Arithmetic on Taxes Shows Top Rate Is Just a Starting Point





WASHINGTON — Despite hints in recent days that President Obama and House Speaker John A. Boehner might compromise on the tax rate to be paid by top earners, a host of other knotty tax questions could still derail a deal to avert a fiscal crisis in January.




The math shows why. Even if Republicans were to agree to Mr. Obama’s core demand — that the top marginal income rates return to the Clinton-era levels of 36 percent and 39.6 percent after Dec. 31, rather than stay at the Bush-era rates of 33 percent and 35 percent — the additional revenue would be only about a quarter of the $1.6 trillion that Mr. Obama wants to collect over 10 years. That would be about half of the $800 billion that Republicans have said they would be willing to raise.


That calculation alone suggests the scope of the other major tax issues to be negotiated beyond tax rates. And that is why many people in both parties remain unsure that a deal will come together before Jan. 1. Without agreement, more than $500 billion in automatic tax increases on all Americans and cuts in domestic and military programs will take hold, which could cause a recession if left in place for months, economists say.


“The question is making sure that we hit a revenue target that’s required for a truly balanced deficit-reduction plan,” said Representative Chris Van Hollen of Maryland, the senior Democrat on the House Budget Committee. “And when the president and all of us say this is a question of math, we mean it. It’s very hard to make the numbers work without the top rates going back to the full Clinton-era levels.”


The top tax rates are taking center stage right now because Mr. Obama believes he won a mandate after campaigning relentlessly on the idea of extending Mr. Bush’s tax cuts only for households with annual income below $250,000. But the two parties also have ideological differences on taxes affecting savings, investment and inheritance, which have flared in battles going back to the Reagan years. To get a deal in the coming weeks, those differences must be addressed at least in broad terms, even if the details are left to a battle over revamping the tax code next year.


The argument over rates is far from settled. Although the two sides seem close enough on the percentages for easy compromise, principle and politics loom large: Republicans oppose raising rates as a matter of ideology, saying that it kills jobs, and the president insists that he will not keep the Bush-era rates on income above roughly $250,000 after two campaigns in which he vowed to return them to the levels of the Clinton years.


“Just to be clear, I’m not going to sign any package that somehow prevents the top rate from going up for folks at the top 2 percent,” he said Thursday.


In recent days, comments from some Republicans, including Mr. Boehner, their chief negotiator, have hinted that the party — recognizing its weak hand — might be moving toward a concession on tax rates. Seldom mentioned is that Mr. Obama’s revenue total also reflects four other changes from Bush-era tax cuts: higher tax rates on investment income from capital gains and dividends, and the restoration of two other Clinton-era provisions limiting deductions and tax exemptions for affluent individuals.


Together those changes would raise $407.4 billion over a decade — nearly as much as the president’s proposal on higher rates, which would raise $441.6 billion by 2023, for a total of $849 billion. Another $119 billion would come from higher estate taxes, opposed by Republicans and some Democrats.


And both the president and Republicans are committed to raising hundreds of billions of dollars by overhauling the tax code to further limit or end the tax breaks that high-income taxpayers can claim, though they differ in how to do that.


Republicans want to raise all $800 billion from overhauling the tax code, erasing tax breaks for high-income households and using the new revenues both to reduce deficits and to lower everyone’s tax rates. But they have not proposed how to do that, and the president insists it cannot be done without hitting middle-income taxpayers.


Mr. Obama has proposed to keep existing tax breaks but to limit the rate of those breaks for people in higher tax brackets to 28 percent, which would raise $584 billion in a decade. He has proposed variations of that proposal for four years, only to be ignored by both parties because of opposition from charitable groups, the housing industry, insurers and others to curbing deductions for charitable giving, mortgage insurance and other purposes.


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Lebanese men 'lost' to Syria deepen the divide in Tripoli









TRIPOLI, Lebanon — Late that evening, Abdel Hakim Ibrahim finally confirmed his father's worst fear: He had left for Syria.


"I've crossed the border: Please forgive me," he said in a text message as midnight approached. "God be with you."


That was the last his family heard from Ibrahim, 19, a student described as introverted and pious.





Ibrahim is among Lebanon's lost young men — 21 who reportedly disappeared into neighboring Syria one evening late last month and walked straight into a Syrian army ambush. He and the others are believed to have been killed, though there has been no official confirmation of their fate.


The incident has sparked a new spasm of sectarian bloodletting in this deeply divided northern Lebanese city, where the war in Syria has revived smoldering animosities. Some in the Sunni Muslim majority view the slayings as cold-blooded murder — many suspect the men were betrayed — and blame the city's Alawite minority, members of the same sect as Syrian President Bashar Assad.


All of the victims were Sunni. Alawite leaders have disavowed any responsibility.


On Dec. 2, Syrian state television aired video of blood-streaked bodies described as those of some of the 21 Lebanese "terrorists" who, the report said, had infiltrated Syria and been cut down. They intended to join the multitudes of foreign militants seeking to overthrow Assad, according to the official Syrian account.


But some families of the missing here insist that their sons were on a humanitarian mission, not a militant one. The men were unarmed when they were killed, say the distraught relatives. Some have recognized their sons in the official Syrian video and other images that have emerged of the dead.


"Abdel Hakim didn't know anything about fighting," Henad Hassan Ali, the mother of Ibrahim, said in an interview Friday at her home in Tripoli's hillside Mankoubin district, where five of the missing men resided. "He had no training. He didn't know about weapons. He hated even to get a bloody nose."


Tripoli, Lebanon's second city, has taken on the appearance of a war zone, a kind of mirror image of strife-torn Syria. Lebanese army tanks rumble down streets, and checkpoints block intersections. Sniper rounds and grenade explosions sound in the distance. A trip to Mankoubin involves multiple detours to avoid sniper fire.


At least 13 people have been reported killed and scores wounded this week in the latest outbreak of violence between rival neighborhoods in Tripoli that are on different sides of the Syrian conflict. Sunni gunmen have been exchanging fire with their counterparts in Jabal Mohsen, an Alawite bastion.


Lebanese and Syrian authorities are negotiating the return of the young men's bodies to Lebanon. The first remains may be repatriated Saturday, beginning what is likely to be a series of incendiary funerals.


"Tripoli is boiling," said one veteran of this city's seemingly endless sectarian conflicts.


It is no secret that Lebanese and other fighters have, for more than a year, been slipping into Syria from northern Lebanon, joining Sunni-dominated rebel units. Sympathy for the rebel cause is prevalent in Sunni communities here; the red, green, and black rebel tricolor is hoisted from homes and scrawled on walls. Weapons have headed north, and a steady flow of wounded and exhausted rebel fighters has come south for medical treatment and rest.


In April, one of Lebanon's most wanted men — Abdel Ghani Jawhar, a master bomb maker who headed the Al Qaeda-inspired Fatah Islam group — was reported killed in Syria in clashes with Syrian troops.


The smuggling routes between the two nations are well-established and heavily used. How, then, did the young men wander into an ambush? Family members suspect that the whole operation was a setup, or that the men were betrayed.


"The Syrians should have surrounded them and arrested them, interrogated them," said Ibrahim's mother, who added that she still holds out faint hope her son may be alive. "There was no need to kill them."


Her son's image has not been seen among the photos of the dead.


Some families have called for revenge. Ibrahim's father said he had no doubt what he would do were his son's killers to be brought to him. "I would kill them," he said.


His wife disagreed. "Only God has the right to take a life," said the mother of 10, speaking as her other children watched and listened in the family's simple home, where there has been no running water or electricity for 10 days — part of a general pattern of government abandonment, according to residents. "God did not tell us to kill Christians or Alawites or Muslims."





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Feds Charge Anonymous Spokesperson for Sharing Hacked Stratfor Credit Cards



A Dallas grand jury has brought charges against Anonymous spokesman Barrett Brown stemming from the 2011 hack of intelligence vendor Stratfor Global Intelligence.


Brown isn’t charged with committing the hack; just with possessing and transmitting credit card numbers that were stolen in the incident.


He has been in prison since he was arrested in dramatic and public fashion three months ago after posting a threatening video to YouTube. Brown was talking with acquaintances during a Sept. 12 TinyChat session when the feds burst in and took him away. The chat session was later posted to the internet.


The Anonymous spokesman was charged the next day with threatening a federal officer.


This time the charges are are related to a different incident: the 2011 Stratfor hack where credit card numbers and internal e-mail messages were stolen.


According to the grand jury indictment, dated Tuesday, Brown posted a link to a zipped version of the documents stolen in the Stratfor hack on Christmas day 2011 — that counts as trafficking in “stolen authentication features,” the indictment claims. He’s also charged with possessing stolen credit card numbers, Card Verification Values, and other information related to those credit card numbers.


Brown, 31, has been in custody since his Sept. 12 arrest, the U.S. Department of Justice said Friday in a press release announcing the 12-count indictment. He could face a maximum of 15 years in prison if convicted on the most serious of these charges.


The self-proclaimed Anonymous spokesman said he was expecting to face fraud charges after his apartment was raided back in March. He mentioned them in a long, rambling video posted to YouTube the day on the same day he was arrested in September. “I bring in no money. I have $25,000 I brought in the last year from this fucking book deal. that’s it.” he said. “A fucking fraud charge for a fucking writer activist who has no fucking money.”


Later in the video, Brown railed against FBI Agent Robert Smith, saying that he was going to “ruin” Smith’s life “and look into his fucking kids.” The Anonymous activist said he was angry that feds were contemplating obstruction of justice charges against his mother.


The indictment is below.


Gov.uscourts.txnd.226354.1.0


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Billionaire Aldi heir dies aged 58












FRANKFURT (Reuters) – German billionaire Berthold Albrecht, heir to the Aldi supermarket chain and one of Germany‘s richest men, has died aged 58, his family announced on Friday.


Together with his brother Theo Jr, Albrecht’s fortune was estimated at $ 17.8 billion, according to Forbes. That placed them at 32 in the list of Forbes billionaires and second for Germany.












Berthold was a fighter, and full of hope to the end,” his wife, Babette, wrote in a full-page notice published in several German newspapers.


The notice from the notoriously reclusive family said that the funeral had taken place in November, but it did not give further details of the circumstances of his death.


Berthold was the son of Aldi co-founder Theo Albrecht, who died at the age of 88 in July 2010.


After the Second World War, Theo and his brother Karl turned the small grocery store their mother operated in Essen into one of the nation’s largest food retail chains, with a focus on a limited range of goods at bargain prices.


Aldi was split into two divisions covering north and south Germany in 1960. Theo took the north and Karl the south. Karl, aged 92, is classified by Forbes as the richest man in Germany with a fortune of $ 25.4 billion.


The Aldi empire, which has estimated worldwide annual turnover of about 50 billion euros ($ 65 billion), also owns the Trader Joe’s grocery chain in the United States. In Europe it competes with the likes of Tesco, Carrefour and Metro.


Berthold worked on the board of directors at Aldi North. ($ 1 = 0.7700 euros)


(Reporting by Victoria Bryan; Editing by David Goodman)


Celebrity News Headlines – Yahoo! News


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The New Old Age Blog: A Son Lost, a Mother Found

My friend Yvonne was already at the front door when I woke, so at first I didn’t realize that my mother was missing.

It was less than a week after my son Spencer died. Since that day, a constant stream of friends had been coming and going, bringing casseroles and soup, love, support and chatter. Mom hated it.

My 94-year-old mother, who has vascular dementia, has been living in my home in upstate New York for the past few years. Like many with dementia, mom is courteous but, underneath, irascible. Pride defines her, especially pride in her Phi Beta Kappa intellect. She hates to be confronted with how she has become, as she calls it, “stupid.”

The parade of strangers confused her. She had to be polite, field solicitous questions, endure mundane comments. She could not remember what was going on or why people were there. It must have been stressful and annoying.

That night, like every night since the state troopers brought the news, I woke hourly, tumbling in panic. As if it were not too late to save my son. Mom knew something was wrong, but she could not remember what. As I overslept that morning, she must have decided enough was enough. She was going home.

In a cold sky, the sun blazed over tall pines. As I opened the door, the dogs raced out to greet Yvonne and her two housecleaners. Yvonne often brags about her cleaning duo. They were her gift to me. They were going to clean my house before the funeral reception, which was scheduled for later that week. This was a very big gift because, like my mother before me, I am a very bad housekeeper.

Mom’s door was shut. I cautioned the housecleaners to avoid her room as I showed them around. Yvonne went to the kitchen to listen to the 37 unheard messages on my answering machine; the housecleaners went out to their van to get their instruments of dirt removal.

I ducked into Mom’s room to warn her about the upcoming noise. The bed was unmade; the floor was littered with crumpled tissues; the room was empty.

Normally, I would have freaked out right then. I knew Mom was not in the house, because I had just shown the whole house to the cleaners. Although Mom doesn’t wander like some dementia patients, she does on occasion run away. But I could not muster a shred of anxiety.

“Yvonne,” I called, “did you see my mother outside?”

Yvonne popped her head into the living room, eyebrows raised.“Outside? No!” She was alarmed. “Is she missing?”

“Yeah,” I said wearily, “I’ll look.” I stepped out onto the front porch, tightening the belt of my bathrobe and turning up the collar. Maybe she had walked off into the woods. The dogs danced around my legs, wanting breakfast.

I had no space left in my body to care. Either we would find her, or we would not. Either she was alive, or she was not. My child was gone. How could I care about anything ever again?

Then I saw my car was missing. My mouth fell open and my eyeballs rolled up to the right, gazing blindly at the abandoned bird’s nest on top of the porch light: What had I done with the keys?

Mom likes to run away in the car when she is angry. She used to do it a lot when my father was still alive — every time they fought. Since Mom took off in my car almost a year ago, after we had had a fight, I’d kept the keys hidden. Except for this week; this week, I had forgotten.

I was reverting to old habits. I had left the doors unlocked and the keys in the cupholder next to the driver’s seat. Exactly like Mom used to do.

“Uh-oh,” I said aloud. Mom was still capable of driving, even though she did not know where she was going. I just really, really hoped that she didn’t hurt anybody on the road. I pulled out my cellphone, about to call the police.

“Celia!” Yvonne shouted from the kitchen. She hurried up behind me, excited. “They found your mother. There are two messages on your machine.”

At that very moment, Mom was holed up at the College Diner in New Paltz, a 20-minute drive over the mountain, through the fields, left over the Wallkill River and away down Main Street.

Yvonne called the diner. They promised to keep the car keys until someone arrived. By that time, Yvonne had to go to work. She drove my friend Elizabeth to the diner, and Elizabeth drove Mom home in my car.

Half an hour later, they walked in the front door. Mom’s cheeks were rouged by the chill air and her eyes sparkled, her white hair riffing with static electricity. “Hello, hello,” she sang out. “Here we are.” She was wearing the flannel nightgown and robe I had dressed her in the night before. It was covered by her oversized purple parka, and her bare feet were shoved into sneakers.

I started laughing as soon as I saw her. I couldn’t help it. Elizabeth and Mom started laughing too. “You had a big adventure,” I said, hugging them both. “How are you?”

“I’m just marvelous,” said my mother. Mom always feels great after doing something rakish. We settled her on the sofa with her feet on the ottoman. By the time I got her blanket tucked in around her shoulders, she had fallen asleep.

Elizabeth couldn’t stop laughing as she described the scene. “Your mother was holding court in this big booth. She was sitting there in her nightgown and her parka, talking to everybody, with this plate of toast and coffee and, like, three of the staff hovering around her.”

The waitress said Mom seemed “a little disoriented” when she got there. Mom said she was meeting a friend for breakfast, but since she was wearing a nightgown and didn’t know whom she was meeting or where she lived, the staff thought there might be a problem. They convinced Mom to let them look in the glove compartment of the car, where they found my name and number.

It was then that I realized I was laughing – something I’d thought I would never be able to do again. “Elizabeth, Elizabeth, I’m laughing,” I said.

“Ha, ha, ha,” laughed Elizabeth, holding her belly.

“Ha, ha, ha,” I laughed, rolling on the floor.

And she who gave me life, who had suffered the death of my child and the extinction of her own intellect, snoozed on: oblivious, jubilant, still herself, still mine.

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A slick stereotype: L.A. drivers unable to handle the rain













A wet walk on the pier


Far removed from the many SigAlerts and traffic accidents caused by the rain, umbrella-toting pedestrians stroll on the Huntington Beach Pier before dawn on Thursday.
(Mark Boster / Los Angeles Times / November 29, 2012)































































You know what they say: L.A. drivers can't handle the rain.


Many motorists didn't disprove the stereotype Thursday as rain slickened roadways and snarled the morning commute. The California Highway Patrol reported more than three times as many accidents (294) between 12:01 a.m. and 4:30 p.m. Thursday than in the same time period a week ago (90), on Thanksgiving.


Although there were some morning crashes that shut down area freeways — including a jackknifed big rig on the 5 Freeway in Glendale and a fatal crash on the 134 in Toluca Lake — CHP Officer Ed Jacobs said most were single-car spinouts.





"People are driving too fast for the roadway," Jacobs said. "Slow down. It's really simple. There is no other thing to do."


Of the many jokes about the storm shared via social media, many focused on traffic.


"Los Angeles + rain = Carmageddon," @Nick_Favorite wrote.


"The only thing worse than LA drivers? LA drivers in the rain," @LiliannaEvelyn said.


But drivers, beware. More wet weather is in store for California through the weekend. Forecasters said scattered showers should persist as a series of storms passes through the area, the strongest of which should hit Sunday afternoon and evening.


Jacobs called the number of reported accidents "huge" but said it was typical for a rainy day in Los Angeles.


But is it proof L.A. drivers can't handle the rain?


"You'll have to draw your own conclusion on that one," Jacobs said.


kate.mather@latimes.com






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New Camera Snaps All-Sky Auroras in Full Color











Capturing a multicolored, all-sky image of the auroras that decorate Earth’s polar skies is now possible.


Normally, studying these shimmering phenomena means taking multiple images of an aurora, using different filters that block or image different wavelengths. Now, a camera with tunable liquid crystal filters can capture many colors at once, a team of space-weather researchers reports Nov. 29 in Optics Express.


Called NORUSCA II, the camera also takes pictures of the entire sky. Scientists are hoping that such precision aurora-imaging will help them better understand and classify the celestial light shows.


The team tested the sky-gazing camera at the Kjell Henriksen Observatory in Svalbard, Norway, during the auroral season of 2011 and 2012. On Jan. 24, 2012, an enormous solar flare flung a blob of charged particles in Earth’s direction. The skies over Svalbard lit up as the particles struck Earth’s atmosphere, producing a bright green aurora and intense geomagnetic storm.



Charged particles colliding with different gases in Earth’s atmosphere produce the multicolored auroras. For example, oxygen atoms can glow green or red, depending on their altitude. Hydrogen and helium high in the ionosphere can produce shimmering blue or purple. Nitrogen? Red, violet, or blue.


The new camera captured these swirling lights using many different wavelength channels; individual frames from the Jan. 24 event have been stitched together in the video above. And the camera is sensitive enough to see daytime auroras, like the reddish lights flickering across the sky on Dec. 29, 2011 (video below).



Videos: Optics Express, Vol. 20, Issue 25.









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Adkins explains Confederate flag earpiece












NEW YORK (AP) — Trace Adkins wore an earpiece decorated like the Confederate flag when he performed for the Rockefeller Center Christmas Tree Lighting but says he meant no offense by it.


Adkins appeared with the earpiece on a nationally televised special for the lighting on Wednesday. Some regard the flag as a racist symbol and criticized Adkins in Twitter postings.












But in a statement released Thursday, the Louisiana native called himself a proud American who objects to any oppression and says the flag represents his Southern heritage.


He noted he’s a descendant of Confederate soldiers and says he did not intend offense by wearing it.


Adkins — on a USO tour in Japan — also called for the preservation of America’s battlefields and an “honest conversation about the country’s history.”


___


Online:


http://www.traceadkins.com


Entertainment News Headlines – Yahoo! News


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Medicare Is Faulted in Electronic Medical Records Conversion





The conversion to electronic medical records — a critical piece of the Obama administration’s plan for health care reform — is “vulnerable” to fraud and abuse because of the failure of Medicare officials to develop appropriate safeguards, according to a sharply critical report to be issued Thursday by federal investigators.







Mike Spencer/Wilmington Star-News, via Associated Press

Celeste Stephens, a nurse, leads a session on electronic records at New Hanover Regional Medical Center in Wilmington, N.C.







Centers for Medicare and Medicaid Services

Marilyn Tavenner, acting administrator for Medicare.






The use of electronic medical records has been central to the aim of overhauling health care in America. Advocates contend that electronic records systems will improve patient care and lower costs through better coordination of medical services, and the Obama administration is spending billions of dollars to encourage doctors and hospitals to switch to electronic records to track patient care.


But the report says Medicare, which is charged with managing the incentive program that encourages the adoption of electronic records, has failed to put in place adequate safeguards to ensure that information being provided by hospitals and doctors about their electronic records systems is accurate. To qualify for the incentive payments, doctors and hospitals must demonstrate that the systems lead to better patient care, meeting a so-called meaningful use standard by, for example, checking for harmful drug interactions.


Medicare “faces obstacles” in overseeing the electronic records incentive program “that leave the program vulnerable to paying incentives to professionals and hospitals that do not fully meet the meaningful use requirements,” the investigators concluded. The report was prepared by the Office of Inspector General for the Department of Health and Human Services, which oversees Medicare.


The investigators contrasted the looser management of the incentive program with the agency’s pledge to more closely monitor Medicare payments of medical claims. Medicare officials have indicated that the agency intends to move away from a “pay and chase” model, in which it tried to get back any money it has paid in error, to one in which it focuses on trying to avoid making unjustified payments in the first place.


Late Wednesday, a Medicare spokesman said in a statement: “Protecting taxpayer dollars is our top priority and we have implemented aggressive procedures to hold providers accountable. Making a false claim is a serious offense with serious consequences and we believe the overwhelming majority of doctors and hospitals take seriously their responsibility to honestly report their performance.”


The government’s investment in electronic records was authorized under the broader stimulus package passed in 2009. Medicare expects to spend nearly $7 billion over five years as a way of inducing doctors and hospitals to adopt and use electronic records. So far, the report said, the agency has paid 74, 317 health professionals and 1,333 hospitals. By attesting that they meet the criteria established under the program, a doctor can receive as much as $44,000 for adopting electronic records, while a hospital could be paid as much as $2 million in the first year of its adoption. The inspector general’s report follows earlier concerns among regulators and others over whether doctors and hospitals are using electronic records inappropriately to charge more for services, as reported by The New York Times last September, and is likely to fuel the debate over the government’s efforts to promote electronic records. Critics say the push for electronic records may be resulting in higher Medicare spending with little in the way of improvement in patients’ health. Thursday’s report did not address patient care.


Even those within the industry say the speed with which systems are being developed and adopted by hospitals and doctors has led to a lack of clarity over how the records should be used and concerns about their overall accuracy.


“We’ve gone from the horse and buggy to the Model T, and we don’t know the rules of the road. Now we’ve had a big car pileup,” said Lynne Thomas Gordon, the chief executive of the American Health Information Management Association, a trade group in Chicago. The association, which contends more study is needed to determine whether hospitals and doctors actually are abusing electronic records to increase their payments, says it supports more clarity.


Although there is little disagreement over the potential benefits of electronic records in reducing duplicative tests and avoiding medical errors, critics increasingly argue that the federal government has not devoted enough time or resources to making certain the money it is investing is being well spent.


House Republicans echoed these concerns in early October in a letter to Kathleen Sebelius, secretary of health and human services. Citing the Times article, they called for suspending the incentive program until concerns about standardization had been resolved. “The top House policy makers on health care are concerned that H.H.S. is squandering taxpayer dollars by asking little of providers in return for incentive payments,” said a statement issued at the same time by the Republicans, who are likely to seize on the latest inspector general report as further evidence of lax oversight. Republicans have said they will continue to monitor the program.


In her letter in response, which has not been made public, Ms. Sebelius dismissed the idea of suspending the incentive program, arguing that it “would be profoundly unfair to the hospitals and eligible professionals that have invested billions of dollars and devoted countless hours of work to purchase and install systems and educate staff.” She said Medicare was trying to determine whether electronic records had been used in any fraudulent billing but she insisted that the current efforts to certify the systems and address the concerns raised by the Republicans and others were adequate.


This article has been revised to reflect the following correction:

Correction: November 30, 2012

An article on Thursday about a federal report critical of Medicare’s performance in assuring accuracy as doctors and hospitals switch to electronic medical records misstated, in some copies, the timing of a statement from a Medicare spokesman in response to the report. The statement was released late Wednesday, not late Thursday.



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Most Americans Face Lower Tax Burden Than in the 80s




What Is Fair?:
Taxes are still a hot topic after the presidential election. But as a country that spends more than it collects in taxes, are we asking the right taxpayers to pay the right amounts?







BELLEVILLE, Ill. — Alan Hicks divides long days between the insurance business he started in the late 1970s and the barbecue restaurant he opened with his sons three years ago. He earned more than $250,000 last year and said taxes took more than 40 percent. What’s worse, in his view, is that others — the wealthy, hiding in loopholes; the poor, living on government benefits — are not paying their fair share.







Kirsten Luce for The New York Times

"I don't have the answer of where to pull back. I want the state parks to stay open. I want, I want, I want. I want Big Bird, I think it's beautiful. What don't I want? I don't know," said Anita Thole, a safety supervisor for a utility contractor.






“It feels like the harder we work, the more they take from us,” said Mr. Hicks, 55, as he waited for a meat truck one recent afternoon. “And it seems like there’s an awful lot of people in the United States who don’t pay any taxes.”


These are common sentiments in the eastern suburbs of St. Louis, a region of fading factory towns fringed by new subdivisions. Here, as across the country, people like Mr. Hicks are pained by the conviction that they are paying ever more to finance the expansion of government.


But in fact, most Americans in 2010 paid far less in total taxes — federal, state and local — than they would have paid 30 years ago. According to an analysis by The New York Times, the combination of all income taxes, sales taxes and property taxes took a smaller share of their income than it took from households with the same inflation-adjusted income in 1980.


Households earning more than $200,000 benefited from the largest percentage declines in total taxation as a share of income. Middle-income households benefited, too. More than 85 percent of households with earnings above $25,000 paid less in total taxes than comparable households in 1980.


Lower-income households, however, saved little or nothing. Many pay no federal income taxes, but they do pay a range of other levies, like federal payroll taxes, state sales taxes and local property taxes. Only about half of taxpaying households with incomes below $25,000 paid less in 2010.


The uneven decline is a result of two trends. Congress cut federal taxation at every income level over the last 30 years. State and local taxes, meanwhile, increased for most Americans. Those taxes generally take a larger share of income from those who make less, so the increases offset more and more of the federal savings at lower levels of income.


In a half-dozen states, including Connecticut, Florida and New Jersey, the increases were large enough to offset the federal savings for most households, not just the poorer ones.


Now an era of tax cuts may be reaching its end. The federal government depends increasingly on borrowed money to pay its bills, and many state and local governments are similarly confronting the reality that they are spending more money than they collect. In Washington, debates about tax cuts have yielded to debates about who should pay more.


President Obama campaigned for re-election on a promise to take a larger share of taxable income above roughly $250,000 a year. The White House is now negotiating with Congressional Republicans, who instead want to raise some money by reducing tax deductions. Federal spending cuts also are at issue.


If a deal is not struck by year’s end, a wide range of federal tax cuts passed since 2000 will expire and taxes will rise for roughly 90 percent of Americans, according to the independent Tax Policy Center. For lower-income households, taxation would spike well above 1980 levels. Upper-income households would lose some but not all of the benefits of tax cuts over the last three decades.


Public debate over taxes has typically focused on the federal income tax, but that now accounts for less than a third of the total tax revenues collected by federal, state and local governments. To analyze the total burden, The Times created a model, in consultation with experts, which estimated total tax bills for each taxpayer in each year from 1980, when the election of President Ronald Reagan opened an era of tax cutting, up to 2010, the most recent year for which relevant data is available.


The analysis shows that the overall burden of taxation declined as a share of income in the 1980s, rose to a new peak in the 1990s and fell again in the 2000s. Tax rates at most income levels were lower in 2010 than at any point during the 1980s.


Governments still collected the same share of total income in 2010 as in 1980 — 31 cents from every dollar — because people with higher incomes pay taxes at higher rates, and household incomes rose over the last three decades, particularly at the top.


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