House votes to keep current estate tax rate - Washington Post

House votes to keep current estate tax rate -Washington Post

By Ben Pershing
Friday, December 4, 2009

The House approved a measure Thursday that would make the current estate tax rate permanent, setting it at 45 percent for individual estates worth more than $3.5 million.

The bill passed 225 to 200, with 26 Democrats joining all Republicans present in voting no. If Congress does not act, the estate tax will disappear in 2010, then return in 2011 under the higher rates -- 55 percent and a $1 million exemption -- that existed before President George W. Bush took office.

The tax is one of several bills and expiring laws that require attention from Congress by Dec. 31, even as the Senate expects to devote much of its time to the marathon health-care debate.

Some Democrats in both chambers would prefer to see higher estate tax rates, arguing that the pre-2001 rates were fair and provided the government with much-needed revenue. Making the current rates permanent would cost the government an estimated $234 billion in revenue over the next 10 years.

Most Republicans oppose the estate tax on philosophical grounds and want it abolished. "Death should not be a taxable event," said Rep. Dave Camp (Mich.), the top Republican on the tax-writing Ways and Means Committee.

While Republicans invoked distressed farmers and business owners Thursday, Democrats suggested that the GOP is more interested in shielding the wealthiest Americans from taxation.

"Abolishing the estate tax would add billions and billions to our deficit -- and while a small number of wealthy families would benefit, the growth of our economy as a whole would suffer," said House Majority Leader Steny H. Hoyer (D-Md.).

Under the current rate, .23 percent of all estates are subject to taxation in 2009, according to the Tax Policy Center, a think tank. Since the exemption of $3.5 million for individuals -- married couples can generally exempt estates of up to $7 million -- is not indexed for inflation, that percentage will gradually increase over time.

It is unclear when the Senate can fit in consideration of the estate tax, and whether the House's approach could garner the 60 votes necessary to move forward in the Senate. The Senate is more likely to pass a one-year extension of current law, aides said, essentially deferring the question until next year.

Beyond the estate tax, a host of other measures are on deck in December, even as Senate Majority Leader Harry M. Reid (D-Nev.) has threatened to keep the chamber in session nights and weekends just to finish health care. Procedural rules in the chamber would make it difficult and time-consuming to shift from health care to other issues, and then come back.

By the end of the year, Congress must deal in some fashion with seven unfinished appropriations bills, an increase in the federal debt limit, expiring provisions of the USA Patriot Act and bills governing highway funding and authorization of the Federal Aviation Administration. Expiring international trade preferences and tariff breaks for imported products may also require attention.

Republicans are already bracing for the prospect of a huge, quickly assembled spending bill at the end of session.

"It's always ugly, but this one may reach a new level of ugliness," said Rep. Jeff Flake (R-Ariz.), a longtime critic of the appropriations process. "I assume this is going to be one of the biggest Christmas trees we've seen at this time of year."

But Democrats say a big reason for the last-minute pileup in the Senate is the minority's effort to slow the process on health care and other vital bills.

"So far, they've taken every opportunity they can to stall important legislation and slow down progress on a number of key issues," said Jim Manley, a spokesman for Reid.

USDA: New USDA study helps identify strategies to improve nutrition of school meals

New USDA Study Helps Identify Strategies to Improve Nutrition of School Meals - USDA

WASHINGTON, Dec. 2, 2009 - USDA's Economic Research Service (ERS) today released a study Meeting Total Fat Requirements for School Lunches, which finds that many school policies and practices are associated with the fat content of meals they serve through the National School Lunch Program. An earlier USDA report had found that while most schools met requirements for vitamins, protein, calcium, and iron, only one in five schools serve lunches that met the USDA standard for total fat (constituting 30 percent or less of the calories).

"A number of recent studies indicate that one-third of all children between the ages of 6 and 19 are overweight or obese and we must take immediate steps to improve the nutritional quality of school meals and the health of the school environment," said Agriculture Secretary Tom Vilsack. "We have a window of opportunity to make progress on improving the nutrition of school lunches as Congress reauthorizes the Child Nutrition Act, but I also urge schools across the country to embrace the policies and practices identified in this study to help reduce the fat content of school meals and help our children to lead healthier lives."

School policies and practices linked to lower fat lunches include promotion of fresh fruits and vegetables or locally grown foods, offering low fat dairy products, eliminating vending machines in middle and high schools, and adopting a "nutrient content" or "enhanced food-based" meal planning method. Read the full ERS study at www.ers.usda.gov/Publications/ERR87.

Congress is currently considering reauthorization of the Child Nutrition Act, which provides the outline for the National School Lunch and Breakfast Programs that serve more than 31 million children in more than 100,000 schools across the country. Administration priorities include eliminating barriers that keep children from participating in school nutrition programs, improving the quality of school meals and the health of the school environment, and enhancing program performance.

A recent Institute of Medicine report commissioned by USDA showed that, on average, American children between the ages of 5 and 18 consume about 720 to 950 empty, discretionary calories per day - several times more than recommended. The study also noted that children are eating far less dark green and dark orange vegetables and fruits than they need, far more refined grains and far too few whole grains, and too few low fat or non-fat dairy products, which puts children at increased risk for a variety of obesity-related conditions like diabetes, heart disease, cancer and high blood pressure.

Over 632 schools across the country have already implemented many of the practices discussed in the ERS study, and have been recognized through HealthierUS School Challenge. Established in 2004, participating schools are awarded one of four levels of superior performance: Bronze, Silver, Gold, and Gold of Distinction. To qualify for the awards, a school must submit a formal application and meet basic criteria set forth by the USDA's Food and Nutrition Service (FNS). Schools can complete the application online at www.fns.usda.gov.

The National School Lunch Program serves nutritionally balanced meals to more than 31 million children in 101,000 schools and residential childcare institutions each school day.

Wal-Mart pays $40 million to workers - Boston.com

Wal-Mart pays $40 million to workers

Wal-Mart Stores Inc., the world’s largest retailer, has agreed to pay $40 million to as many as 87,500 current and former employees in Massachusetts, the largest wage-and-hour class-action settlement in the state’s history.

The class-action lawsuit, filed in 2001, accused the retailer of denying workers rest and meal breaks, refusing to pay overtime, and manipulating time cards to lower employees’ pay. Under terms of the agreement, which was filed in Middlesex Superior Court yesterday by the employees’ attorneys, any person who worked for Wal-Mart between August 1995 and the settlement date will receive a payment of between $400 and $2,500, depending on the number of years worked, with the average worker receiving a check for $734.

“The magnitude is large - it’s bigger than most settlements paid in wage-and-hour cases,’’ said Justin M. Swartz of New York-based law firm Outten & Golden LLP, who has handled similar cases, including a pending case against Wal-Mart. “But you would expect it to be bigger since Wal-Mart is the biggest retailer.’’

Under the terms of the settlement, neither side is allowed to comment. But in an affidavit filed with the settlement, the lead counsel for the employees, Philip Gordon of Boston’s Gordon Law Group, said the accord “dwarfs settlements of similar class actions against Wal-Mart across the country.’’

“For many employers, this settlement will serve as a reminder to take the payment of earned wages and benefits seriously. For many other employers, it will provide comfort that all Massachusetts businesses must operate on a level playing field,’’ Gordon wrote in the affidavit. “But most importantly, for employees of Wal-Mart, it finally pays them their earned wages and it puts in place systems and processes to ensure that abuses like those alleged never happen again.’’

The Massachusetts case is similar to many others that have been brought against the retail behemoth by employees across the country, most alleging that the Bentonville, Ark.-based company violated laws by requiring employees to work through breaks, to work beyond their regular shifts, and similar practices. Wal-Mart has denied the allegations, but in December, the merchant agreed to pay up to $640 million to settle 63 federal and state class-action wage-and-hour lawsuits.

The Massachusetts case, which was not part of that settlement, was initially filed eight years ago on behalf of 67,000 people who worked for Wal-Mart in Massachusetts between 1995 and 2005. The two plaintiffs, Elaine Polion and Crystal Salvas, left Wal-Mart years ago. The case has been moving back and forth for years, first being certified as a class action, being almost thrown out as a trial date approached in 2006, and then being revived on appeal and sent back to trial as a class action by the state Supreme Judicial Court two years ago.

Streetinsider - Wells Fargo on Dole Food Co.

Streetinsider - Wells Fargo on Dole Food Co.

Wells Fargo initiates coverage on Dole Food Company (Nasdaq: DOLE) with a Market Perform rating. Valuation range $12-14

Wells analyst says, "We have a favorable view of Dole's global brand strength which is supported by an
extensive distribution network and consumer trends toward health and convenience. While we are encouraged by Dole's value-added focus, we think the global economic environment may dampen near-term growth opportunities as consumers continue to pullback on spending.Our CY2010 adjusted EBITDA target is $439.5M...We think Dole is well-positioned with a strong global brand and extensive distribution network supported by consistent underlying demand and favorable consumer trends toward health and convenience. Our Market Perform rating reflects concern that the global macro environment may limit near-term catalysts, particularly for value-added offerings that may be more cyclical...We think Dole's global platform is positioned to capitalize on potential increases in fresh fruit consumption, especially bananas, as world economies improve and per capita income rises. Dole views Eastern Europe, Russia, the Middle East and China as attractive, high-growth markets."

To see all the upgrades/downgrades on shares of DOLE, visit our Analyst Ratings page.

NYT

Honduran Congress Votes Down Return by Zelaya - NYT

By ELISABETH MALKIN

MEXICO CITY — The Honduran Congress voted Wednesday night against restoring the ousted president, Manuel Zelaya, to office to serve out the last two months of his term, throwing into further disarray an American-backed plan to end the country’s political crisis.

Congress voted 111-14 to ratify its decision on June 28 to vote Mr. Zelaya out of office after he had been arrested by the military and flown out of the country.

One by one, the lawmakers announced their votes. Congressman José Simón Azcona said it was best for the country “to turn the page and start anew.”

The vote was stipulated in an accord the United States helped broker a month ago that was signed by Mr. Zelaya and the de facto president, Roberto Micheletti.

The agreement had appeared to be a road map for a compromise between the feuding politicians. Once its conditions were met, American officials said, the accord would lead the international community to restore relations and economic aid to Honduras.

Congress’s vote came three days after a general election — set long before the political upheaval began — that was won by a veteran conservative politician, Porfirio Lobo. He is to take office as president on Jan. 27.

Mr. Zelaya, who has been hunkered down in the Brazilian Embassy in Tegucigalpa, the Honduran capital, since September, appeared to believe when he signed the deal that he had enough votes in Congress to be restored to office to complete his term.

That misjudgment leaves his future in doubt. The de facto government has said that it will arrest him on charges of corruption and abuse of power if he leaves the embassy. Mr. Lobo has refused to say whether his government would pursue those charges once he took office.

The plan, which Mr. Micheletti agreed to only after senior Obama administration officials landed in Tegucigalpa to take charge of the talks, also called for both sides to form a unity government; it is not clear how that could now take place without Mr. Zelaya. The remaining step was the naming of a truth commission, which has not occurred.

On Monday, the day after the election, Arturo Valenzuela, the American assistant secretary of state for Western Hemisphere affairs, told reporters in Washington that for Honduras to return to the good graces of the international community, all of the accord’s conditions would have to be met.

But as the date grows closer for Mr. Lobo’s inauguration, the de facto government and its allies may feel less pressure to act on the agreement. Mr. Lobo won the election handily, and although only a few Latin American countries have recognized the result, many nations issued statements acknowledging that the vote went smoothly.

American officials have said privately that many countries will eventually move toward recognizing the results.

Mr. Zelaya had asked his supporters to boycott the vote. After offering conflicting estimates of the turnout on Sunday, the electoral board had not issued a confirmed figure by Wednesday.