Microsoft ups Surface production, to sell in more stores

SEATTLE (Reuters) – Microsoft Corp has stepped up manufacturing of the Surface tablet, its new device designed to counter Apple Inc‘s iPad, and will introduce it to third-party retailers this week.

The moves suggest Microsoft is seeing some demand for its first own-brand computer in the crucial holiday shopping season, although it has yet to divulge any sales figures.

“The public reaction to Surface has been exciting to see,” said Panos Panay, general manager of Microsoft’s Surface project, which forms part of the company’s Windows unit.

“We’ve increased production and are expanding the ways in which customers can interact with, experience and purchase Surface,” said Panay, but gave no details of how many extra units were being produced.

Panay did not mention names of retailers that will sell the Surface, but separately office equipment retailer Staples Inc said it would stock the tablet from Wednesday.

He said the Surface would also be on sale at retailers in Australia from mid-December, with more countries to follow in the next few months.

Since launch in late October, the Surface has only been sold by Microsoft itself, in its own brick and mortar stores in the United States and Canada and online in Australia, China, France, the UK and Germany.

The only Surface model available now – officially called Surface with Windows RT – runs a version of Windows created to work on the low-power chips designed by ARM Holdings, which dominate smartphones and tablets but are incompatible with old Windows applications.

It starts at $ 499 for the 32 gigabyte version plus $ 120 for a thin cover that doubles as a keyboard.

A larger, heavier tablet – called Surface with Windows 8 Pro – will be introduced in January, running on an Intel Corp chip that works with all Microsoft’s Windows and Office applications. Microsoft plans to price the new Surface from $ 899 for a 64 gigabyte version.

The world’s largest software company also said it would keep its chain of ‘pop-up’ holiday stores open into the new year and will convert them into permanent retail outlets or what it called “specialty store locations”.

Microsoft’s recent push into physical retail – following Apple’s great success – has resulted in 31 permanent stores plus 34 holiday ‘pop-up’ stores in the U.S. and Canada.

If Microsoft converted each of the temporary stores into permanent outlets it would have 65 stores, still well below Apple with almost 400 worldwide.

(Reporting by Bill Rigby in Seattle, Sruthi Ramakrishnan in Bangalore)

Tech News Headlines – Yahoo! News

Read More..

'Evita' to close in January when Big 3 leave

NEW YORK (AP) — The Broadway revival of "Evita" — faced with trying to replace Ricky Martin, Elena Roger and Michael Cerveris — will instead close when the Big Three leave early next year.

Producers of the Tony Award-nominated revival of Tim Rice's and Andrew Lloyd Webber's landmark musical said Tuesday night they have decided against plans for an open-ended run after Martin, Roger and Cerveris leave after the Jan. 26 performance.

"Our extensive search for a new cast presented the significant challenges of not only replacing a high-caliber trio of stars but also synchronizing the schedules of potential replacements with that of the production," producer Hal Luftig said in a statement. "Despite going down the road with a variety of artists, the planets have simply not aligned for us to engage the right talent at the right time."

When it closes, the musical will have played 26 previews and 337 performances, far less than the original's more than 1,580 shows played between 1979 and 1983.

A national tour will launch in September 2013 at the Providence Performing Arts Center in Providence, R.I., and a cast album has been released, including the songs "Don't Cry for Me Argentina" and "High Flying Adored." The cast for the tour has not been announced.

The revival opened March 12 at the Marquis Theatre, directed by Michael Grandage and choreographed by Rob Ashford. It has broken the theater's box office record seven times, though has seen the box office slump at times.

Last week, it pulled in $920,994, or a little more than half its $1,666,936 potential. The average ticket price was $111.73 and the top premium went for $275.

The musical tells the story of Argentina's Eva Peron, who rose from the slums to the presidential mansion. Roger plays Eva, Cerveris her husband and Martin is Che.

___

Online: http://evitaonbroadway.com

Read More..

DA investigating Texas' troubled $3B cancer agency

AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.

No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.

That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.

Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."

Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.

Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.

Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.

"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.

Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.

Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.

Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.

The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.

"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.

Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.

Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.

Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.

Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.

"There appears to be a cover-up going on," Bonner said.

Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.

___

Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

Read More..

White House, Boehner quietly swap offers

(AP Photo/J. Scott Applewhite)

President Barack Obama and Republican House Speaker John Boehner spoke Tuesday after privately exchanging a new round of rival proposals for keeping the economy from tumbling off the "fiscal cliff" on Jan. 1, aides to both men told Yahoo News. The fresh discussion signaled a welcome bit of movement in negotiations that had appeared stalled for several days.

"The speaker and POTUS (the president of the United States) spoke by telephone this evening," a White House official said on condition of anonymity. A Boehner aide said the White House had presented a new offer on tax cuts and revenue increases on Monday and that Republicans had returned with a counter-offer on Tuesday.

The White House refused to offer details about its proposal. But the Boehner aide said the new offer brought Obama's initial demand for $1.6 trillion in new tax revenues down to $1.4 trillion.

The step would still require raising tax rates on wealthier Americans, something Boehner has previously rejected. Obama has said any final deal must raise tax rates on the richest Americans.

Boehner spokesman Michael Steel confirmed that the speaker's office had returned a counter-offer to the president but would not disclose many specifics.

"We sent the White House a counter-offer that would achieve tax and entitlement reform to solve our looming debt crisis and create more American jobs," Steel said.

Earlier Tuesday, the speaker himself complained that Obama hadn't been specific enough about the spending cuts he was prepared to embrace as part of a broader deficit-cutting plan.

"Let's be honest, we're broke," Boehner said on the House floor. "We're still waiting for the White House to identify what spending cuts the president is willing to make as part of the 'balanced approach' that he promised the American people."

Also Tuesday, Democratic Senate Majority Leader Harry Reid warned it was unlikely that lawmakers and the White House would be able to forge a compromise in time for Christmas, raising the prospect of a high-stakes game of chicken through the end of the year.

"It's going to be extremely difficult to get it done before Christmas—but it could be done," the Nevada Democrat told reporters. "This is not something we can do easily, at least as far as bill drafting goes. But until we hear something from the Republicans, there's nothing to draft."

Reid's comments reflected the sense of gloom across the Capitol in recent days about prospects for averting automatic across-the-board tax hikes and painful government spending cuts that, together, could plunge the economy in a new recession. Those measures will take effect Jan. 1 unless Congress acts.

Obama had no public appearances Tuesday. His spokesman, Jay Carney, acknowledged the White House was deliberately being "incredibly opaque" about the behind-the scenes negotiations.

"If it weren't for the broader interest here, which is in trying to allow some space for the parties to see if they can achieve a compromise, you know, I'd be spilling my guts from here," Carney said.

At their weekly party lunch meetings on Capitol Hill, senators complained about the secrecy surrounding the talks.

Alabama Republican Sen. Jeff Sessions said Boehner "doesn't have my proxy" in cutting a deal with Obama.
"I've been elected, I've got a responsibility to make an independent determination of these matters," Sessions said.

Why the secrecy? Republican Sen. Rob Portman of Ohio told Yahoo News that "you need to build a level of trust first by not having it negotiated in the media."

"You need an opportunity, particularly with the president and Republican congressional leaders, to talk about some very tough issues," he said.

Still, Portman said, "they can't expect those of us who going to ultimately decide what happens in the Senate to vote on it without having a full understanding and input."

For Senate Budget Committee Chairman Kent Conrad of North Dakota, a Democrat who is retiring, the problem is less the back-room dealing and more the posturing for the cameras. "It's the same old lines over and over. How about just going into a room and getting a deal?" he said.

For his part, Republican Senate Minority Leader Mitch McConnell tried to steer the focus back to his party's preferred terrain: spending cuts. He listed a series of programs he considered wasteful, citing government promotion of a videogame that allows teens "to relive prom night."

"Get this: Taxpayers also just spent $325,000 on a Robotic squirrel named RoboSquirrel," he said. "The president seems to think that if all he talks about are taxes, and that's all reporters write about, somehow the rest of us will magically forget that government spending is completely out of control, and that he himself has been insisting on balance."

The Republican push came as party insiders privately acknowledged that they've placed themselves in a significant PR bind by insisting that tax cuts for middle class earners can only be extended if they are preserved for wealthier Americans as well. Obama wants to tax rates on income above $200,000 for individuals and $250,000 for families, a position Boehner and other Republican leaders have rejected.

"We're terribly weak on this, the tax component," one congressional Republican said.

Read More..

NKorea extends window, still readies rocket launch

SEOUL, South Korea (AP) — North Korea is pressing ahead with preparation for a long-range rocket launch after extending its liftoff window by another week until Dec. 29 because of technical problems.

It's North Korea's second attempt this year, and the fifth since 1998, to launch a rocket that the United Nations, Washington, Seoul and others call a cover meant to test technology for missiles that could be used to strike the United States. They have warned North Korea to cancel the launch or face more sanctions.

The North Koreans call the launch a peaceful bid to advance their space program and a last wish of late leader Kim Jong Il, who died on Dec. 17 last year. North Korea is also celebrating the centennial this year of the birth of national founder Kim Il Sung, current leader Kim Jong Un's grandfather. The rocket it launched in April broke apart seconds after liftoff.

On Monday, an unidentified spokesman for the North's Korean Committee of Space Technology told state media that scientists found a "technical deficiency in the first-stage control engine module of the rocket." The statement didn't elaborate but said technicians were moving ahead with final preparations for the liftoff from a west coast launch site.

The second day of North Korea's extended 20-day launch window began on Tuesday morning without signs of a liftoff. The specifics of the rocket's technical problems aren't clear, but state media put out an overnight dispatch detailing the unusually cold weather and heavy snow hitting the northern part of the Korean Peninsula.

The announcement of the planned rocket launch has sparked worry because of the timing: South Korea and Japan hold key elections this month, President Barack Obama begins his second term in January, and China has just formed a new leadership.

The North had originally set up a 13-day launch window, starting Monday, but it announced early Sunday that it may delay the liftoff because of unspecified reasons.

U.S. State Department spokeswoman Victoria Nuland said Monday that as far as the United States can tell it's simply a delay and North Korea still plans to launch the rocket. She reiterated Washington's demand that the North comply with U.N. Security Council resolutions and not proceed with the launch.

She said Secretary of State Hillary Rodham Clinton spoke Friday with Chinese Foreign Minister Yang Jiechi about what influence China could bring to bear on the North "to see reason and focus on the development of their country and the feeding of their people rather than on ballistic missile launches." China is North Korea's only major ally.

North Korea said Monday that it has faced exceptionally cold weather since last week and that most areas received heavy snow on Wednesday. State media quoted Ri Chol Su, vice-director of the North's Central Meteorological Institute, as saying the temperature in western coastal areas, where the rocket launch pad is located, dropped to up to minus-17 C (1.4 F) from Saturday to Monday.

Engineers can launch a rocket when it's snowing, but lightning, strong wind and freezing temperatures have the potential to stall liftoff, said Lee Chang-jin, an aerospace professor at Seoul's Konkuk University.

Still, Japanese Prime Minister Yoshihiko Noda said Monday that his government would maintain vigilance. Tokyo has mobilized its military to intercept any debris from the rocket.

"At this moment, we are keeping our guard up," Defense Minister Satoshi Morimoto told reporters Monday. "We have not seen any objective indication that would cause us to make any change to our preparedness."

At least one Aegis-equipped South Korean destroyer has been deployed in the Yellow Sea to monitor North Korea's rocket launch, according to South Korean officials.

The United States has also moved extra ships with ballistic missile defense capabilities toward the region, officials said.

The U.S., Japan and South Korea say they'll seek U.N. Security Council action if the launch goes ahead in defiance of existing resolutions. The council condemned April's launch and ordered seizure of assets of three North Korean state companies linked to financing, exporting and procuring weapons and missile technology.

In addition to four previous launches, North Korea has unveiled missiles designed to target U.S. soil and has tested two atomic devices in recent years. It has not yet proven to have mastered the technology for mounting a nuclear warhead to a long-range missile, however.

A successful launch would mean North Korea could develop an intercontinental ballistic missile capable of striking the U.S. mainland within two to three years, said Chong Chol-Ho, a weapons of mass destruction expert at the private Sejong Institute near Seoul.

Six-nation negotiations to offer North Korea much-needed aid in exchange for nuclear disarmament have been stalled since early 2009.

International pressure and the prospect of dialogue may be a factor in the delay, analysts in Seoul said.

China must have sent a "very strong" message calling for the North to cancel the launch plans, said analyst Baek Seung-joo of the South Korean state-run Korea Institute for Defense Analyses.

North Korea may also be holding off if the U.S., its longtime Korean War foe, actively engages Pyongyang in dialogue, said Koh Yu-hwan, a professor of North Korean studies at Seoul's Dongguk University.

___

Associated Press writer Mari Yamaguchi in Tokyo and Matthew Pennington in Washington contributed to this report.

Read More..

Behind the New Modern Seinfeld Twitter Account, Which Is Not About Nothing

Seinfeld has never left our pop culture lexicon. Just recently we’ve seen it referenced in the presidential race and in Game of Thrones parodies. But what would the seminal “show about nothing” be like if its characters could use cell phones or Facebook? The @SeinfeldToday Twitter account, which popped up Sunday evening, ventures to propose of-the-moment plots for a modern Seinfeld. For example:  

Kramer is under investigation for heavy torrenting. Jerry’s new girlfriend writes an extremely graphic blog. George discovers Banh Mi.

— Modern Seinfeld (@SeinfeldToday) December 10, 2012

The man behind the account, BuzzFeed’s sports editor Jack Moore, started tweeting out scenarios with his friend, comedian Josh Gondelman, and then decided that the joke merited its own account. Moore is a Seinfeld fanatic himself: “I’m pretty much constantly watching episodes in the background while I’m doing anything,” he told us in an email. “I have a thumb drive with the whole series on it that I keep in my bag pretty much all the time.” 

RELATED: Rich Folks, Saggy Pants, and the Vast Manatee Conspiracy

So far, the modern-day episode summaries ring true, despite warnings from Gawker last year that classic episodes wouldn’t have worked if the characters just had the use of newfangled technology. “It would be different but not as different as everyone acts like,” Moore wrote to us. “People always say that ‘if they had cell phones Seinfeld couldn’t exist,’ which is true for a certain type of Seinfeld episode, but not as a general rule (which I think the account shows).” 

RELATED: Jon Huntsman Finds His Voice by Sounding Like a Dad on Twitter

The account makes it obvious that Internet apps and 2012 trends would create the same awkward situations that Seinfeld thrived on. For example: 

Kramer uses grinder to meet new friends, doesn’t know it’s a gay hook-up app. Jerry refuses to admit he cried on @wtfpod.

— Modern Seinfeld (@SeinfeldToday) December 10, 2012

Elaine has a bad waiter at a nice restaurant, her negative Yelp review goes viral, she gets banned. Kramer accidentally joins the Tea Party.

— Modern Seinfeld (@SeinfeldToday) December 10, 2012

George thinks his GF is faking a gluten-intolerance, feeds her real cookies, sending her to the ER. Autocorrect ruins Jerry’s relationship.

— Modern Seinfeld (@SeinfeldToday) December 10, 2012

We kind of really want to see some of these made, actually. Reunion special? 

Social Media News Headlines – Yahoo! News

Read More..

'Skyfall' launches back to top spot with $10.8M

LOS ANGELES (AP) — The James Bond blockbuster "Skyfall" has risen back to the No. 1 spot at the weekend box office, taking in $10.8 million.

That brought its domestic total to $261.4 million and its worldwide haul to a franchise record of $918 million.

The top 20 movies at U.S. and Canadian theaters Friday through Sunday, followed by distribution studio, gross, number of theater locations, average receipts per location, total gross and number of weeks in release, as compiled Monday by Hollywood.com are:

1. "Skyfall," Sony, $10,780,201, 3,401 locations, $3,170 average, $261,400,281, five weeks.

2. "Rise of the Guardians," Paramount, $10,400,618, 3,639 locations, $2,858 average, $61,774,192, three weeks.

3. "The Twilight Saga: Breaking Dawn — Part 2," Summit, $9,156,265, 3,646 locations, $2,511 average, $268,691,029, four weeks.

4. "Lincoln," $8,916,813, 2,014 locations, $4,427 average, $97,137,447, five weeks.

5. "Life of Pi," Fox, $8,330,764, 2,946 locations, $2,828 average, $60,948,293, three weeks.

6. "Playing For Keeps," FilmDistrict, $5,750,288, 2,837 locations, $2,027 average, $5,750,288, one week.

7. "Wreck-It Ralph," Disney, $4,859,368, 2,746 locations, $1,770 average, $164,402,934, six weeks.

8. "Red Dawn," FilmDistrict, $4,236,105, 2,754 locations, $1,538 average, $37,240,920, three weeks.

9. "Flight," Paramount, $3,130,305, 2,431 locations, $1,288 average, $86,202,541, six weeks.

10. "Killing Them Softly," Weinstein Co., $2,806,901, 2,424 locations, $1,158 average, $11,830,638, two weeks.

11. "Silver Linings Playbook," Weinstein Co., $2,171,665, 371 locations, $5,854 average, $13,964,405, four weeks.

12. "Anna Karenina," Focus, $1,544,859, 422 locations, $3,661 average, $6,603,042, four weeks.

13. "The Collection," LD Entertainment, $1,487,655, 1,403 locations, $1,060 average, $5,455,328, two weeks.

14. "Argo," Warner Bros., $1,482,346, 944 locations, $1,570 average, $103,160,015, nine weeks.

15. "End of Watch," Open Road Films, $751,623, 1,259 locations, $597 average, $39,989,766, 12 weeks.

16. "Hitchcock," Fox Searchlight, $712,544, 181 locations, $3,937 average, $1,661,670, three weeks.

17. "Talaash," Reliance Big Pictures, $449,195, 161 locations, $2,790 average, $2,397,909, two weeks.

18. "Taken 2," Fox, $387,227, 430 locations, $901 average, $137,700,304, 10 weeks.

19. "Pitch Perfect," Universal, $305,765, 387 locations, $790 average, $63,517,408, 11 weeks.

20. "The Sessions," Fox, $218,973, 197 locations, $1,112 average, $4,948,342, eight weeks.

___

Online:

http://www.hollywood.com

___

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

Read More..

Surprise: New insurance fee in health overhaul law

WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.

The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.

Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.

"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.

Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.

The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.

Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.

The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.

Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.

The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.

But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.

"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.

Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.

America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.

But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.

"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.

The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.

The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.

It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.

Read More..

Obama tax plan no small deal to small business owners

WASHINGTON (AP) — President Barack Obama's plan to increase taxes on top earners would have only a small impact on the nation's economy, according to congressional budget experts. But don't tell that to small business owners facing a tax hike.

Obama's proposal would hit about 940,000 people who report business income on their individual or household returns, says the Joint Committee on Taxation, the official scorekeeper for Congress. That's only 3.5 percent of the people who report business income, but those business owners are projected to earn 53 percent of the $1.3 trillion in business income that will be reported on individual returns next year.

That, Republicans in Congress argue, makes those business owners an important engine for economic growth and job creation.

They recite it as gospel: Paying higher taxes will reduce the amount of profits business owners would otherwise re-invest in their companies, making them less likely to expand and hire more workers. Many economists agree that tax increases in general limit economic growth. But there are big disagreements about magnitude — how much relatively small changes in the top two income tax rates would affect the economy and job creation.

The Congressional Budget Office estimated last month that Obama's plan to increase taxes only on top earners would reduce economic growth by 0.1 percent of Gross Domestic Product next year, or about $16 billion. That translates into about 200,000 fewer jobs.

By comparison, letting all the tax cuts enacted in 2001 and 2003 expire would reduce economic growth by 1.4 percent of GDP, resulting in about 1.8 million fewer jobs, the CBO said.

"It's a very tiny portion of the cliff impact and it very much raises revenues and it does so in a fair way," Rep. Sander Levin of Michigan, senior Democrat on the tax-writing House Ways and Means Committee, said of Obama's proposal. "It will not stifle economic growth in any significant way."

Most of the expiring tax cuts were first enacted under former President George W. Bush and extended by Obama in 2010. This time around, Obama says he is determined to let the tax cuts expire on income above $200,000 for individuals and $250,000 for married couples. He wants to extend the Bush tax cuts for people making less.

House Speaker John Boehner and other Republicans have said they are open to more tax revenue through reducing or eliminating tax breaks. But Boehner opposes Obama's proposal to increase tax rates on high earners.

"Raising taxes on small businesses instead of taking a balanced approach that also cuts spending is wrong," Boehner, said recently. "It's only going to make it harder for our economy to grow. And if our economy doesn't grow, Americans don't get new jobs and the debt problem that we have will continue to threaten our children's future."

Republicans often relate the tax increases to small businesses because 94 percent of America's businesses are structured so that profits go directly to partners or shareholders who report the income on their individual tax returns. It's a way for business owners to avoid paying taxes twice on the same income — once at the corporate level and again when profits are distributed as dividends.

Under Obama's plan, the 33 percent tax rate would rise to 36 percent on taxable income above $231,000 for a married couple filing jointly. The top tax rate would increase from 35 percent to 39.6 percent on taxable income above $397,000.

Obama's plan also would phase out the personal exemption and gradually reduce itemized deductions for individuals making more than $200,000 and married couples making more than $250,000. The top capital gains tax rate would rise from 15 percent to 20 percent. Qualified dividends, which are now taxed at a top rate of 15 percent, would be taxed as ordinary income for top earners, or at a top rate of 39.6 percent.

That, some business owners complain, would leave them with less money to hire new workers or keep the ones they have.

"We're trying to encourage people to go out and hire and take risks," said Brian Reardon, executive director of the S Corporation Association. "If you are reducing the marginal value, you are reducing the incentives for folks to take that risk."

An S corporations is a common business structure in which profits flow directly to shareholders who report the income on their individual tax returns.

Business owners note that they often pay taxes on profits they don't necessarily receive. For example, if you borrow money to start or expand your business, you can use some of your profits to repay the loan, but only the interest portion of the loan payment is tax deductible.

When business owners use profits to buy new equipment or make other upgrades, it often takes several years to write off the cost of those upgrades, depending on depreciation rules.

Dan McGregor, chairman of McGregor Metalworking Companies in Springfield, Ohio, said he and the other six shareholders in the business are looking at a tax increase of $250,000 to $300,000 next year under Obama's plan.

Under Obama's plan to increase the top two income tax rates, a taxpayer would have to have an income of around $4 million — depending on how it's structured — to face a tax increase of $250,000.

McGregor's company, which has 365 employees at five locations, does about $80 million a year in sales, McGregor said. Each year, a portion of the profits are distributed to shareholders, along with money to pay taxes. The rest, he said, is invested back into the company.

If taxes go up, distributions to shareholders must go up to pay the higher taxes, leaving less money to reinvest in the business, McGregor said.

"I feel a $40,000 reduction is the loss of one job, so if it's a $200,000 tax increase, that's five jobs," McGregor said.

___

Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap

Read More..

Chinese police accuse monk of inciting immolations

BEIJING (AP) — Police detained a monk and his nephew in China's Sichuan province and accused them of instigating the self-immolations of eight ethnic Tibetans on the instructions of the Dalai Lama and his followers, state media said.

The report in the official Xinhua News Agency did not detail what evidence police had of the exiled Buddhist spiritual leader's involvement — which was denied by the self-declared Tibetan government-in-exile in northern India.

The report Sunday cited a police statement as saying that confessions and an investigation showed that the detained monk, Lorang Konchok , 40, from Kirti Monastery in Sichuan's Aba county, kept in frequent contact with supporters of the Dalai Lama overseas and had recruited eight volunteers for self-immolations since 2009, telling them they would be "heroes." Three of the protesters died, the report said.

It said Lorang Konchok collected photos and personal information of volunteers who agreed to go ahead with the protests.

"He also promised to spread their 'deeds' abroad so they and their families would be acknowledged and honored," the police statement said, according to Xinhua.

The monk's nephew, Lorang Tsering, 31, helped recruit volunteers and also was arrested, the report said.

Activists say more than 90 ethnic Tibetans have set themselves on fire since 2009 in dramatic protests against authoritarian Chinese rule. Chinese officials have called the protests "cruel and inhuman" and sought to blame them on the Dalai Lama and other instigators, while activists call them home-grown expressions of desperation over oppression. The Dalai Lama has said he opposes all violence.

The Tibetan government-in-exile, based in Dharmsala, India, said it "strongly denied" any accusations of involvement by its representatives or the Dalai Lama.

"We believe that (the suspects) have been forced to make these confessions," spokesman Lobsang Choedak said. "We would welcome the Chinese government investigating whether we are instigating these immolations."

Police in Sichuan declined to comment on the case.

Tibet and surrounding ethnically Tibetan regions have been closed off to most outsiders, and firsthand information from the areas is extremely difficult to obtain.

The Chinese government says it has improved the well-being of Tibetan areas through rapid economic development over the past 30 years, but Tibetan activists complain that their culture, language and Buddhist religion are under threat.

The United States last week accused Beijing of responding to the self-immolations by tightening controls over freedom of religion, expression and assembly in Tibetan areas, drawing an angry response from Beijing, which said those freedoms were guaranteed under the Chinese Constitution.

Read More..