Oregon Mall Shooting Hero Gets Customer to Safety













A store employee at the Clackamas Town Center mall used his knowledge of the shopping complex to hustle a customer out of the building during Tuesday's shooting rampage and then twice went back inside to guide other shoppers to exits and safety.


Allan Fonseca, who works at Lancome counter in Macy's and was waiting on Jocelyn Lay when they heard shots fired about 3:30 p.m. Thinking quickly, Fonseca got her behind the counter to hide.


"We both just looked at each other and knew that this was a serious situation and it was a gunman and we both just dove down below the Lancome counter there for a little protection," Lay told "Good Morning America." "And the gunfire just kept going off."


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Lay said that she began praying for the Lord to protect her and the other shoppers in the mall. She said Fonseca, as a store employee, knew exactly what to do, and she credits him as her hero.


"He said that we needed to evacuate, and he took me by the hand and took me down the escalator and out to safety," she said.


Once Fonseca was sure that she was safe, he then turned to her and said, "I'm going to go back and help other people."


Fonseca said that because he is familiar with the exits in the mall, he felt that he would be able to help shoppers escape the gunfire.


"I felt that if I knew how to get out of the mall and out to safety then I should share that knowledge with everyone else, like the shoppers that don't come here regularly and don't know all of the exits," he said. "So I decided to go back up because I wanted to see if there was anybody in panic or didn't know where to do."


Fonseca returned to the mall and evacuated the lower level of the Macy's store, and then went back up to the "shooting floor" to look for his co-workers. Lay says she's not sure she would have done if he hadn't been there to get her out of harm's way.


"I probably just would have stayed there and probably would have had a little more fear because it's one of those situations where you've seen in previous shootings, the gunman keep shooting and keep looking for different people," she said. "I would have huddled there and hoped and prayed."



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North Korea launches rocket , raising nuclear arms stakes


SEOUL/TOKYO (Reuters) - North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to opponents.


The rocket, which North Korea says put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far away as the continental United States.


"The satellite has entered the planned orbit," a North Korean television news reader clad in traditional Korean garb announced, after which the station played patriotic songs with the lyrics "Chosun (Korea) does what it says".


The rocket was launched just before 10 a.m. (0100 GMT), according to defense officials in South Korea and Japan, and was more successful than a rocket launched in April that flew for less than two minutes.


The North American Aerospace Defense Command (NORAD) said that it "deployed an object that appeared to achieve orbit", the first time an independent body has verified North Korean claims.


North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the U.N. Security Council to stiffen sanctions that it originally imposed in 2006 after the North's first nuclear test.


North Korea is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state's "military first" programs put in place by his late father, Kim Jong-Il.


North Korea hailed the launch as celebrating the prowess of all three members of the Kim family to rule since it was founded in 1948.


"At a time when great yearnings and reverence for Kim Jong-il pervade the whole country, its scientists and technicians brilliantly carried out his behests to launch a scientific and technological satellite in 2012, the year marking the 100th birth anniversary of President Kim Il Sung," its KCNA news agency said. Kim Il Sung, the current leader's grandfather, was North Korea's first leader.


The United States condemned the launch as "provocative" and a breach of U.N. rules, while Japan's U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely from the Security Council as China, the North's only major ally, will oppose them.


"The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences," the White House said in a statement.


U.S. intelligence has linked North Korea with missile shipments to Iran. Newspapers in Japan and South Korea have reported that Iranian observers were in the North for the launch, something Iran has denied.


Japan's likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on Sunday and who is known as a hawk on North Korea, called on the United Nations to adopt a resolution "strongly criticizing" Pyongyang.


A North Korean Foreign Ministry spokesman reiterated that the rocket was a "peaceful project".


"The attempt to see our satellite launch as a long-range missile launch for military purposes comes from hostile perception that tries to designate us a cause for security tension," KCNA cited the spokesman as saying.


"STUMBLING BLOCK"


China had expressed "deep concern" prior to the launch which was announced a day after a top politburo member, representing new Chinese leader Xi Jinping, met Kim Jong-un in Pyongyang.


On Wednesday, its tone was measured, regretting the launch but calling for restraint on any counter-measures, in line with a policy of effectively vetoing tougher sanctions.


"China believes the Security Council's response should be cautious and moderate, protect the overall peaceful and stable situation on the Korean peninsula, and avoid an escalation," Chinese Foreign Ministry spokesman Hong Lei told journalists.


Bruce Klingner, a Korea expert at the Heritage Foundation, said: "China has been the stumbling block to firmer U.N. action and we'll have to see if the new leadership is any different than its predecessors."


A senior adviser to South Korea's president said last week it was unlikely there would be action from the United Nations and Seoul would expect its allies to tighten sanctions unilaterally.


Kim Jong-un, believed to be 29 years old, took power when his father died on December 17 last year and experts believe the launch was intended to commemorate the first anniversary of his death. The April launch was timed for the centennial of the birth of Kim Il Sung.


Wednesday's success puts the North ahead of the South which has not managed to get a rocket off the ground.


"This is a considerable boost in establishing the rule of Kim Jong-un," said Cho Min, an expert at the Korea Institute of National Unification.


There have been few indications the secretive and impoverished state, where the United Nations estimates a third of people are malnourished, has made any advances in opening up economically over the past year.


North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its workers overseas.


Many of its 22 million people need handouts from defectors, who have escaped to South Korea, for basic medicines.


Given the puny size of its economy - per capita income is less than $2,000 a year - one of the few ways the North can attract world attention is by emphasizing its military threat.


It wants the United States to resume aid and to recognize it diplomatically, although the April launch scuppered a planned food deal.


The North is believed to be some years away from developing a functioning nuclear warhead although it may have enough plutonium for about half a dozen nuclear bombs, according to nuclear experts.


It has also been enriching uranium, which would give it a second path to nuclear weapons as it sits on big natural uranium reserves.


"A successful launch puts North Korea closer to the capability to deploy a weaponized missile," said Denny Roy, a senior fellow at the East-West Center in Hawaii.


"But this would still require fitting a weapon to the missile and ensuring a reasonable degree of accuracy. The North Koreans probably do not yet have a nuclear weapon small enough for a missile to carry."


The North says its work is part of a civil nuclear program although it has also boasted of it being a "nuclear weapons power".


(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; David Alexander, Matt Spetalnick and Paul Eckert in WASHINGTON; Linda Sieg in TOKYO, Sui-Lee Wee and Michael Martina in BEIJING,; Rosmarie Francisco in MANILA; Writing by David Chance; Editing by Raju Gopalakrishnan and Robert Birsel)



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UN court sentences Srebrenica commander to life for genocide






THE HAGUE: The UN's Yugoslav war crimes court found Bosnian Serb general Zdravko Tolimir guilty of genocide for his role in the 1995 Srebrenica massacre, Europe's worst atrocity since World War II, and sentenced him to life in jail.

"The majority of the court finds you guilty" of crimes including genocide, judge Christoph Flugge told the Hague-based International Criminal Tribunal for the former Yugoslavia.

"Zdravko Tolimir, you are hereby sentenced to life imprisonment," the judge then told the gaunt former commander, who crossed himself three times before the verdict was handed down.

The majority of the court's judges agreed with prosecutors who had asked for a life sentence, saying Tolimir, now 64, was involved in "massive" crimes committed at the Srebrenica and Zepa enclaves in July 1995.

They said they were "of a massive scale, severe in (their) intensity and devastating in (their) effect."

Judges said Tolimir -- whom they called the "right-hand man and eyes and ears of (Bosnian Serb army commander) Ratko Mladic," -- who is also being tried by the court -- had overseen Bosnian Serb army officers conducting the slaughter of at least 6,000 Muslim men and boys at Srebrenica.

Conducting his own defence, Tolimir said that what happened at Srebrenica in eastern Bosnia in July 1995 amounted to "fighting against terrorist groups", rather than the murder of Muslim men and boys after Dutch peacekeepers at the "safe" enclave were overrun by Mladic's forces.

Tolimir, said Judge Flugge, "had full knowledge of the despicable criminal operations and himself furthered their goals," in this brutal episode in the Balkans country's bloody 1992-95 war that claimed 100,000 lives and left 2.2 million others homeless.

Apart from genocide, Tolimir was found guilty on six other counts including extermination, murder, persecution and forcible transfer.

Judges said prosecutors did not prove a count of deportation beyond reasonable doubt in relation to the attacks on Srebrenica and Zepa.

During his trial prosecutors said the former intelligence chief was part of a grand scheme to murder thousands of Muslim men and boys and expel thousands of woman and children from the enclave in order to create a "mono-ethnic Serb state."

The prosecution also alleged that about 25,000 women, children and elderly people were forcibly transferred from the enclaves to Muslim-controlled territories, while thousands of men and boys old enough to bear arms were executed and dumped in mass graves.

Tolimir was involved in a "joint criminal enterprise" to "summarily execute and bury thousands of Bosnian Muslim men and boys aged 16 to 60 captured from the Srebrenica enclave," according to the charge sheet.

During the trial, prosecutors said Mladic relied on Tolimir to "carry out the slow strangling of the Srebrenica and Zepa enclaves" to create conditions which would force the Muslim population "to give up hope of survival."

Tolimir is the most senior Serb to have a verdict handed down by the UN war crimes court since two Croatian generals and two former Kosovar guerrillas were acquitted last month, sparking Serbia's ire.

In 2004, Radislav Krstic became the highest-ranking Bosnian Serb officer to be sentenced on appeal to 35 years in jail for his role in the Srebrenica massacre.

Arrested in May 2007 in Bosnia-Herzegovina, Tolimir had seen his trial delayed several times due to ill-health.

Mladic, also dubbed "the Butcher of Bosnia," was arrested in Serbia last year, and now faces 11 counts before the same Hague-based court, including for the Srebrenica massacre.

-AFP/ac



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Ravi Shankar harnessed folk tunes with equal felicity

NEW DELHI: Perhaps the finest novel written by Hindi-Urdu literary genius Munshi Premchand, Godan, was miserably adapted to the big screen by film director Trilok Jetley in 1963. Despite having proven performers like Raj Kumar and Kamini Kaushal in lead roles, the movie sank without a trace.

But the film had at least one endearing footnote: a bunch of folksy compositions flavoured with the salt of village India. Bollywood cineastes would surely recall a boisterous Mehmood singing, Pipra ke pathwa sareekhe dole manwa ke hiyera mein uthath hillor, purwa ke jhokwa se aayo re sandeswa ke chalein aaj deswa ki ore (lyricist: Anjaan, singer: Rafi), and dancing past the fecund cornfields. Hori khelat nand lal Biraj mein, also sung by Mehmood onscreen, is another number that amiably captures the movie's hinterland feel. Both these songs also underline the versatility of composer Ravi Shankar: he could harness folk tunes with the same felicity with which he played ragas on his complex sitar. It is clear that the Benaras-born musician never forgot his childhood days.

Ravi Shankar's most memorable Hindi film compositions came in Hrishikesh Mukherjee's Anuradha (1961), where the born-to-break-hearts Leela Naidu made her debut. The film revolved around a singer conflicted between her love for music and her idealist doctor husband ( Balraj Sahni). The masterclass musician's melody-driven, semi-classical tunes harmonized perfectly with Shailendra's meaningful poetry to bring out the protagonist's predicament.

With Lata at her rapturous, nuanced best, every Anuradha song is 10/10 -- Jaane kaise sapnon mein (Raag Tilak Shyam), Saanwre saanwre kahe mose (Raag Bhairavi), Kaise din beete, kaise beeti ratiyan and Hai re woh din kyon na aaye. The songs of Anuradha were a commercial as well as a critical success. And it is surprising that Ravi Shankar composed only fleetingly for Hindi cinema thereafter. May be, he was too busy teaching music to the Beatles.

The next notable film in his Bollywood ouvre came much later in 1979; Gulzar's Meera, a much-talked and little-seen movie. The lyricist-director's dream project was based on the life and music of the 16th century poet-princess, Meerabai. It was a difficult subject and the surprise choice of Ravi Shankar as music director shows how he was valued by serious filmmakers. The movie was a letdown but its music, especially some of the bhajans such as Jo tum todo piya and Mere to giridhar gopal, became chartbusters. Incidentally, Ravi Shankar controversially used Vani Jairam, and not Lata Mangeshkar for the songs.

Few remember that Ravi Shankar started his Hindi film career providing music for two progressive movies: KA Abbas' Dharti Ke Lal (1946) and Chetan Anand's Neecha Nagar, which won the Grand Prize in Cannes. Reminiscent of the Saigal era, the compositions in these films failed to create a major impact.

It was with his background score for Satyajit Ray's Pather Panchali (1955) that Ravi Shankar really came into his own illustrating how music can play such a major role in a movie's mood building. In the famous train scene, the swish of the wind and water, the approaching sound of the steam locomotive and the two kids rushing through the field of Kaash flowers - is a fitting example of subtle, minimalist music. Even in the other two movies of the Apu Trilogy, Aparajito and Apur Sansar, Ravi Shankar provided the background score. He also gave the music for Paras Pathar, one of Ray's underfeted works.

The Indian composer earned an Oscar nomination for Richard Attenborough's Gandhi. The overwritten background music, actually, is one of the film's weakness. But Ravi Shankar, the musician, was too big a brand for even the Oscar awards committee to ignore.

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Congress examines science behind HGH test for NFL


WASHINGTON (AP) — A congressional committee has opened a hearing to examine the science behind a human growth hormone test the NFL wants to start using on its players.


Nearly two full seasons have passed since the league and the players' union signed a labor deal that set the stage for HGH testing.


The NFL Players Association won't concede the validity of a test that's used by Olympic sports and Major League Baseball, and the sides haven't been able to agree on a scientist to help resolve that impasse.


Among the witnesses before the House Oversight and Government Reform Committee on Wednesday is Pro Football Hall of Fame member Dick Butkus. In his prepared statement, Butkus writes: "Now, let's get on with it. The HGH testing process is proven to be reliable."


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Video of Columbus Circle Killer Released













The hunt for New York's Columbus Circle killer took on a new impetus today as police released surveillance video showing the killer moments before he calmly walked up to Brandon Lincoln Woodard and put one bullet from a silver colored handgun into the back of the Los Angeles man's head in full view of holiday shoppers.


The video confirms the details of the hit man's calculated wait for his victim as first reported on ABCNews.com on Monday.


"In the video, the gunman wanted in the shooting death yesterday of Brandon Lincoln Woodard, 31, of Los Angeles, is seen 10 minutes before the shooting," Deputy Commissioner for Public Information Paul Browne said in a statement today.








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Woodard, who is described by police as linked to the hip hop part of the Los Angeles entertainment industry, was strolling down 58th Street near the southern end of Central Park when he was gunned down.


"The shooter, who appears to be bald and may have a beard, exited a late model Lincoln sedan, initially bare-headed, but soon pulled the hood of his jacket over his head. Ten minutes later, at approximately 2 p.m., the shooter walked up behind Woodard and fired," Browne said.


In a grainy still image also released, the gunman is seen behind Woodard a moment before the shooting, pulling the weapon from his jacket.


Just before he was shot, Woodard turned "instinctively almost," then turned back to his portable electronic device, police told ABC News.


Sources tell ABC News that Woodard was arrested in 2009 in connection with a robbery in California.


Woodard was raised in Los Angeles' Ladera Heights neighborhood and attended the private Campbell Hall High School, they said. He attended college and law school at Loyola Marymount College in Los Angeles, law enforcement sources and friends said.



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IMF loan to Egypt delayed as crisis deepens


CAIRO (Reuters) - A vital $4.8 billion International Monetary Fund loan to Egypt will be delayed until next month, its finance minister said on Tuesday, intensifying the political crisis gripping the Arab world's most populous nation.


As rival factions gathered in Cairo and Alexandria for a new round of demonstrations, Finance Minister Mumtaz al-Said said the delay in the loan agreement was intended to allow time to explain a heavily criticised package of economic austerity measures to the Egyptian people.


The announcement came after President Mohamed Mursi on Monday backed down on planned tax increases, seen as key for the loan to go ahead. Opposition groups had greeted the tax package, which had included duties on alcoholic drinks, cigarettes and a range of goods and services, with furious criticism.


"Of course the delay will have some economic impact, but we are discussing necessary measures (to address that) during the coming period," the minister told Reuters, adding: "I am optimistic ... everything will be well, God willing."


Prime Minister Hisham Kandil said Egypt had requested that the loan be delayed by a month.


"The challenges are economic not political and must be dealt with aside from politics," he told a news conference.


Kandil said the reforms would not hurt the poor. Bread sugar and rice would not be touched, but cigarettes and cooking oil would go up and fines would be imposed for public littering. In a bid to rebuild consensus, he said there would be a national dialogue about the economic program next week.


In Washington, the IMF said Egypt had asked for the loan to be postponed "in light of the unfolding developments on the ground". The Fund stood ready to consult with Egypt on resuming discussions on the stand-by loan, a spokeswoman said.


GUNMEN OPEN FIRE


On the streets of the capital, tensions ran high after nine people were hurt when gunmen fired at protesters camping in Tahrir Square, according to witnesses and Egyptian media.


The opposition has called for a major demonstration it hopes will force Mursi to postpone a referendum on a new constitution.


Outside the presidential palace, dozens of protesters succeeded in pushing down two giant concrete blocks forming a small part of a wall blocking access to the site.


Thousands of flag-waving Islamist Mursi supporters, who want the vote to go ahead as planned on Saturday, assembled at a nearby mosque, setting the stage for further street confrontations in a crisis that has divided the nation of 83 million.


In Egypt's second city of Alexandria, thousands of rival demonstrators gathered at separate venues. Mursi's backers chanted: "The people want implementation of Islamic law," while his opponents shouted: "The people want to bring down the regime."


The upheaval following the fall of Hosni Mubarak last year is causing concern in the West, in particular the United States, which has given Cairo billions of dollars in military and other aid since Egypt made peace with Israel in 1979.


The turmoil has also placed a big strain on the economy, sending foreign currency reserves down to about $15 billion, less than half what they were before the revolt two years ago as the government has sought to defend the pound.


"Given the current policy environment, it's hardly a surprise that there's been a delay, but it is imperative that the delay is brief," said Simon Williams, HSBC economist in Dubai. "Egypt urgently needs that IMF accord, both for the funding it brings and the policy anchor it affords."


The IMF deal had been seen as giving a seal of approval to investors and donors about the government's economic plans, vital for drawing more cash into the economy to ease a crushing budget deficit and stave off a balance of payments crisis.


MASKED ATTACKERS


In central Cairo, police cars surrounded Tahrir Square in central Cairo, the first time they had appeared in the area since November 23, shortly after a decree by Mursi awarding himself sweeping temporary powers that touched off widespread protests.


The attackers, some masked, also threw petrol bombs that started a small fire, witnesses said.


"The masked men came suddenly and attacked the protesters in Tahrir. The attack was meant to deter us and prevent us from protesting today. We oppose these terror tactics and will stage the biggest protest possible today," said John Gerges, a Christian Egyptian who described himself as a socialist.


The latest bout of unrest has so far claimed seven lives in clashes between the Islamist Muslim Brotherhood and opponents who are also gathering outside Mursi's presidential palace.


The elite Republican Guard which protects the palace has yet to use force to keep protesters away from the graffiti-daubed building, now ringed with tanks, barbed wire and concrete barricades.


The army has told all sides to resolve their differences through dialogue, saying it would not allow Egypt to enter a "dark tunnel". For the period of the referendum, the army has been granted police powers by Mursi, allowing it to arrest civilians.


The army has portrayed itself as the guarantor of the nation's security, but so far it has shown no appetite for a return to the bruising front-line political role it played after the fall of Mubarak, which severely damaged its standing.


OPPOSITION MARCHES


Leftists, liberals and other opposition groups called for marches say the hastily arranged constitutional referendum is polarizing the country and could put it in a religious straightjacket.


Mohamed ElBaradei, a prominent opposition leader and Nobel prize winner, said the referendum should be postponed for a couple of months due to the chaotic situation.


"This revolution was not staged to replace one dictator with another," he said in an interview with CNN.


Opposition leaders want the referendum to be delayed and hope they can get sufficiently large numbers of protesters on the streets to change Mursi's mind.


Islamists, who dominated the body that drew up the constitution, have urged their followers to turn out to show support for the president and for a referendum they feel sure of winning.


The opposition says the draft constitution fails to embrace the diversity of the population, a tenth of which is Christian, and invites Muslim clerics to influence lawmaking.


(Writing by Giles Elgood; Editing by Peter Graff and Will Waterman)



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Mass protest as Michigan curbs union rights






CHICAGO: Thousands of protesters descended on Michigan's state capitol Tuesday as lawmakers prepared to pass union-curbing "right-to-work" legislation in a state seen as the heart of the labor movement.

The measure would weaken unions by allowing workers who get the same wages and benefits as union members to decline to pay any union dues.

Democratic lawmakers begged their Republican colleagues not to pass the controversial bill, which they warned would unleash deep social and political strife.

"There will be blood. There will be repercussions," state representative Douglass Geiss told the chamber.

Geiss reminded his colleagues of the violent clashes that accompanied the struggle to form unions in the 1930s and warned that people feel just as strongly about solidarity today.

"If ten people walk in and say I'm not going to pay dues anymore, there's going to be fights," he warned.

State representative John Switlaski lashed out at the fact Republicans were pushing the bill through in a lame duck session using a parliamentary maneuver that limits debate and means Democrats can't stop it unless they regain control in the 2014 election.

"The next two years are going to be terrible. They're going to be ugly," Switlaski said.

"I think we should pause and take a step back... let the people have a say. we'll vote for it. Put it on the ballot."

Republican state representative Lisa Lyons insisted the law was about giving workers their constitutionally guaranteed right to freedom of association.

"We are witnessing history in the making," she said. "This is the day that Michigan freed its workers."

Boos and chants of "veto" poured into the chamber from the gallery after the House voted 58-51 to pass the bill, sending it to Governor Rick Snyder for final approval.

Hundreds of union members and supporters crowded into the capitol dome, blowing whistles and chanting "the people are united" and "What's disgusting? Union busting!"

Thousands more shivered in the cold outside, television news footage showed.

"The right-wing forces in Michigan are trying to take power away from working families," United Auto Workers union chief Bob King told reporters.

"They want working families to have less income, less security. This is about partisanship, not bringing the state together."

Currently, the state operates a "closed shop" policy that requires workers who profit from collective bargaining to pay fees but does not make it mandatory for them to become union members.

The right-to-work law creates an incentive for people not to join the union in what is known as the "free rider" problem because it allows them to benefit from collective bargaining without paying for it.

Snyder insists the law is necessary "to maintain our competitive edge" and attract new jobs, especially after neighboring Indiana became the 23rd US state to enact right-to-work legislation earlier this year.

But while business may profit from weakening unions, the real motivation for lawmakers is political, said Roland Zullo, a labor relations expert at the University of Michigan.

"This whole right-to-work thing is retribution," Zullo told AFP. "It's really about the fact that unions in Michigan were very important actors in helping to elect Democrats this last election."

Unions are a key source of financial and grassroots get-out-the-vote support for President Barack Obama's Democrats, and he was quick to slam the controversial bill in an appearance at Michigan auto plant Monday.

"You know, these so-called right-to-work laws -- they don't have to do with economics: they have everything to do with politics," Obama told a cheering crowd of unionized workers.

"What they're really talking about is giving you the right to work for less money."

-AFP/ac



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Dharna planned at Jantar Mantar against cash transfer plan

NEW DELHI: Over 1,000 people from 12 states are set to converge at Jantar Mantar in the Capital on Thursday to protest against the UID-driven cash transfer program and demand a more inclusive National Food Security Bill. The protest is being organised by The Right To Food Campaign, a grassroots organisations' network.

The Right To Food Campaign has earlier criticized the categorization of beneficiaries under the Public Distribution System and the resultant exclusion of several sections of the BPL population.

Those at the receiving end of the failed experiment of cash transfer for kerosene in Kotkasim, Rajasthan will also be present at the sit-in, which will also include cultural performances and debates.

"The dharna will make hunger visible. It will bring together people who are unfairly excluded from government food security programmes such as the PDS and pensions. Testimonies of such people will be put forward," said Kavita Srivastava of the Right To Food Campaign in a press release.

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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.


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