Tax fight sends GOP into chaos

The main thing that has held Republicans together philosophically is the belief in holding down taxes. Not one of them in Congress has voted for a significant increase in more than two decades.

Now that very issue is tearing the GOP apart and making it an all-but-ungovernable majority for Speaker John A. Boehner (R-Ohio) to lead in the House.

Disarray is a word much overused in politics. But it barely begins to describe the current state of chaos and incoherence as Republicans come to terms with electoral defeat and try to regroup against a year-end deadline to avert a fiscal crisis.

The presidential election was fought in large measure over the question of whether some Americans should pay more in taxes. Republicans lost that argument with the voters, who polls show are strongly in favor of raising rates for the wealthy.

But a sizable contingent within the GOP doesn’t see it that way and is unwilling to declare defeat on a tenet that so defines them. Nor are they prepared to settle for getting the best deal they can, as a means of avoiding the tax hikes on virtually everyone else that would take effect if no deal is reached.

When Boehner tried to bend even a little, by proposing to raise rates on income over $1 million, his party humiliated him, forcing him Thursday night to abruptly cancel a vote on his “Plan B.”

“We had a number of our members who just really didn’t want to be perceived as having raised taxes,” Boehner said Friday. “That was the real issue.”

Whether and how the party can resolve the issue has implications going forward. It could determine Boehner’s viability — even his survival— as leader of the only part of the federal government controlled by the Republicans.

It also could set the terms of engagement for the battles that lie ahead, including such contentious ones as immigration and the fiscal 2013 spending bills, which are funded for only half the year and which expire March 31.

As things stand now, some worry that nothing short of a catastrophe could force a resolution.

“We have sunk to the lowest common denominator in order to get a deal — sheer panic,” said Republican strategist Ron Bonjean, a former aide to House and Senate leadership. “The reality of a stock market crash is probably the only way Washington will strike a deal. It is probably the only scenario that could likely force the speaker’s hand and allow for a deal driven by Democratic votes to pass the House.”

Which, of course, is not an ideal way to govern.

“The hard-core anti-tax conservatives in the GOP seem to believe that Barack Obama will be blamed if there is no agreement reached to avoid sequestration and the tax increases that are coming,” said Sheldon D. Pollack, a University of Delaware law and political science professor who has written a history of Republican anti-tax policy. “Calculated gamble? Or are they simply incapable of recognizing that they do not control the White House or the Senate, and hence do not have the ability to control the agenda? Sadly, I think it is the latter.”

Their intransigence alone is unlikely to sell the electorate on the Republican point of view on taxes.

“You have to make an argument. You have to go out there and engage. You can’t just simply assert a position,” said GOP pollster David Winston, who advises the House leadership. “Part of the dynamic for Boehner is that he’s trying to have the debate over economic policies that should have occurred during the election, and he also has to deal with this piece of legislation.”

As long as there has been a Republican Party, there has been at least a faction within it that has taken a hard-line stance on taxes, Pollack said. But it has not always had the upper hand.

Abraham Lincoln, the first Republican president, was also the first to put a national income tax into place, as a temporary means of funding the Civil War. Even then, House Ways and Means Chairman Thaddeus Stevens (now enjoying a return to popular consciousness as Tommy Lee Jones’s character in the movie “Lincoln”) denounced the idea of a graduated rate structure as a “strange way to punish men because they are rich.”

The 16th Amendment, which established the constitutionality of the federal income tax in 1913, was proposed by a Republican, Senate Finance Committee Chairman Nelson W. Aldrich. But it was decried by another one, Sen. Henry Cabot Lodge of Massachusetts, as “confiscation of property under the guise of taxation” and “a pillage of a class.”

The divisions went on until the 1980 election of Ronald Reagan, who ran as an advocate of tax-cutting supply-side economics.

In 1990, Newt Gingrich established himself as the de facto head of his party in the House, when he stood up to a president of his own party and led the opposition to George H.W. Bush’s tax increases.

Gingrich insisted in an interview Friday that the Republicans still have leverage, if they are willing to fight hard enough.

“They need a strategy, not just a way of getting through this week,” he said.

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Agents to hire more Sri Lankan maids next year

SINGAPORE: Maid agents in Singapore are looking to hire more foreign domestic helpers from Sri Lanka.

From next year, the Association of Employment Agencies plans to bring in between 500 and 1,000 Sri Lankan maids a month, up from the current 100 to 200 a month.

Based on records from the Sri Lankan High Commission in Singapore, there are about 4,500 Sri Lankan maids here.

The association said this will help to make up for the shortfall in maids from traditional source countries, such as Indonesia and Philippines.

It will be signing an agreement with Sri Lankan authorities and employment agencies next month to facilitate the recruitment of maids.

The move to bring in more domestic helpers from Sri Lanka is part of efforts to improve the quality of domestic helpers here.

Most of the Sri Lankan maids speak English and have at least 10 years of education. About 40 per cent of them have 'A' level qualifications.

Employment agencies here said it is important to make Singapore an attractive destination for Sri Lankan women hoping to work as domestic helpers overseas.

K Jayaprema, the president of the Association of Employment Agencies said: "It's very important that when we are reviving this new market, we don't want it to go wrong because we are focusing on attracting quality FDWs (foreign domestic workers) to Singapore and for that to happen, we need to have good employment terms, the welfare of the domestic workers have to be taken care of and it must be attractive for them to come in."

A J Razzy, director of maid agency Cobb Douglas said: "There are some things that have changed for example, with the scrapping of the entry test, there are many more opportunities for agents at Sri Lanka to recruit Sri Lankan foreign domestic workers for the Singapore market."

The association is working with Sri Lankan authorities to spell out training requirements for maids, and speed up the hiring process.

Sri Lanka has an extensive training programme of more than 20 days for maids.

Singapore maid agents would like the programme to focus more on aspects such as household skills and safety.

Ms Jayaprema said that the processing time for recruitment of these maids could be faster.

The Association of Employment Agencies led a delegation of 30 maid agents to Sri Lanka recently to renew contacts with their counterparts.

It met with the Sri Lankan Bureau for Foreign Employment, which is the regulatory body for overseas recruitment of workers, and the Sri Lankan Foreign Employment Agency.

In addition, the association met over 60 Sri Lankan recruitment agencies. The last time the association organised a visit there was in 2007.

Maid agents say Sri Lankan workers can between S$400 and S$500 a month.

Sri Lanka is the fifth biggest source of maids in Singapore after Indonesia, the Philippines, India and Myanmar.

A recent report from the National Population and Talent Division forecast that Singapore is going to need some 100,000 more maids by 2030.

Muniyandi Vasanthakumari has been working as a domestic helper in Singapore for 15 years. The 45-year-old Sri Lankan is happy here and gets along well with her employer's family.

"She reads what we want, she knows our preference and she does it beforehand. Before I can tell her what I need, it's already done," said her employer Komathi Anbalahan.

- CNA/xq

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Italian naval guards: Flown out, never to return?

THIRUVANANTHAPURAM: In the wee hours of Saturday, the two Italian naval guards charged with shooting dead two Indian fishermen flew out of Kochi airport in a chartered flight from Italy. The question most often asked here now is: Will they return, as promised, by Jan 10, 2013?

The two Italians were charged with killing fishermen Ajesh Binki and Gelastine on February 15, allegedly taking them for pirates.

The naval guards were out on bail, staying in a Kochi hotel.

On Thursday, the Kerala high court ruled that subject to some conditions, the two naval guards could be allowed to return home for Christmas.

The families of the slain fishermen doubt the Italians will now return to stand trial in India. The Left opposition in the state too has expressed doubt the two will return.

The Italian consul general, however, has asserted that the men will return. An assurance to this effect was sought by the court from the Italian government before allowing the men the trip home for Christmas.

Chief minister Oommen Chandy told reporters that his government had opposed relaxation in the bail conditions of the two accused; he told reporters on Saturday that it was now up to the central government to see that the two return.

"There need be no doubt on the state government's stance. When the request for a Christmas holiday for the two first came, we strongly opposed it. Now it's the responsibility of the central government to see that the two return. The Italian government has offered such an assurance," the chief minister said.

Meanwhile, reports from Italy indicate that the two could expect the welcome of heroes, later Saturday.

To circumvent the law, the two could be fielded as candidates in upcoming general elections in Italy.

Italian officials in Delhi expect that the case in the Supreme Court of India, in which the Italian government has demanded trial under international law, could be ruled in their favour.

Meanwhile, the CPM is all set to close in on an opportunity to go hammer and tongs at the state government, in case the two accused fail to return. There are already murmurings that none other than Congress president Sonia Gandhi had intervened, in favour of the two marines from the country of her origin.

Trivandrum Latin Church Archbishop M Susaipakiam told reporters here on Saturday that allowing the two Italian naval guards to return was a good gesture.

"This gesture is certain to increase warmth in the relations between the two countries," the archbishop said.

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Pictures: Fungi Get Into the Holiday Spirit

Photograph courtesy Stephanie Mounaud, J. Craig Venter Institute

Mounaud combined different fungi to create a Santa hat and spell out a holiday message.

Different fungal grow at different rates, so Mounaud's artwork rarely lasts for long. There's only a short window of time when they actually look like what they're suppose to.

"You do have to keep that in perspective when you're making these creations," she said.

For example, the A. flavus fungi that she used to write this message from Santa grows very quickly. "The next day, after looking at this plate, it didn't say 'Ho Ho Ho.' It said 'blah blah blah,'" Mounaud said.

The message also eventually turned green, which was the color she was initially after. "It was a really nice green, which is what I was hoping for. But yellow will do," she said.

The hat was particularly challenging. The fungus used to create it "was troubling because at different temperatures it grows differently. The pigment in this one forms at room temperature but this type of growth needed higher temperatures," Mounaud said.

Not all fungus will grow nicely together. For example, in the hat, "N. fischeri [the brim and ball] did not want to play nice with the P. marneffei [red part of hat] ... so they remained slightly separated."

Published December 21, 2012

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Obama Still an 'Optimist' on Cliff Deal

Mandel Ngan/AFP/Getty Images

WASHINGTON D.C. – Ten days remain before the mandatory spending cuts and tax increases known as the “fiscal cliff” take effect, but President Obama said he is still a “hopeless optimist” that a federal budget deal can be reached before the year-end deadline that economists agree might plunge the country back into recession.

“Even though Democrats and Republicans are arguing about whether those rates should go up for the wealthiest individuals, all of us – every single one of us -agrees that tax rates shouldn’t go up for the other 98 percent of Americans, which includes 97 percent of small businesses,” he said.

He added that there was “no reason” not to move forward on that aspect, and that it was “within our capacity” to resolve.

The question of whether to raise taxes on incomes over $250,000 remains at an impasse, but is only one element of nuanced legislative wrangling that has left the parties at odds.

For ABC News’ breakdown of the rhetoric versus the reality, click here.

At the White House news conference this evening, the president confirmed he had spoken today to Senate Majority Leader Harry Reid, D-Nev., and House Speaker John Boehner, R-Ohio, although no details of the conversations were disclosed.

The talks came the same day Speaker Boehner admitted “God only knows” the solution to the gridlock, and a day after mounting pressure from within his own Republican Party forced him to pull his alternative proposal from a prospective House vote. That proposal, ”Plan B,” called for extending current tax rates for Americans making up to $1 million a year, a far wealthier threshold than Democrats have advocated.

Boehner acknowledged that even the conservative-leaning “Plan B” did not have the support necessary to pass in the Republican-dominated House, leaving a resolution to the fiscal cliff in doubt.

“In the next few days, I’ve asked leaders of Congress to work towards a package that prevents a tax hike on middle-class Americans, protects unemployment insurance for 2 million Americans, and lays the groundwork for further work on both growth and deficit reduction,” Obama said. ”That’s an achievable goal.  That can get done in 10 days.”

Complicating matters: The halls of Congress are silent tonight. The House of Representatives began its holiday recess Thursday and Senate followed this evening.

Meanwhile, the president has his own vacation to contend with. Tonight, he was embarking for Hawaii and what is typically several weeks of Christmas vacation.

However, during the press conference the president said he would see his congressional colleagues “next week” to continue negotiations, leaving uncertain how long Obama plans to remain in the Aloha State.

The president said he hoped the time off would give leaders “some perspective.”

“Everybody can cool off; everybody can drink some eggnog, have some Christmas cookies, sing some Christmas carols, enjoy the company of loved ones,” he said. “And then I’d ask every member of Congress, while they’re back home, to think about that.  Think about the obligations we have to the people who sent us here.

“This is not simply a contest between parties in terms of who looks good and who doesn’t,” he added later. “There are real-world consequences to what we do here.”

Obama concluded by reiterating that neither side could walk away with “100 percent” of its demands, and that it negotiations couldn’t remain “a contest between parties in terms of who looks good and who doesn’t.”

Boehner’s office reacted quickly to the remarks, continuing recent Republican statements that presidential leadership was at fault for the ongoing gridlock.

“Though the president has failed to offer any solution that passes the test of balance, we remain hopeful he is finally ready to get serious about averting the fiscal cliff,” Boehner said. “The House has already acted to stop all of the looming tax hikes and replace the automatic defense cuts. It is time for the Democratic-run Senate to act, and that is what the speaker told the president tonight.”

The speaker’s office said Boehner “will return to Washington following the holiday, ready to find a solution that can pass both houses of Congress.”

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How Boehner’s Plan B for the ‘fiscal cliff’ began and fell apart

John A. Boehner’s week on the brink ended in a painfully familiar place.

It began last week when President Obama delivered a stern message to the House speaker: If there was going to be a deal to tame the nation’s debt, it had to happen now. If they went over the “fiscal cliff,” it would only become harder to reach a deal, Obama said.

The next day, Friday, Boehner (R-Ohio) phoned Obama offering what seemed like a major breakthrough: Republicans would agree to raise tax rates for the first time in decades if the president gave a key concession on entitlement reform.

That offer set in motion seven days of dealmaking, posturing and cajoling by Boehner and other House leaders, first on a grand deal with the White House and then on a Plan B with their own House caucus. By Thursday night, both deals had fallen apart, and Boehner was near tears in announcing the failure to his colleagues, Republicans said.

The failure of a grand bargain was the latest oh-so-close moment for Obama and Boehner, who have been dancing around a deal to cut the deficit for the better part of the past two years. And the collapse of Plan B set a new low in Boehner’s sometimes rocky relationship with a House Republican caucus that has long been uneasy about the speaker’s dealmaking with Obama.

Following the latest breakdown in negotiations, Democrats said Boehner should return to the bargaining table with Obama — or just let House Democrats and 25 or so Republicans vote for a Senate-approved plan to extend tax cuts for the middle class. But Republicans said the well has been so poisoned that restarting bipartisan talks would be more difficult than ever.

In a statement late Thursday, Boehner said it was now up to Senate Majority Leader Harry M. Reid (D-Nev.) and Obama to come up with an agreement — without explaining what role he would play. The speaker ignored reporters’ questions and, at 8:04 p.m., he walked out of the Capitol.

A week earlier, the possibility of a deal seemed as promising as it ever had.

As he was heading home to Ohio for the weekend, Boehner called Obama with an offer to allow tax rates for incomes above $1 million to rise from 35 percent to 39.6 percent. In exchange, Boehner demanded a key change to entitlement spending that would lead to reduced benefits.

With a potential $1 trillion in spending cuts — out of a total $2 trillion debt deal — Boehner also suggested that the debt ceiling could be lifted a similar amount and give the Treasury another year of borrowing authority.

The next 72 hours would prove critical. Having offered so much, Boehner hoped he could keep the details quiet long enough for him to get Obama to agree to enough spending cuts to satisfy his caucus — and so that his leadership team could make the case for compromise in person.

But the details did not stay secret for long. Reports leaked out Saturday evening that Boehner had agreed to raise taxes on millionaires. That was followed by a more alarming leak Sunday evening that Boehner was also willing to grant Obama another increase in the federal debt limit. Home in their districts, unsuspecting rank-and-file Republicans were stunned.

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SIA to spend S$95m upgrading B77-200ER cabins

SINGAPORE: Singapore Airlines said it will spend S$95 million refitting 10 Boeing 777-200ER aircraft with new long-haul cabin products.

The improvements include seats that fold down into full-flat beds in Business Class and larger entertainment screens for both Business and Economy.

A shift in seat layouts will allow every passenger in the Business Class direct access to the aisle.

The first refitted B77-200ER will operate between Singapore and Amsterdam from 13 January 2013. Subsequent refitted planes will fly to destinations in Europe, India, South Africa, Australia and New Zealand.

The refitted Boeing 200ER series will have a reduced seating capacity of 271 passengers, instead of 285 previously.

- CNA/ck

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CWG scam: Delhi court orders framing of charges against Suresh Kalmadi & others

NEW DELHI: A Delhi court today ordered framing of charges against sacked CWG organising committee chairman Suresh Kalmadi and others for offences of forgery, cheating and conspiracy in a games-related graft case.

Special CBI Judge Talwant Singh passed the order on framing of charges against Kalmadi, former OC secretary general Lalit Bhanot and nine others for illegally awarding a contract to Swiss firm, Swiss Timing Omega, causing huge loss to the exchequer.

The court said "prima facie" charges of cheating, forgery, criminal conspiracy and for offences under the provisions of the Prevention of Corruption Act are made out against eight accused persons and three companies.

"Charges under section 120B (criminal conspiracy), 201 (destruction of evidence), 420 (cheating), 467, 468, 471 (relating to forgery), 506 (criminal intimidation) of the IPC and section 13(1)(d) read with section 13(2) (criminal misconduct by public servants) of the PC Act is ordered to be framed against all the accused," the court said.

"Put up for formally framing of charges on January 10 at 10.30am," the judge said.

The accused have been charge sheeted by the CBI for "illegally" awarding a contract to install Timing, Scoring and Results (TSR) system for the 2010 CWG to Swiss Timing at inflated rates causing a loss of over Rs 90 crore to the public exchequer.

Besides Kalmadi and Bhanot, the other accused in the case are OC's director general V K Verma, director general (procurement) Surjit Lal, Joint director general (sports) ASV Prasad and treasurer M Jayachandran. They are no more associated with the sporting body.

Promoters of two construction companies — P D Arya and A K Madan of Faridabad-based Gem International and A K Reddy of Hyderabad-based AKR Constructions are also accused in the case. Swiss Timing Omega is also an accused in the case.

The CBI had alleged that Kalmadi and others had rejected Spanish firm MSL's much lower bid of Rs 62 crore and awarded the contract to Swiss Timing Omega, causing a loss of over Rs 90 crore to the exchequer.

During the arguments on charges, CBI counsel V K Sharma had argued that Kalmadi and others had decided to award the contract for installing the TSR system for the CWG to Swiss Timing even before the firm had bid for it.

Sharma had also said that for TSR installation, two bids had been received - one from Swiss Timing and other from MSL Spain, and the same were opened on November 4, 2009 but Kalmadi and Verma had announced in a meeting on October 12, 2009 itself that the contract would be given to Swiss Timing.

He had also said Kalmadi had made up his mind in advance to award the contract to the Swiss firm.

Kalmadi's counsel, however, had argued that the facts given in the CBI's charge sheet were contrary to the documents which the agency had filed in the court.

Kalmadi had told the court that he was only doing the work assigned to him as the OC chairman and nothing wrong was done by him in the entire process.

The counsel appearing for other accused had also opposed the allegations levelled against them by the CBI.

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Hollies Get Prickly for a Reason

With shiny evergreen leaves and bright red berries, holly trees are a naturally festive decoration seen throughout the Christmas season.

They're famously sharp. But not all holly leaves are prickly, even on the same tree. And scientists now think they know how the plants are able to make sharper leaves, seemingly at will. (Watch a video about how Christmas trees are made.)

A new study published in the Botanical Journal of the Linnean Society suggests leaf variations on a single tree are the combined result of animals browsing on them and the trees' swift molecular response to that sort of environmental pressure.

Carlos Herrera of the National Research Council of Spain led the study in southeastern Spain. He and his team investigated the European holly tree, Ilex aquifolium. Hollies, like other plants, can make different types of leaves at the same time. This is called heterophylly. Out of the 40 holly trees they studied, 39 trees displayed different kinds of leaves, both prickly and smooth.

Five holly leaves from the same tree.

Photographs by Emmanuel Lattes, Alamy

Some trees looked like they had been browsed upon by wild goats and deer. On those trees, the lower 8 feet (2.5 meters) had more prickly leaves, while higher up the leaves tended to be smooth. Scientists wanted to figure out how the holly trees could make the change in leaf shape so quickly.

All of the leaves on a tree are genetic twins and share exactly the same DNA sequence. By looking in the DNA for traces of a chemical process called methylation, which modifies DNA but doesn't alter the organism's genetic sequence, the team could determine whether leaf variation was a response to environmental or genetic changes. They found a relationship between recent browsing by animals, the growth of prickly leaves, and methylation.

"In holly, what we found is that the DNA of prickly leaves was significantly less methylated than prickless leaves, and from this we inferred that methylation changes are ultimately responsible for leaf shape changes," Herrera said. "The novelty of our study is that we show that these well-known changes in leaf type are associated with differences in DNA methylation patterns, that is, epigenetic changes that do not depend on variation in the sequence of DNA."

"Heterophylly is an obvious feature of a well-known species, and this has been ascribed to browsing. However, until now, no one has been able to come up with a mechanism for how this occurs," said Mike Fay, chief editor of the Botanical Journal of the Linnean Society and head of genetics at the Kew Royal Botanic Gardens. "With this new study, we are now one major step forward towards understanding how."

Epigenetic changes take place independently of variation in the genetic DNA sequence. (Read more about epigenetics in National Geographic magazine's "A Thing or Two About Twins.")

"This has clear and important implications for plant conservation," Herrera said. In natural populations that have their genetic variation depleted by habitat loss, the ability to respond quickly, without waiting for slower DNA changes, could help organisms survive accelerated environmental change. The plants' adaptability, he says, is an "optimistic note" amidst so many conservation concerns. (Related: "Wild Holly, Mistletoe, Spread With Warmer Winters.")

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Fiscal Cliff 'Plan B' Is Dead: Now What?

Dec 20, 2012 11:00pm

The defeat of his Plan B — Republicans pulled it when it became clear it would be voted down — is a big defeat for Speaker of the House John Boehner.  It demonstrates definitively that there is no fiscal cliff deal that can pass the House on Republican votes alone.

Boehner could not even muster the votes to pass something that would only allow tax rates on those making more than $1 million to go up.

Boehner’s Plan B ran into opposition from conservative and tea party groups -including Heritage Action, Freedom Works and the Club for Growth – but it became impossible to pass it after Senate Democrats vowed not to take up the bill and the president threatened to veto it.  Conservative Republicans saw no reason to vote for a bill conservative activists opposed – especially if it had no hopes of going anywhere anyway.

Plan B is dead.

Now what?

House Republicans say it is now up to the Senate to act.  Senate Democrats say it is now up to Boehner to reach an agreement with President Obama.

Each side is saying the other must move.

The bottom line:  The only plausible solution is for President Obama and Speaker Boehner to do what they have failed repeatedly to do:  come up with a truly bi-partisan deal.

The prospects look grimmer than ever. It will be interesting to see if the markets react.

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