Robert Pear contributed reporting.



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Relive the Paralympics’ Most Inspiring Moment of the Year






Back in July, we covered how social media would be critical to the success of the 2012 Paralympic Games. The Paralympics ended in September, but the International Paralympic Committee is still using the web to shine a light on unheralded athletes and tell stories of remarkable inspiration.


[More from Mashable: Watch the Scariest Skiing Lesson of All Time]






The committee revealed its top moment of 2012 in a video posted to YouTube on Sunday. It profiles Italian cyclist Alex Zanardi winning gold in London after losing his legs in an auto racing accident in 2001. The image of a triumphant Zanardi lifting his hand-cycling tricycle above his head with one arm post-race is nothing short of astounding.


[More from Mashable: NBA Star’s Kick to the Groin Sparks Online Debate]


For a longer look at Zanardi’s amazing achievement and to relive one of 2012′s sweetest sports moments, watch the full video above.


BONUS: 2012′s best sports social media moments


1. Devin McCourty Tweets While Playing in the Super Bowl (Sort of)


As New England Patriot Devin McCourty took on the New York Giants in Super Bowl XLVI, his followers were still able to receive real-time updates from his social feeds. But he wasn’t sneaking tweets between plays or during timeouts. Devin and twin brother Jason, who plays for the Tennessee Titans, share their Twitter and Facebook accounts. The Super Bowl showcased one of the more creative approaches to social media in the sports world.


Image courtesy of Devin and Jason McCourty’s Instagram.


Click here to view this gallery.


Thumbnail image credit Getty Images/AFP/Leon Neal


This story originally published on Mashable here.


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DiDonato a luminous Mary Stuart at Met


NEW YORK (AP) — The Metropolitan Opera may have pretty much turned opening night over to the glamorous Anna Netrebko, but New Year's Eve belongs to a very different diva — Joyce DiDonato.


Last year the Kansas-born mezzo-soprano headlined a starry lineup in the baroque pastiche "The Enchanted Island." On Monday night she brought a gala audience to its feet with a luminous performance in the title role of Donizetti's "Maria Stuarda."


Never before performed at the Met, this second opera in the composer's so-called "Three Queens" trilogy portrays the lethal conflict between Mary, deposed queen of Scotland, and Queen Elizabeth I of England.


From the moment she makes her entrance in the second scene, singing of her joy in strolling outside her prison in Fotheringay Castle, DiDonato rivets attention. She imbues every syllable with a concentrated eloquence that makes her compact voice seem larger than it is. She displays seemingly effortless command of coloratura embellishments throughout a wide vocal range. And she is equally impressive in fiery outbursts and in hushed, long-held phrases — like the ones she spun out as she sang through the chorus in the final scene.


The opera's dramatic heart is a confrontation between the two queens that never took place in history but that figures in the Friedrich Schiller play on which the libretto is based. Mary at first abases herself in hope of winning a pardon; then, as Elizabeth hurls insults, her pride reasserts itself and she seals her doom by denouncing her rival as "figlia impura di Bolena" ("impure daughter of Anne Boleyn") and "vil bastarda" ("vile bastard").


DiDonato was impressive in this scene when she sang the role for the first time last spring in Houston, but her performance Monday night was even better — more confident and more filled with vocal and dramatic shadings. There was a wonderful touch when, after she had spent her fury, she allowed herself a beatific smile, as if to convey: "There! I said it and I'm glad!"


Of course, it takes two to stage a confrontation, and DiDonato's partner at the Met is Elza van den Heever, a South African soprano making her debut. She has a voice that's impressive in many respects, with a large and vibrant upper register. But she tended to fade out in the lower part of her range, where much of Elizabeth's music lies.


More damagingly, she was victimized by a quirk of David McVicar's production that has Elizabeth lurching awkwardly about the stage for much of the evening, as if thrown off balance by John Macfarlane's elaborate period costumes. Perhaps this bizarre gait is intended to contrast with Mary's immaculate poise, but it mainly proves distracting.


The opening scene in Elizabeth's palace is garishly staged, with what look like red rafters hanging down from the ceiling and gratuitous acrobats in devil costumes, but once past this, matters improve. For the scene outside Fotheringay, Macfarlane fills the stage with spindly trees barren of leaves and provides a painted backdrop that evokes a cloudy landscape. The final tableau is also striking: Mary, shorn of her long hair and wearing a simple red dress, climbs a staircase with her back to the audience to meet her executioner and the chopping block.


Though the two queens dominate the opera, there are some other characters, and they are all in extremely good hands. Having the elegant tenor Matthew Polenzani take on the thankless role of the ineffectual Leicester is luxury casting indeed. Bass Matthew Rose is warmly sympathetic as Mary's confessor, Talbot; baritone Joshua Hopkins sings with robust tone as her nemesis, Cecil; and mezzo Maria Zifchak lends her customary strong support as Mary's attendant, Anna.


Maurizio Benini conducts a lithe and lively performance of the score, even if he can't quite disguise the fact that the second half of the opera is decidedly anti-climactic.


There are seven more performances, including a matinee on Saturday, Jan. 19, that will be broadcast live in HD to movie theaters around the world.


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Hispanic Pregnancies Fall in U.S. as Women Choose Smaller Families





ORLANDO, Fla. — Hispanic women in the United States, who have generally had the highest fertility rates in the country, are choosing to have fewer children. Both immigrant and native-born Latinas had steeper birthrate declines from 2007 to 2010 than other groups, including non-Hispanic whites, blacks and Asians, a drop some demographers and sociologists attribute to changes in the views of many Hispanic women about motherhood.




As a result, in 2011, the American birthrate hit a record low, with 63 births per 1,000 women ages 15 to 44, led by the decline in births to immigrant women. The national birthrate is now about half what it was during the baby boom years, when it peaked in 1957 at 122.7 births per 1,000 women of childbearing age.


The decline in birthrates was steepest among Mexican-American women and women who immigrated from Mexico, at 25.7 percent. This has reversed a trend in which immigrant mothers accounted for a rising share of births in the United States, according to a recent report by the Pew Research Center. In 2010, birthrates among all Hispanics reached their lowest level in 20 years, the center found.


The sudden drop-off, which coincided with the onset of the recession, suggests that attitudes have changed since the days when older generations of Latinos prized large families and more closely followed Roman Catholic teachings, which forbid artificial contraception.


Interviews with young Latinas, as well as reproductive health experts, show that the reasons for deciding to have fewer children are many, involving greater access to information about contraceptives and women’s health, as well as higher education.


When Marucci Guzman decided to marry Tom Beard here seven years ago, the idea of having a large family — a Guzman tradition back in Puerto Rico — was out of the question.


“We thought one, maybe two,” said Ms. Guzman Beard, who gave birth to a daughter, Attalai, four years ago.


Asked whether Attalai might ever get her wish for a little brother or sister, Ms. Guzman Beard, 29, a vice president at a public service organization, said: “I want to go to law school. I’m married. I work. When do I have time?”


The decisions were not made in a vacuum but amid a sputtering economy, which, interviewees said, weighed heavily on their minds.


Latinos suffered larger percentage declines in household wealth than white, black or Asian households from 2005 to 2009, and, according to the Pew report, their rates of poverty and unemployment also grew more sharply after the recession began.


Prolonged recessions do produce dips in the birthrate, but a drop as large as Latinos have experienced is atypical, said William H. Frey, a sociologist and demographer at the Brookings Institution. “It is surprising,” Mr. Frey said. “When you hear about a decrease in the birthrate, you don’t expect Latinos to be at the forefront of the trend.”


D’Vera Cohn, a senior writer at the Pew Research Center and an author of the report, said that in past recessions, when overall fertility dipped, “it bounced back over time when the economy got better.”


“If history repeats itself, that will happen again,” she said.


But to Mr. Frey, the decrease has signaled much about the aspirations of young Latinos to become full and permanent members of the upwardly mobile middle class, despite the challenges posed by the struggling economy.


Jersey Garcia, a 37-year-old public health worker in Miami, is in the first generation of her family to live permanently outside of the Dominican Republic, where her maternal and paternal grandmothers had a total of 27 children.


“I have two right now,” Ms. Garcia said. “It’s just a good number that I can handle.”


“Before, I probably would have been pressured to have more,” she added. “I think living in the United States, I don’t have family members close by to help me, and it takes a village to raise a child. So the feeling is, keep what you have right now.”


But that has not been easy. Even with health insurance, Ms. Garcia’s preferred method of long-term birth control, an IUD, has been unaffordable. Birth control pills, too, with a $50 co-payment a month, were too costly for her budget. “I couldn’t afford it,” she said. “So what I’ve been doing is condoms.”


According to research by the National Latina Institute for Reproductive Health, the overwhelming majority of Latinas have used contraception at some point in their lives, but they face economic barriers to consistent use. As a consequence, Latinas still experience unintended pregnancy at a rate higher than non-Hispanic whites, according to the institute.


And while the share of births to teenage mothers has dropped over the past two decades for all women, the highest share of births to teenage mothers is among native-born Hispanics.


“There are still a lot of barriers to information and access to contraception that exist,” said Jessica Gonzáles-Rojas, 36, the executive director of the institute, who has one son. “We still need to do a lot of work.”


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Senate Passes Tax Increases on Wealthy Americans


Alex Brandon/Associated Press


Vice President Joseph R. Biden Jr. on Monday after a meeting with Senate Democrats on the fiscal negotiations.







WASHINGTON — The Senate, in a predawn vote two hours after the deadline passed to avert automatic tax increases, overwhelmingly approved legislation on Tuesday that would allow tax rates to rise only on affluent Americans while temporarily suspending sweeping, across-the-board spending cuts.




The deal, worked out in furious negotiations between Vice President Joseph R. Biden Jr. and the Republican Senate leader, Mitch McConnell, passed 89 to 8, with just three Democrats and five Republicans voting no. Although it lost the support of some of the Senate’s most conservative members, the broad coalition that pushed the accord across the finish line could portend swift House passage as early as New Year’s Day.


Quick passage before the markets reopen on Wednesday would be likely to negate any economic damage from Tuesday’s breach of the “fiscal cliff” and largely spare the nation’s economy from the one-two punch of large tax increases and across-the-board military and domestic spending cuts in the New Year.


“This shouldn’t be the model for how to do things around here,” Mr. McConnell said just after 1:30 a.m. “But I think we can say we’ve done some good for the country.”


Mr. Biden, after a late New Year’s Eve meeting with leery Senate Democrats to sell the accord, said: “You surely shouldn’t predict how the House is going to vote. But I feel very, very good.”


The eight senators who voted no included Marco Rubio, Republican of Florida and a potential presidential candidate in 2016, two of the Senate’s most ardent small-government Republicans, Rand Paul of Kentucky and Mike Lee of Utah, and Senator Charles E. Grassley of Iowa, who as a former Finance Committee chairman helped secure passage of the Bush-era tax cuts, then opposed making almost all of them permanent on Tuesday. Two moderate Democrats, Thomas R. Carper of Delaware and Michael Bennet of Colorado, also voted no, as did the liberal Democrat Tom Harkin, who said the White House had given away too much in the compromise. Senator Richard C. Shelby, Republican of Alabama, also voted no.


The House Speaker, John A. Boehner, and the Republican House leadership said the House would “honor its commitment to consider the Senate agreement.” But, they added, “decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members — and the American people — have been able to review the legislation.”


Even with that cautious assessment, Republican House aides said a vote Tuesday was possible.


Under the agreement, tax rates would jump to 39.6 percent from 35 percent for individual incomes over $400,000 and couples over $450,000, while tax deductions and credits would start phasing out on incomes as low as $250,000, a clear victory for President Obama, who ran for re-election vowing to impose taxes on the wealthy.


Just after the vote, Mr. Obama called for quick House passage of the legislation.


“While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay,” he said.


Democrats also secured a full year’s extension of unemployment insurance without strings attached and without offsetting spending cuts, a $30 billion cost. But the two-percentage point cut to the payroll tax that the president secured in late 2010 lapsed at midnight and will not be renewed.


In one final piece of the puzzle, negotiators agreed to put off $110 billion in across-the-board cuts to military and domestic programs for two months while broader deficit-reduction talks continue. Those cuts begin to go into force on Wednesday, and that deadline, too, might be missed before Congress approves the legislation.


To secure votes, Senator Harry Reid, the Senate Democratic leader, also told Democrats the legislation would cancel a pending Congressional pay raise — putting opponents in the politically difficult position of supporting a raise — and extend an expiring dairy policy that would have seen the price of milk double in some parts of the country.


The nature of the deal ensured that the running war between the White House and Congressional Republicans on spending and taxes would continue at least until the spring. Treasury Secretary Timothy F. Geithner formally notified Congress that the government reached its statutory borrowing limit on New Year’s Eve. Through some creative accounting tricks, the Treasury Department can put off action for perhaps two months, but Congress must act to keep the government from defaulting just when the “pause” on pending cuts is up. Then in late March, a law financing the government expires.


Jennifer Steinhauer and Robert Pear contributed reporting.



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2 Sides in Talks Inch Closer but No Fiscal Deal on Final Day





WASHINGTON — A frantic round of late-night negotiations on Sunday between Vice President Joseph R. Biden Jr. and Senator Mitch McConnell of Kentucky, the Republican leader, moved the Senate close to a deal to stave off hundreds of billions of dollars in tax increases and across-the-board spending cuts that would begin to kick in on Tuesday, according to people familiar with the talks.







T.J. Kirkpatrick for The New York Times

“It looks awful,” Senator Richard J. Durbin of Illinois, the second-ranking Democrat, said after tense negotiations on Sunday. More Photos »






But with almost no time on the clock and the Senate convening at 11 a.m. Monday, officials cautioned that optimism had risen in past days only to burst hours later. An objection by just one senator could derail a deal until the next Congress convenes on Thursday.


Representative Kevin McCarthy, a California Republican and the House majority whip, advised House members at 9 a.m. “to remain close to the Capitol as additional legislation and votes are possible pending action from the Senate.”


The last of a round of calls between Mr. Biden and Mr. McConnell ended around midnight, with both men promising to resume talks Monday morning.


“The leader and the V.P. continued their discussion late into the evening and will continue to work toward a solution,” Don Stewart, a spokesman for Mr. McConnell, said on Monday.


Both sides were already close Sunday on the central issue surrounding whether Congress would intervene before the nation careened off the so-called fiscal cliff: What would be the income threshold for the families that would absorb tax increases beginning Tuesday? Barely a week after House Republicans refused to vote to allow taxes to rise on income over $1 million, Senate Republicans proposed allowing tax rates to rise on income over $450,000 for individuals and $550,000 for couples. Democrats countered with a proposal to extend expiring Bush-era tax cuts for up to $360,000 for individuals and $450,000 for couples. For both sides, that meant major movement. Mr. Obama has been holding firm at a $250,000 threshold.


But Democrats were inching upward, possibly to $450,000 for all households. That had liberal Democrats nervous but centrists optimistic that a deal was in reach that could pass both the Senate and the House. The House Rules Committee on Sunday night was considering an emergency rules change that would suspend requirements that legislation be posted for at least 48 hours, so that a deal could be rushed to the floor.


The two sides are also getting closer on a new rate of taxation on inherited estates, one source said. The biggest stumbling block remains Democrats’ demand for a one-year “pause” on across-the-board spending cuts, which Republicans say can happen only with other up-front spending cuts.


In the balance are more than a half-trillion dollars in tax increases on virtually every working American and across-the-board spending cuts that are scheduled to begin Tuesday. Taken together, they threaten to push the economy back into recession.


The weekend saw a round of volatile negotiations as senators tried to reach a deal, only to be stalled for hours over a Republican demand that any accord must include a new way of calculating inflation that would mean smaller increases in payments to beneficiaries of programs like Social Security. Democrats halted the negotiations, which did not resume until Mr. McConnell made an emergency call to Mr. Biden and the White House sent the president’s chief legislative negotiator to meet with Senate Democrats. Soon after, Republicans withdrew their demand and discussions resumed, but little progress was made.


“It looks awful,” said Senator Richard J. Durbin of Illinois, the second-ranking Democrat. “I’m sure the American people are saying, with so much at stake why are they waiting so late to get this done?”


Senator Lindsey Graham, Republican of South Carolina, who had said early Sunday that he thought a deal was within reach, said later on his Twitter feed, “I think we’re going over the cliff.”


Weeks of negotiations between Mr. Obama and Speaker John A. Boehner inched toward a deal to avert the fiscal cliff, while locking in trillions of dollars in deficit reduction over 10 years and starting an effort to overhaul the tax code and entitlement programs like Medicare. But earlier this month, Mr. Boehner walked away from those talks.


Instead he tried to reach a much more modest deal to avoid a fiscal crisis by extending the expiring tax cuts for incomes under $1 million. When Mr. Boehner’s own Republican members revolted, he ceded negotiations to the Senate. But compromise has proved equally elusive in that chamber.


Absent a last-minute deal, Mr. Reid is expected to move on Monday to bring to a vote a stopgap measure pushed by Mr. Obama, which would retain lower tax rates for incomes below $250,000 and extend unemployment benefits. But it was not clear that would even get a vote. The objection of a single senator on Monday would run out the clock on the 112th Congress before a final tally could be taken.


Mr. Obama appeared on the NBC program “Meet the Press” on Sunday and implored Congress to act. “We have been talking to the Republicans ever since the election was over,” Mr. Obama said in the interview. “They have had trouble saying yes to a number of repeated offers.”


He added, “Now the pressure’s on Congress to produce.”


Robert Pear and John M. Broder contributed reporting.



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Can Samsung survive without Android?






Samsung (005930) is the world’s top Android smartphone vendor by a staggering margin. Aside from LG (066570), which managed a small $ 20 million profit from its mobile division last quarter, no other global Android vendor can figure out how to make money selling Android phones. Meanwhile, Samsung posted a $ 6 billion profit on $ 47.6 billion in sales in the third quarter, thanks largely to record smartphone shipments and a massive marketing budget. Even as industry watchers turn sour on Apple, Samsung is seen steamrolling into 2013 and its stock is up nearly 50% on the year while Apple (AAPL) shares continue to fall from a record high hit in September. As unstoppable as Samsung appears right now, one key question remains: Is Samsung driving Android’s success or is Android driving Samsung’s success? Starting in 2013, we may finally begin to find out.


[More from BGR: Unreleased ‘BlackBerry X10′ QWERTY phone appears again in new photos]






Earlier this year, BGR wrote about Samsung’s effort to look beyond Android. Even with its own UI and application suite — and even with its own content services — Samsung will always rely on Google (GOOG) if it continues to base its devices on Google’s latest Android builds.


[More from BGR: RIM teases BlackBerry 10 launch with image of first BB10 smartphone]


This isn’t necessarily a bad thing, but it means Samsung will never truly control the end-to-end experience on its products. It also means Samsung will never truly own its smartphones and tablets. Instead, Samsung’s devices will deliver an experience that is an amalgamation of Google’s vision and its own.


But there are alternative options. One example is the path Amazon (AMZN) has taken. Amazon let Google do the grunt work and then took its open-source Android OS and built its own software and service layer on top. Kindle Fire users don’t sit around waiting for Android updates — many of them don’t even know they’re using an Android-powered tablet.


Samsung could do the same thing, but there is a great deal of prep work that would need to be done first. Amazon’s efforts were so successful (depending on your measure of success) because the company already had a massive ecosystem in place before it even launched its first device. Streaming movies and TV shows, eBooks, retail shopping and a stocked application store were all available on the Kindle Fire from day one.


Samsung doesn’t have this luxury. Yet.


Samsung could also take ownership of a new OS, and Tizen may or may not end up being that OS. Samsung is co-developing the new Linux-based mobile platform with Intel (INTC) and others, and a new rumor from Japan’s The Daily Yomiuri suggests Samsung plans to launch its first Tizen phone in 2013. “Samsung will probably begin selling the [Tizen] smartphones next year and they are likely to be released in Japan and other countries at around the same time,” the site’s sources claim.


This will be a slow process. If Samsung follows the same path it took with Bada, Samsung’s earlier Linux-based OS that was folded into the Tizen project, things will start out slow as Samsung launches regional devices that are restricted to a few Eastern markets. Testing the waters before dumping serious marketing dollars into the project isn’t a bad idea, especially considering the battle at the bottom of the smartphone OS food chain that will already be taking place in 2013.


But one thing is clear: Samsung is looking to broaden its strategy and move beyond a point where it relies entirely on another company for its smartphone software.


This article was originally published by BGR


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Kanye West, Kim Kardashian expecting 1st child


ATLANTIC CITY, N.J. (AP) — A kid for Kimye: Kanye West and Kim Kardashian are expecting their first child.


The rapper announced at a concert Sunday night that his girlfriend is pregnant. Kardashian was in the crowd at Revel Resort's Ovation Hall with her mother, Kris Jenner, and West's mentor and best friend, Jay-Z. West told the crowd of more than 5,000 in song form: "Now you having my baby."


The crowd roared. And so did people on the Internet.


The news instantly went viral on Twitter and Facebook, with thousands posting and commenting on the expecting couple.


Most of the Kardashian clan also tweeted about the news, including Kim's sisters. Kourtney Kardashian wrote: "Another angel to welcome to our family. Overwhelmed with excitement!"


West, 35, also told concertgoers to congratulate his "baby mom" and that this was the "most amazing thing."


Representatives for West and Kardashian, 32, didn't immediately respond to emails about the pregnancy.


The rapper and reality TV star went public in March.


Kardashian married NBA player Kris Humphries in August 2011 and their divorce is not finalized.


West's Sunday-night show was his third consecutive performance at Revel. He took the stage for nearly two hours, performing hits like "Good Life," ''Jesus Walks" and "Clique" in an all-white ensemble with two bandmates.


___


AP Writer Bianca Roach contributed to this report.


___


Follow Mesfin Fekadu on Twitter at http://twitter.com/MusicMesfin . Follow Bianca Roach at http://twitter.com/B__Roach


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Chinese Firm Is Cleared to Buy American DNA Sequencing Company


Ramin Rahimian for The New York Times


DNA sequencing machines at Complete Genomics in California. The firm dismissed concerns about its acquisition.







The federal government has given national security clearance to the controversial purchase of an American DNA sequencing company by a Chinese firm.




The Chinese firm, BGI-Shenzhen, said in a statement this weekend that its acquisition of Complete Genomics, based in Mountain View, Calif., had been cleared by the federal Committee on Foreign Investment in the United States, which reviews the national security implications of foreign takeovers of American companies. The deal still requires antitrust clearance by the Federal Trade Commission.


Some scientists, politicians and industry executives had said the takeover represented a threat to American competitiveness in DNA sequencing, a technology that is becoming crucial for the development of drugs, diagnostics and improved crops.


The fact that the $117.6 million deal was controversial at all reflects a change in the genomics community.


A decade ago, the Human Genome Project, in which scientists from many nations helped unravel the genetic blueprint of mankind, was celebrated for its spirit of international cooperation. One of the participants in the project was BGI, which was then known as the Beijing Genomics Institute.


But with DNA sequencing now becoming a big business and linchpin of the biotechnology industry, international rivalries and nationalism are starting to move front and center in any acquisition.


Much of the alarm about the deal has been raised by Illumina, a San Diego company that is the market leader in sequencing machines. It has potentially the most to lose from the deal because BGI might buy fewer Illumina products and even become a competitor. Weeks after the BGI deal was announced, Illumina made its own belated bid for Complete Genomics, offering 15 cents a share more than BGI’s bid of $3.15. But Complete Genomics rebuffed Illumina, saying such a merger would never clear antitrust review.


Illumina also hired a Washington lobbyist, the Glover Park Group, to stir up opposition to the deal in Congress. Representative Frank R. Wolf, Republican of Virginia, was the only member of Congress known to have publicly expressed concern.


BGI and Complete Genomics point out that Illumina has long sold its sequencing machines — including a record-setting order of 128 high-end machines — to BGI without raising any security concerns. Sequencing machines have not been subject to export controls like aerospace equipment, lasers, sensors and other gear that can have clear military uses.


“Illumina has never previously considered its business with BGI as ‘sensitive’ in the least,” Ye Yin, the chief operating officer of BGI, said in a November letter to Complete Genomics that was made public in a regulatory filing. In the letter, Illumina was accused of “obvious hypocrisy.”


BGI and Complete said that Illumina was trying to derail the agreement and acquire Complete Genomics itself in order to “eliminate its closest competitor, Complete.”


BGI is already one of the most prolific DNA sequencers in the world, but it buys the sequencing machines it uses from others, mainly Illumina.


Illumina, joined by some American scientists, said it worried that if BGI gained access to Complete’s sequencing technology, the Chinese company might use low prices to undercut the American sequencing companies that now dominate the industry.


Some also said that with Complete Genomics providing an American base, BGI would have access to more DNA samples from Americans, helping it compile a huge database of genetic information that could be used to develop drugs and diagnostic tests. Some also worried about protection of the privacy of genetic information.


“What’s to stop them from mining genomic data of American samples to some unknown nefarious end?” Elaine R. Mardis, co-director of the genome sequencing center at Washington University in St. Louis, said in an e-mail.


Dr. Mardis could not specify what kind of nefarious end she imagined. But opponents of the deal cited a November article in The Atlantic saying that in the future, pathogens could be genetically engineered to attack particular individuals, including the president, based on their DNA sequences.


BGI and Complete Genomics dismissed such concerns as preposterous.


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