12/05/2012

Opinion: Millionaire's tax compromise

Reihan Salam says Nancy Pelosi's support for a millionaire's bracket could help lead to a deal.
Reihan Salam says Nancy Pelosi's support for a millionaire's bracket could help lead to a deal.
  • Earlier this year Sen. Schumer, Rep. Pelosi proposed raising taxes on millionaires
  • Reihan Salam says their idea of a higher threshold than Obama's $250,000 could work
  • Salam: It wouldn't raise as much money, but would be more politically palatable
  • He says another plus is that it wouldn't risk as much of an economic slowdown

Editor's note: Reihan Salam, a CNN contributor, is a columnist for Reuters; a writer for the National Review's "The Agenda" blog; a policy adviser for e21, a nonpartisan economic research group; and co-author of "Grand New Party: How Conservatives Can Win the Working Class and Save the American Dream."

(CNN) -- Earlier this year, Sen. Chuck Schumer, D-New York, and House Minority Leader Nancy Pelosi, D-California, expressed support for raising taxes only on households earning $1 million or more, a higher threshold than the $250,000 dividing line backed by President Obama.

Eventually, Schumer and Pelosi declared their support for the president's position. But the $1 million proposal might serve as the basis for a bipartisan agreement.

A number of Republicans, led by Sen. Bob Corker, R-Tennessee, have called for raising tax revenue by capping deductions at $50,000, a proposal that would leave virtually all middle-income households untouched while substantially raising average tax rates on households in the top 2% of the income distribution.

Reihan Salam

A deduction cap is expected to raise roughly $800 billion in revenue above current policy, which is only half of the $1.6 trillion the Obama administration hopes to raise from high-earners. It is, however, an amount that many congressional Republicans appear to have deemed acceptable.

Politics: The road to fiscal cliff paved with good intentions

One of the central problems with a deduction cap, however, is that it is likely to be opposed by politically influential charitable organizations, which recognize that it will greatly undermine the incentive for high earners to make large charitable donations. Moreover, President Obama has insisted that tax rates on high earners will have to increase, though he has not made an explicit commitment to the Clinton-era statutory top rate of 39.6% (which compares to today's top rate of 35%).

So, is there a way out of this impasse? Rep. Mike Simpson, R-Idaho, along with Reps. Tom Cole, R-Oklahoma, Bob Dold, R-Illinois, and Mary Bono Mack, R-California, have called on congressional Republicans to back legislation that would extend all the Bush-era tax cuts except for the high-income rate reductions, which would be allowed to expire. This remains a minority view among congressional Republicans, but it may well gain support in light of the popularity of allowing the high-income rate reductions to expire.

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Another possibility is that congressional Republicans will embrace the Schumer-Pelosi proposal. That is, rather than embrace expiration for the high-income rate reductions for households earning $250,000 or more, they would accept it for households earning $1 million or more.

This would shield a large, politically influential constituency of affluent households, a disproportionately large share of whom live in high-cost metropolitan areas in blue states, while allowing Democrats and Republicans to take a politically popular stand.

Opinion: A tax we could learn to love

To raise somewhat more revenue, this threshold could be set at $500,000 or $410,000, the latter of which would more precisely target the top 1% of households by annual income. Rather than set the tax rate for this new top bracket at 39.6%, Congress could set a rate of 36% or 37%, a face-saving gesture that would contribute to an appearance of moderation.

Back in 2007, Alan Viard, a tax economist at the right-of-center American Enterprise Institute, offered a detailed explanation of why increasing taxes on high-income households alone is unlikely to raise enough revenue to reach ambitious deficit reduction goals. At the time, he estimated that raising $1 trillion in additional revenue relative to the Bush-era tax code from households earning $1 million or more ($500,000 for singles) would require raising the tax rate from 35% to 57%.

If the goal of a millionaire's tax bracket is not to raise revenue in the most efficient manner but rather to make a political point, as seems at least somewhat plausible, it is easy to imagine it as the basis of a political compromise.

The Obama administration is eager to secure more fiscal stimulus for the coming year in light of sluggish global economic growth. So a tax compromise that raises relatively little revenue is arguably desirable, at least in the short term, as it would help forestall an economic contraction.

Homes, cars, jobs: Americans already making big decisions over fiscal cliff

If some small number of Republican senators from swing states are willing to cross the aisle to back a millionaire's tax bracket, President Obama will be able to claim he has a bipartisan consensus in favor of his broad approach to resolving the fiscal cliff. This in turn will make it very difficult for House Republicans to resist.

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The opinions expressed in this commentary are solely those of Reihan Salam.

Cuba: US 'lying' about health of jailed American

Enrique De La Osa / Reuters

Josefina Vidal, Cuba's director of U.S. Affairs at the Ministry of Foreign Affairs, addresses the media in Havana on Wednesday.

By Mary Murray
NBC News

HAVANA -- A Cuban official on Wednesday accused the U.S. government of "lying" about the health of Alan Gross, an American contractor serving a 15-year prison sentence here, in an effort to force his release. 

Denying speculation that the 63-year-old Gross has cancer or is otherwise in poor health, Foreign Ministry official Josefina Vidal said at a press conference in the Cuban capital that the 63-year-old American has "been treated decently and well in prison."

She also stated that "his health has "not deteriorated" and that he "speaks regularly with friends and family."


"Gross has been seen by the most qualified Cuban medical specialists," Vidal said. "The U.S. government is lying to suggest that he has cancer and that he is not receiving adequate treatment." If these lies continue, she said, "Cuba will present new evidence that shows Gross is not sick."

Vidal's statement came in response to increasing pressure from the U.S. government and lawmakers to release Gross, who was convicted in 2009 of "acts against the independence and/or territorial integrity of the state" for  distributing telecommunications equipment to Cuba's tiny Jewish community.

At the time, Gross was in Cuba on a  tourist visa, working  for Development Alternatives, Inc., a State Department contractor, as an "independent business and economic development consultant" under an $8.6 million contract from the U.S. Agency for International Development.

The court that convicted him described the effort as an effort to subvert the Cuban government.

"It was demonstrated that (Gross) illegally introduced telecommunications equipment in Cuba to create internal networks as part of a program of the government of the United States that aimed to promote destabilizing actions in the country and subvert Cuban constitutional order," it said at the time.

Since his imprisonment more than three years ago, Gross has lost more than 100 pounds and developed a mass on his right shoulder blade, which Cuban doctors diagnosed as a non-malignant hematoma that would be reabsorbed within a few months, according to Reuters.

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Gross' wife, Judy, has been leading a public relations campaign in the United States for her husband's release on humanitarian grounds. An American radiologist she consulted said last month that the mass had not been properly evaluated and speculated that it could be cancerous. The radiologist, Alan Cohen, said that Gross needed an urgent evaluation – and likely a biopsy of the mass – preferably at a facility in the United States.

At a press conference on Capitol Hill Tuesday – the fourth anniversary of her husband's imprisonment – Judy Gross said her husband "is frail, suffers from chronic pain ... and still doesn't know whether he has cancer."

U.S. State Department spokesman Mark Toner sounded a similar theme on Monday.

"Mr. Gross has lost more than 100 pounds and suffers from severe degenerative arthritis that affects his mobility, and other health problems," he said in a statement. "His family is anxious to evaluate whether he is receiving appropriate medical treatment, something that can best be determined by having a doctor of his own choosing examine him."

While resisting calls to release Gross, Cuban officials have floated an alternative to resolve the impasse: They say they will free Gross if President Barack Obama agrees to release five Cuban spies held in the U.S.

The spies – known as the Cuban Five – are national heroes in Cuba as a result of their mission in the late 1990s to infiltrate  anti-Castro exile groups in South Florida that Havana suspected of plotting terrorist attacks inside Cuba. They were convicted in Miami in June 2001 of conspiracy to commit espionage, conspiracy to commit murder, acting as an agent of a foreign government, and other illegal activities.

Vidal referred to this scenario on Tuesday, reiterating "Cuba's willingness to immediately start talks with the U.S. government to find a humanitarian solution that is mutually beneficial to both parties." She also stated that her government would not make a "unilateral" move and release Gross because the "problem also belongs to the U.S." -- referring to the Cuban Five.

Gross himself pushed for a diplomatic solution in a meeting on Nov. 28 with Peter Kornbluh, a Cuba specialist from the National Security Archives in Washington.

"He's angry, he's frustrated, he's dejected — and he wants his own government to step up" and negotiate, Kornbluh told NBC News last week. "His message is that the United States and Cuba have to sit down and have a dialogue without preconditions. … He told me that the first meeting should result in a non-belligerency pact being signed between the United States and Cuba."

Mary Murray is an NBC News producer; NBC National Investigative Correspondent Michael Isikoff also contributed to this report.

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Police: Handcuffed student shoots self in police car

By NBC News staff

Updated at 2:47 p.m. ET: A handcuffed Houston-area high school student shot himself in the head Wednesday while in the back of a police car, officials said.

The student was rushed to Ben Taub Hospital. His condition was not released, but officials said he was conscious and breathing when he was transported, Click2Houston.com reported.


No one else was hurt.

The incident began when police were called to North Shore Senior High School in unincorporated Harris County to investigate a report of a student with a firearm, said Capt. Jon Moore with the Harris County Constable Precinct 3.

The student was searched, handcuffed behind his back and placed in the back of a patrol car but apparently still had a gun, Moore said.

The student then shot himself, Galena Park Independent School District officials said.

District spokesman Jonathan Frey gave the following account:

This morning at North Shore Senior High School, a student was arrested. He was searched, handcuffed, and placed in the back of a police car. While in the car, the student retrieved a hidden gun and shot himself. Paramedics were called and quickly arrived on scene. He was transported to the hospital still conscious when he left. His family accompanied him to the hospital.

Students at North Shore Senior High School remain safe. Counselors are available for students as needed.

It was not immediately clear if officers had taken another gun from the student before he was placed in the patrol car, Moore said.

The Harris County Sheriff's Office will investigate the shooting, Moore said.

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In July, an Arkansas man fatally shot himself while handcuffed in the back of a police car. Officials say Chavis Carter, 21, committed suicide even though he was handcuffed from behind and had been searched twice for weapons. He had been picked up by authorities during a traffic stop in Jonesboro, Ark.

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Handcuffed student shoots self in police car

By NBC News staff

A handcuffed Houston-area high school student shot himself in the head Wednesday while in the back of a police car, officials said.

The student was rushed to Ben Taub Hospital. His condition was not released, but officials said he was conscious and breathing when he was transported, Click2Houston.com reported.


No one else was hurt.

The incident began when police were called to North Shore Senior High School in unincorporated Harris County to investigate a report of a student with a gun.

The student was handcuffed and placed in the back of a patrol car but apparently still had a gun, investigators said, Click2Houston.com reported.

The student then shot himself, Galena Park Independent School District officials said.

District spokesman Jonathan Frey gave the following account:

This morning at North Shore Senior High School, a student was arrested. He was searched, handcuffed, and placed in the back of a police car. While in the car, the student retrieved a hidden gun and shot himself. Paramedics were called and quickly arrived on scene. He was transported to the hospital still conscious when he left. His family accompanied him to the hospital.

Students at North Shore Senior High School remain safe. Counselors are available for students as needed.

It was not immediately clear if officers had taken another gun from the student before he was placed in the patrol car, Click2Houston.com reported.

Watch the Top Videos on NBCNews.com

In July, an Arkansas man fatally shot himself while handcuffed in the back of a police car. Officials say Chavis Carter, 21, committed suicide even though he was handcuffed from behind and had been searched twice for weapons. He had been picked up by authorities during a traffic stop in Jonesboro, Ark.

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Police: Suspect arrested in deadly subway push

View more videos at: http://nbcnewyork.com.

By Jonathan Dienst, Shimon Prokupecz and Tracie Strahan, NBCNewYork.com

NEW YORK -- A 30-year-old former deli worker has been arrested on second-degree murder charges in the death of a New York subway rider pushed off the platform and into the path of an oncoming train at 49th Street after an argument.

Law enforcement sources say Naeem Davis has made statements to detectives implicating himself in the deadly push. Information about an attorney was not immediately available.

A law enforcement official told NBC 4 New York the man is suspected of pushing 58-year-old Ki-Suk Han off the platform at the N, Q, R station Monday afternoon. Han was hit by a southbound Q train and died.


Witnesses told police the suspect was mumbling to himself before he and Han began arguing on the platform. 

A bystander recorded part of the fight between the two men and turned the video over to police, who released it to the public Monday night and received several tips. The man who allegedly pushed Han is heard cursing and saying, in substance, "Leave me alone ... stand in line, wait for the R train and that's it."

He then pushed Han onto the tracks, police said. Han tried to climb back up onto the platform but died after getting trapped between the train and the platform's edge. 

The Q train operator, Terrence Legree, told the New York Daily News he saw the man on the tracks and tried to pull the emergency brakes on the train, but couldn't stop it in time. Even after he heard the sound of the train hitting the man and the locomotive screeched to a halt, Legree said he jumped out of the control booth and tried to help the victim. 

"If someone can be saved, you have to do what you have to do," Legree, a 21-year employee with the New York's Metropolitan Transportation Authority, told the News. But Han couldn't be saved -- a tragic fact that had Legree struggling with an range of emotions and questions more than a day after the man's death.

"All kinds of emotions from 'Why is this happening?' to 'Why was that guy down there?' to 'What happened?'" Legree told the News. He was treated for shock after the incident.

Related: 'No way' to save subway victim, photographer says

Police had released several photos and video clips of the suspect wanted for allegedly pushing Han into the path of Legree's train. A law enforcement official tells NBC 4 New York that co-workers from a nearby deli where the suspect works tipped off police that their colleague might be the subway pusher after they recognized his voice from video.

Investigators then saw the man on surveillance video in the street talking to street vendors outside the subway station, and when they went back to the area Tuesday, he was there, speaking with the same vendors, sources said.

Subway pushes are unusual. Among the more high-profile was the January 1999 death of Kendra Webdale. A former mental patient admitted he shoved her to her death.

Related: Remembering Kendra Webdale and so many others

Following that, the state Legislature passed Kendra's Law, which lets mental health authorities supervise patients who live outside institutions to make sure they are taking their medications and aren't a threat to safety.

Jonathan Dienst is WNBC's chief investigative correspondent. Shimon Prokupecz is a WNBC investigative producer.

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Judge's order to man with nine kids: Stop procreating

By Andrew Mach, NBC News

A Wisconsin judge has ordered a man who owes $90,000 in child support after fathering nine children with six women to not have any more kids, at least for now.

Racine County Circuit Court Judge Tim Boyle sentenced Corey Curtis, 44, to three years of probation on Monday with the condition he is not to procreate until he shows he can support his children, according to court documents.

Curtis pleaded no contest in October to one count each of felony bail jumping and failure to pay child support.

Assistant District Attorney Rebecca Sommers said Curtis owes about $50,000 in back child support, plus another $40,000 in interest to the mothers, the Journal Times reported.

"Common sense dictates you shouldn't have kids you can't afford," Racine County Circuit Court Judge Time Boyle said at a hearing, according to the Journal Times. "It's too bad the court doesn't have the authority to sterilize."

In his decision, the judge cited a 2001 case in which Wisconsin Supreme Court justices upheld a Court of Appeals ruling that a judge may, as a condition of a person's probation, order the defendant not to have another child unless he can show financial viability.

Curtis told local station WDJT-TV he planned to comply with the unusual order in his case. 

"Judges, they make rulings," Curtis said. "They make them kind of hastily. So, if that's what he feels one of my conditions should be then I'm going to abide by it."

This isn't the first time a judge has made a ruling intended to block breeding.

A Kentucky judge in March ordered a man who had fathered a dozen children by 11 women to refrain from having "any sexual intercourse" for the one-to five-year period he's on parole.

A Texas judge in 2008 sentenced a 20-year-old mother to 10 years probation for not protecting her 19-month-old daughter from abuse by the child's father. The judge ordered her to not get pregnant during her probation.

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Bus driver fell asleep at wheel, passengers say

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By Brynn Gingras, NBCNewYork.com

An NJ Transit driver fell asleep behind the wheel Monday morning, causing a crash that put 50 bus passengers in danger on their way into Manhattan, NBC 4 New York has learned exclusively.

Several passengers on board the 166-X bus from Englewood to Port Authority tell NBC 4 New York the driver nodded off and lost control of the bus, swerving into the guardrail and nearly falling off an overpass that runs above I-495. 

Lila Noble, who was sitting toward the front of the bus, said she suddenly heard "clang, bang, boom."

"I looked up from my email and I saw that we were almost off the guardrail," she said. 

Riders said the bus driver was startled awake when a woman on board screamed. 

Read the original story on NBCNewYork.com

The driver pulled over, but only after the riders demanded he do so, passengers told NBC 4 New York. 

"He said, 'Stay on, we can go,'" said Noble. "Nobody wanted any part of that."

Another bus picked up the passengers and continued the route. No one was hurt.

Several passengers filed complaints about the driver and the crash, but they said they haven't received a response to the incident.

NJ Transit spokesman John Durso said the bus operator was taken out of service as NJ Transit conducts an investigation. 

That's only some relief to those passengers who are now second-guessing their commute.

"It needs to be addressed why inexperienced drivers are operating buses with 50 people's lives in their hands," said Noble.