Hundreds of flights canceled as storm pounds Northeast

A powerful winter storm is hitting the Northeast, one day after it hammered the Midwest and plains. Snowfall could top a foot in some areas.










WASHINGTON (Reuters) - A powerful winter storm that has dumped a foot of snow on parts of the United States forced the cancellation of 457 flights on Thursday and threatened more havoc as it hit the New England states with fierce winds.

The heaviest snow was falling on Pennsylvania, New York and New England, and winter storm warnings continued over a majority of the U.S. Northeast, the National Weather Service said.






The massive storm system touched off tornadoes in the South and produced snow in Texas before barreling down on the densely populated Northeast.

The service forecast 12 to 18 inches of snow for northern New England after the storm moved northeast out of the lower Great Lakes, where it left more than a foot of snow on parts of Michigan.

The storm front was accompanied by freezing rain and sleet, creating hazards on the highways and at airports.

A Southwest Airlines jet skidded off the runway at Long Island MacArthur Airport, about 50 miles east of New York City, as it taxied for takeoff, Suffolk County police said.

None of the 134 people aboard Tampa-bound flight No. 4695 was injured, police said.

"It's been undetermined at this time if weather was a factor," a police spokeswoman said.

Snow was due to fall in northern New York, Vermont and New Hampshire at up to 2 inches an hour, with winds gusting to 30 miles per hour (48 km per hour), the weather agency said.

So far, 457 U.S. airline flights scheduled for Thursday had been canceled, according to FlightAware.com, a website that tracks flights.

American Airlines had the most canceled at 55. A total of about 1,500 U.S. flights were canceled on Wednesday.

New York state activated its Emergency Operations Center late on Wednesday to deal with the first major storm of the season.

Governor Andrew Cuomo warned the heads of seven utilities they would be held accountable for their performances. Utilities near New York City were criticized for lingering outages after Superstorm Sandy devastated the region in October.

New York state has seen little snow during autumn and winter. Buffalo, New York, was 23 inches below normal for the season before the storm, said Bill Hibbert, a National Weather Service meteorologist.

"We're short and even this big snow isn't going to make it up for us," he said.

The storm dumped record snow in north Texas and Arkansas before it swept through the U.S. South on Christmas Day and then veered north.

The system spawned tornadoes and left almost 200,000 people in Arkansas and Alabama without power on Wednesday.

At least five people were killed in road accidents related to the bad weather, police said.

(Additional reporting by Dan Burns and Neale Gulley; Editing by Daniel Trotta and Dale Hudson)

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Temple Run was downloaded more than 2.5 million times on Christmas Day









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Marvel’s Peter Parker in perilous predicament






PHILADELPHIA (AP) — After 50 years of spinning webs and catching a who’s who of criminals, Peter Parker is out of the hero game.


But Spider-Man is still slinging from building to building — reborn, refreshed and revived with a new sense of the old maxim that Ben Parker taught his then-fledgling nephew that “with great power, comes great responsibility.”






Writer Dan Slott, who’s been penning Spidey adventures for the better part of the last 100 issues for Marvel Entertainment, said the culmination of the story is a new, dramatically different direction for the Steve Ditko and Stan Lee-created hero.


“This is an epic turn,” Slott said. “I’ve been writing Spider-Man for 70-plus issues. Every now and then, you have to shake it up. … The reason Spider-Man is one of the longest running characters is they always find a way to keep it fresh. Something to shake up the mix.”


And in the pages of issue 700, out Wednesday, it’s not just shaken up, it’s turned head over heels, spun in circles, kicked sky high and cracked wide open.


Parker’s mind is trapped in the withered, decaying dying body of his nemesis, Doctor Octopus aka Otto Octavius. Where’s Doc Ock? Inside Parker’s super-powered shell, learning what life is like for the brilliant researcher who happens to count the Avengers and Fantastic Four as friends and family.


The two clash mightily in the pages of issue 700, illustrated by Humberto Ramos and Victor Olazaba. But it’s Octavius who wins out and Parker is, at least for now, gone for good, but not before one more act of heroism.


Slott said that it’s Parker, whose memories envelop Octavius, who shows the villain what it means to be a hero.


“Gone are his days of villainy, but since it’s Doc Ock and he has that ego, he’s not going to try and just be Spider-man, he’s going to try to be the best Spider-Man ever,” said Slott.


Editor Stephen Wacker said that while Parker is gone, his permanence remains and his life casts a long shadow.


“His life is still important to the book because it affects everything that Doctor Octopus does as Spider-Man. Seeing a supervillain go through this life is the point — trying to be better than the hero he opposed,” Wacker said.


“Doc has sort of inspired by Peter’s life. That’s what I mean when he talks about the shadow he casts,” he said.


The sentiment echoes what Uncle Ben said in the pages of “Amazing Fantasy” No. 15, Slott said.


Editor Stephen Wacker called it a fitting end to the old series, which sets the stage for a new one — “The Superior Spider-Man” early next year — because it brings Peter Parker full circle, from the start of his crime-fighting career to the end.


“In his very first story, his uncle died because of something he did so the book has always been aimed at making Peter’s life as difficult as possible,” Wacker said. “The book has always worked best when it’s about Peter Parker’s life, not Spider-Man’s.”


And with Octavius influenced by Parker’s life — from Aunt May to Gwen Stacy to Mary Jane — it will make him a better person, too.


“Because Doctor Octopus knows all of those things and will make decisions on what he saw Peter going through,” Wacker said. “In a way, he gets the ultimate victory as he becomes a better hero.”


___


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___


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Creating the Ultimate Housework Workout


Robert Wright for The New York Times


Chris Ely, an English butler, and Carol Johnson, a fitness instructor at Crunch NYC, perfecting a houseworkout.







CAN housework help you live longer? A New York Times blog post by Gretchen Reynolds last month cited research linking vigorous activity, including housework, and longevity. The study, which tracked the death rates of British civil servants, was the latest in a flurry of scientific reports crediting domestic chores with health benefits like a lowered risk for breast and colon cancers. In one piquant study published in 2009, researchers found that couples who spent more hours on housework had sex more frequently (with each other) though presumably not while vacuuming. (The report did not specify.)




Intrigued by science that merged the efforts of a Martha with the results of an Arnold (a buffer buffer?), this reporter challenged a household expert and a fitness authority to create the ultimate housework workout — a houseworkout — in her East Village apartment. Perhaps she could add a few years to her own life while learning some fancy new moves for her Swiffer. Christopher Ely, once a footman at Buckingham Palace, and Brooke Astor’s longtime butler, was appointed cleaner-in-chief. Mr. Ely is a man who approaches what the professionals call household management with the range and depth of an Oxford don. Although he is working on his memoirs (he described his book as a room-by-room primer with anecdotes from his years in service), he was happy enough to put his writing aside for an afternoon. His collaborator was Carol Johnson, a dancer and fitness instructor who develops classes at Crunch NYC, including those based on Broadway musicals like “Legally Blonde” and “Rock of Ages.”


Mr. Ely arrived first, beautifully dressed in dark gray wool pants, a black suit coat and a crisp white shirt with silver cuff links. He cleans house in a white shirt? “I know how to clean it,” he countered, meaning the shirt. When Ms. Johnson appeared (in black spandex and a ruffly white chiffon blouse, which she switched out for a Crunch T-shirt), theory, method and materials were discussed.


“If you’re dreading the laundry,” Ms. Johnson said, “why not create a space where it’s actually fun to do by putting on some music?” If fitness is defined by cardio health, she added, it will be a challenge to create housework that leaves you slightly out of breath. “I’m thinking interval training,” she said. As it happens, one trend in exercise has been workouts that are inspired by real-world chores, or what Rob Morea, a high-end Manhattan trainer, described the other day as “mimicking hard labor activities.” In his NoHo studio, Mr. Morea has clients simulate the actions of construction workers hefting cement bags over their shoulders (Mr. Morea uses sand bags) or pushing a wheelbarrow or chopping wood.


Mr. Ely averred that service — extreme housekeeping — is physically demanding, with sore feet and bad knees the least of its debilitating byproducts. Mr. Ely still suffers from an injury he incurred while carrying a poodle to its mistress over icy front steps in Washington When the inevitable occurred, and Mr. Ely wiped out, he threw the dog to his employer before falling hard on his backside. And the right equipment matters: After two weeks’ employ in an Upper East Side penthouse, he was handed a pair of Reeboks by his new boss, the better to withstand the apartment’s wall-to-wall granite floors. (For cleaning, Mr. Ely wears slippers, deck shoes or socks.)


Mr. Ely, whose talents and expertise are wide-ranging (he can stock a wine cellar, do the flowers, set a silver service, iron like a maestro and clean gutters, as he did once or twice at Holly Hill, Mrs. Astor’s Westchester estate), is a minimalist when it comes to materials. He favors any simple dish detergent as a multipurpose cleaner, along with a little vinegar, for glass, and not much else. “Dish detergent is designed for cutting grease; there’s nothing better,” he said. He’s anti-ammonia, anti-bleach. He said bleach destroys fabric, particularly anything with elastic in it. “Knickers and bleach are a terrible combination,” he said. “I had a boss who thought he had skin cancer. His entire trunk had turned red and itchy.” It seems his underpants were being washed in bleach. (Collective wince.) “It’s horrible stuff.”


As for tools, he likes a cobweb cleaner — this reporter had bought Oxo’s extendable duster, which has a fluffy orange cotton duster that snaps onto a sort of wand, but Mr. Ely prefers the kind that looks like a round chimney brush. (If you live in a house, he also suggests leaving the cobwebs by the front and back doors, so the spiders can eat any mosquitoes coming or going.) Choose a mop with microfiber fronds (he suggested the O Cedar brand) because it dries quickly and doesn’t smell. And a sturdy vacuum. Also, stacks of microfiber cloths or a terry cloth towel ripped up.


But first, to stretch. Ms. Johnson took hold of this reporter’s Bona floor mop (it’s like a Swiffer, but with a reusable washcloth) and Mr. Ely followed along with an old-fashioned string mop. Though Mr. Ely has a kind of loose-limbed elegance, he is not exactly limber. He grimaced as he parroted Ms. Johnson, who used her mop as Gene Kelly did his umbrella, stretching her arms overhead, one by one, twisting from side to side, sucking in her stomach, rising up on tip toes. (Mr. Ely said his old poodle-hurling injury was kicking in.) Ms. Johnson adjusted his chin — “You’re going to hurt yourself if you keep sticking your neck out,” she warned — and Mr. Ely raised a black-socked foot napped with cat hair and chastised this reporter: “Would you look at that?” (The cat had vanished early on, but his “debris,” as Mr. Ely put it, was still very much in evidence. The reporter hung her head. Did she know that cat spit is toxic? Mr. Ely wondered.)


“We’re warming up the spine,” said Ms. Johnson. “Squeeze your abdominals.”


Mr. Ely looked worried: “I don’t think I have abdominals!”


MR. ELY’S technique is to clean a room from top to bottom. That means he begins with the cobweb cleaner, wafting it along ceiling corners, moldings, soffits and, uh, the top of the fridge (major dust harvest there). His form was pretty, like a serve by Roger Federer, if not exactly aerobic. For Mr. Ely kept stopping to lecture this reporter — on condensation; on the basic principles of heat transfer and why one needs to vacuum the refrigerator coils; on the movement of moist air in a kitchen; on floor care, which involved a long story about a Belgian monastery whose inhabitants never washed the kitchen floor; on how to dust the halogen spot lights (use a cotton cloth, not a microfiber one, and make sure the lights are off, and cool).  “I do rabbit on, don’t I?” he said. Ms. Johnson gamely hustled him along, noting that anytime you raise your arms over your head you can raise your heart rate. “What about a balance exercise?” she cajoled, executing a neat series of leg lifts. “That’s good for the butler’s booty!”


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Toyota to pay big to settle suits









Toyota Motor Corp., moving to put years of legal problems behind it, has agreed to pay more than $1 billion to settle dozens of lawsuits relating to sudden acceleration.


The proposed deal, filed Wednesday in federal court, would be among the largest ever paid out by an automaker. It applies to numerous suits claiming economic damages caused by safety defects in the automaker's vehicles, but does not cover dozens of personal injury and wrongful-death suits that are still pending around the nation.


The suits were filed over the last three years by Toyota and Lexus owners who claimed that the value of their vehicles had been hurt by the potential for defects, including floor mats that could cause the vehicles to surge out of control.





ROAD TO RECALL: Read The Times' award winning coverage


In addition, Toyota said it is close to settling suits filed by the Orange County district attorney and a coalition of state attorneys general who had accused the automaker of deceptive business practices. The costs of those agreements would be included in a $1.1-billion charge the Japanese automaker said it will take against earnings to cover the actions.


"We concluded that turning the page on this legacy legal issue through the positive steps we are taking is in the best interests of the company, our employees, our dealers and, most of all, our customers," Christopher Reynolds, Toyota's chief counsel in the U.S., said in a statement.


Toyota's lengthy history of sudden acceleration was the subject of a series of Los Angeles Times articles in 2009, after a horrific crash outside San Diego that took the life of an off-duty California Highway Patrol officer and his family.


Under terms of the agreement, which has not yet been approved in court, Toyota would install brake override systems in numerous models and provide cash payments from a $250-million fund to owners whose vehicles cannot be modified to incorporate that safety measure.


In addition, the automaker plans to offer extended repair coverage on throttle systems in 16 million vehicles and offer cash payments from a separate $250-million fund to Toyota and Lexus owners who sold their vehicles or turned them in at the end of a lease in 2009 or 2010. The total value of the settlement could reach $1.4 billion, according to Steve Berman, the lead plaintiff attorney in the case.


The lawsuits, filed over the last several years, had been seeking class certification.


News of the agreement comes scarcely a week after Toyota agreed to pay a record $17.35-million fine to the National Highway Traffic Safety Administration for failing to report a potential floor mat defect in a Lexus SUV. Those come on top of almost $50 million in fines paid by Toyota for other violations related to sudden acceleration since 2010.


The massive settlement does not, however, put Toyota's legal woes to rest. The automaker still faces numerous injury and wrongful death claims around the country, including a group of cases that have been consolidated in federal court in Santa Ana, and other cases awaiting trial in Los Angeles County.


The first of the federal cases, involving a Utah man who was killed in a Camry that slammed into a wall in 2010, is slated for trial in mid-February.


The California cases are set to begin in April, among them a suit involving a 66-year-old Upland woman who was killed after her vehicle allegedly reached 100 miles per hour and slammed into a tree.


Edgar Heiskell III, a West Virginia attorney who has a dozen pending suits against Toyota, said he is preparing to go to trial this summer in a case that involved a Flint, Mich., woman who was killed when her 2005 Camry suddenly accelerated near her home.


"We are proceeding with absolute confidence that we can get our cases heard on the merits and that we expect to prove defects in Toyota's electronic control system," he said.


Toyota spokesman Mike Michels said the settlement would have no bearing on the personal injury cases.


"All carmakers face these kinds of suits," he said. "We'll defend those as we normally would."


The giant automaker's sudden acceleration problems first gained widespread attention after the August 2009 crash of a Lexus ES outside San Diego.


That accident set off a string of recalls, an unprecedented decision to temporarily stop sales of all Toyota vehicles and a string of investigations, including a highly unusual apology by Toyota President Akio Toyoda before a congressional committee. Eventually Toyota recalled more than 10 million vehicles worldwide and has since spent huge sums — estimated at more than $2 billion, not including Wednesday's proposed settlement — to repair both its automobiles and public image.





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Tornadoes, snow hit the South

A heavy snowstorm that blanketed Texas and Oklahoma is moving northeast on Wednesday. Gulf Coast states are recovering from heavy winds and twisters. (Dec. 26)










MOBILE, Alabama (Reuters) - A major winter storm system swept through the southern United States on Tuesday, spawning tornadoes in several states and killing two people in weather-related road accidents.

The National Weather Service (NWS) said a tornado struck Mobile, Alabama, home to about 200,000 people, at about 5 p.m. local time (2300 GMT). There were reports of damage to trees and widespread power outages, along with some structural damage, but no injuries or fatalities.






Tornadoes also touched down in Mississippi, Texas and Louisiana, flattening houses and causing some injuries, according to the NWS.

The wild Christmas weather was expected to continue into early Wednesday - the NWS' Storm Prediction Center forecasted the development of "a few strong tornadoes and thunderstorm wind damage over parts of the southeast" this evening and overnight.

It warned that tornadoes at night at this time of year can be particularly dangerous because they are usually fast-moving and obscured by rain and darkness. Areas mostly likely to be hit by strong storms include southern and eastern Alabama, the Florida Panhandle and southwest Georgia, the NWS warned.

Tuesday's storms also contributed to a 21-vehicle pile-up that shut down a major highway in Oklahoma City and tens of thousands of power outages.

A Texas man died after an accident involving a tree in the road, and another person died in a weather-related accident on I-44 in Oklahoma, according to local authorities.

The storm was expected to evolve into a blizzard from Arkansas to southern Illinois on Tuesday night, with snowfall of up to a foot in some areas, according to Accuweather.com.

Accuweather.com senior meteorologist Kristina Pydynowski warned on the website that travel will be "extremely treacherous, if not impossible, as the snow clogs roads, such as interstates 24, 55 and 57, and the blowing snow severely lowers visibility."

The Indiana governor's office issued an advisory Tuesday evening that "non-essential employees" who live in areas where snow emergencies have been declared do not have to come to work.

The snowstorm will shift on Wednesday to the eastern Great Lakes and northeastern region, with a blizzard warning in effect for Cleveland starting at 7 a.m. on Wednesday (1200 GMT), forecasters said. Cleveland could get up to a foot of snow, according to the NWS.

Southern Indiana is under a blizzard warning starting early Wednesday morning, according to NWS meteorologist Crystal Pettet. Indianapolis could see its biggest snowfall in four years, with a possibility of 10 to 12 inches of snow.

"Conditions should be pretty bad in time for rush hour," Pettet said.

CHRISTMAS SNOWFALL

In the town of McNeill in southern Mississippi, an apparent tornado destroyed 12 homes and injured eight people, though none of the injuries appear life-threatening, said Danny Manley, director of the Pearl River County Emergency Management Agency.

Manley said the homes could not be rebuilt, as some had lost roofs and their top stories and one was smashed by a tree.

Another apparent tornado hit Centreville, Mississippi, in the southwestern part of the state, injuring one person, destroying a trailer and heavily damaging other homes and buildings, according to Tim Destri, a NWS meteorologist in New Orleans.

A tornado destroyed a building 13 miles southeast of Crockett, Texas, and a bank lost a section of its roof, according to Accuweather.com.

Freezing drizzle overnight led to 10 separate collisions on Interstate 40 in Oklahoma City early on Tuesday, said Betsy Randolph, a spokeswoman for the Oklahoma Highway Patrol. The city also got a rare Christmas snowfall.

The 21-vehicle pile-up included three tractor-trailers and shut down the westbound lanes for about five hours, she said. Twelve people were taken to hospitals, and troopers were checking on the severity of their injuries.

Ahead of the storm's path, parts of eastern West Virginia are under a winter storm warning. Ice accumulations of up to half an inch are expected in higher elevations, the NWS said.

(Reporting by Kaija Wilkinson, Ian Simpson and Mary Wisniewski; Editing by Sandra Maler, Todd Eastham and Paul Simao)

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Britain’s royal family attends Christmas services






LONDON (AP) — Britain‘s royal family is attending Christmas Day church services — with a few notable absences.


Wearing a turquoise coat and matching hat, Queen Elizabeth II arrived at St. Mary Magdelene Church on her sprawling Sandringham estate in Norfolk. She was accompanied in a Bentley by granddaughters Beatrice and Eugenie.






Her husband, Prince Philip, walked from the house to the church with other members of the royal family.


Three familiar faces were missing from the family outing. Prince William is spending the holiday with his pregnant wife Kate and his in-laws in the southern England village of Bucklebury. Prince Harry is serving with British troops in Afghanistan.


Later Tuesday, the queen will deliver her traditional, pre-recorded Christmas message, which for the first time will be broadcast in 3D.


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Chicken Farms Try Oregano as Antibiotic Substitute


Jessica Kourkounis for The New York Times


Chickens raised for Bell & Evans, like these in Pennsylvania, eat feed laced with oregano oil.







FREDERICKSBURG, Pa. — The smell of oregano wafting from Scott Sechler’s office is so strong that anyone visiting Bell & Evans these days could be forgiven for wondering whether Mr. Sechler has forsaken the production of chicken and gone into pizza.




Oregano lies loose in trays and tied into bunches on tabletops and counters, and a big, blue drum that held oregano oil stands in the corner. “Have you ever tried oregano tea?” Mr. Sechler asked, mashing leaves between his broad fingers.


Off and on over the last three years or so, his chickens have been eating a specially milled diet laced with oregano oil and a touch of cinnamon. Mr. Sechler swears by the concoction as a way to fight off bacterial diseases that plague meat and poultry producers without resorting to antibiotics, which some experts say can be detrimental to the humans who eat the meat. Products at Bell & Evans, based in this town about 30 miles east of Harrisburg, have long been free of antibiotics, contributing to the company’s financial success as consumers have demanded purer foods.


But Mr. Sechler said that nothing he had used as a substitute in the past worked as well as oregano oil.


“I have worried a bit about how I’m going to sound talking about this,” he said. “But I really do think we’re on to something here.”


Skeptics of herbal medicines abound, as any quick Internet search demonstrates. “Oil of oregano is a perennial one, advertised as a cure for just about everything,” said Scott Gavura, a pharmacist in Toronto who writes for the Web site Science-Based Medicine. “But there isn’t any evidence, there are too many unanswered questions and the only proponents for it are the ones producing it.”


Nonetheless, Mr. Gavura said he would welcome a reduction in the use of antibiotics in animals.


At the same time, consumers are growing increasingly sophisticated about the content of the foods that they eat.


Data on sales of antibiotic-free meat is hard to come by, but the sales are a tiny fraction of the overall meat market. Sales in the United States of organic meat, poultry and fish, which by law must be raised without antibiotics, totaled $538 million in 2011, according to the Organic Trade Association. By comparison, sales of all beef that year were $79 billion.


Still, retailers like Costco, Whole Foods and Trader Joe’s, as well as some restaurant chains, complain that they cannot get enough antibiotic-free meat.


Noodles & Company, a fast-growing chain of more than 300 restaurants, recently added antibiotic-free pork to the choices of ingredients that customers can add to their made-to-order pastas. It ensured its supply by ordering cuts of meat that were not in relatively high demand and by committing in advance to buy a year’s worth, said Dan Fogarty, its executive vice president for marketing.


“We’re deliberately voting with our pocketbooks,” he said.


In a nationwide telephone survey of 1,000 adults in March, more than 60 percent told the Consumer Reports National Research Center that they would be willing to pay at least 5 cents a pound more for meat raised without antibiotics.


“Before, it was kind of a nice little business, and while it’s still microscopic in the grand scheme of things, we’re seeing acceptance from retailers across the country, not just in California and on the East Coast,” said Stephen McDonnell, founder and chief executive of Applegate, an organic and natural meats company.


Mr. McDonnell said a confluence of trends, from heightened interest in whole and natural foods to growing concerns about medical problems like diabetes, obesity and gluten allergies, were contributing to the demand for antibiotic-free meat.


There is growing concern among health care experts and policy makers about antibiotic resistance and the rise of “superbugs,” bacteria that are impervious to one or more antibiotics. Those bacteria can be passed on to consumers, who eat meat infected with them and then cannot be treated.


In November, the Centers for Disease Control and Prevention and 25 national health organizations and advocacy groups issued a statement on antibiotics that, among other things, called for “limiting the use of medically important human antibiotics in food animals” and “supporting the use of such antibiotics in animals only for those uses that are considered necessary for assuring animal health.”


In 2011, there were several prominent recalls involving bacterial strains that are resistant to antibiotics, including more than 60 million pounds of ground beef contaminated with salmonella Typhimurium and about 36 million pounds of ground turkey spoiled with salmonella Heidelberg.


Consumer Reports released a study last month that found the bacteria Yersinia enterocolitica in 69 percent of 198 pork chop and ground pork samples bought at stores around the country. Some of the bacteria were resistant to one or more antibiotics.


Analysis of Food and Drug Administration data by the Center for Science in the Public Interest found that 80 percent of all antibiotics sold in the United States are used in animals. The majority of those antibiotics are used to spur growth or prevent infections from spreading in the crowded conditions in which most animal production takes place today.


The European Union has banned the use of antibiotics to accelerate growth, and the European Parliament is pushing to end their use as tools to prevent disease as well.


The oregano oil product Mr. Sechler uses, By-O-Reg Plus, is made by a Dutch company, Ropapharm International. In the late 1990s, Bayer conducted trials on the product, known as Ropadiar in Europe, comparing its ability to control diarrhea in piglets caused by E. coli with that of four of the company’s products.


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Corporate tax rate overhaul may be part of a 'fiscal cliff' deal









WASHINGTON — Amid the wrangling over the so-called fiscal cliff, President Obama and congressional Republicans can agree on something: They want to lower the corporate tax rate.


The U.S. has the highest overall rate of any of the world's developed economies. It took the top spot in March after Japan reduced its rate, mimicking other countries that have lowered taxes to lure new businesses and keep existing companies from leaving.


Negotiations to avert automatic income tax increases and federal spending cuts scheduled to kick in Jan. 1 could provide the impetus for U.S. policymakers to tackle an overhaul of the corporate tax code next year.





The White House wants to put a corporate tax overhaul, along with changes to the individual income tax system, on a fast track as part of any deal to avoid the "fiscal cliff."


The centerpiece of an overhaul would be slashing the 35% corporate tax rate, a goal long sought by corporate executives and lobbyists.


Quiz: How much do you know about the 'fiscal cliff'?


"In the name of global competitiveness, I think that has largely been agreed to," Jim McNerney, chief executive of Boeing Co., said about how both parties view the need for major corporate tax changes.


In February, Obama proposed lowering the federal rate to 25% for manufacturing companies and to 28% for other firms. Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, has been pushing a plan to lower the rate to 25% for all corporations.


In both cases, the rate cuts would be accompanied by the elimination of some of the numerous tax breaks that allow many companies to pay a much lower effective tax rate — and sometimes to avoid paying any corporate taxes at all.


"The administration's position on this is very much in sync with what Republicans say they want, which is a lower rate and a broader base," said Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities and the former chief economist for Vice President Joe Biden.


But there still are some obstacles to a deal.


Some Democrats want to use an overhaul to increase the amount of tax revenue coming from corporations, while Republicans want to keep the amount the same. The White House and congressional Republicans also differ on how the U.S. should treat money earned abroad.


And the business community itself is divided. Many small companies file taxes as individuals. They're opposed to any "fiscal cliff" deal that would raise their rates while giving corporations a rate reduction.


Analysts said the obstacles could be overcome because there is consensus around the broader point that the U.S. needs to bring its corporate tax rate in line with other developed nations.


"Regardless of your political persuasion, it is unquestionably the case that the nominal U.S. corporate tax rate is much higher than that of peer countries," said Edward Kleinbard, a USC law professor and former chief of staff of Congress' Joint Committee on Taxation.


The case for corporate tax reform got a boost when the overall U.S. rate of 39.1%, which includes federal, state and local corporate taxes, became the highest this year among the 34 nations in the Organization for Economic Cooperation and Development. Two decades ago, the U.S. was 13th.


"At one time in the '80s, we had a competitive corporate tax rate," said Dorothy Coleman, vice president of tax and domestic economic policy for the National Assn. of Manufacturers. "We've fallen behind by standing still."


Quiz: The year in business


But the rate in the tax code isn't what many companies pay because of a host of deductions and tax credits. In 2011, the effective corporate tax rate in the U.S. was 29.2%, roughly in line with the 31.9% average of the six other largest developed economies, the Obama administration said.


The White House said that parity does not mean the statutory rate shouldn't be reduced. It simply means that many tax breaks should be eliminated, allowing the rate to be lowered without adding to the deficit.





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Christmas Eve shootings leave 7 hurt









Seven people were hurt, at least five seriously, in shootings on the South and West sides late Monday.


Four of the injured were hurt in a single shooting on the Far South Side, and all four were taken to local hospitals in serious-to-critical condition, according to the Chicago Fire Department.


The shooting happened shortly before 7:30 p.m. in the 9400 block of South Justine Street in the Brainerd neighborhood on the South Side, officials said.





A male opened fire, striking four males as they walked down the sidewalk, Chicago Police Department News Affairs Officer Amina Greer said, citing preliminary information.

A 15-year-old  and a 22-year-old  were taken to Advocate Christ Hospital in Oak Lawn, a 17-year old was taken to Mount Sinai Hospital and a 19-year-old  was taken to John H. Stroger, Jr. Hospital of Cook County, police said.


The 15-year-old was shot in the abdomen, and the 17-year-old was shot in the chest, police said. The other two men were shot multiple times.


Police said the condition of each was stabilized at the hospital.


About 11:50 p.m., a 21-year-old was shot in an attempted robbery in the Gresham neighborhood on the South Side, police said.


The victim was sitting in a parked vehicle in the 8200 block of South Marshfield Avenue when two males approached on foot and announced a robbery, Greer said, citing preliminary information.


Shortly after, one or both of the assailants shot into the vehicle, striking the man in the lower abdomen, police said.


The man was taken to Little Company of Mary Hospital and later transferred to Advocate Christ, where his condition was stabilized, police said.


About 9:05 p.m., a 19-year-old man was shot in the head in the 1200 block of West Washburne Avenue in the West Side's University Village neighborhood, police said. 


The man was taken to Stroger in serious condition, News Affairs Officer Veejay Zala said.


Earlier Monday evening, a 37-year-old man was shot in the leg and back in the South Side's Gresham neighborhood, police said.


The shooting happened in the 700 block of West 81st Street about 5:50 p.m., Zala said. The man was taken to an area hospital, where his condition was stabilized.


asege@tribune.com

Twitter: @AdamSege





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