Wednesday, January 2, 2013

Retirement Town Hall ? Australia exemplifies a changing world of ...

By Javier Sanabria

Aging workforces, longer lifespans, and deteriorating global economies have placed the future of retirement systems at risk. In this issue of Benefits Perspectives, Wade Matterson spotlights Australia?s superannuation retirement system as he examines reasons government intervention in pension policies are anticipated moving forward.

Here is an excerpt from his article:

Private industry is already in the early stages of evolving to address some of these problems. The market participants are reacting, driven by the need to provide better outcomes for workers and retirees. Whilst embryonic in many cases, examples of these activities include:

? Greater segmentation of members and their needs, e.g., the trend to review one-size-fits-all investment models (or default funds) in place of developing investment strategies that are more focused on individual objectives and that take a holistic view of members financial affairs.

? Offerings that target these segments, including product, advice and distribution, including the development of lifecycle investment options, personalized overlays and other longevity products (e.g., variable annuities), as well as emerging advice models that range from single-issue advice to intrafund and holistic approaches.

? New models emerging such as self-managed and direct investment alternatives. Whilst this trend has arguably come about in part because of the perceived failings of large institutional pension plans, the trend towards greater control and individual tailoring has been established and many funds now appear to be developing the capability to offer similar solutions to the membership.

Improved efficiency, competition, and choice in the retail provision of retirement benefits could further lessen dependency on governments by creating a more educated and informed member. Armed with knowledge about saving, investing, spending and other retirement planning information, members should experience improved decision-making and outcomes (i.e., mitigate behavioral risks that lead to mismanagement of pension assets).

Pensions Australia, Pensions, retirement, superannuation, Wade Matterson

Source: http://www.retirementtownhall.com/?p=4308

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Green Blog: Beyond the Myth: The Bounteous Mekong

Seventy-two hours after leaving Cleveland, I slipped away from Christmas Eve dinner with my family, walked down a dimly lighted path and crossed a rickety bamboo bridge to an island. I knelt down and dipped my hand into the Mekong River.

Actually, in the dark I misjudged the distance to the water?s surface and wound up putting my arm in up to the elbow. It felt like ? warm water.? As if I?d stuck my arm into my son?s aquarium back home, 10,000 miles away.

Party music thumped from the hotel across the river, with a spotlight dancing crazily through the dark tropical sky.? It wasn?t quite the Mekong but rather the Kok River, one of its tributaries in northern Thailand.

Dramatic beginnings aside, I was grateful to finally be in the Mekong?s basin.

Grateful to have completed multiday air travel with two children, of course, but beyond that I felt a huge rush of relief that our trip was still on track.? We almost hadn?t made it out of Cleveland, where we live.? The day of our departure, a storm named Draco bore down on northeastern Ohio.? We?re quite used to winter storms, but I can?t remember one that had a name, let alone the name of a villain.

Our departure plane couldn?t land in Cleveland?s airport and had been rerouted to Detroit. The jet bridge jutted vacantly into the driving snow, and months of planning and commitments ? with a tight time line of flights, guides and boats for our three-week journey here ? seemed in jeopardy.

The plane eventually made it to Cleveland, and we took off only three and a half hours late.? Four flights and three days later we arrived in Chiang Rai, Thailand, on the banks of the Kok.

Until tonight, the Mekong for me existed only in words and pictures, a mythical place, both culturally and biologically.? It is the haunted river of ?Apocalypse Now,? and legendary for its aquatic life ? unsurpassed in the staggering dimensions of its megafish and tons of its fish harvest, and surpassed only by the Amazon for its diversity of fish species.

The Mekong is also the site of the planet?s most contentious debate about the future of great rivers.

Its fish harvest provides the primary source of protein for at least 50 million people and jobs for millions spread across the region?s rural villages. But several of the lower-basin countries, particularly Laos and Cambodia, are very poor.? Nearly one-third of the people in the region lack sanitation ? and in Laos, half of the rural population lacks electricity.?

Although the percentage of people in the region living in poverty has declined considerably in the past two decades, the Mekong?s countries still have rapidly growing and urbanizing populations, and energy is needed to drive those cities and economic development.

The region?s governments are now looking to the Mekong as a key source of that needed power.? A total of 11 hydroelectric dams are currently proposed or planned for the main-stem river, and this has set off a fierce debate over the river?s future.

The Mekong River Commission recently released a major report highlighting the various benefits and costs of building these dams. (The commission, which includes representatives of Thailand, Laos, Cambodia and Vietnam, is a forum for dialogue and research but has no decision-making authority.)

The report estimated that full construction of the dams would meet roughly 6 to 8 percent of the region?s projected energy demand in 2025 and, although there are questions about the distribution of economic benefits, Laos in particular would see a substantial increase in its gross domestic product.

But this energy would come at a price. The dams will hinder or block the migration of fish, and because most of the important species migrate long distances to spawn, fish harvests could decline by nearly half; proposed dams on tributaries would cut harvests further.? Laos and Cambodia could lose one-third of their current protein supplies.

These are the statistics that have defined the Mekong for me as I prepared for the trip.? Standing on the banks of the Kok, I knew I could finally begin to complement my reading with actual experience.

I?m a river scientist with The Nature Conservancy, part of a team that collaborates with governments, communities, and companies to develop solutions for more environmentally sustainable river management. Yet I can?t pretend that I?m on this trip to offer answers to the Mekong?s tangled challenges.? There?s far too much to learn, far too much complexity, and the region is full of experts and organizations that have committed decades to finding solutions for the Mekong.

At least I could offer some solutions for my kids? Christmas. After dinner, the kids collapsed in exhaustion, and my wife, Paola, had since also fallen asleep. Not a creature was stirring, so, like Santa, I reached deep into my pack and retrieved two stockings, some very small gifts, and one short strand of Christmas lights.? I dragged a potted plant in from the corridor, draped it with lights, and fell asleep.

Still jet-lagged, we all awakened before dawn, and the kids opened their gifts in front of the glowing plant, a tropical version of Charlie Brown?s sorry little Christmas tree.

After breakfast, we left Chiang Rai and took a bus north for Chiang Khong, on the banks of the Mekong.? There we crossed the river into Laos and boarded a boat for a three-day trip down to Luang Prbang, the home of Laos? recently extinguished monarchy and the center for Buddhism in Laos.

On its way to Luang Prbang, the Mekong winds through remote gorges flanked by steep and lush mountains.? When I could put aside my analytical filters, I just soaked in the experience as someone who loves rivers.? We motored unhurriedly through an idyllic tricolored world ?? brown river, green mountains, blue sky.

But my brain continually cut in on the dreamlike slow dance down the river.? This was just our introduction, but the major elements of controversy over the Mekong?s future were already obvious: the river was an organic machine for producing food, flowing through a region that clearly needed development and improved living standards.

On first glance, the boat floated through a verdant near-wilderness.? On closer inspection, the Mekong and its banks were more like an unruly linear farm.? For nearly the entire length of our trip, the river was producing food.

Bamboo poles were jammed into rock crevices at various angles, securing nets just below the surface to strain fish from the fast currents.? In eddies and still water, curving lines of floating plastic bottles functioned as buoys marking drift nets.? Slender green bamboo sticks lined the water?s edge like a skinny forest, each one holding a small fish trap or baited hook.? Along the beaches, men coiled their bodies and then heaved nets that hit the surface like circular spider webs.

This is the dry season,and the river has been dropping for months, exposing sand bars and moist banks.? The banks have been planted in corn and green beans, with peanuts planted on the sand bars.? Highest on the bars, where the peanut plants were oldest, they grew in a thick emerald carpet.? Moving down the bars was a series of sequentially younger bands.? The lowest band, land the river had most recently vacated, was a grid of newly planted seedlings.

We slept in villages both nights. Power lines had reached the first village just two years ago, while the second still lacked electricity.? The roads between the villages could only be used during the dry season.

Over dinner the first night, we talked with the nai ban, or village headman, who was hosting us in his house.? The topic of the proposed dams came up; the two proposed dams that would be farthest upstream are within the stretch of river we were traveling.

He said his main concerns were about the movement of fish and boats up and down the river but that he had heard that the dams would be built to allow passage of both.? He seemed confident that this was true.

?Roads, bridges, electricity, dams, clinics ? all of these, we need all of these,? he said as he gestured at the dirt streets around us, the darkness pushed back by only a handful of light bulbs.

I thought back to the moment two nights earlier when I reached down from the dark bank of the Kok to touch the river with my hand and inadvertently stuck my arm in up to my elbow.? That seemed an apt metaphor. Even though I?m now deeper in than simply touching the surface, I still feel pretty much in the dark.


Jeff Opperman is a senior freshwater scientist with The Nature Conservancy.

Source: http://green.blogs.nytimes.com/2013/01/02/beyond-the-myth-the-bounteous-mekong/?partner=rss&emc=rss

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Tuesday, January 1, 2013

Tipping, Showers, and Invitations: The New Etiquette or Money Grabs?

tipping

My newspaper carrier puts a card in our paper every holiday season thanking us for subscribing, wishing us a Merry Christmas, and asking for a tip. At the bottom it reads, ?Please tip your carrier. Checks for tips should be made out to, ?Mr. Smith.? (Not his real name.) This appalls me because I was always taught that tips are to be neither expected nor asked for. Needless to say, I don?t tip. (Not only because he so blatantly asks for a tip, but because the service during the year isn?t worth it. When we go on vacation and ask to have the paper held and delivered when I return, he never does it. But I digress?)

There are expectations to tip everyone these days, whether it is traditionally tipped position or not. Restaurant receipts tell you that a tip should be twenty-percent. Well, what if the service was terrible? People tip their garbage collectors and mail carriers. They tip teachers, nurses, doctors (really?) and FedEx drivers. To me, if a profession receives a wage or salary for doing the job, it?s not a tipped position. Sure, I will tip some people if they go above and beyond the call of duty, but most of these people do not. At least not in my area. And I can?t see myself ever tipping my doctor who has a boat, a condo at the beach, and drives a Mercedes. But maybe that?s just me.

I also find myself shocked these days by wedding and other invitations that ask specifically for money or enclose a registry. That seems presumptuous. If I want to give you a gift, I can ask you where you are registered or if there is something that you need. You can then hand me the registry, mention a gift card you might want, or ask that money be donated to a charity in lieu of gifts. Saying, ?Thank you for thinking of me/us,? when you give me ideas is also appreciated rather than just shoving the list at me and saying, ?Give me this toaster.? To stick a gift list in the invitation and to presume that your guests will give a gift seems to me to imply that the gifts you?ll get from them is more important than their presence at your event.

It?s the same with showers. I was raised that you had a wedding shower for your first marriage and a shower for your first baby. Now every time I turn around there are invitations for showers for third and fourth marriages, the third baby, ?gender reveal? showers (in addition to the standard baby shower), and even ?divorce showers? so that the man or woman can get the things they will need to live alone. And, many times, the invitations to these events contain registries and requests for money.

The other day I even saw an obituary in the paper that, instead of the usual ?In lieu of flowers please consider donating to [the charity of choice],? said, ?Please give money to my grandkids for their college funds.? All I could think was, ?Um, what?? I thought that it was either the grandparents? responsibility to leave that money to the grandkids in their will or for the parents to provide for their own kids? college education. I would have felt differently if this was the obituary for a young mother or father of babies who didn?t have time to prepare for their kids? future, but this particular request just struck me as a money-grab. Who?s to say that the money would even get to the kids and not be spent by the parents? And why is it on me to pay for the education of your grandchildren? Isn?t that your family?s responsibility?

Maybe etiquette has changed since my younger days and maybe all of this asking for money is considered normal now. Maybe this is the new etiquette. Maybe it?s all just a reflection of our current society where ?enough? is never enough. There always has to be more. Maybe it?s a reflection of the entitlement mentality some people have. Maybe when you grow up celebrating your graduation from kindergarten, then third grade, then sixth grade, then eighth grade, then high school and college, having just one baby shower can seem anticlimactic.

It seems to me, though, that when there are expectations of tips and gifts that the specialness of life becomes lost. The point of a wedding is to unite a couple, not to get a truckload of gifts. The special part is the ceremony and having your close friends and family there for the service. The special part isn?t the KitchenAid mixer. The point of a baby shower is to celebrate the new arrival. Gifts are great and often helpful, but would you turn away your best friend if she only brought good wishes and not a Diaper Genie? The incentive to tip shouldn?t be an expectation but rather because the person did something special. Maybe you want to tip someone who consistently goes the extra mile for you, or the person who bends the rules for you in some way. But just to tip for doing an adequate job doesn?t really reward anything special. It only rewards mediocrity.

Maybe it?s me. Maybe I?m an old fart now who doesn?t get it. But when I see people tipping and gifting people just for breathing and then I listen to them complain about having no money, it riles me, especially when people say they felt forced into it. That?s just not eh etiquette I was raised with. Certainly if you can afford to tip and buy gifts for every little thing, then please go ahead. If that?s what you want to do, it?s your money and you should spend it as you please. But for those who have tighter budgets, all of these expectations can be disheartening. An invitation that basically says, ?Gimmie? can so fluster a potential guest that they may decide not to attend your event at all if they cannot afford the pricey gifts requested. When you?re making out invitations or requesting tips, try to remember how the wording/invitation may look to someone who can?t afford to give lavishly. Are you really asking for their presence at the event or thanking them for being a customer, or are you demanding stuff or money? If it?s the latter, ask yourself which you want more: The person/customer or the present/tip? If what you really want is the person at your event or the customer for your business, then leave the money grabs out of it and consider any gifts or tips to be ?gravy.?

(Photo courtesy of JefferyTurner)

Source: http://www.savingadvice.com/articles/2012/12/31/1013363_tipping-showers-and-invitations-the-new-etiquette-or-money-grabs.html

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Best Online Website Promotion ? Dedicated Servers

Sharing knowledge on the web can be a very powerful way to establish your online presence and credibility. First, you write a thoughtful and informative article on an topic in your area of expertise. Then you submit it to e-zines to be read by the general public and possibly re-published on other web sites. Appended to the end of your article is a resource box containing a brief promotional message linking to your web site. Webmasters who wish to reprint your article on their sites are required to include your resource box along with any live links to your site. The benefit that you get from your article is two-fold. First, your article will be read by visitors to the e-zine site. If they find it helpful and interesting, they will likely visit your web site to see what else you had to offer. Second, webmasters who find your article useful to their visitors may re-publish it on their sites, giving your article additional exposure. Every time your article is re-published on a web site, you gain an additional one-way link to your site through the live link in your resource box. This adds to your link popularity and ultimately increases your search engine rankings.  As you can see, the true potential of your article lies in its ability to propagate virally in cyberspace. For your article to propagate virally, it should appeal to both readers and webmasters alike. Keep in mind that your goal is hold your readers attention long enough for them to get to the  resource box.  If your article is boring and uninformative, few people will read it beyond the first or second paragraph. Below are some pointers to consider when writing an article: 1. Give your article a catchy title. Your title is the first and often the only thing that visitors see when they skim through a list of articles on an e-zine page. Put some thought into coming up with a title that grabs the reader?s attention right away. Words like Secrets,Free, and Successful tend to attract more attention than others. 2. Your article should not read like an ad. Most people read articles to find information they can use, not to see a pitch about your products or services.  If they see your article as nothing more than a shameless act of self promotion, they?ll get turned off and hit the Back button right away.  Put yourself in the reader?s shoes. What benefits do you want to get out of reading an article?  Cater to your reader?s  interests rather than your own. 3. Offer lots of free, useful information. Following on the last tip, keep in mind that your readers are looking for specific how-to instructions to help them achieve a certain goal.  Offer lots of tangible information that is immediately useful to them. Do not lead them through hoops just to get to an order 4) Avoid gimmicks. While it may be true that a sucker is born every minute, most internet users are sophisticated enough to tell what?s legitimate and what?s not. Write with the intention of offering something substantial to the reader. Be honest and forthright. Your article should not cause the reader to think, What is this guy trying to sell me? 5) Be succinct. Get to the point quickly, preferably in the first or second paragraph. Avoid lengthy paragraphs. Use lots of white space to separate your paragraphs to make them easier to read. 6) Your article should not be too short. Certainly, it?s possible to write a good article packed with useful information using just a couple hundred words. If your article is too short, however, some webmasters may feel hesitant to reprint it on their sites. They may, instead, borrow your ideas and write their own articles, gaining authorship without having to give you credit for your ideas. How long should your article be?  I suggest at least 500 words, preferably longer.  Longer articles give webmasters the impression that you have put some time and effort into your work and, thus, are deserving of being reprinted on their sites. 7) Use live (clickable) links in your resource box. Many e-zines permit clickable links in  resource boxes. Yet, many authors forgo this privilege by simply spelling out their URLs. Whenever permitted, you should spell out your URL as well as make it clickable (e.g. http://www.nexcomp.com/weblaunch). The advantages of a clickable URL are, (1) readers can go to your site simply by clicking on it,  and more importantly, (2) search engines will be able to record the ezine page containing your article as a link your web site, adding to your link popularity and search engine rankings. 8) Avoid hyping in your resource box. Your resource box, while promotional in nature, should be brief and tasteful. The purpose of your resource box is not to sell your readers something, but to lead them to your website which does the actual selling. Your resource box should contain your name, your company name, a brief description of your products or services, your web site?s URL, and a clickable link to your site. 9) Put some thought and effort into your writing. E-zines have varying standards for accepting articles, and some accept and publish all submissions without any human review at all. However, this does not mean you should write an article just for sake of having it published somewhere. If your article comes off as half-baked, readers may make a similar assumption about you and your business practices. 10) Submit your article to as many e-zines as feasible. There are dozens of e-zines on the web that welcome submissions from independent authors. Ideally, you?d want your article to be exposed on as many of them as you can. But it takes time to register and submit to each one of them. Therefore, I recommend that you submit to only a handful of the more popular ones.

Best Online Website Promotion

Source: http://www.30amediagroup.com/dedicated-servers/best-online-website-promotion-3929

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How To Enjoy New Year's Eve Home Alone | YourTango

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Treat yourself to a bubble bath and some bubbly tonight.

Eight ways to spend the night in.

No big plans tonight? Whether your party ideas fell through, it's too cold out or you're feeling under the weather, we say staying in is perfectly acceptable tonight.

There's plenty of fun ways to ring in the new year alone, bubble baths and cuddling with your pup included. Did we mention Groupon's having NYE discount specials?

More from YourTango: The 'Kissing Disease' Lives Up To Its Name

See the list of 8 ways to celebrate NYE solo at The Stir:?8 Perfectly Acceptable Ways to Spend New Year's Eve Home Alone

More from The Stir:

Source: http://www.yourtango.com/2012169531/how-enjoy-new-years-eve-home-alone

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Apparel for University of Alabama Can be Used for Reunions

If you?re thinking about or are in the process of planning a Crimson Tide class reunion, then you may want to think of ways to incorporate the use of school merchandise into the event. Using apparel for University of Alabama is a good way to push for school pride, as well as providing some classmates with nice gifts.

One of the ways you can incorporate this kind of merchandise is by using the items as decorations. This doesn?t mean going to the store and purchasing streamers and other similar items that match the school colors. You can also actually use things such as clothing and hats. This may seem like an odd idea, but if it?s done right it can be quite unique and creative.

For instance, different shirts, jerseys and even pants can be tacked to the wall as d?cor items. It can be done in a pattern, such as placing a t-shirt first, then a jersey, then maybe a pair of pants. On the other hand, it can also be done randomly. It really doesn?t matter as long as it looks neat and appealing to the attendees.

Pieces of apparel can also be used as centerpieces for reunion celebrations. This includes items such as hats and scarves. Using the hats won?t require much work, because they can basically be placed in the center of the tables without making any additions. However, if you do think of unique things to add to the hats or to the space, feel free to do so.

On the other hand, items such as cups and mugs will more than likely require some additional items. You could add some fake or real flowers that match the school?s colors or you can even include pens and pencils to give it a more scholarly feel.

Not only can apparel for University of Alabama be used as decorations, it can also be used as gifts for attendees. Providing everyone with small items like scarves, hats, or T-shirts would add a nice touch to the celebration. You can also give bigger gifts away as door prizes. You can either purchase other items or use the clothing and centerpieces as the gifts.

There are several ways apparel for University of Alabama can be used for reunion celebrations and other events related to the school. Incorporating these items helps to instill pride and school sprit through the use of d?cor, as well as providing great door prizes and gifts.

If you?re planning a class reunion, apparel for University of Alabama can be used to add a unique decorative flair to the event. To see the selection available and get more ideas, visit the following: http://www.universitysupplystore.com.

Source: http://www.articlesrx.com/apparel-for-university-of-alabama-can-be-used-for-reunions/10250

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'Fiscal cliff' disputes remain as deadline nears

The moon rises behind the U.S. Capitol Dome in Washington as Congress works into the late evening, Sunday, Dec. 30, 2012 to resolve the stalemate over the pending "fiscal cliff." (AP Photo/J. David Ake)

The moon rises behind the U.S. Capitol Dome in Washington as Congress works into the late evening, Sunday, Dec. 30, 2012 to resolve the stalemate over the pending "fiscal cliff." (AP Photo/J. David Ake)

Senate Minority Leader Mitch McConnell, R-Ky., followed by Sen. Pat Roberts, R-Kan., second from right, leaves the Senate chamber to meet with fellow Republicans in a closed-door session as the "fiscal cliff" negotiations continue at the Capitol in Washington, Sunday, Dec. 30, 2012. Leaders in the Senate and the House are under pressure to find a legislative path to head off the automatic tax hikes and spending cuts set to take effect Jan. 1, 2013. (AP Photo/J. Scott Applewhite)

Senate Majority Leader Harry Reid, D-Nev., walks to a closed-door meeting with fellow Democrats as he and Senate Minority Leader Mitch McConnell, R-Ky., work to negotiate a legislative path to avoid the so-called "fiscal cliff," at the Capitol in Washington, Sunday, Dec. 30, 2012. Senate and House leaders are rushing to assemble a last-ditch agreement to stave off middle-class tax increases and possibly delay steep spending cuts in an urgent attempt to find common ground after weeks of gridlock. (AP Photo/J. Scott Applewhite)

Sen. Charles Schumer, D-N.Y., third ranking in the Senate Democratic leadership, speaks on his cell phone following a closed-door caucus at the Capitol in Washington, Sunday, Dec. 30, 2012 to discuss how to avoid the "fiscal cliff" of automatic tax increases and deep spending cuts that could kick in Jan. 1. (AP Photo/J. Scott Applewhite)

(AP) ? The White House and Senate Republicans sorted through stubborn disputes over taxing the wealthy and cutting the budget to pay for Democratic spending proposals as Monday's midnight deadline for an accord avoiding the "fiscal cliff" drew to within hours.

Senate Minority Leader Mitch McConnell, R-Ky., spoke repeatedly Sunday to Vice President Joe Biden, a former Senate colleague, in hopes of settling remaining differences and clinching a breakthrough that has evaded the two sides since President Barack Obama's November re-election. In one indication of the eleventh-hour activity, aides said the president, Biden and top administration bargainer Rob Nabors were all working late at the White House, and McConnell was making late-night phone calls as well.

Unless an agreement is reached and approved by Congress by the start of New Year's Day, more than $500 billion in 2013 tax increases will begin to take effect and $109 billion will be carved from defense and domestic programs. Though the tax hikes and budget cuts would be felt gradually, economists warn that if allowed to fully take hold, their combined impact ? the so-called fiscal cliff ? would rekindle a recession.

"There is still significant distance between the two sides, but negotiations continue," Senate Majority Leader Harry Reid, D-Nev., said shortly before the Senate ended an unusual Sunday session. "There is still time to reach an agreement, and we intend to continue negotiations."

The House and Senate planned to meet Monday, a rarity for New Year's Eve, in hopes of having a tentative agreement to consider. Yet despite the flurry of activity, there was still no final pact.

"This whole thing is a national embarrassment," Sen. Bob Corker, R-Tenn., said Monday on MSNBC, adding that any solution Congress would swallow at this late stage would be inconsequential. "We still haven't moved any closer to solving our nation's problems."

In a move that was sure to irritate Republicans, Reid was planning ? absent a deal ? to force a Senate vote Monday on Obama's campaign-season proposal to continue expiring tax cuts for all but those with income exceeding $200,000 for individuals and $250,000 for couples.

Attached to the measure ? which the GOP seemed likely to block ? would be an extension of jobless benefits for around 2 million long-term unemployed people. The plan was described by Sen. Richard Durbin of Illinois, the chamber's No. 2 Democrat.

The House and Senate met Sunday ready to debate an agreement or at least show voters they were trying. But the day produced alternating bursts of progress and pitfalls, despite Senate chaplain Barry Black's opening prayer in which he asked the heavens, "Look with favor on our nation and save us from self-inflicted wounds."

In one sign of movement, Republicans dropped a demand to slow the growth of Social Security and other benefits by changing how those payments are increased each year to allow for inflation.

Obama had offered to include that change, despite opposition by many Democrats, as part of earlier, failed bargaining with House Speaker John Boehner, R-Ohio, over a larger deficit reduction agreement. But Democrats said they would never include the new inflation formula in the smaller deal now being sought to forestall wide-ranging tax boosts and budget cuts, and Republicans relented.

"It's just acknowledging the reality," Sen. Susan Collins, R-Maine, said of the GOP decision to drop the idea.

There was still no final agreement on the income level above which decade-old income tax cuts would be allowed to expire. While Obama has long insisted on letting the top 35 percent tax rate rise to 39.6 percent on earnings over $250,000, he'd agreed to boost that level to $400,000 in his talks with Boehner. GOP senators said they wanted the figure hoisted to at least that level.

Senators said disagreements remained over taxing large inherited estates. Republicans want the tax left at its current 35 percent, with the first $5.1 million excluded, while Democrats want the rate increased to 45 percent with a smaller exclusion.

The two sides were also apart on how to keep the alternative minimum tax from raising the tax bills of nearly 30 million middle-income families and how to extend tax breaks for research by business and other activities.

Republicans were insisting that budget cuts be found to pay for some of the spending proposals Democrats were pushing.

These included proposals to erase scheduled defense and domestic cuts exceeding $200 billion over the next two years and to extend unemployment benefits. Republicans complained that in effect, Democrats would pay for that spending with the tax boosts on the wealthy.

"We can't use tax increases on anyone to pay for more spending," said Sen. Kay Bailey Hutchison, R-Texas.

Both parties also want to block an immediate 27 percent cut in reimbursements to doctors who treat Medicare patients. Republicans wanted to find savings from Obama's health care bill as well as from Medicare providers, while Democrats want to protect the health care law from cuts.

Both sides agree that a temporary 2-percentage-point cut in the Social Security payroll tax was likely to expire. That reduction ? to 4.2 percent ? was initiated by Obama two years ago to help spur the economy and has meant $1,000 annual savings to families earning $50,000.

A senior defense official said if the spending cuts were triggered, the Pentagon would soon begin notifying its 800,000 civilian employees to expect furloughs ? mandatory unpaid leave, not layoffs. It would take time for the furloughs to be implemented, said the official, who requested anonymity because the official was not authorized to discuss the preparations

___

Associated Press writers David Espo, Julie Pace, Robert Burns and Josh Lederman contributed to this report.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/3d281c11a96b4ad082fe88aa0db04305/Article_2012-12-31-Fiscal%20Cliff/id-3d25ea52e9f94071b5823f8a1673626f

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