Israel launches scores of airstrikes into Gaza

GAZA CITY, Gaza Strip (AP) — Israel bombarded the Hamas-ruled Gaza Strip with nearly 200 airstrikes early Saturday, the military said, widening a blistering assault on Gaza rocket operations to include the prime minister's headquarters, a police compound and a vast network of smuggling tunnels.

The new attacks, which Gaza officials say left 10 dead, followed an unprecedented rocket strike aimed at the contested holy city of Jerusalem that raised the stakes in Israel's violent confrontation with Palestinian militants and extended the battlefield.

Israeli aircraft also kept pounding their original targets, the militants' weapons storage facilities and underground rocket launching sites. They also went after rocket squads more aggressively. The military has called up thousands of reservists and massed troops, tanks and other armored vehicles along the border with Gaza, signaling a ground invasion could be imminent.

Militants, undaunted by the heavy damage the Israeli attacks have inflicted, have unleashed some 500 rockets against the Jewish state, including new, longer-range weapons turned for the first time this week against Jerusalem and the Tel Aviv heartland. Following those attacks, the military deployed an Iron Dome rocket defense battery in central Israel on Saturday. The system, devised precisely to deflect the Gaza rocket threat, was deployed two months earlier than planned, the Defense Ministry said.

Ten people, including eight militants, were killed and dozens were wounded in the various attacks early Saturday, Gaza health official Ashraf al-Kidra said. In all, 40 Palestinians including 13 civilians and three Israeli civilians have been killed since the Israeli operation began.

The violence has widened the instability gripping the Mideast. At the same time, revolts against entrenched regional regimes have opened up new possibilities for Hamas. Islamists across the Mideast have been strengthened, bringing newfound recognition to Hamas, shunned by the international community because of its refusal to recognize Israel and renounce violence.

A high-level Tunisian delegation, led by Foreign Minister Rafik Abdessalem, drove that point home with a visit to Gaza on Saturday. The foreign minister's first stop was the still-smoldering ruins of the three-story office building of Gaza's prime minister, Ismail Haniyeh of Hamas.

"Israel has to understand that there is an international law and it has to respect the international law to stop the aggression against the Palestinian people," Abdessalem told The Associated Press during a tour of Gaza's main hospital, Shifa, later Saturday. He said his country was doing whatever it can to promote a cease-fire, but did not elaborate.

It was the first official Tunisian visit since Hamas's violent 2007 takeover of the territory. Egypt's prime minister visited Friday and a Moroccan delegation is due on Sunday, following a landmark visit by Qatar's leader last month that implied political recognition.

Israel had been incrementally expanding its operation beyond military targets but before dawn on Saturday it ramped that up dramatically, hitting Hamas symbols of power. Israeli defense officials, speaking on condition of anonymity to discuss confidential decisions, said military chief Lt. Gen. Benny Gantz personally ordered the scope of the airstrikes to be increased.

Haniyeh's three-story office building was flattened by an airstrike that blew out windows in neighboring homes. He was not inside the building at the time.

The building's security chief said Hamas scored points despite Israel's military superiority.

"Hamas responded to the Zionist aggression and hit them in the depth of their land," he said, referring to rockets aimed Friday at Jerusalem and Tel Aviv.

Another airstrike brought down the three-story home of a Hamas commander in the Jebaliya refugee camp near Gaza City, critically wounding him and injuring other residents of the building, medics said.

Missiles smashed into two small security facilities and the massive Hamas police headquarters in Gaza City, setting off a huge blaze that engulfed nearby houses and civilian cars parked outside, the Interior Ministry reported. No one was inside the buildings.

The Interior Ministry said a government compound was also hit while devout Muslims streamed to the area for early morning prayers, although it did not report any casualties from that attack.

Air attacks knocked out five electricity transformers, cutting off power to more than 400,000 people in southern Gaza, according to the Gaza electricity distribution company. People switched on backup generators for limited electrical supplies.

In southern Gaza, aircraft went after underground tunnels militants use to smuggle in weapons and other contraband from Egypt, residents reported. A huge explosion in the area sent buildings shuddering in the Egyptian city of El-Arish, 45 kilometers (30 miles) away, an Associated Press correspondent there reported.

The Israeli military said more than 800 targets have been struck since the operation began.

The widened scope of targets brings the scale of fighting closer to that of the war the two groups waged four years ago. Hamas was badly bruised during that conflict, but has since restocked its arsenal with more and better weapons, and has been under pressure from smaller, more militant groups to prove its commitment to fighting Israel.

The attack aimed at Jerusalem on Friday and two strikes on metropolitan Tel Aviv showcased the militants' new capabilities, including a locally made rocket that appears to have taken Israeli defense officials by surprise. Both areas had remained outside the gunmen's reach before.

Just a few years ago, Palestinian rockets were limited to crude devices manufactured in Gaza. But in recent years, Israeli officials say, Hamas and other armed groups have smuggled in sophisticated, longer-range rockets from Iran and Libya.

Israeli leaders have threatened to widen the operation even further if the rocket fire doesn't halt. Foreign Minister Avigdor Lieberman said options included the possible assassination of Haniyeh, the prime minister.

Israeli Prime Minister Benjamin Netanyahu met in emergency session with Cabinet ministers Friday and they approved mobilizing up to 75,000 reservists, more than doubling the number authorized earlier this week. That would be the largest call-up in a decade. At a parking lot in central Israel, uniformed reservists waited to board buses. One prayed, covered in a Jewish prayer shawl.

Lt. Col. Avital Leibovich, a military spokeswoman, said 16,000 reservists were called to duty on Friday and others could soon follow.

She said no decision had been made on a ground offensive but all options are on the table.

President Barack Obama spoke separately to Israeli and Egyptian leaders Friday as the violence in Gaza intensified. In a conversation with Israeli Prime Minister Benjamin Netanyahu, he reiterated U.S. support for Israel's right to self-defense. To Egyptian President Mohammed Morsi, he praised Egypt's efforts to ease regional tensions.

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Teibel reported from Jerusalem. Associated Press writers Karin Laub in Gaza City and Matthew Daly in Washington contributed reporting.

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Jamaica to abolish slavery-era flogging law

KINGSTON, Jamaica (AP) — Jamaica is preparing to abolish a slavery-era law allowing flogging and whipping as means of punishing prisoners, the Caribbean country’s justice ministry said Thursday.

The ministry said the punishment hasn’t been ordered by a court since 2004 but the statutes remain in the island’s penal code. It was administered with strokes from a tamarind-tree switch or a cat o’nine tails, a whip made of nine, knotted cords.

Justice Minister Mark Golding says the “degrading” punishment is an anachronism which violates Jamaica’s international obligations and is preventing Prime Minister Portia Simpson Miller‘s government from ratifying the U.N. convention against torture.

“The time has come to regularize this situation by getting these colonial-era laws off our books once and for all,” Golding said in a Thursday statement.

The Cabinet has already approved repealing the flogging law and amendments to other laws in the former British colony, where plantation slavery was particularly brutal.

The announcement was welcomed by human rights activists who view the flogging law as a barbaric throwback in a nation populated mostly by the descendants of slaves.

“We don’t really see that (the flogging law) has any part in the approach of dealing with crime in a modern democracy,” said group spokeswoman Susan Goffe.

But there are no shortage of crime-weary Jamaicans who feel that authorities should not drop the old statutes but instead enforce them, arguing that thieves who steal livestock or violent criminals who harm innocent people should receive a whipping to teach them a lesson.

“The worst criminals need strong punishing or else they’ll do crimes over and over,” said Chris Drummond, a Kingston man with three school-age children. “Getting locked up is not always enough.”

The last to suffer the punishment in Jamaica was Errol Pryce, who was sentenced to four years in prison and six lashes in 1994 for stabbing his mother-in-law.

Pryce was flogged the day before being released from prison in 1997 and later complained to the U.N. Human Rights Committee, which ruled in 2004 that the form of corporal punishment was cruel, inhuman and degrading and violated his rights. Jamaican courts then stopped ordering whipping or flogging.

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After Garbo, Leigh, no defining “Anna Karenina”: Knightley

LOS ANGELES (Reuters) – Film adaptations of “Anna Karenina” have featured the likes of Greta Garbo and Vivien Leigh, but Keira Knightley isn’t fazed about measuring up to such silver screen luminaries with a new cinematic take on Leo Tolstoy‘s classic novel.

The British actress’s turn in the title role in the timeless story about a beautiful married socialite in 1870s Russia who embarks on a passionate affair with a cavalry officer, follows the 1935 version starring Garbo and the 1948 film with Leigh. It is released in the United States on Friday.

“Although there have been many famous actresses play her, there’s never been a definitive version of ‘Anna Karenina,’” Knightley said in an interview. “I think it’s partly because of the relationship you have with the character. She poses more questions than she answers, so it’s always open to different interpretation.”

Knightley stars opposite Jude Law as her husband, and Aaron Taylor-Johnson as the dashing Count Vronsky, and teams up again with filmmaker Joe Wright in their third film together after previous book-to-film collaborations with 2007′s “Atonement” and 2005′s “Pride & Prejudice.”

The film debuted at the Toronto film festival to warm reviews for Knightley‘s performance. Critics have said the film is overall technically and visually accomplished but lacks a cohesive emotional punch.

Adapted by playwright Tom Stoppard, Wright’s “Anna Karenina” takes place mostly in a theater setting and sees the title character more high-strung and less sympathetic than in previous incarnations.

The director said he cast Knightley, 27, because he felt she could tap into all the internal elements of Anna.

“She was 18 when we made ‘Pride & Prejudice‘, just a kid,” said Wright. “I’ve seen her develop from stunning ingénue to great actress. I felt that she was stronger, braver, even less conforming than she had been before.”

Knightley, newly engaged to musician James Righton, said she stood in moral condemnation over Anna,- “But am I any better than her? No.”

“I think we’re all her,” she added. “That is why she’s so terrifying. We all have bits of her personality within us. We can be wonderful, we can be loving, we can be full of laughter and full of life, and we can also be deceitful, malicious, needy and full of rage.”

WORLDS AWAY

While “Karenina” cements the perception of Knightley as a go-to actress for period pieces that also includes films like 2008′s “The Duchess” and 2004′s “King Arthur,” her career wasn’t always associated with roles grounded in the past.

Knightley spent the 1990s working in the British film and television industry before gaining international attention in the 2002 teenage soccer movie “Bend it Like Beckham.” After that, the actress said she was offered “an awful lot” of films in the teenage genre.

“The one thing that I knew right from the beginning was that I didn’t want to get into those high school movies,” she said. “I was never that interested in being a teenager. I was always interested in worlds away from my own.”

She credits the “massive” success of the “Pirates of the Caribbean” franchise – which saw her play Elizabeth Swan in the first three installments – as an integral part of her career and “a lot of the reason I was able to do other kinds of smaller films, because my name would help in financing them.”

Coming up, Knightley takes a turn away from costume dramas, in “Can A Song Save Your Life?” – a musical drama that sees her starring as an aspiring singer who meets a down-on-his-luck record producer, played by Mark Ruffalo. She’s currently shooting a reboot of the Tom Clancy thriller “Jack Ryan.”

“I got to the end of ‘Anna Karenina’ and I realized that I’d done about five years of work where I pretty much died in every movie and it was all very dark,” she said. “So I thought, okay, I want this year to be the year of positivity and pure entertainment.”

(Reporting by Zorianna Kit, editing by Christine Kearney and Patricia Reaney)

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Exclusive: U.S. drug testing firm probed for alleged fraud, intimidation

(Reuters) – A federal grand jury in Boston is investigating Millennium Laboratories of San Diego, a fast-growing private company selling urine drug testing services to pain clinics across the United States.

The company not only is under investigation by the Justice Department for allegations of health care fraud but also for intimidating former employees, one who was portrayed in a slideshow at a company meeting as a corpse in a body bag.

Two of the ex-employees, who had raised concerns about Millennium’s sales practices, also say they were followed for weeks by private investigators they believe were hired by the company.

No criminal charges have been filed, and Howard Appel, Millennium’s president, said the company is cooperating fully with a Justice Department subpoena and did nothing wrong.

Appel said the company is a leader in business ethics in the estimated $ 4 billion industry that helps doctors monitor the soaring use and abuse of pain drugs. He said the grand jury may also be investigating Millennium’s competitors.

Four witnesses, speaking publicly for the first time, described their grand jury testimony to Reuters in separate interviews. They said they were only asked about Millennium.

Reuters reviewed copies of five grand jury subpoenas seeking records on Millennium. Federal grand juries operate in secrecy to investigate matters that might constitute criminal conduct. Witnesses are free to describe what they said.

All four said they testified that Millennium was getting doctors to order unnecessary urine tests and charging excessive fees to Medicare and private insurers. Millennium has denied those accusations in civil lawsuits.

The body-bags picture was part of a PowerPoint presentation by Martin Price, the company’s general counsel, the former employees said. He showed it at a national sales meeting in January in which Price described Millennium’s success against its adversaries, according to one grand jury witness, former Millennium employee Jodie Strain.

Strain said grand jurors gasped when the body-bag image was projected onto a wall during her testimony October 3. She said the toe tag identified the corpse as Ed Zicari, a former regional manager Millennium was suing.

Appel declined to comment on the body bag picture. The United States attorney’s office in Boston also declined to comment.

Other slides that were part of Price’s presentation showed the logos of competing companies being riddled with bullet holes while gunfire sounded as if they were at a shooting range. Strain, a former senior sales representative, said the talk ended with an ominous warning: The company could not protect people who went “outside the Millennium family.”

Strain and another person who witnessed the PowerPoint presentation, in a separate interview, said more than 200 sales people in the audience fell silent at the body bag picture.

“I took it as a complete warning and threat to not only not go to the competition but don’t even question Millennium once you were no longer under their protection,” Strain said in an interview.

“That was definitely quite scary,” said another former employee who spoke on condition of anonymity. “It sent a very clear message not to mess with Millennium Labs.” That person also said Price had told the staff to put away cell phones, which could have been used to take pictures, before the presentation. Through a company spokesman, Price declined to comment.

Shortly after Price’s presentation, Strain said she told Zicari’s girlfriend about the slide show because she feared for their safety. Strain said she was fired the next week.

Zicari and his girlfriend, Lori Martin, a former sales representative at the company, were being sued by Millennium at the time for allegedly taking confidential information when they left the company. Both also accused the company of misconduct. The suit was settled last summer.

Zicari and Strain are currently pursuing suits against Millennium for wrongful termination and other claims.

Appel described them as “disgruntled former employees” who were fired for cause, not for questioning company practices. He described Zicari as “alive and well and living in Texas.”

Daniel Richman, a former federal prosecutor who teaches criminal law at Columbia University, said intimidating images such as a body bag representing a former employee could be “potent” evidence for obstruction charges or to argue bad intent on other charges if they are brought.

FOCUS ON SALES

The grand jury witnesses said most of their testimony focused on the company’s sales practices. They said Millennium had aggressive pitches to pain clinics to order varieties of urine tests even when they were not needed, at up to $ 1,600 a test. Urine tests can show doctors whether their patients are taking extra pain drugs and whether they are taking their prescribed drugs.

The federal investigation is led by Susan Winkler, former chief of the health care fraud unit for the U.S. attorney in Boston. That unit has recovered more than $ 8.5 billion in settlements, fines and judgments since 2009.

Winkler signed the Millennium subpoenas and questioned the witnesses before the grand jury. Christina Sterling, a spokeswoman for the U.S. attorney, would not confirm or deny that a case was before the grand jury.

Marc Raspanti, a partner in a Philadelphia corporate-defense law firm, said grand juries generally only consider matters in which prosecutors have a strong suspicion of criminal behavior. It would take probable cause to indict, and evidence beyond a reasonable doubt to convict.

Millennium has not been called to testify.

“Not yet, but when called to do so, we will,” Appel said.

The urine drug testing industry has taken off as the number of pain drug prescriptions in the United States grew from 30 million to 180 million a year over the last two decades, raising demand for monitoring, Appel said. The burgeoning industry has spawned two previously disclosed prosecutions and scores of suits and countersuits by companies accusing each other of wrongdoing.

In March, Calloway Laboratories of Woburn, Mass., paid $ 20 million to settle a Massachusetts state Medicaid case accusing it of paying kickbacks for unnecessary screening. Three former Calloway officials were sentenced to four years probation. And in 2010, Ameritox, based in Baltimore, Md., paid $ 16.3 million to settle similar claims by the federal government.

PREVIOUS DISPUTES

Millennium has been in heated legal disputes with both of those competitors, but at the same time, held itself out as a leader in industry accountability.

Millennium and its founder say they gave $ 2 million to the University of Washington in 2010 to study pain; $ 312,000 to a state of Florida program in 2010 to track prescription drugs; and $ 250,000 to a Duke University professor in April to host “a business summit on ethical practices in the medication monitoring industry.”

“This is a new industry,” Appel said. “A lot of companies are popping up, and it’s important that all companies are held accountable to make sure they comply with a standard of ethics and accountability.”

Millennium said in a civil suit filed September 18 that it received a Justice Department subpoena March 27 for “over 20 broad categories of company documents and materials.” Appel declined to be more specific. In the civil suit, Millennium is seeking up to $ 5 million from an insurance policy to defend itself in the federal investigation, while the insurer, Allied World Assurance, says it will only pay $ 100,000. The case is pending.

Appel said the company plays a vital role in helping doctors and patients. He declined to talk about Millennium’s size or revenues, but ex-employees say they were told it had grown into the biggest company in the sector.

The ex-employees told the grand jury that Millennium encouraged unnecessary and excessive testing in a variety of ways. They have made similar statements in civil suits.

Millennium sales tactics, they said, included a chart showing doctors how much they could boost their own income by increasing the number of urine drug tests they ordered. For instance, a $ 15 payment to test for one drug could balloon to about $ 800,000 a year if 20 people a day were tested and each urine sample was tested for 11 drugs, the chart said.

URINE CUP KICKBACKS?

Kelly Nelson, a former regional sales manager for Millennium, and Strain both said they testified to the grand jury in response to questions about a federal anti-kickback law. They said Millennium gave doctors free boxes of collection cups with embedded test strips — worth $ 3 to $ 6 per cup – to encourage referrals, which the prosecutor questioned under an anti-kickback measure called the Stark Law.

“I told the grand jury I objected to the frequency of testing and the free cups,” Nelson said. She said she was fired after complaining about the practices and is suing the company.

Millennium was founded in 2007 by Edward Slattery. His bio says he previously worked in real estate and broadcast and served eight years as Massachusetts commissioner of aeronautics. Last year, he won an Ernst & Young Entrepreneur of the Year award in San Diego. He declined to comment.

Price, Millennium’s general counsel, joined the company in 2011 after working as its outside counsel for the giant lawfirm Hogan Lovells. His biographical sketch says he had a “prolific record” defending companies against government investigations, class actions and other legal cases.

At the time of the sales meeting, Millennium was suing Martin and Zicari for allegedly giving confidential information to a lawyer for a competing company. The suit was settled in July. During that period, Martin and Zicari said private detectives they believe were hired by a law firm for Millennium trailed them in the Dallas area and parked outside their homes. Millennium declined to say whether it had hired the detectives.

“After a time you come to the conclusion they’re doing it to harass you more than anything else, or to intimidate you,” Martin said.

(This story has been corrected to fix spelling of name of company throughout)

(Reporting By Duff Wilson; editing by Blake Morrison)

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Petraeus testifies on Benghazi attack

WASHINGTON (AP) — Ex-CIA Director David Petraeus (peh-TRAY'-uhs) has told Congress that references to militant groups Ansar al-Shariah and al-Qaida in the Islamic Maghreb were removed from the agency's draft talking points of what sparked the Sept. 11 attack on the U.S. Consulate in Libya.

A congressional staffer says Petraeus testified in a closed-door hearing Friday that the CIA's talking points did name those groups.

Petraeus told lawmakers he wasn't sure which agency replaced the groups' names with the word "extremist" in the final draft. But he said he allowed other agencies to alter the talking points as they saw fit without asking for final review, to get them out quickly.

The staffer wasn't authorized to discuss the hearing publicly and described Petraeus' testimony to The Associated Press on a condition of anonymity.

Photos: Players in the Petraeus scandal

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Canada’s Carney says rate hikes “less imminent”

TORONTO (Reuters) – Interest rate hikes have become less imminent than the Bank of Canada once expected, although rates are still likely to rise, central bank Governor Mark Carney said in an interview published on Saturday.

“Over time, rates are likely to increase somewhat, but over time, so a less imminent timing relative to our expectation,” Carney said in an interview with the National Post newspaper.

Canada’s economy rebounded better than most from the global economic recession, and the Bank of Canada is the only central bank in the Group of Seven leading industrialized nations that is currently hinting at higher interest rates.

But Carney has also made clear that there will be no rate rise for a while, despite high domestic borrowing rates that he sees as a major risk to a still fragile economy.

“We’ve been very clear in terms of lines of defense in addressing financial vulnerabilities,” he said in the interview. “And the most prominent one, obviously, in Canada, is household debt.”

He said the bank was monitoring the impact of four successive government moves to tighten mortgage lending, which aimed to take the froth out of a hot housing market without causing a damaging crash in prices.

A Reuters poll published on Friday showed the majority of 20 forecasters believe the government has done enough to rein in runaway prices, preventing the type of crash that devastated the U.S. market.

The experts expect Canadian housing prices to fall 10 percent over the next several years, but they do not expect the recent property boom to end in a U.S.-style collapse.

(Reporting by Janet Guttsman; Editing by Vicki Allen)

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With TV and film production heading overseas, should Uncle Sam get into showbiz?

LOS ANGELES (TheWrap.com) – Is it time for Uncle Sam to go Hollywood?

With the exodus of film and TV production to foreign shores – and with the states’ incentives plans frequently out-gunned by countries outside the U.S. – there is some thought that it may be time for the federal government to step in.

The idea of the federal government helping out Hollywood while it is drowning in red ink is sure to raise hackles in some quarters. But filmmaker Michael Moore, for one, thinks it’s an idea whose time has come. And he’s not alone.

“That is one good thing the government can do in terms of being helpful and supportive, whether it’s filmmaking or other artistic endeavors,” Moore told TheWrap.

And he added, it’s also time for the states to stop fighting each other with differing tax-incentive plans. “I’ve always opposed New Mexico against North Carolina, or Michigan against L.A. I don’t like that. It’s not right. We’re Americans.”

Moore is not alone.

There are reasons to keep TV and film production from going abroad. The industry provides more than 2.4 million American jobs and adds nearly $ 180 billion to the U.S. economy annually and $ 15 billion in federal and state taxes, according to the Motion Picture Association of America.

Joe Chianese, executive VP at showbiz payroll giant Entertainment Partners Financial Solutions, believes the idea of getting the feds involved makes sense.

“You watched the debates and heard both President Obama and Gov. Romney talking about how it’s all about jobs, and they talked about how the manufacturing industry has basically been lost to overseas,” Chianese told TheWrap. “Well, we’re looking at the same sort of situation with the TV and film industry if something isn’t done.”

As he spoke to TheWrap, Chianese was about to set off for Japan, where government and film-industry officials were considering an incentive program that would align them with the more than 30 foreign countries trying to lure U.S. entertainment productions.

“You can’t blame filmmakers for taking their business elsewhere,” he said. “They’re taking their work overseas for the same reasons manufacturers are: It’s cheaper.”

Until recently, the federal government provided some help. Section 181 of the current tax code lowered the cost of capital for domestic film and TV production by providing immediate expensing on the first $ 15 million of production costs. To be eligible, 75 percent of the production had to occur in the U.S.

But it expired at the end of 2011.

California Republican Congressmen David Dreier has co-authored legislation to bring 181 back for another two years, but it is mired in Congress, along with a number of other tax-law extensions.

“Jobs are our No. 1 priority, and this bill will help more people find good jobs in California and across the U.S.,” said Dreier, who represents much of the San Gabriel Valley. “We need to create an environment that will keep entertainment productions here so that caterers, makeup artists and other small businesses that support them can create jobs too.”

Amy Lemistch, executive director of the California Film Commission, shares the world view on keeping show business here.

“We see California’s runaway production problem as a global issue,” she told TheWrap “not a state vs. state issue. People are going to the U.K. and Canada as much as they are going to other states.”

Smaller nations like Sri Lanka have begun offering breaks, and others like New Zealand have ramped up state-of-the-art production infrastructures. Even Iceland recently lured the HBO series “Game of Thrones” and the feature films “Noah” and “Prometheus.”

Particularly galling to California Film Commission officials is when productions set in the state are lured overseas. Recent examples would be the now-canceled Fox TV series “Alcratraz” and the L.A.-set movie “This Means War,” both of which shot in Vancouver.

Unlike Moore, Chianese, a tax specialist who worked with the commission when it was crafting its credits program, sees the federal incentives coming on top of state credits, rather than replacing them.

“You add, say, a 15 percent jobs credit, where companies would get 15 percent of the salary of every hire they make,” he said. “Add that on top of, say, the 25 percent credit California offers, and you’re up to 40 percent credit. That would make a real difference when it comes to keeping entertainment jobs here.”

Chianese said he’d be willing to see Section 181 go away in favor of more direct and immediate incentives. But with Obama and Congress focused on cutbacks and new taxes to pare down the national debt before the end of the year, the timing’s not good now.

It will always be an uphill fight, particularly with the House of Representatives controlled by the budget-conscious GOP.

“You’d face the same question you always do with incentives, which is: Why favor one industry over another?” Chianese said.

Not to mention major blowback from the segments of the right, which see liberal politicians as too tied to Hollywood already.

As for state credits, Hollywood breathed a sigh of relief in late September when California Gov. Jerry Brown signed a two-year extension of the state’s film and TV production-tax credit program. But no one expects it to be a game-changer when it comes to California’s fight to remain the world’s production capital.

New York, for example, is offering 30 percent tax credits, has $ 420 million available and recently added a 25 to 30 percent credit for post-production work. By comparison, California offers a 25 percent credit, has just $ 100 million available and has tougher eligibility rules.

Still, Lemisch said, the extension was critical.

“It sends a signal to the production community that California is committed in the short and long term,” she said. That’s vital, she pointed out, especially for the producers of TV dramas, which are the most desirable shows to land because they’re typically an hour long and shoot multiple episodes.

California’s output of TV dramas fell more than 11 percent last year, while While New York was hitting record production levels.

California does have some built-in advantages that aren’t going away. If you’re based in Hollywood, staying here can be cheaper than going out of state even with incentives, because you’re not paying to ship equipment and transport crews. The state’s infrastructure of studios and post-production facilities is still the most extensive.

But that doesn’t mean other states aren’t beating California to the production punch.

North Carolina – which made headlines when it enticed the feature film “Battlefield Los Angeles” to shoot there instead of in L.A. – is very busy these days. The first “Hunger Games” was filmed there, as was “Iron Man 3.’ NBC’s new drama “Revolution” and Showtime’s “Homeland” are in production there now.

Georgia, too, has seen a recent surge in feature filming. Paramount’s “Flight,” Fox’s “Parental Guidance” and Warner Bros.’ “Trouble With the Curve” all shot there.

(Steve Pond contributed to this report)

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Brain Lesions Linked to Women Who Suffer From Migraines

Dutch researchers studying headaches have linked a higher-than-normal incidence of brain lesions to women who suffer from migraines. However, they found no relationship between the severity, frequency, or number of migraines and the progression of the lesions.

Scientists from the Leiden University Medical Center followed subjects — patients who had migraines and brain lesions identified via MRI — for 10 years, according to Medical News Today. Around 15 percent of Americans suffer from migraines.

The researchers found that women who experienced migraines had a greater risk of a significant increase of deep white matter hyperintensities — brain lesions — than those without the headaches. The increase had no significant impact on poorer cognitive performance during follow-up, however.

Migraines come in various types. They can last from hours to days without relief. The Mayo Clinic says that as many as 90 percent of migraine sufferers have a family history of the condition. Among the most common signs are pain on one side of the head, auras, blurred or lost vision, diarrhea, and speech and language problems.

While experts believe that genetics and environmental factors play roles in migraine development, they really don’t know a lot about the cause of these headaches or how the pathology actually functions. As a result, there is no absolute cure for migraines, according to the National Institute of Neurological Disorders and Stroke. However, behavioral changes such as avoiding triggers and taking certain medications sometimes help prevent the attacks.

The Dutch research team wanted to learn if migraine patients experienced an increased prevalence of brain lesions nine years after each had an initial MRI. They hoped to learn whether the frequency of migraines was tied to the progression of brain lesions and if a progression was associated with cognitive decline. Lesions are associated with an elevated risk of ischemic stroke, cognitive decline, and atherosclerotic disease.

At the study’s inception, 295 subjects made up the group with migraines. The control group had 140 patients. Nine years later, 203 subjects from the migraine group and 83 from the control group underwent MRIs to look for the progression of brain lesions. Variables included age, sex, hypertension, level of education, and presence of diabetes.

In the migraine group, 77 percent showed a progression. For the control group, 60 percent experienced it. Researchers noted no relationship between migraines and lesion progression in male subjects.

I have had two headaches classified as atypical migraines. Five years apart, they had no identifiable triggers and lasted six weeks each before suddenly disappearing. By the time I could get an appointment for an MRI for each headache, the symptoms were gone. I wondered why I should bother. However, considering the link between brain lesions in women who suffer from migraines and the problems sometimes associated with the lesions, I’ll head toward that big tube if there’s a third headache.

Vonda J. Sines has published thousands of print and online health and medical articles. She specializes in diseases and other conditions that affect the quality of life.

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More to Petraeus story than meets the eye

It's the soap opera that shocked official Washington and ensnared a previously squeaky clean CIA director at a time when he was supposed to play a role in the accounting for a possible security misstep in Libya.

We don't know all the facts of why the FBI started investigating David Petraeus' biographer and how it ultimately led to his resignation.

But a growing number of conservative commentators contend that the resignation of former CIA Director David Petraeus is more than simple amends made for a personal wrong.

Charles Krauthammer, the Fox News and Washington Post commentator, believes the Petraeus' sex scandal is linked to a closed briefing that he gave two days after the attack that killed four Americans, including Ambassador Chris Stevens, in Benghazi, Libya.

Petraeus is set to speak about circumstances surrounding the tragedy again before a House committee on Friday and possibly at a Senate Intelligence Committee hearing, as well.

Petraeus' resignation from his post at the CIA in light of his extramarital affair raised the possibility that he would not testify. But on Wednesday morning, Sen. Dianne Feinstein, D-Calif., told ABC News Petraeus had agreed to do so.

Krauthammer said on Fox News Tuesday that ties he sees between what Petraeus' told the Congress in September and his fear for his future at the CIA make his affair with biographer Paula Broadwell important to the public.

"The reason that it's important is here's a man who knows the administration holds his fate in his hands, and he gives testimony completely at variance with what the Secretary of Defense had said the day before, at variance with what he heard from the station chief in Tripoli and with everything that we had heard," Krauthammer said. "Was he influenced by the fact he knew his fate was held by people in the administration at that time?"

Krauthammer's comments seemed to imply that the man who wrote the book on the wars in Afghanistan and Iraq lied to the House Intelligence Committee to save his skin when he said that the attack was a spontaneous mob spurred by the film, "The Innocence of Muslims."

At the time of his briefings, no one in the White House was aware of the FBI investigation into Petraeus' relationship with Broadwell.

As ABC News' Martha Raddatz reported on "World News with Diane Sawyer," the FBI got involved around May or June tracing emails from Broadwell to Jill Kelley in Tampa, Fla., but President Obama was not informed about Petraeus' indiscretions until November

Former New Jersey Superior Court Judge Andrew Napolitano wrote an op-ed for the Washington Times Wednesday in which he said Petraeus was clearly forced to resign his post in an effort to keep him quiet.

"In the modern era, office-holders with forgiving spouses simply do not resign from powerful jobs because of a temporary, non-criminal, consensual adult sexual liaison, as the history of the FDR, Eisenhower, JFK, LBJ and Clinton presidencies attest. So, why is Gen. Petraeus different?" Napolitano wrote. "Someone wants to silence him."

Napolitano offered no guesses as to what those pressuring Petraeus might be hoping to suppress.

Rudy deLeon, senior vice president for national security and international policy at the Center for American Progress, said the American people should allow Petraeus to "speak for himself."

"Anyone who knows Gen. Petraeus, and I've known him since my Pentagon days, knows that his integrity comes first, that he's not a political guy, and that being straightforward is what his considerable reputation has been based on," deLeon said.

In late October, Petraeus personally traveled to Libya to investigate the CIA personnel who were in Benghazi on the night of the attack.

Read more about that trip  HERE.

On the night Petraeus first announced his resignation, Krauthammer said the affair would spur the mainstream media to dig deeper into what transpired in Benghazi.

"It will now become the hottest story around and you can be sure that even the mainstream papers, which did not show any interest whatsoever in this story up to and into the election, are going to get on it," Krauthammer said. "It will unravel."

Implications that Petraeus was covering for the White House play into a larger theory floating around conservative circles that Obama administration officials like Petraeus and U.N. Ambassador Susan Rice purposely misled the American people following the attack in Benghazi.

Sens. Lindsey Graham, R-S.C., and John McCain, R-Ariz., told ABC's Jon Karl Wednesday that they would oppose Obama's hypothetical nomination of Rice to Secretary of State, with Graham saying he didn't "trust her."

President Obama responded to this opposition Wednesday at his first press conference since taking reelection, defending the U.N. ambassador.

"She made an appearance at the request of the White House in which she gave her best understanding of the intelligence that had been provided to her," Obama said. "If Sen. McCain and Sen. Graham and others want to go after somebody, they should go after me."

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Beating tax cheats key to Italy’s recovery plan

ROME (AP) — Good plumbers may be worth their weight in gold, but when one was spotted zipping around in a bright red Ferrari, Italian tax police were fast on his trail.

Stamping out entrenched tax evasion is crucial to Premier Mario Monti‘s quest to keep Italy from succumbing to the European debt crisis, and it is critical to fellow eurozone members in more dire straits, such as Greece and Spain — which are also notorious for making cheating the taxman a way of life.

Indeed, Greece’s international rescue creditors have been pressing Greece for two years to reform its ailing tax system, citing poor collection as a key factor keeping the country mired in crisis. In Spain, where tax fraud is rampant, as much as €90 billion ($ 150 billion) is lost each year to tax fraud — the equivalent of the country’s national debt, according to Spain’s main tax inspectors union.

To succeed in Italy, authorities will have to catch the legions of self-employed and small business owners who brazenly lie about their earnings, like the plumber in the eastern town of Pescara, who socked away undeclared income in 30 bank accounts, or a successful pastry shop owner in Calabria, who on his tax return claimed he was earning next to crumbs.

And those are the less sophisticated schemers.

Tax police officials say that wealthy Italians, their companies and foreigners who make their money in Italy are increasingly trying to avoid taxes by using such strategies as falsely declaring that their base of operations or residence is abroad.

Another daunting challenge is the so-called “submerged” economy, a term embracing Italians who declare only a fraction or nothing at all of their earnings — and dentists, lawyers, doctors and other big-earning professionals are frequently among the worst offenders.

Tax evasion of all types in Italy totals about euros 240 billion ($ 300 billion), or 15 percent of the country’s gross domestic product of €1.6 trillion ($ 2 trillion), tax police estimate. Winning the war on tax cheats could therefore more than wipe out the country’s budget deficit, which is expected to increase to euros 42 billion ($ 53 billion), or 2.6 percent of GDP this year. That would start knocking away at the nation’s colossal public debt of €2 trillion ($ 2.5 trillion), or 125 percent of GDP.

But “big international frauds are up,” lamented Lt. Col. Gianluca Campana, in charge of the income tax unit revenue protection office at the Guardia di Finanza, Italy’s financial police corps which reports to the Economy Ministry.

The entrenched practice by many cafes, eateries, hair dressers and similar small business of neglecting to give customers mandatory cash register receipts commonly grabs the attention in crackdowns on tax evasion in Italy.

But, cautioned Campana, “one false (big business) invoice can equal no cash register receipts for coffees for two months.”

Over all of 2011, the total of non-declared income discovered by tax police amounted to some €50 billion ($ 65 billion), of which some 20 percent was due to international tax evasion, he said. By comparison, in the first nine months of this year, tax police discovered some €40 billion in undeclared income, with 30 percent of that blamed on international tax evasion, Campana said.

With the economic crisis shrinking bottom lines, and Italy increasingly on the hunt for big-time evasion, especially by big businesses, “there is a tendency to move capital abroad, using maneuvers apparently legal but which really are not,” Campana said. A classic technique consists of declaring one’s formal residence abroad in tax havens like Monte Carlo. Also common are companies that clearly have their business base in Italy but claim it is abroad in countries with far lower tax brackets.

Campana is armed with three degrees, including a masters in tax law from Milan’s Bocconi University, the prestigious economics institute formerly headed by Monti. He brings skills to this specialized police corps that are as finely tuned as sharp-shooting.

“We are going after the big cases (of evasion) in order to rake in more money,” Campana said.

The Ferrari-driving plumber hid some €2 million ($ 2.6 million) of his income over several years by giving his customers invoices — for jobs ranging from fixing leaks to installing new bathrooms — for the actual cost of his work, but kept a second, false registry of much lower figures for tax purposes, said Pescara tax police Col. Mauro Odorisio.

Armed with a 2008 law, authorities confiscated assets belonging to the plumber equivalent to the approximately €1 million ($ 1.3 million) they contend he owed in taxes, Odorisio said.

With Ferraris in red or yellow, and snazzy Porsches parked inside, Guardia di Finanza garages practically resemble luxury car dealerships.

The cars get sold to help recoup unpaid taxes and interest.

Overall, tax revenues in Italy were up by 4.1 percent, says the Economy Ministry, when comparing figures from the first eight months of 2012 with the same period in 2011, but much of that was due to new taxes, and not necessarily a revolution in citizens’ consciences about tax obligations.

Monti’s recipe relies heavily on taxes that are nearly impossible to avoid, such as sales tax. He also revived a property tax that his populist predecessor, Premier Silvio Berlusconi, had abolished in a promise to voters.

The ministry’s report last month noted that the property tax figured prominently in the “tendency toward growth” in tax revenues. But sales tax revenue dropped slightly despite higher sales tax rates, indicating that consumers were feeling the pinch of the stagnant economy.

The heavier fiscal burden seems to have driven some honest citizens to rebel against the engrained culture of tax evasion.

The number of phone calls from the public to the tax police’s hotline to report stores, restaurants and other businesses that didn’t give customers sales receipts has almost doubled in the first nine months of this year, compared with the same period in 2011.

It’s apparently dawning on Italians that shirking taxes in the end only costs them, in terms of ever-higher levies and cutbacks in public services.

Citizens now increasingly understand that “the lack of revenue over time caused by tax evaders forced the government to stiffen the tax burden on categories where you can’t evade taxes,” Campana said, referring to workers whose taxes are deducted from paychecks. Another area where evasion is close to impossible is real estate ownership.

Odorisio noted the crackdown included extending the statute of limitations on tax evasion from six to eight years and establishing prison as a penalty for big-time evasion.

Other weapons include a measure promoted by the Monti government that limits cash payments to no more than €1,000. Paying by credit card or personal check is a relatively new habit for Italians, who are used to carrying wads of cash in their pockets, even for big-ticket items like home renovations or vacations.

Past governments in Italy sometimes resorted to tax amnesties to try to boost revenues. But critics, contending some Italians counted on such a possibility, described that strategy as only perpetuating the tax cheat culture.

Spain hasn’t had much success with its own tax amnesty introduced by the conservative government in March. That measure, expiring soon, allows undeclared assets or those hidden in tax havens to be repatriated by paying a 10 percent tax without criminal penalty. The amnesty is estimated to recuperate far less than the expected €2.5 billion ($ 3.25 billion).

Greece saw demands for tax system reform from international rescue creditors added on to conditions for future rescue loan payments, as Greek authorities acknowledged that a high-profile campaign to crack down on major tax cheats has produced disappointing results.

The cash-strapped government over the last 10 months recovered just €19 million ($ 25 million) of the €13 billion ($ 17 billion) of arrears on the list. A prominent Greek magazine publisher recently tapped anger over rich tax evaders by publishing a list of people allegedly holding Swiss bank accounts. He was acquitted this month of breaching privacy laws.

Meanwhile, Italian tax police are chasing after cheats who have shown some of the most chutzpah about not paying their fair share of taxes, like the Padua woman who advertised on the Internet that she had a couple of “cash-only” bed and breakfast rooms to let.

Tax police discovered the lodgings are part of an apartment in public housing she was given after falsely declaring she was indigent on her annual tax forms.

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AP reporters Derek Gatopoulos in Athens and Ciaran Giles in Madrid contributed to this report.

Europe News Headlines – Yahoo! News

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