Venezuela VP: Chavez suffers 'new complications'

CARACAS, Venezuela (AP) — Hugo Chavez has suffered "new complications" following his cancer surgery in Cuba, his vice president said Sunday, describing the Venezuelan leader's condition as delicate.
Vice President Nicolas Maduro spoke with a solemn expression in a televised address from Havana, saying he had spoken with Chavez and that the president sent greetings to his homeland. Maduro did not give details about the complications, which he said came amid a respiratory infection.
"Several minutes ago we were with President Chavez. We greeted each other and he himself referred to these complications," Maduro said, reading from a prepared statement. The vice president was seated alongside Chavez's eldest daughter, Rosa, and son-in-law Jorge Arreaza, as well as Attorney General Cilia Flores.
Maduro's comments suggest an increasingly difficult fight for the ailing president. The Venezuelan leader has not been seen or heard from since undergoing his fourth cancer-related surgery Dec. 11, and government officials have said he might not return in time for his scheduled Jan. 10 inauguration for a new six-year term.
"The president gave us precise instructions so that, after finishing the visit, we would tell the (Venezuelan) people about his current health condition," Maduro said. "President Chavez's state of health continues to be delicate, with complications that are being attended to, in a process not without risks."
Maduro held up a copy of a newspaper confirming that his message was recorded on Sunday.
"Thanks to his physical and spiritual strength, Comandante Chavez is facing this difficult situation," Maduro said.
Maduro said he had met various times with Chavez's medical team and relatives. He said he would remain in Havana "for the coming hours" but didn't specify how long.
Maduro, who arrived in Havana on Saturday for a sudden and unexpected trip, is the highest-ranking Venezuelan official to see Chavez since the surgery in Cuba, where the president's mentor Fidel Castro has reportedly made regular visits to check on him.
Before flying to Cuba, Maduro said that Energy Minister Hector Navarro would be in charge of government affairs in the meantime.
"The situation does not look good. The fact that Maduro himself would go to Cuba, leaving Hector Navarro in charge only seems understandable if Chavez's health is precarious," said David Smilde, a University of Georgia sociologist and analyst for the Washington Office on Latin America think tank.
Smilde said that Maduro probably made the trip "to be able to talk to Chavez himself and perhaps to talk to the Castros and other Cuban advisers about how to navigate the possibility of Chavez not being able to be sworn in on Jan. 10."
"Mentioning twice in his nationally televised speech that Chavez has suffered new complications only reinforces the appearance that the situation is serious," Smilde said.
Before his operation, Chavez acknowledged he faced risks and designated Maduro as his successor, telling supporters they should vote for the vice president if a new presidential election were necessary.
Chavez said at the time that his cancer had come back despite previous surgeries, chemotherapy and radiation treatment. He has been fighting an undisclosed type of pelvic cancer since June 2011.
Medical experts say that it's common for patients who have undergone major surgeries to suffer respiratory infections and that how a patient fares can vary widely from a quick recovery in a couple of days to a fight for life on a respirator.
Maduro's latest update differed markedly from last Monday, when he had said he received a phone call from the president and that Chavez was up and walking.
The vice president spoke on Sunday below a picture of 19th century independence hero Simon Bolivar, the inspiration of Chavez's leftist Bolivarian Revolution movement.
Maduro expressed faith that Chavez's "immense will to live and the care of the best medical specialists will help our president successfully fight this new battle." He concluded his message saying: "Long live Chavez."
Chavez has been in office since 1999 and was re-elected in October, three months after he had announced that his latest tests showed he was cancer-free.
Opposition politicians have criticized a lack of detailed information about Chavez's condition, and last week repeated their demands for a full medical report.
Information Minister Ernesto Villegas defended the government's handling of the situation, saying during a televised panel discussion on Sunday night that Chavez "has told the truth in his worst moments" throughout his presidency.
Villegas said a government-organized New Year's Eve concert in a downtown Caracas plaza had been canceled, and he urged Venezuelans to pray for Chavez.
Chavez's daughter Maria, who has been with the president since his surgery, said in a message on her Twitter account: "Thank you people of Venezuela. Thank you people of the world. You and your love have always been our greatest strength! God is with us! We love you!"
Allies of the president also responded on Twitter, repeating the phrase: "Chavez lives and will triumph."

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Venezuela's official statement on Chavez's health

English translation of statement read by Vice President Nicolas Maduro in Havana on Sunday about the health of President Hugo Chavez:
"The Government of the Bolivarian Republic of Venezuela fulfills its duty by informing the Venezuelan people about the course of President Hugo Chavez's medical treatment after the surgery performed in Havana, Cuba on Dec. 11.
"As is known, on December 28 we traveled to Havana on the instructions of the President Commander, and I proceed to make the following report:
"Arriving in Havana, we went immediately to the hospital to update ourselves firsthand on the situation of the Commander President's health.
"We were informed of new complications arising from the already known respiratory infection.
"Yesterday, we kept abreast of the evolution of the situation and the response to treatment. We met several times with his medical team and his closest relatives.
"A few minutes ago we were with President Chavez, we greeted each other and he himself referred to these complications.
"We had the opportunity to share with the current national situation, the successful inaugurations of Bolivarian governors in 20 departments, and the satisfactory reception of his New Year message to the Bolivarian National Armed Forces.
"In particular, Commander Chavez wanted his New Year greeting transmitted to all Venezuelan families, who are gathering together in these days along the length and breadth of the country; he especially sent a warm hug to all the boys and girls of Venezuela, reminding them that he always holds them close to his heart. The embrace was extended to all our people, so that they receive love in 2013, a year which should be of the greatest happiness for our homeland, of definitive consolidation of our independence and national unity.
"The President gave us precise instructions so that, after finishing the visit, we would tell the (Venezuelan) people about his current health condition.
"Nineteen days after his complex surgery, President Chavez's state of health continues to be delicate, with complications that are being attended to, in a process not without risks. Thanks to his physical and spiritual strength, Commander Chavez is facing this difficult situation.
"At the same time, we have decided to announce that we will stay in Havana for the next few hours, accompanying the Commander and his family, very attentive to how the current situation is evolving.
"Confident that the global outpouring of love and solidarity for Commander Chavez, along with his immense will to live and the care of the best medical specialists will help our president successfully fight this new battle."
"Long Live Chavez!

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A lesson in pop culture via Guantanamo

 al-Afghani, Muhammed Rahim al-Afghani poses …more
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SAN JUAN, Puerto Rico (AP) — An Afghan man who is being held with the most significant terrorism suspects in U.S. custody has apparently gained extensive knowledge of western pop culture in an unlikely place: the top secret prison-within-a-prison in Guantanamo Bay.
Nearly five years ago, Mohammed Rahim al-Afghani became the last prisoner sent to Guantanamo. He was accused of helping Osama bin Laden elude capture, and the CIA had interrogated him for months at an undisclosed location before he was locked away in Guantanamo's Camp 7, a prison unit shrouded in secrecy that holds about 15 men who have been designated "high value" detainees by the U.S. government.
With no court appearances, or even charges filed, nothing was heard from Rahim and he has remained largely a mystery. So, it was a surprise when his lawyer, Carlos Warner, released letters from the detainee described by the head of the CIA as a "tough, seasoned jihadist." More surprising still was the content: quirky notes peppered with references to Howard Stern, Fox News and the global video hit of South Korean singer PSY.
"Dear Mr. Warner," he wrote. "I like this new song Gangnam Style. I want to do the dance for you but cannot because of my shackles."
In another letter, the multilingual Rahim shows some familiarity with American slang. He tells his lawyer, most likely in jest, that he has adopted a banana rat, a rodent commonly spotted around the U.S. base in Cuba. "Tell the guards to leave my friend alone. They need to chillax."
It's hardly what one would expect from a middle-age Afghan who has never been to the U.S. While there is still little public information about Rahim, the letters provide some insight into the man — and suggest that the prisoners in Camp 7, a group that includes five charged with aiding and orchestrating the Sept. 11 terror attack, are not completely isolated from the outside world.
To Warner, a federal public defender for the Northern District of Ohio, the letters humanize a man who he contends has been demonized by U.S. authorities, who allege he worked as a translator and assistant to bin Laden and other al-Qaida leaders. The lawyer says the letters demonstrate a surprising amount of resilience.
"It shows he's different and he's intelligent," Warner said. "Just think that he's doing this under all the restrictions that's he's under down there. He has an incredibly good sense of humor."
There have been letters released to the media in the past from other detainees at Guantanamo, often providing valuable information about a prison that will have been open for 11 years on Jan. 11. Sami al-Haj, an Al-Jazeera journalist when he was captured and sent to Guantanamo, provided detailed accounts of a hunger strike before he was eventually released. Shaker Aamer, the last resident of Britain still held at the prison, has given an insider's view on confinement conditions.
Rahim's are different because he is in Camp 7, and the content departs so sharply from what one might expect from a jihadist. "I want you to contact Amanda Palmer," he wrote Nov. 6, referring to the American singer. "... Ask her to write a song about me and my family."
Warner and U.S. officials are prohibited from publicly discussing Rahim's life and the allegations against him, but the broad outlines are in a public document filed in federal court by the government in response to Warner's filing of a civil writ of habeas corpus seeking the prisoner's release.
The document says Rahim is about 47 and was born in eastern Afghanistan. He fled with his family over the border to Pakistan when the Soviet Union invaded in 1979. Rahim has told authorities that he returned temporarily to fight the invaders, a war that killed two of his brothers, and moved back permanently once they retreated from the country.
A younger brother, Abdul Basit, told The Associated Press in London, where he is seeking asylum, that Rahim eventually got a job working for an Afghan government committee responsible for eradicating opium poppies, but that he was forced from the job by members of the Taliban, the Islamic fundamentalist movement that emerged in the 1990s.
Basit, who was detained by the U.S. military for five years in Afghanistan, says his brother is a well-educated man who was not particularly interested in global politics. He suggests his brother is being held more for who he might know rather than what he has done. "There is no reason to put him in Guantanamo for this long time," Basit said in broken English.
The Justice Department document says Rahim began helping the Taliban in the 1990s and that job morphed into working for al-Qaida. It cites two other prisoners and an undisclosed source identifying Rahim as a close associate of bin Laden. Rahim was captured in Pakistan in 2007 and turned over to the CIA, in whose custody he was subjected to prolonged sleep deprivation. He was transferred to Guantanamo in March 2008.
In photos taken by the Red Cross at Camp 7, and obtained by the AP from the prisoner's family in Afghanistan, Rahim has a long flowing beard. In one, he smiles broadly at the camera.
The first letters from Rahim released by Warner were in June, including one in which he disclosed that Majid Khan, a former Maryland resident who pleaded guilty to aiding al-Qaida, had acquired a cat at Camp 7, which AP reported at the time. The Pentagon and prison officials declined comment and said they could not discuss conditions of confinement for high-value detainees, although they added that prisoners are not permitted to have pets.
The rest of the letters came during or after subsequent visits by Warner, who had them cleared by the military before releasing them to the AP. None are more than a few sentences, and contain many typographical errors, which have been corrected for this story for the sake of clarity.
In one, Rahim returns to the theme of his fellow prisoner's alleged cat. "I want a dog," he writes. "I will train my dog to chase Majid Khan's cat."
In separate notes, he asks Warner to appeal for help from radio personality Howard Stern. "If he is the 'King of All Media' he can help me."
In another, he criticizes Fox News' "Fair and Balanced" slogan, writing that if that were true the channel "would not have to say it every five minutes."
How he came by this information is not clear. A prison spokesman, Navy Capt. Robert Durand, won't discuss life in Camp 7 but he says that "where satellite television and radio is available for detainees," they have access to a wide variety of channels in Arabic, Farsi, English, Russian, Spanish and other languages. The line-up, however, apparently does not include Howard Stern or Fox.
With no Internet access, he could have picked up such information from other shows or through Warner, who has spent hours with him and delivered magazines such as Rolling Stone, Sports Illustrated and The Economist.
The U.S. military will not say when or if Rahim will be charged. His name does not appear on the list of detainees who have been cleared for release from Guantanamo and his name was not among those mentioned as possible candidates for an exchange with the Taliban as part of a peace deal.

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Chavez suffers new complications in cancer fight

CARACAS, Venezuela (AP) — President Hugo Chavez's new complications after cancer surgery prompted his closest allies to call for Venezuelans to pray for him on Monday, presenting an increasingly bleak outlook and prompting growing speculation about whether the ailing leader has much longer to live.
Vice President Nicolas Maduro looked weary and spoke with a solemn expression as he announced in a televised address from Havana on Sunday that Chavez now confronts "new complications" due to a respiratory infection nearly three weeks after his operation. He described Chavez's condition as delicate.
The streets of Caracas were abuzz on Monday with talk of Chavez's increasingly tough fight, while the news topped the front pages of the country's newspapers.
"He's history now," said Cesar Amaro, a street vendor selling newspapers and snacks at a kiosk in downtown Caracas. He motioned to a daily on the rack showing side-by-side photos of Maduro and National Assembly President Diosdado Cabello, and said politics will now turn to them.
Amaro said he expects a new election soon to replace Chavez. "For an illness like the one the president has, his days are numbered now," he said matter-of-factly.
In Bolivar Plaza in downtown Caracas, Chavez's supporters strummed guitars and read poetry in his honor on New Year's Eve. They sang along with a recording of the president belting out the national anthem.
About 300 people filled a Caracas church for a Mass to pray for Chavez.
"This country would be terrible without Chavez. He's the president of the poor," said Josefa Carvajal, a 75-year-old former maid who sat in the pews. "They say the president is very sick. I believe he's going to get better."
The president's aides held a Mass at the presidential palace, while government officials urged Venezuelans to keep their president in their prayers.
Political analyst Ricardo Sucre said the outlook for Chavez appears grim, saying Maduro's body language during his televised appearance spoke volumes.
"Everything suggests Chavez's health situation hasn't evolved as hoped," Sucre said. He said Maduro likely remained in Havana to keep close watch on how Chavez's condition develops.
"These hours should be key to having a more definitive prognosis of Chavez's health, and as a consequence make the corresponding political decisions according to the constitution," Sucre said.
Sucre and other Venezuelans said it seems increasingly unlikely that Chavez would be able to be sworn in as scheduled on Jan. 10.
The Venezuelan leader has not been seen or heard from since undergoing his fourth cancer-related surgery Dec. 11, and government officials have said he might not return in time for his inauguration for a new six-year term.
If Chavez dies or is unable to continue in office, the Venezuelan Constitution says that a new election should be held within 30 days.
Before his operation, Chavez acknowledged he faced risks and designated Maduro as his successor, telling supporters they should vote for the vice president if a new presidential election were necessary.
Chavez said at the time that his cancer had come back despite previous surgeries, chemotherapy and radiation treatment. He has been fighting an undisclosed type of pelvic cancer since June 2011.
Maduro said on Sunday that he had met with Chavez. "We greeted each other and he himself referred to these complications," Maduro said, reading from a prepared statement.
"The president gave us precise instructions so that, after finishing the visit, we would tell the (Venezuelan) people about his current health condition," Maduro said. "President Chavez's state of health continues to be delicate, with complications that are being attended to, in a process not without risks."
Maduro was seated alongside Chavez's eldest daughter, Rosa, and son-in-law Jorge Arreaza, as well as Attorney General Cilia Flores. He held up a copy of a newspaper confirming that his message was recorded on Sunday.
"Thanks to his physical and spiritual strength, Comandante Chavez is facing this difficult situation," Maduro said.
Maduro said he had met various times with Chavez's medical team and relatives. He said he would remain in Havana "for the coming hours" but didn't specify how long.
Maduro, who arrived in Havana on Saturday for the sudden and unexpected trip, is the highest-ranking Venezuelan official to see Chavez since the surgery in Cuba, where the president's mentor Fidel Castro has reportedly made regular visits to check on him.
Before flying to Cuba, Maduro said that Energy Minister Hector Navarro would be in charge of government affairs in the meantime.
"The situation does not look good. The fact that Maduro himself would go to Cuba, leaving Hector Navarro in charge only seems understandable if Chavez's health is precarious," said David Smilde, a University of Georgia sociologist and analyst for the Washington Office on Latin America think tank.
Smilde said that Maduro probably made the trip "to be able to talk to Chavez himself and perhaps to talk to the Castros and other Cuban advisers about how to navigate the possibility of Chavez not being able to be sworn in on Jan. 10."
"Mentioning twice in his nationally televised speech that Chavez has suffered new complications only reinforces the appearance that the situation is serious," Smilde said.
Medical experts say that it's common for patients who have undergone major surgeries to suffer respiratory infections and that how a patient fares can vary widely from a quick recovery in a couple of days to a fight for life on a respirator.
Maduro's latest update differed markedly from a week ago, when he had said he received a phone call from the president and that Chavez was up and walking.
The vice president spoke on Sunday below a picture of 19th century independence hero Simon Bolivar, the inspiration of Chavez's leftist Bolivarian Revolution movement.
Maduro said that Chavez had sent year-end greetings to his homeland and a "warm hug to the boys and girls of Venezuela."
The vice president expressed faith that Chavez would "successfully fight this new battle." He concluded his message saying: "Long live Chavez."
On the streets of Caracas, images of Chavez smiling and saluting are emblazoned on campaign signs and murals. One newly painted mural reads: "Be strong, Chavez."
State television played video of Chavez campaigning for re-election, including a speech when he shouted: "I am a nation!"
A new government sign atop a high-rise apartment complex reads: "YOU ALSO ARE CHAVEZ."
Chavez has been in office since 1999 and was re-elected in October, three months after he had announced that his latest tests showed he was cancer-free.
Opposition politicians have criticized a lack of detailed information about Chavez's condition, and last week repeated their demands for a full medical report.
Information Minister Ernesto Villegas defended the government's handling of the situation, saying during a televised panel discussion on Sunday night that Chavez "has told the truth in his worst moments" throughout his presidency.
He also referred to a new surge of rumors about Chavez's condition and called for respect for the president and his family.
Chavez's daughter Maria, who has been with the president since his surgery, said in a message on her Twitter account: "Thank you people of Venezuela. Thank you people of the world. You and your love have always been our greatest strength! God is with us! We love you!"
Chavez's son-in-law Jorge Arreaza, who is the government's science minister and has been with the president in Cuba, urged Venezuelans in a Twitter message Monday night not to believe "bad-intentioned rumors" circulating online. "President Chavez has spent the day calm and stable, accompanied by his children," Arreaza said in the message.
Some who stood in the Caracas plaza on Monday night held pictures of the president. Speaking to the crowd, lawmaker Earle Herrera said that Chavez "is continuing to fight the battle he has to fight."

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Venezuelans offer prayers, songs for Hugo Chavez

CARACAS, Venezuela (AP) — Venezuelans gathered on plazas and in churches to pray for President Hugo Chavez amid what seems an increasingly gloomy outlook for the ailing leader in his fight against cancer.
Following an announcement that Chavez had suffered "new complications" from a respiratory infection after undergoing cancer surgery in Cuba, people were out in the streets of Caracas on Monday talking about the leftist president's chances of surviving.
"He's history now," said Cesar Amaro, a street vendor selling newspapers and snacks at a kiosk downtown. He motioned to a daily on the rack showing side-by-side photos of Vice President Nicolas Maduro and National Assembly President Diosdado Cabello, and said politics will now turn to them.
The vendor said he expected a new election soon to replace Chavez, who won re-election in October. "For an illness like the one the president has, his days are numbered now," Amaro said.
In Bolivar Plaza in downtown Caracas, Chavez's supporters strummed guitars and read poetry in his honor on New Year's Eve. They sang along with a recording of the president belting out the national anthem.
About 300 people filled a Caracas church for a Mass to pray for Chavez.
"This country would be terrible without Chavez. He's the president of the poor," said Josefa Carvajal, a 75-year-old former maid who sat in the pews. "They say the president is very sick. I believe he's going to get better."
Chavez's aides held a Mass at the presidential palace, while government officials urged Venezuelans to keep their leader in their prayers.
Some who stood in Bolivar Plaza held pictures of Chavez. Speaking to the crowd, lawmaker Earle Herrera said that Chavez "is continuing to fight the battle he has to fight."
"He's an undefeated president, and he'll continue to be undefeated," Herrera said.
Political analyst Ricardo Sucre said the outlook for Chavez appeared grim. Noting that Maduro appeared weary during a solemn televised appearance Sunday night to announce the latest setback for Chavez, Sucre said that spoke volumes about the situation.
"Everything suggests Chavez's health situation hasn't evolved as hoped," Sucre said. He said Maduro likely remained in Havana to keep close watch on how Chavez's condition develops.
"These hours should be key to having a more definitive prognosis of Chavez's health, and as a consequence to making the corresponding political decisions according to the constitution," Sucre said.
Sucre and other Venezuelans said it seems increasingly unlikely that Chavez would be able to be sworn in as scheduled Jan. 10 for his new term.
The Venezuelan leader has not been seen or heard from since undergoing his fourth cancer-related surgery on Dec. 11, and government officials have said he might not return in time for his inauguration for a new six-year term.
If Chavez dies or is unable to continue in office, the Venezuelan Constitution says that a new election should be held within 30 days.
Before his operation, Chavez acknowledged he faced risks and designated Maduro as his successor, telling supporters they should vote for the vice president if a new presidential election were necessary.
Chavez said at the time that his cancer had come back despite previous surgeries, chemotherapy and radiation treatment. He has been fighting an undisclosed type of pelvic cancer since June 2011.
"The situation does not look good," said David Smilde, a University of Georgia sociologist and analyst for the Washington Office on Latin America think tank.
"Mentioning twice in his nationally televised speech that Chavez has suffered new complications only reinforces the appearance that the situation is serious," he added.
Smilde said Maduro probably made the trip "to be able to talk to Chavez himself and perhaps to talk to the Castros and other Cuban advisers about how to navigate the possibility of Chavez not being able to be sworn in on Jan. 10."
Medical experts say that it's common for patients who have undergone major surgeries to suffer respiratory infections and that how a patient fares can vary widely from a quick recovery in a couple of days to a fight for life on a respirator.
On the streets of Caracas, images of Chavez smiling and saluting are emblazoned on campaign signs and murals. One newly painted mural reads: "Be strong, Chavez."
Venezuelans rang in the New Year as usual with fireworks raining down all over the capital of Caracas. But one government-organized outdoor party that had been scheduled in Bolivar Plaza with a lineup of Venezuela bands was canceled due to Chavez's precarious condition.
State television played video of Chavez campaigning for re-election, including a speech when he shouted: "I am a nation!"
A new government sign atop a high-rise apartment complex reads: "YOU ALSO ARE CHAVEZ."
Norelys Araque, who was selling holiday cakes on a sidewalk Monday, said she has been praying for Chavez. But, she added, "I don't think he will last long."
Araque said that her family has benefited from state-run subsidized food markets and education programs started by Chavez, and that she hopes the government carries on with the president's programs if he doesn't survive.
Chavez has been in office since 1999 and was re-elected in October, three months after he had announced that his latest tests showed he was cancer-free.
Opposition politicians have criticized a lack of detailed information about Chavez's condition, and last week repeated their demands for a full medical report.
Chavez's son-in-law Jorge Arreaza, who is the government's science minister and has been with the president in Cuba, urged Venezuelans in a Twitter message Monday night not to believe "bad-intentioned rumors" circulating online. "President Chavez has spent the day calm and stable, accompanied by his children," Arreaza said in the message.

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White House defends offer as 'good faith effort'

WASHINGTON (AP) — The White House is defending President Barack Obama's proposal to set a higher threshold for tax increases than what he vowed to do during his presidential campaign. The White House says Obama has moved halfway to meet House Speaker John Boehner on a "fiscal cliff" deal that raises $1.2 trillion in tax revenue, down from the $1.6 trillion Obama had initially requested.
White House spokesman Jay Carney says that offering to raise taxes on taxpayers earning more than $400,000 rather than the $200,000 he ran on demonstrates, in Carney's words, Obama's good faith effort to reach a compromise.
The new tax proposal is contained in a broader plan that Obama gave Boehner Monday that would cut spending further and lower cost-of-living increases for most Social Security beneficiaries.

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Factbox: U.S. House "Plan B" tax bill likely to have short shelf life

WASHINGTON (Reuters) - The U.S. House of Representatives is likely to vote this week on what is being called "Plan B" on avoiding the "fiscal cliff."
The Republican-sponsored legislation aims to extend current low tax rates for most families. Without such action by Congress, across-the-board income tax rates will rise on January 1.
The combination of $500 billion in tax hikes and $100 billion in spending cuts, which are scheduled to start in the new year, could push the U.S. economy into recession, according to experts.
House Speaker John Boehner, the top Republican in Congress, and Democratic President Barack Obama have been trying for weeks to avoid the fiscal cliff with an alternative tax and spending-cut deal. Boehner says he is offering this very limited alternative in case negotiations with Obama fail.
Here are key elements of Boehner's Plan B:
* A House vote is expected on Thursday.
* Boehner expressed confidence on Wednesday that the measure would pass but some House Republican aides were not yet predicting that.
* The White House has said Obama would veto the Boehner Plan B in the unlikely event it made it to his desk.
* Democrats are viewing Plan B as nothing more than a diversion from attempts to reach a broad deficit-reduction deal to avoid the fiscal cliff. They see it as a way for Boehner to give his conservatives a vote on a measure that they can tout as a tax-cut bill for all but the wealthiest and inoculate them against Democratic accusations of obstruction.
* Republicans argue that they are acting responsibly by providing a backstop against massive tax increases in case the Obama-Boehner negotiations fail.
* Once Plan B is dealt with, all attention will shift to whether Obama and Boehner can work out a broad agreement by December 31 or whether the country will go off the cliff. If that happens, there is speculation that some sort of deal might be worked out in the early weeks of January to avoid the full brunt of the tax hikes and spending cuts.
* Under Boehner's Plan B, current low tax rates would be made permanent for families with net annual incomes of up to $1 million. The measure would let tax rates rise on income above $1 million. Without action by Congress, all income tax rates are set to rise on January 1 with the expiration of tax cuts enacted a decade ago by then-President George W. Bush.
* Plan B includes a grab bag of other expiring tax provisions. It would permanently fix the alternative minimum tax so that middle-class taxpayers do not creep into a tax bracket intended for the wealthiest. Annual AMT fixes have prevented tens of millions of households from paying a higher tax rate.
Also included are moves to maintain estate taxes at their current 35 percent rate per individual after a $5 million exemption. The White House backs reverting to the 2009 estate tax levels of 45 percent tax after a $3.5 million exemption per individual, though some moderate Democrats back keeping the current law.
Plan B legislation would raise dividend and capital gains tax rates for those earning $1 million and over to 20 percent, from its current 15 percent for most who pay such taxes. Most Democrats back raising the current 15 percent tax rate on investment income to 20 percent for households earning more than $250,000.
* The Joint Committee on Taxation estimates the plan would reduce U.S. revenues by around $4 trillion over 10 years.
* The plan does not address spending issues, including automatic across-the-board spending cuts also looming at year's end.
* The bill does not address how to resolve a looming stand-off over the government's borrowing authority. The government will need to raise the "debt ceiling" in the next few months to avoid default, and Obama wants higher borrowing authority approved promptly. House Republicans continue to want to hold back and use it as leverage in ongoing fiscal cliff talks, according to aides.
* Senate Majority Leader Harry Reid already has warned there are not the votes in his chamber to pass Boehner's plan. But if the House sent the Senate such a bill, Reid could respond in one of a few ways. He could declare that the Senate in July passed its version of this legislation, but with a $250,000 threshold, and take no further action. Or, he could offer a variation of the Senate-passed bill. Obama has proposed a $400,000 cut-off for maintaining low income tax rates. Reid could embrace that level or another one.
* The legislation is being inserted into an existing bill that originally had to do with Burma trade policy. A House Rules Committee spokesman said this was being done to avoid some potential procedural delays.

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U.S. charges three Swiss bankers in offshore account case

 Three Swiss bankers accused of conspiring with American clients to hide more than $420 million from the tax-collecting U.S. Internal Revenue Service were indicted, the U.S. Attorney's Office in Manhattan said on Wednesday.
The indictment named Stephan Fellmann, Otto Huppi and Christof Reist, all former client advisers with an unnamed Swiss bank. None of the bankers have been arrested, authorities said.
Their attorneys were not immediately known.
The indictment said the unnamed bank did not have offices in the United States.
Banking secrecy is enshrined in Swiss law and tradition, but it has recently come under pressure as the United States and other nations have moved aggressively to tighten tax law enforcement and demanded more openness and cooperation.
In April, two Swiss financial advisers were indicted on U.S. charges of conspiring to help Americans hide $267 million in secret bank accounts.
In January, prosecutors charged three Swiss bankers with conspiring with wealthy taxpayers to hide more than $1.2 billion in assets from tax authorities.
UBS AG, the largest Swiss bank, in 2009 paid a $780 million fine as part of a settlement with U.S. authorities who charged the bank helped thousands of wealthy Americans hide billions of dollars in assets in secret Swiss accounts.

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"Fiscal cliff" turmoil could hit 100 million taxpayers: U.S. IRS

WASHINGTON (Reuters) - U.S. tax authorities warned on Wednesday that as many as 100 million taxpayers - far more than previously estimated - could face refund delays if lawmakers' "fiscal cliff" negotiations fail to fix the alternative minimum tax (AMT) before year-end.
The Internal Revenue Service said in a letter to lawmakers that it was raising its estimate on AMT impact from 60 million.
"It is becoming apparent that an even larger number of taxpayers - 80 to 100 million of the 150 million total returns expected to be filed - may be unable to file," IRS Acting Commissioner Steven Miller wrote.
The AMT is a levy designed to ensure that high-income taxpayers pay a minimum tax. Democrats and Republican typically agree to adjust the tax for inflation to prevent unintended taxpayers from being hit by it.
This year, however, its fate is tied to heated negotiations - primarily between President Barack Obama and House Speaker John Boehner - over future taxes and federal spending as they try to avoid the automatic tax increases and spending cuts known as the fiscal cliff.
The AMT fix for calculating 2012 income tax has broad bipartisan support, but so far been drowned out by the larger federal budget questions.
Without action soon to fix the AMT, there could be "lengthy delays of tax refunds and unexpectedly higher taxes for many taxpayers," Miller said.
The IRS needs congressional authority to update tax-filing software and forms so that Americans can start their tax returns next year. Inaction by Congress on the AMT has left IRS unsure which taxpayers will need to pay the AMT tax.
An IRS spokesman declined to comment on the agency's AMT preparations to date.
"Failure to act on the fiscal cliff will throw the 2013 tax filing season into chaos," Representative Sander Levin, a Michigan Democrat, said in a statement.
About 4 million taxpayers pay the AMT now because Congress routinely "patches" it for inflation to keep it from reaching down into middle-income tax brackets.
Without a patch for 2012, up to 33 million taxpayers will have to pay the AMT, according to IRS.
Obama's most recent offer to Republicans included a permanent AMT patch.
House Republicans plan to vote Thursday on a bill to address the fiscal cliff that also includes an AMT patch.

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What's on the table now in 'fiscal cliff' talks

An update on the latest offers on the table in negotiations to avert a year-end avalanche of federal tax increases and spending cuts known as the "fiscal cliff":
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INCOME TAXES
House Speaker John Boehner would allow income tax rates to rise for people making more than $1 million per year and would hold rates where they are for everyone making less. The top rate on income exceeding $1 million would go from 35 percent to 39.6 percent.
President Barack Obama would freeze income tax rates for taxpayers making $400,000 or less and raise them for people making more.
The two sides are moving closer together. Previously, the Republican House leader opposed allowing any tax rates to go up; Obama wanted higher taxes for individual income above $200,000, or $250,000 for couples.
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PAYROLL TAX
Obama has dropped his proposal to extend a temporary cut in Social Security payroll taxes paid by 163 million workers. Republicans want that tax to go back up.
Raising the payroll tax by 2 percentage points to its old level would cost a worker making $50,000 a year another $1,000 — or a little more than $19 per week — during 2013.
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SOCIAL SECURITY
Obama is offering to reduce cost-of-living increases for Social Security recipients. Republicans have been seeking this as a key to long-term deficit reduction. But many congressional Democrats oppose it.
Government pensions and veterans' benefits would also get smaller cost-of-living increases.
In addition, taxpayers, especially low- and middle-income families, would pay more because of changes in the way that tax brackets are adjusted for inflation.
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MEDICARE
Obama continues to reject Republicans' plan to raise the eligibility age for Medicare from 65 to 67. Boehner now says raising the eligibility age is not essential to a deal.
Obama wants to limit cuts in Medicare and other health care programs to about $400 billion over 10 years; Republicans want to overhaul Medicare to save even more money.
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DEBT LIMIT
Obama wants a deal that would raise the amount the government is allowed to borrow to cover the next two years, to avoid another debt showdown with Congress until after the 2014 midterm elections.
Previously, Obama had demanded permanent authority to increase the debt ceiling without congressional approval. Republicans want Congress to be part of the decision-making process so they can demand budget-cutting in exchange for additional borrowing.
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OTHER TAXES
Obama and Boehner both propose raising taxes on dividends and capital gains from 15 percent to 20 percent.
Both sides would reduce the number of deductions and exemptions that wealthy taxpayers can claim.
Obama would also let estate taxes revert to a 45 percent rate, after the first $3.5 million of an estate is exempted. Boehner backs a plan for a 35 percent rate and $5 million exemption.

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