Push for online sales taxes pick up steam in Congress

U.S. states could collect millions of dollars in online sales taxes, with members of both parties in Congress sponsoring legislation Thursday that would resolve states' decades-long struggle to tax businesses beyond their borders.

"Small businesses and states alike are suffering from the inability to collect due -- not new -- taxes from purchases made online," said Rep. Steve Womack, R-Ark., adding the legislation is a "bipartisan, bicameral, common-sense solution that promotes states' rights and levels the playing field for our Main Street businesses."

Legislation on the Amazon tax, named for the colossal Internet retailer, has languished for years.

In 1992 the Supreme Court decided the patchwork of state tax laws made it too difficult for online retailers to collect and remit sales taxes. So states can tax Internet only sales made by companies with a physical presence in the states. That means online retailers such as Amazon.com Inc. collect sales tax in some states and not in others.

The bills introduced on Thursday reconcile differences in legislation that the House of Representatives and Senate considered last year. The nearly identical details in the bills and strong bipartisan support mean the final bill could be sent to President Barack Obama this year.

Members of Congress recently assured state lawmakers they would pass a law in 2013.

In the last decade, Internet sales have gone from 1.6 percent of all U.S. retail sales to more than 5 percent, according to Commerce Department data, a proportion that will likely grow as shoppers make more purchases on handheld devices. In the third quarter of 2012,  "e-commerce" sales were $57 billion, the department said.

Large Internet retailers are worried the tax could drive up the cost of doing business. They would also have to create new systems and software to collect the surcharges, adding to their costs. Amazon said in July it prefers having the tax issue resolved at the federal level.

When the 2007-09 recession caused states' revenues to collapse, Republican and Democratic governors backed the tax as a financial solution that would not require federal aid.

A leader in the Republican party, Virginia Gov. Bob McDonnell went so far as to figure online tax revenue into his recent plan for overhauling the state's transportation funding.

"The revenue states are losing out on is legally owed, but because of a pre-Internet Supreme Court ruling, states aren't able to collect it," Sen. Deb Peters, R-S.D., said in a statement.

States and cities say they can recoup billions of dollars with the tax. Fitch Ratings estimates put the states' loss at $11 billion.

Some states are considering their own legislation. Florida is debating a bill that advocates say could bring the state more than $400 million.

Small retailers, meanwhile, have said the sales tax will will allow them to compete with massive online retailers.

"While store owners collect and remit state and local sales taxes their digital competitors are off the hook -- and benefiting because of it," said David French, the National Retail Federation's senior vice president for government relations, in a statement.

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Anxiety grows as officials consider closing 129 Chicago schools

After trimming the number of schools that could be closed to 129, Mayor Rahm Emanuel's school administration has entered the latest and what is likely to be the most intense phase so far in trying to determine which schools should be shut.

Chicago Public Schools chief Barbara Byrd-Bennett is expected to pare the preliminary list, released Wednesday, before unveiling a final one at the end of March. She said administrators will determine which schools are saved in the coming weeks amid a final round of community meetings to hear arguments from parents, teachers and community groups about why their schools should stay open.

If a hearing Wednesday night in North Lawndale was any indication, CPS still has a long way to go to gain the public's trust.

"Our schools don't need to close," Dwayne Truss, vice chairman of CPS' Austin Community Action Council, said in front of hundreds of people packed inside a church auditorium in the West Side neighborhood. "CPS is perpetrating a myth that there's a budget crisis."

CPS initially said 330 of its schools are underenrolled, the chief criterion for closing. Members of a commission assembled to gather public input on the issue told CPS officials earlier this year that closing a large number of schools would create too much upheaval. The Tribune, citing sources, said the commission indicated a far smaller number should be closed than initially feared, possibly as few as 15.

CPS then started holding its own hearings and on Wednesday, while following many of the formal recommendations made by the Commission on School Utilization, said 129 schools still fit the criteria for closing.

The new number and the latest round of hearings sets the stage for the administration to counter questions about the district's abilities to close a large number of schools and the need to do so.

For many who have already turned up to school closing meetings, this final round of hearings will be even more critical. School supporters must show how they plan to turn around academic performance and build enrollment, and also make the case for any security problems that would be created by closing their school.

"We are prepared now to move to the next level of conversation with our community and discuss a list of approximately 129 schools that still require further vetting and further conversation," Bryd-Bennett said. "We are going to take these 129 and continue to sift through these schools."

In the past, political clout has played a role in the district's final decisions. Already this year, several aldermen have spoken out on behalf of schools in their wards.

On the Near Northwest Side, for instance, the initial list of 330 underused schools included about six in the 1st Ward. Ald. Proco "Joe" Moreno helped organize local school council members, school administrators and parents to fight any closing. He also took that fight to leaders in City Hall and within CPS' bureaucracy. Nearly all of the schools in the ward were excluded from the list of 129.

"It is effort and it's organizing and not just showing up at meetings and yelling. Anybody can do that," Moreno said. "Those schools that proactively work before those meetings and explain what they are doing, what they need and that they are willing to accept new students, that's when politics works.

"My responsibility in this juncture was to focus on these schools," he said. "I had to work on the inside, with CPS and with City Hall, and with my schools on the outside."

Most of the schools on the list of 129 are on the West, South and Southwest sides, many in impoverished neighborhoods that saw significant population loss over the last decade. Largely spared were the North and Northwest sides.

In all, more than 43,000 students attend those 129 schools on the preliminary list, according to CPS records.

The area with the most schools on the list is a CPS network (the district groups its schools in 14 networks) that runs roughly from Madison Street south to 71st Street and from the lake to State Street. The preliminary list includes 24 schools in that area.

The Englewood-Gresham network has the second-largest number, 19, while the Austin-North Lawndale network where Wednesday night's meeting was held still has 16 schools on the list.

CPS critics said the preliminary list is still too large to be meaningful and that the district's promise to trim it before March 31 is only a tactic to make the final number seem reasonable.

"They started out with such a far-fetched, exaggerated list of schools, many of which are nowhere near underutilized," said Wendy Katten, co-founder of the parent group Raise Your Hand. "They might appear to be looking like they're listening, but they're not. They have not done a thorough and substantive assessment of these schools."

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Apple challenges loss of iPhone trademark in Brazil

RIO DE JANEIRO (Reuters) - Apple Inc, which lost the rights to its iPhone trademark in Brazil on Wednesday, is challenging the ruling by Brazil's copyright regulator to prevent local firm Gradiente Eletronica SA from using the "iphone" brand name.

The regulator, Inpi, ruled on Wednesday that the rights to the trademark belong to Gradiente, prompting California-based Apple to request that the decision be reviewed in Latin America's largest market.

Consumer electronics maker Gradiente had filed its request to use the "iphone" brand in 2000, seven years before Apple launched its smartphone, but received approval to use the trademark only in 2008.

Now, in order to keep its trademark rights, Gradiente will need to prove to the regulator in the next 60 days that it made use of the trademark between January 2008 and January 2013, Inpi said late on Wednesday. Brands in Brazil must be developed within 5 years of gaining approval.

IGB Eletronica SA, a company formed after the restructuring of Gradiente, launched its "iphone" line of smartphones last December.

Officials from Apple and Gradiente didn't immediately respond to requests for comment.

An Inpi spokesman said Apple could still take the case to court or negotiate an out-of-court settlement with Gradiente.

(Reporting by Juliana Schincariol; Writing by Caroline Stauffer; Editing by Bernadette Baum)

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Olympian Pistorius charged with murder

PRETORIA, South Africa (AP) — Paralympic superstar Oscar Pistorius was charged Thursday with the murder of his girlfriend who was shot inside his home in South Africa, a stunning development in the life of a national hero known as the Blade Runner for his high-tech artificial legs.

Reeva Steenkamp, a model who spoke out on Twitter against rape and abuse of women, was shot four times in the predawn hours in the home, in a gated community in the capital, Pretoria, police said.

Hours later after undergoing police questioning, Pistorius left a police station accompanied by officers. He looked down as photographers snapped pictures, the hood on his gray workout jacket pulled up, covering most of his face. His court hearing was originally scheduled for Thursday afternoon but has been postponed until Friday to give forensic investigators time to carry out their work, said Medupe Simasiku, a spokesman for the prosecution.

South Africans were shocked at the killing but police said there was a history of problems.

There have "previously been incidents at the home of Mr. Oscar Pistorius," said police spokeswoman Brigadier Denise Beukes. Police in South Africa do not name suspects in crimes until they have appeared in court but Beukes said that the 26-year-old Pistorius was at his home at the time of the death of Steenkamp and "there is no other suspect involved."

"Yes there are witnesses and there have also been interviews this morning," Beukes told reporters outside the gated complex where Pistorius lived. "We are talking about neighbors and people that heard things that happened earlier in the evening and when the shooting took place."

Pistorius' father, Henke, declined to comment when contacted by The Associated Press, only saying "we all pray for guidance and strength for Oscar and the lady's parents."

Pistorius' agent Peet van Zyl and coach Ampie Louw couldn't be reached while Pistorius' own cellphone went straight to an answerphone service.

Pistorius' former coach, Andrea Giannini, said he hopes it was "just a tragic accident."

"No matter how bad the situation was, Oscar always stayed calm and positive," Giannini told the AP in Italy. "Whenever he was tired or nervous he was still extremely nice to people. I never saw him violent."

Gianni said he believed that Pistorius had been dating Steenkamp for "a few months."

"I know he had more than one flirt over the last year," Giannini said.

Paolo Urbani, the mayor of the Italian town of Gemona where Pistorius had a training base and prepared for the London Olympics from said he is shocked as Pistorius was "a delightful person."

"The news shocked not only me personally but also the whole of Gemona and the region," Urbani said. "It come(s) as a huge shock to everyone who knew him. I was woken up this morning by a phone call from his general manager, who called me to let me know so that I didn't find out about it from the news."

Police said that earlier reports that Steenkamp may have been mistaken for a burglar by Pistorius did not come from the police. Several local media outlets had initially reported that the shooting may have been accidental.

"It would be very premature and very irresponsible of me to say what actually has happened," Beukes said. "There have been allegations. We are not sure."

Beukes also said there had been previous incidents and "allegations of a domestic nature" at the home of the Olympic star and double-amputee runner, who is one of South Africa's and the world's most famous sportsmen and made history at the London Games last year by being the first double-amputee runner to compete at the Olympics.

"I'm not going to elaborate on it but there have been incidents (at Pistorius' home)," Beukes said.

Capacity Relations, a talent management firm, earlier named model Steenkamp as the victim of the shooting. Police spokeswoman Lt. Col. Katlego Mogale told The Associated Press that officers received a call around 3 a.m. after the shooting.

A 9 mm pistol was recovered and a murder case opened against Pistorius.

Mogale said when police arrived they found paramedics trying to revive a 30-year-old woman, who had been shot four times. Mogale, who was speaking to the AP from the scene, said the woman died at the house.

Police have still not released the name of the woman, but the publicist for Steenkamp confirmed in a statement that the model was dead.

"We can confirm that Reeva Steenkamp has passed away," Steenkamp's publicist Sarit Tomlinson said. "We are in communication with people on the scene, please wait for official statements, as there is too much speculation at this moment in time. We will provide further information as soon as we are able to provide accurate information as to what transpired.

"Our thoughts and prayers go to the Steenkamp family, who have asked to have their privacy respected during this difficult time, everyone is simply devastated. She was the kindest, sweetest human being; an angel on earth and will be sorely missed.

Tomlinson said Steenkamp, known simply as Reeva, was one of FHM's (formerly For Him Magazine) 100 Sexiest Women in the World for two years running, appeared in countless international and national advertisements and was one of the celebrity contestants on Tropika Island of Treasure, filmed in Jamaica.

On Twitter, she tweeted messages urging women to stand up against rape alongside her excitement about Valentine's Day. "What do you have up your sleeve for your love tomorrow?" she tweeted. "It should be a day of love for everyone."

Mogale and Beukes said the victim's family had not yet identified the body.

Pistorius made history in London last year when he became the first double-amputee track athlete to compete in the Olympic Games, propelling him to the status of an athletics superstar.

Having had both his legs amputated below the knee before his first birthday because of a congenital condition, he campaigned for years to be allowed to compete against able-bodied athletes. Having initially been banned because of his carbon fiber blades — which critics said gave him an unfair advantage — he was cleared by sport's highest court in 2008 and allowed to run at the top events.

He competed in the 400 meters and on South Africa's 4x400 relay team at the London Games, making history after having his selection confirmed on South Africa's team at the very last minute. He also retained his Paralympic title in the 400 meters in London.

South Africa's Sports Confederation and Olympic committee released a statement on Thursday saying they had been "inundated" with requests for comment but were not in a position to give out any details of the shooting.

"SASCOC, like the rest of the public, knows no more than what is in the public domain, which is there has been an alleged fatal shooting on the basis of a mistaken identity and an apparent assumption of a burglary," the South African Olympic committee said. "The organization is in no position to comment on the incident other than to say our deepest sympathy and condolences have been expressed to the families of all concerned."

The International Paralympic Committee also said it wouldn't comment in detail apart from offering its condolences to the victim's family.

"This is a police matter, with a formal investigation currently underway," the IPC said. "Therefore it would be inappropriate for the IPC to comment on this incident until the official police process has concluded. The IPC would like to offer its deepest sympathy and condolences to all families involved in this case."

South Africa has some of the world's highest murder rates, with nearly 50 people killed each day in the nation of 50 million. It also has high rates of rape, other assaults, robbery and carjackings.

U.N. statistics show South Africa has the second highest rate of shooting deaths in the world, second only to Colombia.

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Imray reported from Cape Town, South Africa. AP writer Michelle Faul contributed to this report from Johannesburg; AP Sports Writer Andrew Dampf in Rome contributed to this report.

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Morning-after pill use up to 1 in 9 younger women

NEW YORK (AP) — About 1 in 9 younger women have used the morning-after pill after sex, according to the first government report to focus on emergency contraception since its approval 15 years ago.

The results come from a survey of females ages 15 to 44. Eleven percent of those who'd had sex reported using a morning-after pill. That's up from 4 percent in 2002, only a few years after the pills went on the market and adults still needed a prescription.

The increased popularity is probably because it is easier to get now and because of media coverage of controversial efforts to lift the age limit for over-the-counter sales, experts said. A prescription is still required for those younger than 17 so it is still sold from behind pharmacy counters.

In the study, half the women who used the pills said they did it because they'd had unprotected sex. Most of the rest cited a broken condom or worries that the birth control method they used had failed.

White women and more educated women use it the most, the research showed. That's not surprising, said James Trussell, a Princeton University researcher who's studied the subject.

"I don't think you can go to college in the United States and not know about emergency contraception," said Trussell, who has promoted its use and started a hot line.

One Pennsylvania college even has a vending machine dispensing the pills.

The morning-after pill is basically a high-dose version of birth control pills. It prevents ovulation and needs to be taken within a few days after sex. The morning-after pill is different from the so-called abortion pill, which is designed to terminate a pregnancy.

At least five versions of the morning-after pills are sold in the United States. They cost around $35 to $60 a dose at a pharmacy, depending on the brand.

Since it is sold over-the-counter, insurers generally only pay for it with a doctor's prescription. The new Affordable Care Act promises to cover morning-after pills, meaning no co-pays, but again only with a prescription.

The results of the study were released Thursday by the Centers for Disease Control and Prevention. It's based on in-person interviews of more than 12,000 women in 2006 through 2010. It was the agency's first in-depth report on that issue, said Kimberly Daniels, the study's lead author.

The study also found:

—Among different age groups, women in their early 20s were more likely to have taken a morning-after pill. About 1 in 4 did.

—About 1 in 5 never-married women had taken a morning-after pill, compared to just 1 in 20 married women.

—Of the women who used the pill, 59 percent said they had done it only once, 24 percent said twice, and 17 percent said three or more times.

A woman who uses emergency contraception multiple times "needs to be thinking about a more regular form" of birth control, noted Lawrence Finer, director of domestic research for the Guttmacher Institute, a nonprofit group that does research on reproductive health.

Also on Thursday, the CDC released a report on overall contraception use. Among its many findings, 99 percent of women who've had sex used some sort of birth control. That includes 82 percent who used birth control pills and 93 percent whose partner had used a condom.

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Online:

CDC report: http://www.cdc.gov/nchs/

Emergency contraception info: http://ec.princeton.edu/index.html

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Epic to pull song with offending Lil Wayne lyric

NASHVILLE, Tenn. (AP) — Epic Records is going to "great efforts" to take down a new Future remix leaked over the weekend with a vulgar Lil Wayne lyric that has offended the family of Emmett Till.

The New Orleans rapper made a sexual reference to the beating death of Till, a 14-year-old Chicago boy tortured and shot in Mississippi in 1955 for whistling at a white woman. Till's family objected and the Rev. Jesse Jackson reached out to his management, The Blueprint Group, on the family's behalf.

The label issued a statement Wednesday night apologizing for the release of the song.

"We regret the unauthorized remix version of Future's 'Karate Chop,' which was leaked online and contained hurtful lyrics," the statement said. "Out of respect for the legacy of Emmett Till and his family and the support of the Reverend Jesse L. Jackson, Sr. ... we are going through great efforts to take down the unauthorized version."

Epic will release an official version of the song that "will not include such references."

Neither Jackson nor members of Till's family could be reached late Wednesday. A publicist says Lil Wayne has had no comment so far.

He appears briefly on the song, alluding to the black teenager's beating in a way too vulgar to print.

Till, a native of Chicago, was in Mississippi visiting family in 1955 when he was killed. He was beaten, had his eyes gouged out and was shot in the head before his assailants tied a cotton gin fan to his body with barbed wire and tossed his body into the Tallahatchie River. Two white men, including the woman's husband, were acquitted of the killing by an all-white jury.

Till's body was recovered and returned to Chicago where his mother, Mamie Till, insisted on having an open casket at his funeral. The pictures of his battered body helped push civil rights into the cultural conversation in the U.S.

Bob Dylan wrote a song about it: "The Death of Emmett Till."

A Facebook posting on the Mamie Till Mobley Memorial Foundation page Wednesday night said Epic Records Chairman and CEO LA Reid had reached out to the family to personally apologize.

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Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott

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American, US Airways to merge

AMR Corp., parent of American Airlines, and US Airways Group will merge, the companies said Thursday.

If the $11 billion merger is aproved by regulators and a bankruptcy judge, it will create the world's largest airline, unseating Chicago-based United Continental Airlines. The combination is expected to be completed in the third quarter of this year.

Chicago, where the two companies have little overlap, would remain a major hub for the airline.

American Airlines is the No. 2 carrier in the region, with about 27 percent of the market, 500 flights per day and 9,300 Chicago-based employees. O'Hare is American's second-largest hub, after Dallas-Fort Worth, which will be the headquarters for the merged airline.

By contrast, US Airways flights account for just 2 percent of the airline seats flying out of Chicago's airports, and the carrier has 170 employees in Chicago.
 
The combined airline will keep the American Airlines name but will be run by US Airways CEO Doug Parker, while American's CEO, Tom Horton, becomes nonexecutive chairman. The terms of the merger wwere unanimously approved Wednesday by the boards of directors of both companies.

American said the combined airline would have a strong financial foundation and robust global network, with more than 6,700 daily flights to 336 destinations in 56 countries. It also pointed to an enhanced Oneworld Alliance, of which American Airlines is a founding member.

"Our combined network will provide a significantly more attractive offering to customers, ensuring that we are always able to take them where they want to travel, when they want to go," Parker said in a statement.

However, consumer groups have been critical of the rumored merger.

"From a consumer standpoint -- individual traveler or corporate travel department -- there are few benefits to offset the negative impacts of this proposed merger that include reduced competition, higher fares and fees and diminished service to small and mid-size communities," said Business Travel Coalition Chairman Kevin Mitchell.

Charlie Leocha, director of the Consumer Travel Alliance, said the merger offered "no discernible consumer benefits."

"Antitrust regulations were created to protect consumers, not to facilitate industry consolidation," he said. "The claim that this merger will provide more destinations is hollow. Whatever new cities are added by a future [American Airlines-US Airways] network are subtracted from the current airline alliance network that US Airways enjoys with United. The net effect is that, overall, consumers are left with nothing new and no improvement to the status quo."

In Chicago, travelers would be largely shielded from those downsides, experts have said. The region's plethora of flights from O'Hare International Airport and Midway, as well as the presence of many discount airlines, should be enough to hold fares largely in check on most routes after the merger.

Customers can continue to book travel and track and manage flights and frequent flyer activity through AA.com or USAirways.com, and will continue to as usual in the AAdvantage and Dividend Miles frequent flyer programs. At first, there are no changes to the frequent flyer programs of either airline as a result of the merger agreement.

The merger is supported by American Airlines' unions.

"The new American Airlines will return to a position of industry preeminence," said Dennis Tajer, spokesman for the Allied Pilots Association, the American Airlines pilot union.

Horton will be board chairman through the first annual meeting of shareholders. After that, Parker will take over as chairman. The board will initially be made up of 12 members, three American Airlines representatives, including Tom Horton, four US Airways representatives, including Doug Parker, and five AMR creditor representatives.

Under the terms of the merger agreement, US Airways stockholders will receive one share of common stock of the combined airline for each share of US Airways common stock then held. American Airlines stakeholders, including labor unions, would own 72 percent of the merged airline, while US Airways stakeholders would own the rest.

gkarp@tribune.com

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Obama to Republicans: Can we just move on?

President Obama highlighted numerous parts of his agenda during his State of the Union Address. AP White House Correspondent Julie Pace reports, the tough part will be turning words into action. (Feb. 13)

WASHINGTON -- President Barack Obama used his State of the Union address on Tuesday night to try to push past the fiscal battles that plagued his first term - and still threaten his second - as he laid out an agenda he hopes will shape his legacy.

Obama's overarching message was that other things matter beside the Republicans' seemingly all-consuming drive for deficit cutting, embodied in a looming showdown just three weeks away over automatic across-the-board spending cuts.

Those other things, he told Congress, include some traditionally liberal causes, like raising the federal minimum wage and pursuing climate initiatives, and some that have gained bipartisan support, such as immigration reform and curbing gun violence.

"Most of us agree that a plan to reduce the deficit must be part of our agenda," Obama said. "But let's be clear: deficit reduction alone is not an economic plan."

But with Washington so deeply divided, Obama's speech appeared unlikely to go far in helping the Democratic president and his Republican opponents find common ground to ease the ideological gridlock. He offered no tangible new concessions of his own.

Still, Obama's sense of urgency and frustration was almost palpable. He alternately scolded and cajoled lawmakers while expanding on his vision for a more activist government so loathed by conservatives, the same theme he struck in his second inauguration address on January 21.

"The American people don't expect government to solve every problem. They don't expect those of us in this chamber to agree on every issue. But they do expect us to put the nation's interests before party," he said, pressing Republicans to resolve budget and fiscal differences without drama.

Obama - whose first-term promise to become a transformational, post-partisan president failed to materialize in part because of struggles over the deficit - knows the clock is ticking.

The consensus among Washington insiders is that he has a limited window, possibly as little as a year and a half, to take advantage of the Republicans' post-election disarray and push through his congressional priorities before being reduced to lame-duck status.

SETTING PRIORITIES

Just three weeks after staking out a decidedly liberal philosophy at his inauguration, Obama used his State of the Union address to start fleshing out and prioritizing his goals for the rest of his presidency.

He made clear that job creation and bolstering the middle class would top the list, but he also gave due attention to immigration reform and gun control, which have moved to the forefront at the start of his second term.

Obama's renewed emphasis on pocketbook issues that dominated the 2012 campaign appears to reflect the view that advancing other legacy-shaping initiatives could hinge on how he fares with unfinished economic business from his first four years.

Many of the economic plans he presented in his State of the Union address were familiar to listeners as proposals that Republicans have blocked before, including new investment in modernizing infrastructure, boosting manufacturing, creating construction jobs and helping to ease homeowners' mortgage woes.

There is ample reason to doubt that these ideas - even in repackaged form - will gain much traction in a still-divided Congress where Republicans control the House of Representatives and will oppose almost any new spending Obama proposes.

But the biggest red flags for Republicans may be Obama's call for a hike in the federal minimum wage to $9 an hour, a traditional liberal idea, and his demand that Congress pursue a "market-based solution" to climate change - with a warning that if lawmakers do not act soon, "I will."

Obama's call for a nationwide program to expand pre-school education for the low-income families - another progressive cause - is also expected to run into Republican opposition.

There is little doubt the president is aware that many of these proposals, especially those with spending attached, may be dead-on-arrival in Congress.

But he may be counting on being able to accuse Republicans of obstructionism in the 2014 midterm elections - as he did with some success in the 2012 campaign - as his Democrats seek to win back the House.

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High stakes if Apple e-books antitrust case goes to trial

NEW YORK (Reuters) - As the only remaining defendant in the U.S. government's e-books antitrust case, Apple Inc appears headed for a high-stakes trial that could significantly increase the personal computer company's liability in related litigation.

Apple faces a June 3 trial date over civil allegations by the U.S. Department of Justice that it conspired with five publishers to raise the price of e-books and to fight the dominance of Amazon.com Inc.

On Friday, Macmillan became the fifth and final publisher to settle with the government. The Justice Department alleges that Apple came to agreements with each of the publishers meant to ensure that e-book prices at its iBookstore and other retailers would remain higher than those offered by Amazon.com.

At the Apple trial, to be overseen by U.S. District Judge Denise Cote in Manhattan, the Justice Department will seek not monetary damages but a judicial decree that Apple violated antitrust law, court papers said.

Among other things, government lawyers want the judge to issue an order enjoining Apple from engaging in any conduct similar to that alleged in the case. Such a judgment could make Apple vulnerable to steep damages in related litigation.

Apple and the publishers also face a class-action suit filed on behalf of consumers and a similar suit filed by dozens of state attorneys general. Neither suit puts a figure on the exact amount of damages sought.

The Consumer Federation of America estimated in a letter last year to the Senate antitrust subcommittee that e-book price fixing would likely cost consumers more than $200 million in 2012. State and federal antitrust laws allow plaintiffs to recover triple the amount of actual damages established at trial.

If Apple loses against the Justice Department, those plaintiffs would be in a "powerful position" to win their cases, according to Harry First, a professor at New York University School of Law specializing in antitrust.

Under the Clayton Act, an antitrust statute, plaintiffs can use judgments obtained by the U.S. government as evidence against defendants.

If Apple loses, it is unclear whether both the states and the private plaintiffs will be able to seek and recover damages for the same conduct.

By contrast, if Apple were to prevail, it would cause "a lot more trouble" for the plaintiffs in the other cases, First said.

Apple declined to comment. It still may settle with the U.S. government.

In December, Apple and four publishers came to an agreement with European Union regulators over their antitrust probe into e-books. The fifth publisher, Pearson Plc's Penguin group, also under investigation, was not part of the European deal announced in December.

LITTLE TO GAIN

Apple may have little to gain by going to trial in the United States, according to some legal experts.

Under settlements with the Justice Department, the five publishers were required to terminate or not renew deals with Apple and other retailers that the government claimed were anti-competitive.

Apple and the government have less to argue over since those deals have been undone, Daniel Crane, a law professor at the University of Michigan Law School, said.

"What are they fighting over?" he said.

Crane added that Apple may be interested in going to trial to establish an antitrust principle that might help other aspects of its business such as content deals with entertainment companies.

The trial would be a big test for the Justice Department's Antitrust Division, which has sought to enhance its reputation for its trial capabilities under the Obama administration.

The government has been represented by Mark Ryan, who is director of litigation, a new position in the Antitrust Division. Ryan, who began in January 2012, was hired by Joseph Wayland, the former acting assistant attorney general for the Antitrust Division.

Last year Wayland cited Ryan in a speech about the Antitrust Division's focus on enhancing its litigation capabilities. Under the Obama administration, the Antitrust Division has scored a number of high-profile trial victories, including a criminal price-fixing case against Taiwan-based AU Optronics Corp last year and a successful challenge of H&R Block Inc's acquisition of 2SS Holdings Inc, developer of the TaxACT digital tax preparation business, in 2011.

Apple is represented by lawyers at Gibson, Dunn & Crutcher. One of the law firm's attorneys who recently made an appearance in the case, Orin Snyder, won a favorable settlement last year for Voom HD Holdings, once a unit of Cablevision, following a trial against Dish Network.

Voom sued Dish for $2.4 billion alleging it violated a 15-year contract to carry a suite of high-definition channels, including those devoted to Kung Fu and video games. Under the settlement, Dish agreed to pay $700 million to Cablevision and AMC Networks, which Cablevision spun off last year.

The case is United States v. Apple Inc et al, U.S. District Court, Southern District of New York, No. 12-02826.

(Reporting by Andrew Longstreth; Editing by Howard Goller and Eric Beech)

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Player regrets getting entangled with match-fixing

ZAGREB, Croatia (AP) — Soccer player Mario Cizmek thought it would just be one match. Ease up and let the other team win, he told himself, then collect the payoff and start paying off your debts.

But the broke and desperate athlete soon learned that one match wouldn't do it. He would have to throw another game, then another, then another.

And so it went until, in what he described as his "worst moment," he was arrested at his home in front of his two daughters on charges of match-fixing, frantically dialing his wife to take the children because police were hauling him off to jail.

"Twenty years of hard work I destroyed in just one month," he said.

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EDITOR'S NOTE: This story is part of a six-month, multiformat AP examination of how organized crime is corrupting soccer through match-fixing.

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The Croatian midfielder was the perfect target for fixers: He was nearing the end of his career, his financially unstable club hadn't paid him a regular salary for 14 months, and he owed money on back taxes and his pension.

Cizmek's story is typical of how the world's most popular sport is increasingly becoming a dirty game — sullied by criminal gangs like the one that bribed Cizmek, and by corrupt officials or others cashing in on the billion-dollar web of match-fixing.

An examination of Cizmek's case turns up contrasting portraits of the 36-year-old with quick feet and an engaging smile.

One is of a victim — a player forced into match-fixing by an unscrupulous club and preyed upon by a shadowy former coach convicted of bribery, fraud and conspiracy in a Croatian match-fixing case and banned for life from soccer by FIFA, the world soccer body. That's the picture painted by FIFPro, the global players' union, which has used Cizmek's story to warn players.

Croatian prosecutors, armed with reams of phone calls and text messages from police wiretaps, have a different take. At a match-fixing trial at the County Court of Zagreb, they portrayed Cizmek as the ringleader who got several FC Croatia Sesvete players to throw six games and tried to fix a seventh in spring 2010. The authorities said he organized the players, handed out sealed blue envelopes of euros, and promised that they could stop whenever they wanted.

Cizmek readily admits he delivered the payments but says it was only because his apartment was closest to the fixer. Looking back, he says, he realizes he was manipulated.

"Now I see that he didn't want to be seen handing over the money," he said in an interview with The Associated Press.

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Cizmek joined FC Zagreb on a junior scholarship, signed at 18, and played there for eight years.

"Those were the best years. All my dreams came true," he said. "I signed a professional contract and was among the better players. They thought highly of me. I was even a captain of this club."

After stints in Israel and Iceland, he returned home to play for FC Croatia Sesvete in the country's second league. In 2008, Cizmek scored the goal that sent his team into the top division. That goal benefited every player on the team and lined the pockets of the club's owner, Zvonko Zubak.

But the team fell on hard times, especially with the European economic downturn.

The entire FC Croatia Sesvete locker room was in an uproar for months, with players trying to make ends meet, Cizmek said. A study by the FIFPro union reported that more than 60 percent of Croatian players do not get paid on time.

"We had no money, and we no longer spoke about training or football, but only about how we were going to survive," Cizmek said.

"Every other day we would ask whether we would be paid, and they would say 'Yes, on Monday.' Then we say, 'OK, on Monday,'" he said. But there would be no pay on Monday — only a promise to be paid Wednesday — and then no money that day either.

"It would go on for weeks," Cizmek said, shaking his head.

One man who hung around the players offering advice and sympathy — and loans to those short on cash — was Vinko Saka, a former assistant coach for Dinamo Zagreb, the soccer powerhouse that has won Croatia's national title every year since 2006.

Saka was always somewhere around the field or at the bars where the players gathered, Cizmek said.

A flashy figure in his 50s who drove a BMW X6, he promised to introduce young players to the dozens of foreign coaches and clubs he said he knew.

"He was always offering presents," Cizmek said. "I had known Vinko for years. We were kind of friends. He was someone who was related to sports, whom I was seeing at the matches. He coached junior teams."

Midfielder Dario Susak, then 22, testified that Saka suggested he could help him get a contract with a foreign club, then loaned him $2,550 at a high interest rate. Once he owed the money, Susak testified, Saka told him he would have to lose matches.

Unbeknownst to any of them, Croatian police were already running a wiretap on Saka after being tipped off by German investigators.

Croatian prosecutors said Saka bribed up to 10 people on Cizmek's team, and another five tied to either FC Varteks or FC Medimurje.

Saka ended up being convicted of fraud, bribery and conspiracy and going to jail. His lawyer confirmed the plea bargain but wouldn't discuss the case.

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The deal involving Cizmek came together at Fort Apache, a steakhouse on the truck route between Zagreb, the Croatian capital, and Slovenia. Cizmek and his goalkeeper met there with Saka and two associates on March 25, 2010, to fix a game with FC Zadar two days later, according to players' testimony and police transcripts.

Six players would get $24,220, although the money was not divided equally. One of the unwritten rules of match-fixing is that the goalkeeper gets the biggest share because his statistics suffer the worst blow; defenders get the next-biggest, midfielders get less and strikers often are not even included in the fix.

The result: Zadar won 2-1 as Cizmek, one of the best players, stayed on the bench. After the game, he said, he collected $2,550, bought his kids a bunk bed and stashed the rest away, saving up to pay an overdue tax bill.

Cizmek saw himself as a Robin Hood-sort of figure: stealing money from crooks to put food on the table for his teammates and their families who were being crushed by an unjust system.

The match-fixing train had begun rolling, and it would prove difficult to stop.

The stakes were raised for an April 3 match against FC Slaven Belupo, according to players' testimony. This time it was $51,000 for eight players. They not only had to lose, but to do so by at least three goals. That enabled those in on the deal to win two bets in one match.

Cizmek's team lost 4-0. Saka, however, delivered only $43,300, eight Croatia Sesvete players testified in court. Cizmek said Saka did not explain why.

The demands for an April 14 game against FC Rijeka were even greater: $51,000 to trail at halftime, a final score that included more than three goals, with the team losing by at least two goals, Cizmek testified.

Player Ante Pokrajcic testified that he was happy to have scored a goal until the team's owner stormed into the locker room, cursing about the 1-1 halftime score. Only then did Pokrajcic realize the game had been fixed.

The team lost 4-2, but Saka delivered only about half of what was promised, according to players' testimony.

The players were furious. In the next game, they won 3-1 against Inter Zapresic.

But another unwritten rule of match-fixing soon became clear to Cizmek: Once a player has fixed a game, he is trapped forever.

The criminal gang usually has enough evidence to get a player thrown out of the sport for life. Plus, the shame alone will keep him silent, and the fixer's demands will keep escalating until the player quits, retires or gets caught. Some implicated in match-fixing have even committed suicide.

When Cizmek approached the goalkeeper and a midfielder about fixing an April 17 game against FC Lokomotiva, they refused. He handed the money back to Saka two hours before the game, he said.

"If I was really the ringleader, I could have made them do it," he told the AP. "But I couldn't do it. ... We told them, 'No more.'"

Saka exploded in anger but made sure not to bet, Cizmek said. FC Lokomotiva won 2-1 anyway, and Cizmek said he scored a goal "just for pride" in the second half.

For the last three games of the season, Saka went above the players' heads to fix the game, according to players' testimony. Those involved now included the coach and one of the owner's sons — both of whom were convicted in the case.

"Saka came to me and said, 'I have arranged everything higher up. If you want you can check with the son,'" Cizmek said.

Cizmek said he refused to deliver that message to the other players, making the son talk individually with each athlete. Other players confirmed his account in court. Cizmek said the fixer made sure not to involve the owner's other son, a young player on the team.

With substantial bribes now going to the coach, the payouts for the players grew meager: $22,300 for seven players in the last game, according to testimony.

Overall, Cizmek earned $26,130 from match-fixing, not as much as goalkeeper Ivan Banovic ($37,600), defender Jasmin Agic ($35,000) or coach Goran Jerkovic ($33,000), according to the findings of the court in its sentencing document.

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The season ended in early May but police did not come knocking until June 8.

Cizmek was arrested at his home and taken to Zagreb's Remetinec jail, where he stayed until July 15. His wife handed police the $20,000 he had been saving for his tax bill. The bunk beds were all he had to show for his money.

He went on trial for match-fixing with 14 others.

With the wiretaps, prosecutors had a very strong case. Cizmek made a full confession, pleaded guilty and gave testimony to the players' union against match-fixing. But he and the coach still got the longest sentence — 10 months.

The goalkeeper, the owner's son and three others were given nine months; two players got eight months; and the youngest member of the team, a 20-year-old midfielder, got a seven-month suspended sentence.

They are now free, awaiting the result of their appeal.

Saka cut a plea bargain with prosecutors in which he was convicted of fraud, bribery and conspiracy to commit a crime against the public order and sentenced to one year in prison. The Zagreb court ordered him to pay back $58,800 of the $844,000 it estimated his fixing operation made in Croatia.

Saka served his time in jail and then went to Italy to be questioned in a match-fixing investigation there. His lawyer in Italy, Kresimir Krsnik, said prosecutors have six months to decide whether to press charges.

"Saka will answer any call from the court. He has given his statement there and returned home," Krsnik told the AP.

Saka is back living in an affluent Zagreb neighborhood, driving around in his BMW.

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Cizmek is trying hard not to be bitter.

Chain-smoking Marlboros at a Zagreb coffee bar, he dreads going back to jail.

"I was in there already, with murderers and rapists and drug addicts," he said. "It was a scary place."

He is angry that Saka got a much better plea deal than the players and doesn't hold out hope for his appeal, which is pending.

He says his club still owes him salary but went bankrupt in 2012 and dissolved.

He works on his family's organic farm, peddling jams and berry tea at farmers' markets, but is just scraping by. In one of his last interviews with the AP, Cizmek mentioned his recent divorce, and worry lines around his eyes seemed deeper.

He mourns for his lost soccer career and doesn't know what he will do with the rest of his life.

"I should have just taken my football shoes and hung them on the wall and said: 'Thank you, guys' and gone on to do something else," Cizmek said.

Still, he knows what he did was wrong.

"Everything I lost is my fault. I need to take the responsibility. I don't blame anyone, not even Saka," he said. "No one made me do this."

He cited an old Balkan expression: "The one who confesses, half their sins will be forgiven."

"I have opened my soul to you," he said. "I hope it will pay me back in karma for being so honest."

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Norman-Culp is AP's Assistant Europe Editor in London. Prior to that, she covered FIFA for AP in Zurich. Follow her at snormanculp(at)twitter.com

EDITOR'S NOTE: This story is part of a six-month, multiformat AP examination of how organized crime is corrupting soccer through match-fixing.

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