Immigration reform could get overshadowed in Congress

WASHINGTON — The window to pass immigration laws next year is narrowing as the effort competes with a renewed debate over gun laws and the lingering fight over taxes and the budget, according to congressional staffers and outside advocates.

Key congressional committees are preparing for a package of gun control laws to be negotiated and possibly introduced in Congress during the first few months of next year. The shift would push the debate in Congress over immigration reform into the spring.

But as budget negotiations continue to stir tensions between Republicans and Democrats, and as lobbyists take to their corners over gun laws, some are concerned that the heated atmosphere could spoil the early signs of bipartisan cooperation on immigration that emerged after the election.

In phone calls over the holidays, White House officials sought to reassure advocates that the push for gun control won't distract President Obama from his promise to stump for new immigration legislation early in the year.

The uncertainty is feeding jitters that Obama may be unable to deliver on his long-standing promise to create a path to citizenship for the 11 million people in the U.S. unlawfully.

"I am concerned that an issue such as immigration where we can find strong bipartisan consensus will be demagogued and politicized, because that is the environment," said Alfonso Aguilar, a Republican strategist at the Latino Partnership for Conservative Principles, a Washington-based nonprofit.

New gun laws would probably have to pass through the Senate Judiciary Committee, the same committee that would work on an immigration bill that could be hundreds of pages long.

The tough work of hammering out a compromise over immigration in the committee would best be wrapped up by the end of June, congressional staffers said, in case one of the Supreme Court justices retires, which would set up a high-profile and time-consuming nomination process that could overshadow the immigration issue.

"Voters want to see action," said Clarissa Martinez de Castro, head of civic engagement and immigration for the National Council of La Raza. "If the American public every day has to grapple with multiple priorities, that is the least they expect from their members of Congress."

After the Dec. 14 school shooting that killed 20 children and six adults in Newtown, Conn., Obama tapped Vice President Joe Biden to head a task force that is expected to propose new gun control measures by the end of January.

"The question is: Would the Congress love to have something come along that would sidetrack immigration reform? I believe there are some members of Congress who would like that," said Eliseo Medina, secretary-treasurer of the Service Employees International Union, which represents more than 2 million workers.

"But the fact is, they won't have the luxury of ignoring it," he said.

The crowded agenda has not changed plans by advocacy groups to launch a nationwide publicity and lobbying campaign early next year to put pressure on lawmakers to support changing immigration laws.

"As horrific as the tragedy was in Connecticut, in the grand scheme of things, these issues can run on parallel tracks," said Mary Giovagnoli, director of the Immigration Policy Center, a think tank based in Washington.

"They are not in competition; they are complementary," said Angela Kelley, an expert on immigration at the Center for American Progress, a liberal think tank in Washington. "The White House can walk and chew gum, as can lawmakers."

"If [lawmakers] are working 40 hours a week, they should be able to get both done," she said.

brian.bennett@latimes.com

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McCartney, 'God particle' scientist get honors

LONDON (AP) — Stella McCartney, who designed the uniforms worn by Britain's record-smashing Olympic team, and Scottish physicist Peter Higgs, who gave his name to the so-called "God particle," are among the hundreds being honored by Queen Elizabeth II this New Year.

The list is particularly heavy with Britain's Olympic heroes, but it also includes "Star Wars" actor Ewan McGregor, eccentric English singer Kate Bush, Roald Dahl illustrator Quentin Blake, and Jamie Lowther-Pinkerton, the royal aide who helped organize the watched-around-the-world wedding of Prince William to Kate Middleton.

McCartney was honored with the title of Officer of the Order of the British Empire, or OBE, in part for her work creating the skintight, red-white-and-blue uniforms worn by British athletes as they grabbed 65 medals during the 2012 games hosted by London. McCartney is the designer daughter of ex-Beatle Paul McCartney and his first wife Linda, and she has moved to make the family name almost as synonymous with fashion as it is with music, setting up a successful business and a critically-acclaimed label.

Higgs' achievements, which made him a Companion of Honor, touch on the nature and the origins of the universe. The 83-year-old researcher's work in theoretical physics sought to explain what gives things weight. He said it was while walking through the Scottish mountains that he hit upon the concept of what would later become known as the Higgs boson, an elusive subatomic particle that gives objects mass and combines with gravity to give them weight.

For decades, the existence of such a particle remained just a theory, but earlier this year scientists working at the European Organization for Nuclear Research, or CERN, said they'd found compelling evidence that the Higgs boson was out there. Or in there. Or whatever.

All of Britain's gold medalists from this year's games were on the list, with cyclist Bradley Wiggins and sailor Ben Ainslie honored with knighthoods.

Sebastian Coe, who masterminded the games as chairman of the London organizing committee, was made a Companion of Honor — a prestigious title also awarded to Higgs. But Ken Livingstone, London's former mayor, said Saturday he turned down a Commander of the Order of the British Empire, or CBE, recognizing his services to the Olympics because he doesn't believe politicians should get the queen's honors.

Honors lists typically include a sprinkling of star power, and this year was no different. Ewan McGregor, who came to public attention through his role as the heroin-addled anti-hero of British drug drama "Trainspotting," was awarded an OBE. The 41-year-old actor is also known for his turn as a young Obi-Wan Kenobi in the "Star Wars" prequels.

"Babooshka" singer Kate Bush said she was delighted to be made a CBE for a musical career which has resulted in a string of quirky hits including "Wuthering Heights," ''Cloudbusting," and "Man With The Child In His Eyes."

Other art world honorees included artist Tracey Emin and Quentin Blake, whose spiky, exuberant illustrations are best known through the work of his collaborator Roald Dahl.

Politicians, policemen, and spies got honors too. Scotland Yard chief Bernard Hogan-Howe was awarded a knighthood; former British foreign minister Margaret Beckett was made a Dame Commander of the Order of the British Empire. Former Prime Minister Tony Blair's wife Cherie was made a CBE for her charity work. MI5 chief Jonathan Evans was made a Knight Commander of the Order of Bath.

Also honored was the man credited with helping pull off the wedding of the decade: Jamie Lowther-Pinkerton, principal private secretary to the Duke and Duchess of Cambridge (as Prince William and his wife are formally known) was made a Lieutenant of the Royal Victorian Order.

Britain's honors are bestowed twice a year by the monarch, at New Year's and on her official birthday in June. Although the queen does pick out some lesser honors herself, the vast majority of recipients are selected by government committees from nominations made by officials and members of the public.

In descending order, the honors are knighthoods, CBE, OBE, and MBE — Member of the Order of the British Empire. Knights are addressed as "sir" or "dame." Recipients of the other honors, such as the Order of the Companions of Honor given to Higgs and Coe or the Royal Victorian Order personally picked out by the queen, receive no title but can put the letters after their names.

The New Year's honors carried the usual batch of courtiers — even the royal household's switchboard operator got a medal — as well as senior civil servants, soldiers, charity executives, successful entrepreneurs, established academics, volunteers, and community workers. Some of the more eclectic honors included the OBE handed to card game columnist Andrew Michael Robson "for services to the game of bridge," and the OBE given to river conservationist Andrew Douglas-Home "for services to fishing."

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Well: Exercise and the Ever-Smarter Human Brain

Anyone whose resolve to exercise in 2013 is a bit shaky might want to consider an emerging scientific view of human evolution. It suggests that we are clever today in part because a million years ago, we could outrun and outwalk most other mammals over long distances. Our brains were shaped and sharpened by movement, the idea goes, and we continue to require regular physical activity in order for our brains to function optimally.

Phys Ed

Gretchen Reynolds on the science of fitness.

The role of physical endurance in shaping humankind has intrigued anthropologists and gripped the popular imagination for some time. In 2004, the evolutionary biologists Daniel E. Lieberman of Harvard and Dennis M. Bramble of the University of Utah published a seminal article in the journal Nature titled “Endurance Running and the Evolution of Homo,” in which they posited that our bipedal ancestors survived by becoming endurance athletes, able to bring down swifter prey through sheer doggedness, jogging and plodding along behind them until the animals dropped.

Endurance produced meals, which provided energy for mating, which meant that adept early joggers passed along their genes. In this way, natural selection drove early humans to become even more athletic, Dr. Lieberman and other scientists have written, their bodies developing longer legs, shorter toes, less hair and complicated inner-ear mechanisms to maintain balance and stability during upright ambulation. Movement shaped the human body.

But simultaneously, in a development that until recently many scientists viewed as unrelated, humans were becoming smarter. Their brains were increasing rapidly in size.

Today, humans have a brain that is about three times larger than would be expected, anthropologists say, given our species’ body size in comparison with that of other mammals.

To explain those outsized brains, evolutionary scientists have pointed to such occurrences as meat eating and, perhaps most determinatively, our early ancestors’ need for social interaction. Early humans had to plan and execute hunts as a group, which required complicated thinking patterns and, it’s been thought, rewarded the social and brainy with evolutionary success. According to that hypothesis, the evolution of the brain was driven by the need to think.

But now some scientists are suggesting that physical activity also played a critical role in making our brains larger.

To reach that conclusion, anthropologists began by looking at existing data about brain size and endurance capacity in a variety of mammals, including dogs, guinea pigs, foxes, mice, wolves, rats, civet cats, antelope, mongooses, goats, sheep and elands. They found a notable pattern. Species like dogs and rats that had a high innate endurance capacity, which presumably had evolved over millenniums, also had large brain volumes relative to their body size.

The researchers also looked at recent experiments in which mice and rats were systematically bred to be marathon runners. Lab animals that willingly put in the most miles on running wheels were interbred, resulting in the creation of a line of lab animals that excelled at running.

Interestingly, after multiple generations, these animals began to develop innately high levels of substances that promote tissue growth and health, including a protein called brain-derived neurotrophic factor, or BDNF. These substances are important for endurance performance. They also are known to drive brain growth.

What all of this means, says David A. Raichlen, an anthropologist at the University of Arizona and an author of a new article about the evolution of human brains appearing in the January issue of Proceedings of the Royal Society Biology, is that physical activity may have helped to make early humans smarter.

“We think that what happened” in our early hunter-gatherer ancestors, he says, is that the more athletic and active survived and, as with the lab mice, passed along physiological characteristics that improved their endurance, including elevated levels of BDNF. Eventually, these early athletes had enough BDNF coursing through their bodies that some could migrate from the muscles to the brain, where it nudged the growth of brain tissue.

Those particular early humans then applied their growing ability to think and reason toward better tracking prey, becoming the best-fed and most successful from an evolutionary standpoint. Being in motion made them smarter, and being smarter now allowed them to move more efficiently.

And out of all of this came, eventually, an ability to understand higher math and invent iPads. But that was some time later.

The broad point of this new notion is that if physical activity helped to mold the structure of our brains, then it most likely remains essential to brain health today, says John D. Polk, an associate professor of anthropology at the University of Illinois at Urbana-Champaign, and co-author, with Dr. Raichlen, of the new article.

And there is scientific support for that idea. Recent studies have shown, he says, that “regular exercise, even walking,” leads to more robust mental abilities, “beginning in childhood and continuing into old age.”

Of course, the hypothesis that jogging after prey helped to drive human brain evolution is just a hypothesis, Dr. Raichlen says, and almost unprovable.

But it is compelling, says Harvard’s Dr. Lieberman, who has worked with the authors of the new article. “I fundamentally agree that there is a deep evolutionary basis for the relationship between a healthy body and a healthy mind,” he says, a relationship that makes the term “jogging your memory” more literal than most of us might have expected and provides a powerful incentive to be active in 2013.

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Home of the Week: the Venice landmark Lantern House

The Lantern House, used as a single-family compound but legally a trio of cottages, has become a Venice landmark over the years. The funky vibed, colorful dwelling is being offered fully furnished, including the larger-than-life movie props, artwork and fountains.

Location: 745 Milwood Ave., Venice 90291

Asking price: $5.4 million

Year built: 1923

Last sold: 1988, for $232,000

Cottage sizes: Unit 1: one bedroom, one bathroom; Unit 2: one bedroom, one bathroom; Unit 3: one bedroom, one half-bath

Lot size: 5,399 square feet

Features: Den/office, dining room, living room, eat-in kitchen, vaulted ceilings, skylights, French doors, five fireplaces, lantern-filled trees, extensive decking, outdoor dining room, lighted deck stair risers, decorative wrought-iron gates, outdoor bathtub

About the area: In the third quarter, 59 single-family homes sold in the 90291 ZIP Code at a median price of $1 million, according to DataQuick. That was a 2.8% increase from the third quarter last year.

Agent: Richard Stanley, Coldwell Banker, (213) 300-4567

—Lauren Beale

To submit a candidate for Home of the Week, send high-resolution color photos on a CD, written permission from the photographer to publish the images and a description of the house to Lauren Beale, Business, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012. Send questions to homeoftheweek@latimes.com.

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Fiscal standoff leaves U.S. payrolls in doubt

WASHINGTON — If the nation goes over the "fiscal cliff," some Americans will wake up Tuesday with financial headaches to rival a New Year's Eve hangover.

More than 2 million long-term jobless would receive their final unemployment benefit check within days. Millions of taxpayers would be unable to file their returns early, resulting in delayed refunds. Taxes would rise immediately on workers across the board. And although some of those increases may eventually be reversed, the first paychecks of the year would be smaller until any legislative fixes kick in.

Even if the crisis is resolved quickly after the new year as pressure mounts on President Obama and lawmakers, it poses a short-term administrative nightmare for businesses. And it would be a financial blow to millions of people struggling to make ends meet in the aftermath of the Great Recession.

"As a working-class person, I would miss any money taken out of my paycheck," said Stephanie Smith, an office administrator in Sacramento. "I just feel that we're already paying high taxes, and it feels like we're still in a recession. Everybody wants to take money out of our paychecks, but nobody wants to put more in."

As the White House and Congress try to avoid the large tax increases and federal spending cuts coming next week, taxpayers, businesses and even the Internal Revenue Service are scrambling to figure out the effects if an agreement is not reached.

The fiscal pain could be averted by a last-minute deal. And even if there is none by Tuesday, Washington policymakers could retroactively reduce tax rates if they ultimately make a deal. But the uncertainty and short-term loss of income could damage an already fragile economy.

Some effects:

Income taxes: Rates would rise on everyone as the George W. Bush-era tax cuts expire. Middle-income households would get hit hard, paying about $1,500 more a year in taxes.

Payroll taxes: Rates would increase by 2 percentage points with the lapse of a temporary, two-year tax cut designed to boost the economy. Workers making $50,000 annually would take home about $40 less every two weeks.

Long-term unemployment benefits: Checks would abruptly end for people receiving extra federal aid — as much as 47 additional weeks of benefits in states such as California. State benefits of up to 26 weeks would still be available, but workers would be out of luck once those run out.

Alternative minimum tax: The number of people facing the provision would skyrocket to about 33 million next year from 4 million this year. The tax, enacted in 1969, was designed to make sure the very wealthy paid some income tax. But it was not indexed to inflation and needs to be fixed each year to avoid ensnaring middle-income households.

Although Congress at some point is expected to spare most of those people from that tax, delays in doing so mean that as many as 100 million people might not be able to file their returns until the end of March or later, according to the IRS. Delays would come as the IRS has to reprogram its system, as well as for taxpayers who would have to do special calculations to determine whether they owe money because of the tax.

Business already are struggling to adjust. They've got to figure out how much in federal taxes to withhold from employee paychecks starting next week. But as of Thursday, the IRS still had not told employers what the 2013 withholding levels would be.

That limbo is particularly vexing for small firms as Golden State Magnetic & Penetrant. The Los Angeles company inspects, cleans and paints aircraft and aerospace components. The firm's president, Joanne Weinoe, does the payroll for herself and her 12 employees. At present, she doesn't know what the withholding should be for the next set of checks she cuts.

"I'm going to tear my hair out of my head and shoot myself," Weinoe joked, adding she'll wait until the morning of Jan. 4, her next payday, before she makes any changes.

"If I have to adjust them, it'll be additional work for me," she said. "Every time they change something, it becomes more work for employers."

The IRS said it continued "to closely monitor the situation" and would "issue guidance by the end of the year."

Workers might not see the new income tax rates immediately reflected in their paychecks. The American Payroll Assn. is advising its members to continue to use 2012 withholding tables until they hear differently from the IRS.

The payroll service Payality Inc., with headquarters in Fresno County, is urging its 700 clients with 25,000 employees throughout the state to hold off on issuing paychecks and making direct deposits for January as long as they can in hopes that lawmakers and the Obama administration will strike a deal.

"We should have some direction by Dec. 31," company President Chet Reilly said. "Then we'll have to scramble as fast as we can."

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So You Just Got a Wii U. Now What?

Pair It With Your TV

One of the most useful features of the Wii U — and what could make it a staple of our connected living rooms — is its ability to hook in to the entertainment ecosystem seamlessly. When you start up your Wii U for the first time, you’ll be prompted to enter your television and cable box brands. In a surprisingly painless process (you only need the brand name of your TV, not the model number), your Wii U GamePad becomes a very useful remote control. It will be the only thing you have to touch when turning your system and television on in the future. When the Wii U’s television and video on demand aggregation dashboard comes fully online, that remote will be even more useful as you use it select shows on your DVR, video-on-demand services like Netflix, or live TV.

Click here to view this gallery.

[More from Mashable: 10 iPad Cases With Convenient Hand Grips]

Since the holiday gift-giving period is over, many of you might be fortunate enough to have received a brand new Wii U.

Nintendo’s latest console is quite different from other gaming consoles, and there are lots of great ways for you to take advantage of it. There are already a wide variety of games coming out for the Wii U, so you have a plethora of entertainment options as soon as you take it out of the box.

[More from Mashable: 8 Startups to Watch in 2013]

We’ve compiled a list of tips for first-time Wii U owners that should make your setup and first few days much easier. We’ve included a few games to try, as well.

Are you setting up a Wii U for the first time? Share any of your thoughts and tips in the comments.

Thumbnail image courtesy nubobo, Flickr.

This story originally published on Mashable here.

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FBI removes many redactions in Marilyn Monroe file

LOS ANGELES (AP) — FBI files on Marilyn Monroe that could not be located earlier this year have been found and re-issued, revealing the names of some of the movie star's acquaintances who drew concern from government officials and her own entourage.

The files had previously been heavily redacted, but more details are now public in a version of the file recently obtained by The Associated Press through the Freedom of Information Act. The updated files reveal that some in Monroe's inner circle were concerned about her association with Frederick Vanderbilt Field, who was disinherited from his wealthy family over his leftist views.

The FBI's files on Monroe show the extent the agency was monitoring the actress for ties to communism in the years before her death in August 1962. A trip to Mexico earlier that year to shop for furniture brought her in contact with Field, who was living in the country with his wife in self-imposed exile. Informants reported to the FBI that a "mutual infatuation" had developed between Field and Monroe, which caused concern among some in her inner circle, including her therapist, the files state.

"This situation caused considerable dismay among Miss Monroe's entourage and also among the (American Communist Group in Mexico)," the file states. It includes references to an interior decorator who worked with Monroe's analyst reporting her connection to Field to the doctor.

Field's autobiography devotes an entire chapter to Monroe's Mexico trip, "An Indian Summer Interlude." He mentions that he and his wife accompanied Monroe on shopping trips and meals and he only mentions politics once in a passage on their dinnertime conversations.

"She talked mostly about herself and some of the people who had been or still were important to her," Field wrote in "From Right to Left." ''She told us about her strong feelings for civil rights, for black equality, as well as her admiration for what was being done in China, her anger at red-baiting and McCarthyism and her hatred of (FBI director) J. Edgar Hoover."

Under Hoover's watch, the FBI kept tabs on the political and social lives of many celebrities, including Frank Sinatra, Charlie Chaplin and Monroe's ex-husband Arthur Miller. The bureau has also been involved in numerous investigations about crimes against celebrities, including threats against Elizabeth Taylor, an extortion case involving Clark Gable and more recently, trying to solve who killed rapper Notorious B.I.G.

The AP had sought the removal of redactions from Monroe's FBI files earlier this year as part of a series of stories on the 50th anniversary of Monroe's death. The FBI had reported that it had transferred the files to a National Archives facility in Maryland, but archivists said the documents had not been received. A few months after requesting details on the transfer, the FBI released an updated version of the files that eliminate dozens of redactions.

For years, the files have intrigued investigators, biographers and those who don't believe Monroe's death at her Los Angeles area home was a suicide.

A 1982 investigation by the Los Angeles District Attorney's Office found no evidence of foul play after reviewing all available investigative records, but noted that the FBI files were "heavily censored."

That characterization intrigued the man who performed Monroe's autopsy, Dr. Thomas Noguchi. While the DA investigation concluded he conducted a thorough autopsy, Noguchi has conceded that no one will likely ever know all the details of Monroe's death. The FBI files and confidential interviews conducted with the actress' friends that have never been made public might help, he wrote in his 1983 memoir "Coroner."

"On the basis of my own involvement in the case, beginning with the autopsy, I would call Monroe's suicide 'very probable,'" Noguchi wrote. "But I also believe that until the complete FBI files are made public and the notes and interviews of the suicide panel released, controversy will continue to swirl around her death."

Monroe's file begins in 1955 and mostly focuses on her travels and associations, searching for signs of leftist views and possible ties to communism. One entry, which previously had been almost completely redacted, concerned intelligence that Monroe and other entertainers sought visas to visit Russia that year.

The file continues up until the months before her death, and also includes several news stories and references to Norman Mailer's biography of the actress, which focused on questions about whether Monroe was killed by the government.

For all the focus on Monroe's closeness to suspected communists, the bureau never found any proof she was a member of the party.

"Subject's views are very positively and concisely leftist; however, if she is being actively used by the Communist Party, it is not general knowledge among those working with the movement in Los Angeles," a July 1962 entry in Monroe's file states.

___

Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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The New Old Age Blog: United States Lags in Alzheimer's Support

This month, the United States Senate Special Committee on Aging released a report examining how five nations — the United States, Australia, France, Japan and Britain — are responding to growing numbers of older adults with Alzheimer’s disease and dementia.

Every country has a strategy, but some are much further ahead than others. Notably, France began addressing Alzheimer’s disease and dementia in 2001 and is in the midst of carrying out its third national plan. (Scroll down at this link to find the English version of the 2008-2012 French plan.)

By contrast, the United States released its first national plan to address Alzheimer’s in May.

The Senate report highlights several trends under way in all five countries, including efforts to coordinate research more effectively, diagnose Alzheimer’s disease more reliably and improve training in dementia care by medical practitioners.

Most relevant to readers of this blog is another trend with increasing international scope: an accelerating effort to keep patients with Alzheimer’s disease and other forms of dementia at home and arrange for care and treatment there, rather than in institutions.

Anyone who’s followed reader response to Jane Brody’s column this week on aging in place knows the burden that this can place on families, especially if government support for home-based services (companions or home health aides who help with bathing, dressing, toileting and other tasks), adult day care or respite care is scarce or nonexistent, as is the case for most middle-class families in the United States.

Is care at home for patients with Alzheimer’s necessarily more humane? Only if caregivers have the resources — financial, physical and emotional — to handle this draining, exhausting, immeasurably difficult job. And only if the institutions that serve people with more advanced forms of Alzheimer’s disease and other types of dementia are so poorly financed, staffed and operated that we wouldn’t feel comfortable leaving loved ones in their care.

Three charts in the new Senate report underscore the extent to which the United States differs from other countries in what is expected of family caregivers. The first, on Page 60, shows countries’ support for paid long-term care services for residents age 65 and older. This includes all residents who need long-term care, including those with Alzheimer’s disease, other forms of dementia and other disabling chronic illnesses. Not included are services provided by unpaid family caregivers.

Look at where the United States ranks compared with Australia, Japan, France and the 30 other developed countries that belong to the Organization for Economic Cooperation and Development. Paid support for long-term care is much less in our country than in theirs.

The second chart, on Page 64, gives a sense of how much paid support for long-term care is provided in people’s homes. Again, the data is not specific to Alzheimer’s disease or dementia, although these are primary reasons older adults need long-term care.

And again, the United States falls short in terms of the amount of paid care it provides in home settings, even though older people tend to prefer these settings over institutions.

The third chart, on Page 75, brings results in the other two down to the level of families. When paid long-term care support is scarce or unavailable, you would expect a heavier load to fall on unpaid caregivers, and this is what the chart shows. Look at the number of caregivers in the United States who put in 10 to 19 hours a week (34.2 percent) or 20 hours or more a week (30.5 percent), and compare those with similar figures for France, Australia and Britain, all of which provide more paid long-term care than we do. Where are informal caregivers working the hardest? Right here at home in the United States.

For me, the take-away is clear. Other countries with which the United States is closely aligned have embraced long-term care as an essential social responsibility while we have not. Unless and until we do so, caregivers here will be among the most harried, stressed and burdened among wealthy, developed countries in the world.

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Fiscal standoff leaves U.S. payrolls in doubt

WASHINGTON — If the nation goes over the "fiscal cliff," some Americans will wake up Tuesday with financial headaches to rival a New Year's Eve hangover.

More than 2 million long-term jobless would receive their final unemployment benefit check within days. Millions of taxpayers would be unable to file their returns early, resulting in delayed refunds. Taxes would rise immediately on workers across the board. And although some of those increases may eventually be reversed, the first paychecks of the year would be smaller until any legislative fixes kick in.

Even if the crisis is resolved quickly after the new year as pressure mounts on President Obama and lawmakers, it poses a short-term administrative nightmare for businesses. And it would be a financial blow to millions of people struggling to make ends meet in the aftermath of the Great Recession.

"As a working-class person, I would miss any money taken out of my paycheck," said Stephanie Smith, an office administrator in Sacramento. "I just feel that we're already paying high taxes, and it feels like we're still in a recession. Everybody wants to take money out of our paychecks, but nobody wants to put more in."

As the White House and Congress try to avoid the large tax increases and federal spending cuts coming next week, taxpayers, businesses and even the Internal Revenue Service are scrambling to figure out the effects if an agreement is not reached.

The fiscal pain could be averted by a last-minute deal. And even if there is none by Tuesday, Washington policymakers could retroactively reduce tax rates if they ultimately make a deal. But the uncertainty and short-term loss of income could damage an already fragile economy.

Some effects:

Income taxes: Rates would rise on everyone as the George W. Bush-era tax cuts expire. Middle-income households would get hit hard, paying about $1,500 more a year in taxes.

Payroll taxes: Rates would increase by 2 percentage points with the lapse of a temporary, two-year tax cut designed to boost the economy. Workers making $50,000 annually would take home about $40 less every two weeks.

Long-term unemployment benefits: Checks would abruptly end for people receiving extra federal aid — as much as 47 additional weeks of benefits in states such as California. State benefits of up to 26 weeks would still be available, but workers would be out of luck once those run out.

Alternative minimum tax: The number of people facing the provision would skyrocket to about 33 million next year from 4 million this year. The tax, enacted in 1969, was designed to make sure the very wealthy paid some income tax. But it was not indexed to inflation and needs to be fixed each year to avoid ensnaring middle-income households.

Although Congress at some point is expected to spare most of those people from that tax, delays in doing so mean that as many as 100 million people might not be able to file their returns until the end of March or later, according to the IRS. Delays would come as the IRS has to reprogram its system, as well as for taxpayers who would have to do special calculations to determine whether they owe money because of the tax.

Business already are struggling to adjust. They've got to figure out how much in federal taxes to withhold from employee paychecks starting next week. But as of Thursday, the IRS still had not told employers what the 2013 withholding levels would be.

That limbo is particularly vexing for small firms as Golden State Magnetic & Penetrant. The Los Angeles company inspects, cleans and paints aircraft and aerospace components. The firm's president, Joanne Weinoe, does the payroll for herself and her 12 employees. At present, she doesn't know what the withholding should be for the next set of checks she cuts.

"I'm going to tear my hair out of my head and shoot myself," Weinoe joked, adding she'll wait until the morning of Jan. 4, her next payday, before she makes any changes.

"If I have to adjust them, it'll be additional work for me," she said. "Every time they change something, it becomes more work for employers."

The IRS said it continued "to closely monitor the situation" and would "issue guidance by the end of the year."

Workers might not see the new income tax rates immediately reflected in their paychecks. The American Payroll Assn. is advising its members to continue to use 2012 withholding tables until they hear differently from the IRS.

The payroll service Payality Inc., with headquarters in Fresno County, is urging its 700 clients with 25,000 employees throughout the state to hold off on issuing paychecks and making direct deposits for January as long as they can in hopes that lawmakers and the Obama administration will strike a deal.

"We should have some direction by Dec. 31," company President Chet Reilly said. "Then we'll have to scramble as fast as we can."

Read More..

A risky return to the U.S.

The barrilero never stops moving.

All day he wheels cardboard barrels stuffed with used clothing through the narrow aisles of the warehouse. He dumps the apparel atop tables for sorters, who separate nylons from cottons, satins from silks, denims from plaids. If a sorter is standing around with no garments, it's the barrilero's fault. Supervisors hover nearby.

Tons of old clothing come in every week, and tons go back out, to India and Pakistan, where it's sold at outdoor markets.

The factory hired the barrilero in September, a few weeks after the now-21-year-old showed up at the manager's door looking for work. Right away, the manager had recognized him as Anthony, that cute kid who walked his factory floor selling Helen Grace chocolates to workers years ago.

Anthony didn't say much about where he'd been, or what he'd been doing since. He was polite, upbeat, and his knock on the door still had the soft touch of a child. But his hair was falling out, and there was something unfamiliar in his eyes.

"He seemed sadder," the manager said, "like he wanted to say something but didn't know how."

There were many things the barrilero would keep to himself. First among them: His name wasn't Anthony.

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Luis Luna returned to his hometown of South Gate in May. His arms and legs were scraped raw from cactus needles and his eyes kept blinking, still starved of moisture from his eight-day journey through the Arizona desert the week before.

His friend, Julio Cortez, said it was hard to believe that this gaunt young man with patches of missing hair was the same person he knew at Southeast Middle School.

"I was in shock to see him back and see all he had gone through," Cortez said. "It made me sad and angry."

Cortez, a 22-year-old Cal State Long Beach student, took Luis to buy some clothes. Another former classmate gave Luis a cellphone. Luis slept on couches and in spare bedrooms and spent his days passing out resumes filled with the jobs of his teen years: flipping burgers, waiting tables at I-Hop. He fudged the dates to account for the 15 months he spent in Mexico after he was deported for being in the country illegally.

Luis had been pulled over three years ago for a broken headlight in Pasco, Wash., where he and his mother lived. He was cited for driving without a license, jailed and ordered out of the country in February 2011.

He had a wife back in Washington, but she had left him, in part because of the long separation. Luis decided to build a new life in Southern California, where he had grown up and where he still had friends

Weeks after arriving, he was still jobless and borrowing money to eat when he decided his future might lie in his past. He started retracing the route he took as a boy selling chocolates at warehouses and factories. The assembly line workers, truck drivers and managers knew him as Anthony, the name his mother told him to use to hide his identity.

They could vouch for his strong work ethic — that he'd been working for a living since he was 5 years old.

He eventually found the barrilero job, and a place to live. A swap meet vendor who picked through the bins of cast-offs looking for vintage garments told Luis he had extra space at his house.

Luis goes home to a converted two-car garage with no address in a middle-class neighborhood with trim lawns and streets lined with late-model cars. Much of his clothing is stuffed in a battered dark green suitcase that sits at the foot of his bed. The only other furniture is a mini refrigerator and two lawn chairs.

In some ways, he's a typical youngster with edgy tastes. He has a sleeve tattoo, wears skinny jeans and earrings, and is part of a deejay crew that plays at house parties. He cheers his beloved Los Angeles Lakers and hangs out in hookah bars, and is constantly texting flirty messages.

But his future is dimmer than most. Many of his friends are planning for life after college. Some are applying for work permits and temporary reprieves from deportation, taking advantage of an Obama administration program, announced in June, to help young people who were brought into the country as children.

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