News of the day

U.S. Softens Sanction Plan Against Iran

By DAVID CRAWFORD, RICHARD BOUDREAUX, JOE LAURIA and JAY SOLOMON
MARCH 25, 2010
VIENNA—The U.S. has backed away from pursuing a number of tough measures against Iran in order to win support from Russia and China for a new United Nations Security Council resolution on sanctions, according to people familiar with the matter.

Among provisions removed from the original draft resolution the U.S. sent to key allies last month were sanctions aimed at choking off Tehran’s access to international banking services and capital markets, and closing international airspace and waters to Iran’s national air cargo and shipping lines, according to the individuals.

The U.S. and allies are trying to force Iran to rein in a nuclear program that they worry is aimed at developing atomic weapons. Tehran says its nuclear activities are peaceful. The U.K. and Germany, concerned that Russia and China would reject the resolution outright and preferring to turn up pressure on Iran gradually, persuaded U.S. officials to drop or soften several elements, including some of the document’s harshest provisions, the individuals said.

From The Times

March 26, 2010

Binyamin Netanyahu humiliated after Barack Obama 'dumped him for dinner'

(AP Photo/Cliff Owen)

The President was said to have walked out of the meeting, saying to Mr Netanyahu: 'Let me know if there is anything new'

Giles Whittell, Washington, and James Hider, Jerusalem

• 140 Comments

Recommend? (148)

For a head of government to visit the White House and not pose for photographers is rare. For a key ally to be left to his own devices while the President withdraws to have dinner in private was, until this week, unheard of. Yet that is how Binyamin Netanyahu was treated by President Obama on Tuesday night, according to Israeli reports on a trip viewed in Jerusalem as a humiliation.
After failing to extract a written promise of concessions on settlements, Mr Obama walked out of his meeting with Mr Netanyahu but invited him to stay at the White House, consult with advisers and “let me know if there is anything new”, a US congressman, who spoke to the Prime Minister, said.
“It was awful,” the congressman said. One Israeli newspaper called the meeting “a hazing in stages”, poisoned by such mistrust that the Israeli delegation eventually left rather than risk being eavesdropped on a White House telephone line. Another said that the Prime Minister had received “the treatment reserved for the President of Equatorial Guinea”. 
Timesonline.co.uk

France Backs Away From Carbon Tax

Posted 03/24/2010 07:08 PM ET

The carbon tax that French President Nicolas Sarkozy, left, once hailed as a key weapon against global warming is suddenly, as Prime Minister... View Enlarged Image

Environmental Regulations: While U.S. politicians try to keep the idea alive here, the French have announced cancellation of their version of cap-and-trade. They say it will hurt their competitiveness. Vive la France.

 

 

 Companies say health care costs hard to swallow

The health care overhaul will cost U.S. companies as much as $14 billion this year and make them more likely to drop prescription drug coverage for retirees because of a change in how the  government subsidizes those benefits. 

In the first two days after the law was signed, three major companies — Deere & Co., Caterpillar Inc. and Valero Energy — said they expect to take a total hit of $265 million to account for smaller tax deductions in the future.

With more than 3,500 companies now getting the tax break as an incentive to keep providing coverage, others are almost certain to announce similar cost increases in the weeks ahead as they sort out the impact of the change.

Figuring out what it will mean for retirees will take longer, but analysts said as many as 2 million could lose the prescription drug coverage provided by their former employers, leaving them to enroll in Medicare's program.

For the government, the tax changes are expected to raise roughly $4.5 billion over the next decade to help pay for the health overhaul. Some of the savings would be negated by retirees enrolling in the Medicare plans.

"You're increasing the incentive for companies to say 'We don't want to be in the health care business any more,'" said James Gelfand, senior manager of health policy for the U.S. Chamber of Commerce, which fought the overhaul.

American industrial companies that are struggling to compete globally against companies with much lower labor costs are particularly likely to eventually drop retiree coverage, said Gene Imhoff, an accounting professor at the University of Michigan.

See full article from DailyFinance: http://srph.it/bsFBRf

http://www.dailyfinance.com/article/companies-say-health-care-costs-hard-to/965646/

Sen. Max Baucus (D): “Too often, much of late, the last couple three years the mal-distribution of income in America is gone up way too much, the wealthy are getting way, way too wealthy, and the middle income class is left behind. Wages have not kept up with increased income of the highest income in America. This legislation will have the effect of addressing that mal-distribution of income in America.”

Cuban leader applauds US health-care reform bill

Dubious endorsement? Cuban leader endorses US health care reform, says it's about time 

 

HAVANA (AP) -- It perhaps was not the endorsement President Barack Obama and the Democrats in Congress were looking for.

Cuban revolutionary leader Fidel Castro on Thursday declared passage of American health care reform "a miracle" and a major victory for Obama's presidency, but couldn't help chide the United States for taking so long to enact what communist Cuba achieved decades ago.

"We consider health reform to have been an important battle and a success of his (Obama's) government," Castro wrote in an essay published in state media, adding that it would strengthen the president's hand against lobbyists and "mercenaries."

But the Cuban leader also used the lengthy piece to criticize the American president for his lack of leadership on climate change and immigration reform, and for his decision to send more troops to Afghanistan, among many other things.

Gas up $1 a gallon on Obama's watch

By Stephen Dinan and Kara Rowland

Gas prices have risen $1 since just after President Obama took office in January 2009 and are now closing in on the $3 mark, prompting an evaluation of the administration's energy record and calls for the White House to open more U.S. land for oil exploration.

The average price per gallon across the U.S. hit $2.81 this week, according to the Energy Information Administration. That was up from $1.81 the week of Jan. 26, 2009, just after the inauguration, and marks the highest price since Oct. 20, 2008. 

Social Security to See Payout Exceed Pay-In This Year

By MARY WILLIAMS WALSH

The bursting of the real estate bubble and the ensuing recession have hurt jobs, home prices and now Social Security. 

This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office.

Stephen C. Goss, chief actuary of the Social Security Administration, said that while the Congressional projection would probably be borne out, the change would have no effect on benefits in 2010 and retirees would keep receiving their checks as usual.

The problem, he said, is that payments have risen more than expected during the downturn, because jobs disappeared and people applied for benefits sooner than they had planned. At the same time, the program’s revenue has fallen sharply, because there are fewer paychecks to tax. 

NYTimes

Washington Post reports:

The Obama administration plans to overhaul how it’s tackling the foreclosure crisis, in part by requiring lenders to temporarily slash or eliminate monthly mortgage payments for many borrowers who are unemployed, senior officials said Thursday.
Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower’s income, which would typically be their unemployment insurance, for up to six months. In some cases, administration officials said, a lender could allow a borrower to make no payments at all.

Health-Care Changes to Start Taking Effect This Year  

March 23 (Bloomberg) -- Indoor tanning salons will charge customers a 10 percent tax beginning in July in one of the changes Americans will see as a result of the U.S. health-care overhaul signed into law by President Barack Obama. 

 Caterpillar Inc. said Wednesday it will take a $100 million charge to earnings this quarter to reflect additional taxes stemming from newly enacted U.S. health-care legislation.

...

The charge is expected to be a one-time cost, but Caterpillar has argued that higher taxes and other potential cost increases related to insurance coverage mandates in the legislation will hinder the company’s recovery this year after a 75% plunge in income during 2009.

“From our point of view, a tax increase like this cannot come at a worse time,” said Jim Dugan, a Caterpillar spokesman.

Farm equipment maker Deere expects after-tax expenses to rise by $150 million this year as a result of the health care reform law President Barack Obama signed this week.

Most of the higher expense will come in Deere’s second quarter, the company said on Thursday. The expense was not included in the company’s earlier 2010 forecast, which called for net income of about $1.3 billion. …

The law could raise expenses for large U.S. employers. Industrial companies, which typically have large numbers of retirees, may be among those facing the biggest bill. Caterpillar had argued before the legislation passed that health reform would put it at a disadvantage against global competitors.