Obama aides seek to counter Republican charges on ‘fiscal cliff’

WASHINGTON (Reuters) – The Obama administration sought to counter Republican charges on Friday that President Barack Obama‘s plan to avoid a year-end “fiscal cliff” is light on spending cuts and too reliant on tax increases.

Administration officials said the overall plan, offered to Republicans on Thursday and quickly rejected by them, would achieve $ 4.5 trillion in savings to the government. This includes around $ 1 trillion in cuts already enacted into law and would set up an “expedited process” to spirit through Congress some of the most comprehensive legislation in decades.

The plan, which Treasury Secretary Timothy Geithner outlined to Republican congressional leaders, is aimed at taking a big step toward comprehensive reform of the U.S. tax code and overhauling federal programs like Medicare by next August 1, according to a summary provided by administration officials.

The fate of the administration proposals is uncertain, as they are now part of a mix of offerings to be hashed out over the next few weeks and beyond, aimed at heading off a package of automatic tax increases and spending cuts that would tip the U.S. economy over the fiscal cliff and back into recession.

Senate Minority Leader Mitch McConnell outlined his ideas for cutting entitlement programs in a Wall Street Journal interview Friday, while House Republicans said talks had basically arrived at a stalemate at this juncture.

The administration’s proposals for next year, when combined with some immediate savings such as taxing the rich at a higher rate, would raise approximately $ 1.5 trillion in new revenues. Those would be coupled with about $ 2.4 trillion in spending cuts, according to the officials who asked not to be identified.

Some of those proposed spending cuts are controversial. For example, they count $ 800 billion in savings from the wars in Iraq and Afghanistan that are winding down. Many Republicans in Congress argue that sound budgeting should not allow for counting savings on money that was not going to be spent.

The war savings were part of previous deficit-reduction negotiations that failed in 2011.

TWO-STEP APPROACH

Administration officials disclosed details of the White House proposal in an effort to push back against Republicans’ characterization of it as not serious.

Without a deal, around $ 600 billion in steep tax increases and spending cuts would begin in January, forcing the economy into a recession, according to the Congressional Budget Office.

As expected, the White House proposal called for a two-step approach to deficit reduction.

The first step would mainly consist of letting income tax rates rise on families with net incomes above $ 250,000. The revenues generated would help replace the steep, automatic spending cuts to domestic programs due to kick in on January 2 if Congress and the president cannot reach a compromise.

Also included are the extension of expiring major tax breaks, such as the research and development credit.

A second deficit-reduction step, which both Republicans and Democrats have talked about at length, would give Congress time to revamp the complicated U.S. tax code and figure out how to slow the rapid growth of federal healthcare programs for the elderly and poor.

Under the scenario laid out by Geithner, the new tax provisions would become effective on January 1, 2014, according to administration officials, and are anticipated to bring in an additional $ 600 billion in revenues over 10 years, beyond the $ 950 billion from raising taxes on the rich.

Meanwhile, federal spending would be cut by $ 350 billion over 10 years by reforming Medicare and other unspecified health programs, the officials said. Savings of another $ 250 billion would be achieved by cutting subsidies to farmers and other actions.

Also tucked into the proposal, the officials said, were $ 200 billion in “economic growth initiatives” designed to help stimulate the sluggish economy.

This would include $ 50 billion in infrastructure spending, an extension of payroll tax cuts, extending unemployment benefits and funding for a mortgage refinancing program.

(Additional reporting by Richard Cowan; editing by Fred Barbash and Todd Eastham)

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Noisy city: Cacophony in Caracas sparks complaints

CARACAS, Venezuela (AP) — This metropolis of 6 million people may be one of the world’s most intense, overwhelming cities, with tremendous levels of crime, traffic and social strife. The sounds of Caracas‘ streets live up to its reputation.

Stand on any downtown corner, and the cacophony can be overpowering: Deafening horns blast from oncoming buses, traffic police shrilly blow their whistles and sirens shriek atop ambulances stuck in bumper-to-bumper traffic.

Air horns routinely used by bus drivers are so powerful they make pedestrians on crosswalks recoil, and can even leave their ears ringing. Loud salsa music blares from the windows of buses, trucks with old mufflers rumble past belching exhaust, and “moto-taxis” weave through traffic beeping high-pitched horns.

Growing numbers of Venezuelans are saying they’re fed up with the noise that they say is getting worse, and the numbers of complaints to the authorities have risen in recent years.

One affluent district, Chacao, put up signs along a main avenue reading: “A honk won’t make the traffic light change.”

“The noise is terrible. Sometimes it seems like it’s never going to end,” said Jose Santander, a street vendor who stands in the middle of a highway selling fried pork rinds and potato chips to commuters in traffic.

Prosecutor General Luisa Ortega recently told a news conference that officials have started “putting an increased emphasis on promoting peaceful coexistence” by punishing misdemeanors such as violations of anti-noise regulations and other minor crimes. That effort has translated into hundreds of noise-related cases in recent years.

Some violators are ordered to perform community service. For instance, two young musicians who were recently caught playing loud music near a subway station were sentenced to 120 hours of community service giving music lessons to students in public schools.

Others caught playing loud music on the street have been charged with disturbing the peace after complaints from neighbors. Fines can run as high as 9,000 bolivars, or $ 2,093.

On the streets of their capital, however, Venezuelans have grown used to living loudly. The noisescape adds to a general sense of anarchy, with many drivers ignoring red lights and blocking intersections along potholed streets strewn with trash.

“This is something that everybody does. Nobody should be complaining,” said Gregorio Hernandez, a 23-year-old college student, as he listened to Latin rock songs booming from his car stereo on a Saturday night in downtown Caracas. “We’re just having fun. We’re not hurting anybody.”

Adding to the mess is the country’s notoriously divisive politics, which regularly fill the streets with marches and demonstrations.

On many days, the shouts of protesters streaming through downtown can be heard from blocks away, demanding pay hikes or unpaid benefits.

And the sporadic crackling of gunfire in the slums can be confused for firecrackers tossed by boisterous partygoers.

It’s difficult to rank the world’s noisiest cities because many, including Venezuela’s capital, don’t take measurements of sound pollution, said Victor Rastelli, a mechanical engineering professor and sound pollution expert at Simon Bolivar University in Caracas. But Rastelli said he suspects Caracas is right up there among the noisiest, along with Sao Paulo, Mexico City and Mumbai.

Excessive noise can be more than simply an annoyance, Rastelli said. “This is a public health problem.”

Dr. Carmen Mijares, an audiologist at a private Caracas hospital, said she treats at least a dozen patients every month for hearing damage caused by prolonged exposure to loud noises.

“Many of them work in bars or night clubs, and their maladies usually include temporary hearing loss and headaches,” Mijares said. For others, she said, the day-to-day noise of traffic, car horns and loud music can exacerbate stress and sleeping disorders.

Several cities have successfully reduced noise pollution, said Stephen Stansfeld, a London psychiatry professor and coordinator of the European Network on Noise and Health.

One of the most noteworthy initiatives, Stansfeld said, was in Copenhagen, Denmark, where officials used sound walls, noise-reducing asphalt and other infrastructure as well as public awareness campaigns to fight noise pollution.

But such high-tech solutions seem like a remote possibility in Caracas, where streets are literally falling apart and aging overpasses regularly lack portions of their guard rails. Prosecutors, angry neighbors and others hoping to fight the noise will have to persuade Venezuelans to do nothing less than change their loud behavior.

For Carlos Pinto, however, making noise is practically a political right.

The 26-year-old law student and his friends danced at a recent street party to house music booming from woofers in his car’s open trunk, with neon lights on the speakers that pulsed to the beat.

When asked about the noise, he answered: “We will be heard.”

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AP freelance video journalist Ricardo Nunes contributed to this report.

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Christopher Toothaker on Twitter: http://twitter.com/ctoothaker

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UN vote recognizes state of Palestine; US objects

UNITED NATIONS (AP) — The United Nations has voted overwhelmingly to recognize a Palestinian state, but the Palestinians still face enormous limitations: They don't control their borders, airspace or trade, they have separate and competing governments in Gaza and the West Bank, and they have no unified army or police.

In an extraordinary lineup of international support, more than two-thirds of the world body's 193 member states approved the resolution upgrading the Palestinians' status from an observer to a nonmember observer state on Thursday. It passed 138-9, with 41 abstentions.

The vote was a victory decades in the making for the Palestinians after years of occupation and war. It was a sharp rebuke for Israel and the United States.

The vote grants Palestinian President Mahmoud Abbas an overwhelming international endorsement for his key position: establishment of a Palestinian state in the West Bank, Gaza Strip and east Jerusalem, the territories captured by Israel in the 1967 Mideast war. A Palestinian flag was quickly unfurled on the floor of the General Assembly, behind the Palestinian delegation, after an electronic screen lit up with the final vote.

Real independence, however, remains an elusive dream until the Palestinians negotiate a peace deal with the Israelis, who warned that the General Assembly action will only delay a lasting solution. Israel still controls the West Bank, east Jerusalem and access to Gaza, and it accused the Palestinians of bypassing negotiations with the campaign to upgrade their U.N. status.

The U.N. action also could help Abbas restore some of his standing, which has been eroded by years of stalemate in peace efforts. His rival, the Hamas militant group, deeply entrenched in Gaza, has seen its popularity rise after it responded with a barrage of rocket fire to an Israeli offensive earlier this month on targets linked to the militants.

In the West Bank city of Ramallah, jubilant Palestinians crowded into the main square, waving Palestinian flags and chanting "God is great!" Hundreds had watched the vote on outdoor screens and televisions, and they hugged, honked their horns and set off fireworks as the final vote was cast.

The tally came after a speech by Abbas in which he called the moment a "last chance" to save the two-state solution.

"The General Assembly is being asked today to issue the birth certificate of Palestine," the Palestinian leader declared.

The United States and Israel immediately criticized the vote.

"Today's unfortunate and counterproductive resolution places further obstacles in the path of peace," U.N. Ambassador Susan Rice said. "Today's grand pronouncements will soon fade and the Palestinian people will wake up tomorrow and find that little about their lives has changed save that the prospects of a durable peace have only receded."

Calling the vote "meaningless," Israeli Prime Minister Benjamin Netanyahu accused Abbas of spreading "mendacious propaganda" against Israel in a speech he rejected as "defamatory and venomous."

"The resolution in the U.N. today won't change anything on the ground," Netanyahu said. "It won't advance the establishment of a Palestinian state, but rather, put it further off."

With most U.N. members sympathetic to the Palestinians, there had been no doubt the resolution would be approved. A state of Palestine has already been recognized by 132 countries, and the Palestinians have 80 embassies and 40 representative offices around the world, according to the Palestinian Foreign Ministry.

Still, the Palestinians lobbied hard for Western support, winning over key European countries including France, Italy, Spain, Switzerland, Sweden and Ireland, as well as Japan and New Zealand. Germany and Britain were among the many Western nations that abstained.

Joining the United States and Israel in voting "no" were Canada, the Czech Republic, the Marshall Islands, Micronesia, Nauru, Palau and Panama.

In a departure from its previous opposition, Hamas, which refuses to recognize Israel, said it wouldn't interfere with the U.N. bid for statehood, and its supporters joined some of the celebrations Thursday.

With its newly enhanced status, the Palestinians can now gain access to U.N. agencies and international bodies, most significantly the International Criminal Court, which could become a springboard for going after Israel for alleged war crimes or its ongoing settlement building on war-won land.

However, in the run-up to the U.N. vote, Abbas signaled that he wants recognition to give him leverage in future talks with Israel, and not as a tool for confronting or delegitimizing Israel, as Israeli leaders have claimed.

Speaking stridently at times Thursday, Abbas accused the Israelis of "colonial occupation" that institutionalizes racism and charged that the Jewish state is continuing to perpetuate "war crimes."

Still, he said the Palestinians did not come to terminate "what remains of the negotiations process" but to try "to breathe new life into the negotiations" and achieve an independent state.

"We will act responsibly and positively in our next steps," he said.

The Palestinians turned to the General Assembly after being stymied for full membership last year, when the United States announced it would veto their bid for full U.N. membership until there is a peace deal with Israel. Abbas made clear that this remains the Palestinians' ultimate goal — hopefully soon.

Full membership requires Security Council approval, with no vetoes. The non-member observer state status only required a majority vote of the General Assembly.

The vote granted the Palestinians the same status at the U.N. as the Vatican, and they will keep their seat next to the Holy See in the General Assembly chamber.

The historic vote came 65 years to the day after the U.N. General Assembly voted in 1947 to divide Palestine into two states, one for Jews and one for Arabs. Israel became a state but the Palestinians rejected the partition plan, and decades of tension and violence have followed.

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Associated Press writers Edith M. Lederer at the United Nations, Haitham Hamad and Mohammed Daraghmeh in Ramallah, Robert Burns and Bradley Klapper in Washington and Tia Goldenberg in Jerusalem contributed to this report.

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Attorneys say Halle Berry, ex settle dispute

LOS ANGELES (AP) — Attorneys for Halle Berry and her ex-boyfriend have settled court issues that arose after a Thanksgiving Day fight at the actress’ home.

The fisticuffs involved Berry’s ex-boyfriend Gabriel Aubry and her fiance, actor Olivier Martinez. Aubry was arrested after the fight, which left him with a black eye, a broken rib and other injuries.

Aubry obtained a temporary restraining order against Martinez. The model and Berry have been battling over custody of their 4-year-old daughter for months and have appeared twice in a family law court since the fight.

Blair Berk, an attorney for Berry, and Shawn Holley, who represents Aubry, released a statement after Thursday’s hearing that said the two sides had reached an amicable agreement.

No details were released, and the attorneys declined to answer questions.

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Ranbaxy halts generic Lipitor production after recall: FDA

(Reuters) – Indian generic drugmaker Ranbaxy Laboratories will stop manufacturing its version of Pfizer Inc‘s cholesterol fighter, Lipitor, while it gets to the bottom of the cause of a recent recall, the U.S. Food and Drug Administration said on its website.

Earlier this month, Ranbaxy recalled certain lots of the widely used cholesterol lowering medicine known generically as atorvastatin at doses of 10 milligrams, 20 mg and 40 mg after the company discovered contamination with tiny glass particles.

There have so far been no reports of patients being harmed due to the glass particulates, the FDA said.

The agency said it does not anticipate drug shortages due to the recall as several other companies also produce generic Lipitor, while Pfizer still sells its branded version.

FDA said it was monitoring the situation and working with other manufacturers to ensure adequate supply in order to avoid shortages of atorvastatin as a result of the recall.

During its first six months on the market, when it enjoyed marketing exclusivity, atorvastatin generated sales of nearly $ 600 million for Ranbaxy, according to Bhagwan Singh Chaudhary, a research associate at the brokerage IndiaNivesh

FDA said it will continue to oversee the recall process and work with the Ranbaxy to resolve pharmaceutical quality issues.

The recall is the latest in a series of manufacturing problems at Ranbaxy, which is operating under heightened scrutiny due to past problems that nearly derailed it ability to sell atorvastatin in the United States.

In 2008, the FDA banned the company from importing about 30 drugs after it found manufacturing deficiencies at two of the company’s facilities in India, and Ranbaxy was later accused of falsifying data used in drug applications.

Under a proposed settlement earlier this year, Ranbaxy agreed to engage a third party to conduct a review of its facilities, implement procedures to ensure data integrity in its marketing applications, and ensure it meets good manufacturing practices.

(Reporting by Bill Berkrot)

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Taking a page from Louis C.K., Chill launches online store for films, comedy specials

NEW YORK (TheWrap.com) – Chill, a social video platform with close to 20 million users, has launched Chill Direct, a new store for creatives like Maria Bamford and Michael Urie to sell their movies, specials and documentaries directly to fans.

Comedian Louis C.K. sent shockwaves through the entertainment industry this summer by selling a comedy special directly online rather than making a distribution deal with a television network or online service. He made millions, and various others have followed suit, including Jim Gaffigan and Aziz Ansari.

Chill sees an opportunity to enter this emerging market, empowering artists and offering them an opportunity to control the distribution and monetization of their ongoing projects.

“The community gives filmmakers and comedians the ability to distribute premium video directly to fans,” CEO Brian Norgard told TheWrap. “The common analogy is to Louis C.K. and his ‘Live at Beacon Theater.‘ That was a seminal moment in the entertainment business and a lot of things now allow direct-to-fan to become a viable model.”

Artists who choose to sell through Chill also can sell their videos elsewhere, but Chill Direct launches with eight videos exclusive to the site. That slate includes “Maria Bamford: the Special Special Special!,” an hour-long comedy special starring Bamford, “Thank You For Judging,” a documentary from “Ugly Betty” actor Urie about high school speech and debate and “Unknown Sender,” a suspense series from “48 Hrs” and “Die Hard” scribe Stephen E. de Souza.

Starting Thursday, any artist can create a page for a project and has complete creative control over the page, from information about the project to trailers to pricing. Meanwhile, Chill handles distribution across devices as well as payments.

Artists retain rights to their own intellectual property while Chill takes a 30 percent cut of any transaction.

“What Chill does is let anyone build out socially integrated marketing pages – we call them story pages – beautiful, high-resolution tantalizing receptacles of premium videos,” Norgard said.

Chill, funded by WME and Kleiner Perkins Caulfield & Byers and others, has previously enabled frictionless uploading, consumption and sharing of the web’s most popular videos. This maintains a social layer, allowing for commenting and offering bundles that combine the video with other perks like merchandise or meeting the creator.

“The land of premium video is still a very closed marketplace,” Norgard said. “If you have tremendous business development skills or connections to sell a film to Netflix or Hulu, you’re lucky. The ad-supported model doesn’t fit every type of content. There is plenty of stuff out there like documentary films and comedy specials where creators are between a rock and a hard place and wan to get it out there, distribute it, own the right but not put it on a free streaming site like YouTube.”

Selling direct to fans also offers a new revenue stream to a company that until now was mostly luring people a few times a day for videos.

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Rapper PSY wants Tom Cruise to go ‘Gangnam Style’

BANGKOK (AP) — The South Korean rapper behind YouTube’s most-viewed video ever has set what might be a “Mission: Impossible” for himself.

Asked which celebrity he would like to see go “Gangnam Style,” the singer PSY told The Associated Press: “Tom Cruise!”

Surrounded by screaming fans, he then chuckled at the idea of the American movie star doing his now famous horse-riding dance.

PSY’s comments Wednesday in Bangkok were his first public remarks since his viral smash video — with 838 million views — surpassed Justin Bieber‘s “Baby,” which until Saturday held the record with 803 million views.

“It’s amazing,” PSY told a news conference, saying he never set out to become an international star. “I made this video just for Korea, actually. And when I released this song — wow.”

The video has spawned hundreds of parodies and tribute videos and earned him a spotlight alongside a variety of superstars.

Earlier this month, Madonna invited PSY onstage and they danced to his song at one of her New York City concerts. MC Hammer introduced the Korean star at the American Music Awards as, “My Homeboy PSY!”

Even President Barack Obama is talking about him. Asked on Election Day if he could do the dance, Obama replied: “I think I can do that move,” but then concluded he might “do it privately for Michelle,” the first lady.

PSY was in Thailand to give a free concert Wednesday night organized as a tribute to the country’s revered King Bhumibol Adulyadej, who turns 85 next month. He paid respects to the king at a Bangkok shopping mall, signing his name in an autograph book placed beside a giant poster of the king. He then gave an outdoor press conference, as screaming fans nearby performed the pop star’s dance.

Determined not to be a one-hit wonder, PSY said he plans to release a worldwide album in March with dance moves that he thinks his international fans will like.

“I think I have plenty of dance moves left,” he said, in his trademark sunglasses and dark suit. “But I’m really concerned about the (next) music video.”

“How can I beat ‘Gangnam Style’?” he asked, smiling. “How can I beat 850 million views?”

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Associated Press writer Thanyarat Doksone contributed to this report.

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Numbers drawn for record Powerball jackpot

CHICAGO (AP) -- The numbers have been drawn for the record Powerball jackpot and the wait for winners — if any — has begun.

The numbers drawn Wednesday night are: 5, 16, 22, 23, 29 and Powerball of 6.

A lottery official said late Wednesday that the jackpot increased to $579.9 million by the time of the drawing, making the cash option $379.8 million.

Americans went on a ticket-buying spree in recent days, the big money enticing many people who rarely, if ever, play the lottery to purchase a shot at the second-largest payout in U.S. history.

Among them was Lamar Fallie, a jobless Chicago man who said his six tickets conjured a pleasant daydream: If he wins, he plans to take care of his church, make big donations to schools and then "retire from being unemployed."

Tickets were selling at a rate of 130,000 a minute nationwide — about six times the volume from a week ago. That meant the jackpot could climb even higher before the Wednesday night drawing, said Chuck Strutt, executive director of the Multi-State Lottery Association.

The jackpot had already rolled over 16 consecutive times without a winner, but Powerball officials said earlier Wednesday they believed there was a 75 percent chance the winning combination will be drawn this time.

If one ticket hits the right numbers, chances are good that multiple ones will, according to some experts. That happened in the Mega Millions drawing in March, when three ticket buyers shared a $656 million jackpot, which remains the largest lottery payout of all time.

Yvette Gavin, who sold the tickets to Fallie, is only an occasional lottery player herself, but the huge jackpot means she'll definitely play this time. As for the promises she often gets from ticket purchasers, Gavin isn't holding her breath.

"A lot of customers say if they win they will take care of me, but I will have to wait and see," she said.

In the hours before Wednesday's drawing, Associated Press photographers across the nation sought out ticket buyers and asked about their lottery fantasies. Here's a look at what they found:

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When Atlanta barber Andre Williams buys scratch-off tickets, he typically does a dance in his shop for good luck. As a first-time Powerball player, he plans to reprise the dance — and buy a few extra tickets to enhance his chances.

I don't even know if I'll look at it," said Williams, who bought his ticket at a newsstand. "If I win, I might pass out."

Paralegal Pat Powell was buying her first Powerball ticket at another store in Atlanta, even though she acknowledged her odds were probably "zero to zero."

Still, Powell has specific plans should she win: start an Internet cafe in the West Indies and a learning center in Georgia.

"I've been thinking about winning this money and what I'd do with it," Powell said. "There's no ritual, but it's just been on my mind. So it's like, let me just join the hype and just do it."

Atlanta accountant Benita Lewis, who had never played the lottery before, didn't want to be the only one left in her office without a ticket.

"I did feel nervous buying it like I could be the one," she said. "I'm going to retire and pay off all my family's debt."

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In Philadelphia, seafood salesman Billy Fulginiti bought 50 Powerball tickets with co-workers and a few more with a small group. He said he only plays when the jackpot is especially large.

"You go to bed at night wishing you wake up a millionaire," Fulginiti said. He planned to take a long vacation and "help a lot of people, a lot of charities," if any of his tickets turn out to be winners.

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Powerball purchases at the Canterbury Country Store in Canterbury, N.H., have been so steady that the manager has been working extra evening hours to keep up.

Horticulturist Kevin Brags buys tickets at the store two to three times a month. He says he usually picks numbers higher than 32 because so many people use numbers 31 and lower, largely because of birthdays.

The birthday theory didn't scare off Paul Kruzel, a retired doctor who chooses the days his children were born.

Both, however, have the same plans for winning: "make a lot of people happy."

John Olson has a more elaborate idea: He'd like to buy an island.

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At a downtown Detroit convenience store, Ceejay Johnson purchased five Powerball tickets. If she strikes it rich, the analyst from Southfield, Mich., said she would buy a home for her sister in Florida. Then she would "go into hiding" and take care of her family.

"And the IRS," she added.

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Associated Press photographer Jim Cole reported from Canterbury, N.H.

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Associated Press photographers Paul Sancya in Detroit, David Goldman in Atlanta and Matt Rourke in Philadelphia, and AP writers David Pitt in Des Moines, Iowa, and Jeff McMurray in Chicago contributed to this report.

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Cate Blanchett in negotiations for evil stepmother in Disney’s Cinderella film

LOS ANGELES (TheWrap.com) – Cate Blanchett is in negotiations to play the evil stepmother in Disney‘s re-imagining of the classic fairytale Cinderella, the “Untitled Cinderella Story,” an individual with knowledge of the situation told TheWrap.

Blanchett would be the first to be cast in the live-action film. It is being directed by Mark Romanek for the studio based on a script by Chris Weitz.

The film is being produced by Simon Kinberg, who is best-known for the “X-Men” series.

The feature was first set up at Disney in May 2010 based on a pitch by Aline Brosh McKenna (“Devil Wear Prada.”), who wrote the initial draft.

Disney set the project up in the wake of its success with “Alice in Wonderland,” an adaptation of the Lewis C. Carroll book that starred Johnny Depp.

Disney representatives could not be reached for comment.

Blanchett can next be seen on screen in “The Hobbit: An Unexpected Journey” on December 14. She was recently confirmed for George Clooney’s upcoming film “The Monuments Men.” She will also be seen in “The Hobbit: The Desolation of Smaug” and “The Hobbit: There and Back Again.”

Cinderella has been adapted for the big screen dozens of times. In Andy Tennant’s 1998 version “Ever After: A Cinderella Story,” Angelica Houston played the evil stepmother. In the TV movie “Cinderella” in 1997, the role was played by Bernadette Peters. Sigourney Weaver voiced the character in “Happily N’Ever After” in 2006. Disney‘s 1950 version featured Eleanor Audley in the voice role of Lady Tremaine, the wicked stepmother.

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Arizona declines to set up state-based health insurance exchange

PHOENIX (Reuters) – Arizona Governor Jan Brewer said on Wednesday she was rejecting a major provision of President Barack Obama‘s healthcare reform law that calls for creating state-based health insurance markets where consumers can purchase private, federally subsidized coverage.

Citing lingering questions about the plan and operating costs she said would be passed on to families and small businesses, Brewer, a Republican, said Arizona would join at least 16 other states in opting instead for a federally run health insurance exchange.

Such networks are designed to function as online insurance markets where the uninsured can shop for private health plans offered at federally subsidized rates, and are an integral provision of the Affordable Care Act, a centerpiece of Obama’s first term in office.

Brewer, along with many other Republicans, has been an outspoken critic of Obama’s healthcare overhaul initiative, calling it an “overreaching and unaffordable assault on states’ rights and individual liberty.”

Under a newly extended deadline, states have until December 14 to notify the U.S. Health and Human Services Department whether they intend to comply with the insurance exchange mandate or leave it to the federal government to set up and operate exchanges for them.

Seventeen states plus the District of Columbia have told the Obama administration they intend to move ahead with their own exchanges, while Arizona became the latest of 17 states to reject the plan outright in favor of a federally based exchange, according to the Kaiser Family Foundation, which has closely tracked the issue.

Most of those opting out are states in the Midwest or South. Six more states have sought to join with HHS in setting up a hybrid federal-state network, and 10 states remain undecided, the foundation said.

CALLS OPPOSITION ‘UNWAVERING’

“My opposition to the Affordable Care Act is unwavering, as is my belief that it should be repealed and replaced,” Brewer said in a statement announcing her decision. Republican Mitt Romney, who lost to Obama in the November 6 presidential election, had vowed to repeal the law if elected.

Acknowledging that the law had been upheld as constitutional by the U.S. Supreme Court, and despite her advocacy of greater local control, Brewer said her state would be better off ceding management of a system she said would be dominated by the federal government in any case.

“I have come to the conclusion that the state of Arizona would wield little actual authority over its ‘state’ exchange,” she said.

Although startup costs of exchanges are to be borne by the federal government, Brewer said Arizona stood to incur $ 27 million to $ 40 million in operating expenses starting in 2015, and that those costs would be passed along in the form of higher premiums to policy holders.

Brewer, who has clashed sharply with the Obama administration on a number of issues, especially immigration policy, made her intentions known in a one-page letter to HHS on Wednesday.

The state, which also has a Republican-controlled Legislature, had spent millions of dollars in federal grant money over the past several months laying the groundwork for the possible creation of a healthcare exchange.

Brewer faced heavy lobbying from some conservative Republicans who opposed setting up a state-run exchange, while a number of business groups and healthcare organizations favored creating one. State Democrats also strongly support a state-run exchange.

One top Democratic lawmaker criticized Brewer for “an irresponsible decision” that wasted millions of dollars already spent preparing for a state-run exchange.

“The governor is going to throw that all away so she can push an extremist agenda,” state House of Representatives Minority Leader Chad Campbell said. “We’ve come to expect political grandstanding from her, but this is a whole new level.”

Campbell said in a statement the state exchange that Brewer rejected would be a plus for consumers, giving them more of a say over their healthcare decisions.

“The governor just signed over a lot of power to the federal government,” he added.

(Reporting by David Schwartz; Writing by Steve Gorman; Editing by Cynthia Johnston and Peter Cooney)

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