Instagram Has a Flickr Moment






Once Instagram courted professional photographers. On Dec. 17, it kicked them in the teeth—or so the reaction to the photo-sharing site’s new terms of service suggests. On Instagram, professional photographers were not pleased.


Danny Ghitis: Looks like @instagram is jumping on the copyright infringement boat. Being on the internet doesn’t mean pictures are free, assholes.
Noah Rabinowitz: I’m out.
Jody Rogac: Dear Instagram, you know I love you but this may just be a dealbreaker.






And some reactions on Twitter:
@Amy_Stein: New Instagram TOS take effect Jan 16. Be afraid if you like to get paid for your work.
@MarcDSchiller: Bye, bye @instagram. It was fun while it lasted.
@ChrisSandersNY: What!!!!! Instagram Can Now Sell Users’ Photos Without Paying Or Notifying Them


By the end of the day on Dec. 18, the company had gone into damage-control mode. Instagram co-founder Kevin Systrom wrote in a blog post that the company had “heard loud and clear that many users are confused and upset about what the changes mean.” Many professional photographers interpreted the new Instagram rules as granting the site the right to use and sell photos without notifying or compensating the photographer—something the company does not intend to do, Systrom wrote. “We’re going to modify specific parts of the terms to make it more clear what will happen with your photos,” he wrote. “Please stay tuned.”


It’s not clear whether the pros can be wooed back. Perhaps more than any of Instagram’s users, professional photographers are feeling particularly spurned. In its early days, when Instagram was turning itself from a Foursquare also-ran into a photo-sharing site, it relied on partnerships with professional photographers to promote its service.


Great photographers were featured, giving Instagram cachet and credibility. The New Yorker set up an Instagram feed, then turned it over to a different photographer each week to showcase their work and daily life. National Geographic shared the names and accounts of its photographers for all to follow.


It also provided a community for photographers to see each other’s work and comment directly—a rare thing in the photo world. Photo editors and photo buyers got a view into photographers’ processes and lives. We saw photographers Jake Stangel travel the world and Kendrick Brinson and David Walter Banks fall in love.8e5da  1218 instagram inline405 Instagram Has a Flickr MomentPhotograph by Kendrick BrinsonAtlanta photographer Kendrick Brinson and her husband, David Walter Banks, on Instagram For photographers, it is easier to communicate with images than it is with text, and it is more interesting and rewarding to do so with a community of other photographers and photo lovers than everyone you went to high school with. Lots of people loved Instagram, but as a service, it really did feel tailored for the pros.


The world of professional photo rights is complex, but here is a quick overview: Photo buyers from ad agencies, publishers, newspapers, and magazines pay for use and rights. The amount depends on visibility, circulation, size of use, and a variety of other qualifiers. A magazine like Rolling Stone will pay less to use an image than, for example, Bank of America (BAC) probably would. In most cases, the photographer retains the permanent rights to images unless a fairly high fee is paid or the photographer is working on contract.


Some have suggested that Facebook (FB) is trying to turn Instagram into a stock photography site, à la iStock, or other services that sell images to users. More likely, it’s looking for cover, in case it decides to use images from the site in its own advertising and promotions, or in conjunction with other companies—an issue Systrom alluded to in his post. This same issue comes up every time Facebook changes its user privacy settings. People threaten to leave and don’t, and Facebook doesn’t sell our vacation photos. (At least, it hasn’t yet.)


Here’s the difference: There isn’t a good alternative to Facebook right now. There is a good alternative to Instagram. It’s called Flickr. Even before the Instagram announcement, Yahoo’s (YHOO) Flickr service was starting to show signs of life for the first time in years, with an elegant new app and a renewed commitment to its users. It’s worth remembering where Flickr went wrong in the first place: It thought it was a database of photos, not a community of photographers. That was a mistake—its users knew it, and defected en masse.


Now, anecdotally, they would appear to be coming back. Flickr has a fairly elegant solution for this: It allows photographers to upload their photos under the Creative Commons license or, on the other end of the spectrum, not to be reproduced in any way (these images can’t even be dragged and dropped). That seems fair to me. This morning, I decided to give Flickr another try. It took me only a dozen attempts to remember my password.


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NBC’s Engel, TV crew escape abduction in Syria






BEIRUT (AP) — NBC‘s chief foreign correspondent Richard Engel said Tuesday he and members of his network crew escaped unharmed after five days of captivity in Syria, where more than a dozen pro-regime gunmen dragged them from their car, killed one of their rebel escorts and subjected them to mock executions.


Appearing on NBC’s “Today” show, an unshaven Engel said he and his team escaped during a firefight Monday night between their captors and rebels at a checkpoint. They crossed into Turkey on Tuesday.






NBC did not say how many people were kidnapped with Engel, although two other men, producer Ghazi Balkiz and photographer John Kooistra, appeared with him on the “Today” show. It was not confirmed whether everyone was accounted for.


Engel said he believes the kidnappers were a Shiite militia group loyal to the Syrian government, which has lost control over swaths of the country’s north and is increasingly on the defensive in a civil war that has killed 40,000 people since March 2011.


“They kept us blindfolded, bound,” said the 39-year-old Engel, who speaks and reads Arabic. “We weren’t physically beaten or tortured. A lot of psychological torture, threats of being killed. They made us choose which one of us would be shot first and when we refused, there were mock shootings,” he added.


“They were talking openly about their loyalty to the government,” Engel said. He said the captors were trained by the Iranian Revolutionary Guard and allied with Hezbollah, the Lebanese Shiite militant group, but he did not elaborate.


There was no mention of the kidnapping by Syria’s state-run news agency.


Both Iran and Hezbollah are close allies of the embattled Syrian government of President Bashar Assad, who used military force to crush mostly peaceful protests against his regime. The crackdown on protests led many in Syria to take up arms against the government, and the conflict has become a civil war.


Engel said he was told the kidnappers wanted to exchange him and his crew for four Iranian and two Lebanese prisoners being held by the rebels.


“They captured us in order to carry out this exchange,” he said.


Engel and his crew entered Syria on Thursday and were driving through what they thought was rebel-controlled territory when “a group of gunmen just literally jumped out of the trees and bushes on the side of the road.”


“There were probably 15 gunmen. They were wearing ski masks. They were heavily armed. They dragged us out of the car,” he said.


He said the gunmen shot and killed at least one of their rebel escorts on the spot and took the hostages into a waiting truck nearby.


Around 11 p.m. Monday, Engel said he and the others were being moved to another location in northern Idlib province.


“And as we were moving along the road, the kidnappers came across a rebel checkpoint, something they hadn’t expected. We were in the back of what you would think of as a minivan,” he said. “The kidnappers saw this checkpoint and started a gunfight with it. Two of the kidnappers were killed. We climbed out of the vehicle and the rebels took us. We spent the night with them.”


Engel and his crew crossed back into neighboring Turkey on Tuesday.


The network said there was no claim of responsibility, no contact with the captors and no request for ransom during the time the crew was missing.


NBC sought to keep the disappearance of Engel and the crew secret for several days while it investigated what happened to them. Major media organizations, including The Associated Press, adhered to a request from the network to refrain from reporting on the issue out of concern it could make the dangers to the captives worse. News of the disappearance did begin to leak out in Turkish media and on some websites on Monday.


Syria has become a danger zone for reporters since the conflict began.


According to the Committee to Protect Journalists, Syria is by far the deadliest country for the press in 2012, with 28 journalists killed in combat or targeted for murder by government or opposition forces.


Among the journalists killed while covering Syria are award-winning French TV reporter Gilles Jacquier, photographer Remi Ochlik and Britain’s Sunday Times correspondent Marie Colvin. Also, Anthony Shadid, a correspondent for The New York Times, died after an apparent asthma attack while on assignment in Syria.


The Syrian government has barred most foreign media coverage of the civil war in Syria. Those journalists whom the regime has allowed in are tightly controlled in their movements by Information Ministry minders. Many foreign journalists sneak into Syria illegally with the help of smugglers and travel with rebel escorts or drivers.


Engel joined NBC in 2003 and was named chief foreign correspondent in 2008. He previously worked as a freelance journalist for ABC News, including during the U.S. invasion of Iraq. He has lived in the Middle East since graduating from Stanford University in 1996.


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Judge rejects Apple injunction bid vs. Samsung






(Reuters) – A U.S. judge on Monday denied Apple Inc‘s request for a permanent injunction against Samsung Electronics‘ smartphones, depriving the iPhone maker of key leverage in the mobile patent wars.


Apple had been awarded $ 1.05 billion in damages in August after a U.S. jury found Samsung had copied critical features of the iPhone and iPad. The Samsung products run on the Android operating system, developed by Google.






Apple and Samsung are going toe-to-toe in a patents dispute that mirrors the struggle for industry supremacy between the two companies, which control more than half of worldwide smartphone sales.


For most of the year, Apple had been successful in its U.S. litigation campaign against Samsung. Apple convinced U.S. District Judge Lucy Koh in San Jose, California to impose two pretrial sales bans against Samsung — one against the Galaxy Tab 10.1, and the other against the Galaxy Nexus phone.


Apple then sought to keep up the pressure after its sweeping jury win. It asked Koh to impose a permanent sales ban against 26 mostly older Samsung phones, though any injunction could potentially have been extended to Samsung’s newer Galaxy products.


Yet the jury exonerated Samsung on the patent used to ban Galaxy Tab 10.1 sales, and Koh rescinded that injunction. Then, in October, a federal appeals court reversed Koh’s ban against the Nexus phone.


In her order late on Monday, Koh cited that appellate ruling as binding legal precedent, ruling that Apple had not presented enough evidence that its patented features drove consumer demand for the entire iPhone.


“The phones at issue in this case contain a broad range of features, only a small fraction of which are covered by Apple’s patents,” Koh wrote.


“Though Apple does have some interest in retaining certain features as exclusive to Apple,” she continued, “it does not follow that entire products must be forever banned from the market because they incorporate, among their myriad features, a few narrow protected functions.”


An Apple spokeswoman declined to comment on Koh’s ruling, and a Samsung representative could not immediately be reached.


In a separate order on Monday, Koh rejected a bid by Samsung for a new trial based on an allegation that the jury foreman was improperly biased in favor of Apple.


The case in U.S. District Court, Northern District of California is Apple Inc. vs. Samsung Electronics Co Ltd et al, 11-1846.


(Reporting by Dan Levine in Oakland, California; Editing by Ron Popeski)


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Participant Media plans cable TV network targeting millenials






LOS ANGELES (Reuters) – Entertainment company Participant Media, one of the backers of the hit historical drama “Lincoln”, will launch a cable TV network next summer with programming that focuses on social issues of interest to the millenials generation of teens and young adults.


The channel’s original programming, films and documentaries will be aimed at viewers age 18 to 34 in the large demographic group known as millenials, Participant Media CEO Jim Berk said in an interview on Monday.






Millenials are particularly interested in the type of content that Participant produces about social issues, Berk said. The studio’s credits include the current release “Lincoln”, about President Abraham Lincoln‘s push to ban slavery, last year’s civil rights drama “The Help” and Al Gore climate change documentary “An Inconvenient Truth”.


Participant Media is creating the new network by purchasing two existing cable channels, The Documentary Channel and Halogen TV. After those networks are combined and rebranded, the new channel will reach an estimated 40 million of the more than 100 million U.S. pay-TV subscribers.


The company, founded by billionaire and former eBay Inc President Jeff Skoll with the aim of producing entertaining content that inspires social change, interacts regularly with more than 2.5 million people through social media, local movie screenings and its Takepart.com website, Berk said.


The challenge for Participant will be to sign up additional pay-TV distributors and win viewership in a crowded media landscape. The company is privately held and is not part of a large media conglomerate.


“We have the funding necessary to take a very long-term view, and to spend what we need to spend in terms of programming,” Berk said.


The mainstay of the network’s lineup will be original programming from a variety of genres, said Evan Shapiro, a Participant executive who will run the new network.


The company is developing programming with established Hollywood names including former MTV President Brian Graden, “Inconvenient Truth” director Davis Guggenheim and documentary filmmaker Morgan Spurlock.


Participant also hopes to work with pay-TV distributors to make the channel’s content available on mobile devices such as smartphones and tablets, to meet the viewing patterns of younger audiences, Shapiro said.


(Reporting By Lisa Richwine; Editing by Edmund Klamann)


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Bird flu kills 4-year-old boy in Indonesia






JAKARTA, Indonesia (AP) — A 4-year-old Indonesian boy has died from bird flu, bringing the death toll to 160 in the world’s hardest-hit country.


Health Ministry official Rita Kusriastuti said Tuesday that the boy died Dec. 6 in Tangerang city, just west of Jakarta, the capital. He developed symptoms of a cold and fever on Nov. 30 and was treated at a public health center before being hospitalized the same day he died.






Kusriastuti said the boy, from the West Java district of Bogor, was believed to have been infected with the H5N1 virus after having direct contact with dead fowl around his house.


Bird flu has killed at least 360 people worldwide since 2003. It remains hard for people to catch, but experts fear it could mutate into a more deadly form.


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‘Rise’ in planning permissions







Planning permission was granted for 33,881 homes across England in July to September, according to figures from the Home Builders Federation (HBF).






It said this was a 36% rise on the 24,872 approvals in the second quarter, and 17% higher than a year earlier.


However, the HBF said the latest figure was still less than the 60,000 approvals it says are needed each quarter to meet demand.


In April, planning law in England was changed to give councils more powers.


Under the National Planning Policy Framework, local authorities are required to work out future housing needs in their area, and then allocate sufficient land to meet it.


The aim of the government is to remove obstacles to the building of new houses, and to speed up planning decisions.


Stewart Baseley, executive chairman of the HBF, said: “The increase is good news and hopefully a reflection of the positive planning principles of the new system. It is just one quarterly increase and we are still well short of the number needed but we hope it starts a trend that will continue in 2013.


“The new system must provide enough viable land to build the number of homes the country needs. Continuing the current low level of house-building is storing up huge social and economic problems for the years ahead and the shortfall must be addressed.”


The HBF is the representative body of the home building industry in England and Wales.


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N. Korea displays Kim Jong Il a year after death






PYONGYANG, North Korea (AP) — North Korea unveiled the embalmed body of Kim Jong Il, still in his trademark khaki jumpsuit, on the anniversary of his death Monday as mourning mixed with pride over a recent satellite launch that was a long-held goal of the late authoritarian leader.


Kim lies in state a few floors below his father, national founder Kim Il Sung, in the Kumsusan mausoleum, the cavernous former presidential palace. Kim Jong Il is presented lying beneath a red blanket, a spotlight shining on his face in a room suffused in red.






Wails echoed through the chilly hall as a group of North Korean women sobbed into the sashes of their traditional Korean dresses as they bowed before his body. The hall bearing the glass coffin was opened to select visitors — including The Associated Press — for the first time since his death.


North Korea also unveiled Kim’s yacht and his armored train carriage, where he is said to have died. Among the personal belongings featured in the mausoleum are the parka, sunglasses and pointy platform shoes he famously wore in the last decades of his life. A MacBook Pro lay open on his desk.


North Koreans paid homage to Kim and basked in the success of last week’s launch of a long-range rocket that sent a satellite named after him to space.


The launch, condemned in many other capitals as a violation of bans against developing its missile technology, was portrayed not only as a gift to Kim Jong Il but also as proof that his young son, Kim Jong Un, has the strength and vision to lead the country.


The elder Kim died last Dec. 17 from a heart attack while traveling on his train. His death was followed by scenes of North Koreans dramatically wailing in the streets of Pyongyang, and of the 20-something son leading ranks of uniformed and gray-haired officials through funeral and mourning rites.


The mood in the capital was decidedly more upbeat a year later, with some of the euphoria carrying over from last Wednesday’s launch. The satellite bears one of Kim Jong Il’s nicknames, Kwangmyongsong, or “Lode Star,” a moniker given to him at birth according to the official lore.


Cameras were not allowed inside the mausoleum, and state media did not release any images of Kim Jong Il’s body.


With the death anniversary came a hint that Kim Jong Un himself might soon be a father.


His wife, Ri Sol Ju, was seen on state TV with what appeared to be a baby bump as she walked slowly next to her husband at the mausoleum, where they bowed to statues of Kim’s father and grandfather.


There is no official word from Pyongyang about a pregnancy. In addition, Ri is shown wearing a billowing traditional Korean dress in black that makes it difficult to know for sure.


North Koreans are reluctant to discuss details of the Kim family that have not been released by the state. Still there are rumors even in Pyongyang about whether the country’s first couple is expecting.


To honor Kim’s father, North Koreans stopped in their tracks at midday and bowed their heads as the national flag fluttered at half-staff along streets and from buildings.


Pyongyang construction workers took off their yellow hard hats and bowed at the waist as sirens wailed across the city for three minutes.


Tens of thousands of North Koreans gathered in the frigid plaza outside, newly transformed into a public park with lawns and pergolas. Geese flew past snow-tinged firs and swans dallied in the partly frozen moat that rings the vast complex in Pyongyang’s outskirts.


“Just when we were thinking how best to uphold our general, he passed away,” Kim Jong Ran said at the plaza. “But we upheld leader Kim Jong Un. … We regained our strength and we are filled with determination to work harder for our country.”


Speaking outside the mausoleum, renamed the Kumsusan Palace of the Sun, the military’s top political officer, Choe Ryong Hae, said North Korea should be proud of the satellite, calling it “a political event with great significance in the history of Korea and humanity.”


Much of the rest of the world, however, was swift in condemning the launch, which was seen by the United States and other nations as a thinly disguised cover for testing missile technology that could someday be used for a nuclear warhead.


The test, which the U.N. Security Council said violated a ban on launches using ballistic missile technology, underlined Kim Jong Un’s determination to continue carrying out his father’s hardline policies even if they draw international condemnation.


Washington said Monday it has no option but to seek to isolate Pyongyang further.


“What’s left to us is to continue to increase pressure on the North Korean regime and we are looking at how to best to do that, both bilaterally and with our partners going forward until they (North Korea) get the message. We are going to further isolate this regime,” U.S. State Department spokeswoman Victoria Nuland said.


Some outside experts worry that Pyongyang’s next move will be to press ahead with a nuclear test in the coming weeks, a step toward building a warhead small enough to be carried by a long-range missile.


Despite inviting further isolation for his impoverished nation and the threat of stiffer sanctions, Kim Jong Un won national prestige and clout by going ahead with the rocket launch.


At a memorial service on Sunday, North Korea’s top leadership not only eulogized Kim Jong Il, but also praised his son. Kim Yong Nam, president of the Presidium of North Korea’s parliament, called the launch a “shining victory” and an emblem of the promise that lies ahead with Kim Jong Un in power.


The rocket’s success also fits neatly into the narrative of Kim Jong Il’s death. Even before he died, the father had laid the groundwork for his son to inherit a government focused on science, technology and improving the economy. And his pursuit of nuclear weapons and the policy of putting the military ahead of all other national concerns have also carried into Kim Jong Un’s reign.


In a sign of the rocket launch’s importance, Kim Jong Un invited the scientists in charge of it to attend the mourning rites in Pyongyang, according to state media.


The reopening of the mausoleum on the anniversary of the leader’s death follows tradition. Kumsusan, the palace where his father, Kim Il Sung, served as president, was reopened as a mausoleum on the anniversary of his death in 1994.


___


Associated Press writers Hyung-jin Kim in Seoul, South Korea, and Matthew Pennington in Washington contributed to this report. Follow Jean Lee, AP’s bureau chief for Pyongyang and Seoul, at www.twitter.com/newsjean.


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Top 5 Apps for Kids This Week






1. PHLIP


Ages 4-up Overall rating: 4.1 out of 5 stars Why we like it: PHLIP is a spatial relations puzzle where you “flip” or turn your screen left or right, like a steering wheel, to change the orientation of the set of tiles, in order to reassemble the picture. You can use photos you take, or choose one from your photo library. Need to know: The more tiles, the harder the puzzle. You can lock any tile by tapping on it. The physical rotation of the device develops motor and cognitive skills and hand-eye coordination. It can also cause your heavy iPad to slip out of your hands. This is a game that works much better on an iPad Mini. Ease of use: 8/10 Educational: 9/10 Entertaining: 7/10 $ 0.99


Click here to view this gallery.






[More from Mashable: How to Crowdsource Your Job Hunt]


Chris Crowell is a veteran kindergarten teacher and contributing editor to Children’s Technology Review, a web-based archive of articles and reviews on apps, technology toys and video games. Download a free issue of CTR here.


In this week’s Top 5 Kids Apps, your kids can play with a spatial puzzle that lets them reassemble photographs they upload themselves. There’s also a chance to learn and have fun with geography trivia and explore Australia with an illustrated story.


[More from Mashable: 4 Benefits of a Job Search Community]


Our friends at Children’s Technology Review shared with us these 5 top apps from their comprehensive monthly database of kid-tested reviews. The site covers everything from math and counting to reading and phonics.


Check back next week for more Top Kids Apps from Children’s Technology Review


Photo via iStockPhoto, cglade


This story originally published on Mashable here.


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Springsteen, Gaga join Stones; Newtown noted






NEW YORK (AP) — Only at a Rolling Stones concert could appearances by Bruce Springsteen and Lady Gaga seem almost like afterthoughts.


Those superstars and other top acts including the Black Keys and John Mayer jammed with the Stones on Saturday night, winding down a series of concerts celebrating the 50th year of rock’s most enduring band (the occasion was also marked by a pay-per-view special).






The Boss rocked out with the band on out “Tumbling Dice”; Gaga matched Mick Jagger shimmy-for-shimmy on “Gimme Shelter”; the Black Keys joined on “Who Do You Love,” and John Mayer and Gary Clark Jr. showed their considerable guitar chops alongside Keith Richards and Ronnie Wood on “Goin’ Down.”


But the Stones would not be upstaged. While the sold-out crowd roared with each special guest, it was the aging but dynamic foursome that generated the most excitement of the night, as they put new energy into their decades-old catalog of hits, including “It’s Only Rock ‘N Roll (But I Like It),” ”Start Me Up,” ”Brown Sugar,” ”Sympathy for the Devil” and more.


The band took a moment to acknowledge the shooting deaths of 20 children and six adults at an elementary school Friday in Newtown, Conn. “We just wanted to send our love and condolences to all the people who lost loved ones in the tragedy in Connecticut,” Jagger early on in the concert as the audience applauded. Jagger noted the entire world was feeling the pain of the stunned nation.


But it was the only somber moment in an a frenetic show that showed why the Stones are considered by many to be the greatest rock band, and belied the much-discussed advanced age of the group’s lineup (their ages range between 65 and 71).


Jagger himself poked fun at the senior citizen status of the band and their fans; speaking of the pay-per-view crowd at home, he joked: “Some of you have got your grandchildren watching you.”


But few acts in their so-called prime would have been able to match the energy the Stones radiated onstage. The group had the crowd on its feet for the entire show as Jagger gyrated across the stage, his voice in top form. Both Wood and Richards dazzled on guitar (Richards got a raucous, sustained ovation as he took over vocals on two songs). And Charlie Watts kept the beat strong on the drums.


Before performing in London together late last month for the first of the concerts, the Stones hadn’t performed in concert together since 2007. Going into these shows, there was some speculation that Saturday’s concert, held at the Prudential Center, might be their last.


Earlier in the evening, Jagger teased that the concert might signal the end: “This could be the last time; I don’t know,” he said. But by the end of the evening, it seemed clear that the question was not when the Stones would return, but when.


“This is the last show of our anniversary tour, and we hope to see you all again soon,” Jagger said.


Perhaps the night’s most special guest was Mick Taylor, the former Stones guitarist who was part of some of their biggest moments from 1969 to 1975, when he left the group. He rejoined his band mates (and the man who replaced him, Wood) onstage for a powerful performance of “Midnight Rambler”.


At the concert’s end, while other special guests gave their final bows and left the stage, Jagger motioned for Taylor to stay, and the five took their final bow together.


___


Nekesa Mumbi Moody is the AP’s Global Entertainment & Lifestyles Editor. Follow her at http://twitter.com/nekesamumbi


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Boehner opens door to tax hikes, shifts U.S. fiscal cliff talks






WASHINGTON (Reuters) – U.S. House of Representatives Speaker John Boehner‘s offer to accept a tax rate increase for the wealthiest Americans knocks down a key Republican road block to a deal resolving the year-end “fiscal cliff.”


The question now boils down to what President Barack Obama offers in return. Such major questions, still unanswered so close to the end of the year suggest, however, that no spending and tax agreement is imminent.






A source familiar with the Obama-Boehner talks confirmed that Boehner proposed extending low tax rates for everyone who has less than $ 1 million in net annual income, meaning tax rates would rise on all above that line.


Under current law, the 35 percent top tax rate is scheduled to expire on January 1, and would automatically go to 39.6 percent. Boehner’s proposal would allow that rate to rise as scheduled at a threshold of $ 1 million – putting it back to where it was during the Clinton administration.


The White House has not accepted the proposal and the source could not confirm any additional talks were held on Sunday between Obama and Boehner.


With just over two weeks before the fiscal cliff’s $ 600 billion in automatic tax hikes and spending cuts are triggered, threatening a new recession, there is little time to craft a comprehensive deal that will satisfy both Democrats and Republicans.


Until the latest Republican offer, made on Friday, Boehner had insisted on extending all of the Bush era’s lower tax rates, resisting Obama’s demand to let the marginal rates rise on income above $ 250,000. A rising chorus of business executives also had urged Republicans to agree to this.


Some lawmakers and congressional aides had predicted that Republicans, once serious negotiations began, might try to raise the $ 250,000 threshold, say to $ 500,000 or $ 1 million. They also speculated that Republicans, if forced into a tax rate hike on the upper-income groups, might seek a smaller increase, say to around 37 percent.


Although the White House has not accepted Boehner’s gambit, it could push negotiations away from entrenched, ideological positions.


“Boehner has now accepted the premise of higher rates. So now we’re just arguing over details. I think it’s a significant step,” said Greg Valliere, chief political strategist at Potomac Research Group.


A framework deal spelling out tax revenue and spending cut targets to be finalized in the new year could be possible, Valliere said.


“Boehner’s offer to allow tax rates to go up for taxpayers earning over $ 1 million fundamentally transforms fiscal cliff negotiations,” added Sean West, U.S. policy analyst at Eurasia Group, a political risk consultancy.


In a note to clients, West wrote that it signals, significantly, that Boehner ultimately believes a deal to avoid the cliff is still possible.


“The political burden is now shifted back to the president, who must be willing to take on his party in order to get a deal Boehner can ultimately pass. We do not think the president will overreach: Obama will work with Boehner to get to a deal.”


There are still several critical elements to a deal besides a tax rate increase on the wealthy, including Republican demands to cut spending on social programs.


Changes to the expensive Medicare and Medicaid health care programs for the elderly and the poor could be central to any deal, which must also include an increase in the federal debt limit needed by the end of February.


DEMANDS SOCIAL PROGRAM CUTS


Boehner conditioned his tax rate increase offer on Obama’s agreement to cuts in social program spending, often called entitlements.


Many Republican lawmakers want to raise the eligibility age for Medicare to 67 from 65. They also want to link Medicare to the income of recipients, making wealthier retirees pay more for their care.


Currently, Medicare does have some means testing, charging higher premiums for coverage of doctors visits and prescription drugs to individuals earning more than $ 85,000 and married couples earning more than $ 170,000. Only about 5 percent of recipients pay these higher premiums.


Thus far, Obama has offered only about $ 400 billion in 10-year entitlement savings, mostly through small adjustments in reining in health care costs – not fundamental changes such as raising the eligibility age.


And just as Boehner faces opposition in his own party to raising any tax rates, Obama faces opposition to cuts to Medicare, Medicaid and Social Security from Democrats, who pledged in election campaigns they would protect these programs.


A major bloc of congressional Democrats has already signaled they will not accept major cutbacks in Medicare as part of any fiscal cliff deal.


House Minority Leader Nancy Pelosi of California and Maryland Representative Chris Van Hollen of Maryland are among the high ranking Democrats in the House who have come out forcefully in recent days against raising the age for eligibility for Medicare to 67 years of age.


“Given the level of savings that is being talked about from Medicare, you can’t get it all from providers and drug makers,” said Paul Heldman, an analyst at Potomac Research, which tracks Washington policy for investors.


“So opponents of raising the eligibility age have reason to believe beneficiaries will take some sort of hit if a mega-deal is cut,” he said.


If Republicans are not successful in securing entitlement program cuts in exchange for a tax-rate increase on the wealthy, they are adamant about using a debt-limit increase as leverage to overhaul Social Security and Medicare.


The U.S. Treasury expects to reach its $ 16.4 trillion statutory debt cap by year-end, and will exhaust its remaining borrowing capacity around mid-February, risking a potential default.


Louisiana Republican Representative John Fleming, a member of the conservative Tea Party caucus who has never voted to increase the debt ceiling, said he would support a debt limit hike if it were part of a deal to make Medicare and Social Security sustainable.


The pace of activity could pick up the coming week.


House Republicans were told to prepare for a possible weekend session next week, potentially interrupting travel plans for the long Christmas holiday weekend.


House Majority Leader Eric Cantor scheduled “possible legislation related to expiring provisions of law,” a reference to the expiring tax cuts, for the end of the week, portending a weekend session. Cantor has said the House would meet through the Christmas holidays and beyond.


(This story was fixed to correct current top tax rate to 35 percent from 36 percent)


(Additional reporting by Thomas Ferraro, Richard Cowan and Kim Dixon; Editing by Fred Barbash, Todd Eastham and Jackie Frank)


Medications/Drugs News Headlines – Yahoo! News





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