Scientific Results From Challenger Deep

Jane J. Lee


The spotlight is shining once again on the deepest ecosystems in the ocean—Challenger Deep in the Mariana Trench (map) and the New Britain Trench near Papua New Guinea. At a presentation today at the American Geophysical Union's conference in San Francisco, attendees got a glimpse into these mysterious ecosystems nearly 7 miles (11 kilometers) down, the former visited by filmmaker James Cameron during a historic dive earlier this year.

Microbiologist Douglas Bartlett with the University of California, San Diego described crustaceans called amphipods—oceanic cousins to pill bugs—that were collected from the New Britain Trench and grow to enormous sizes five miles (eight kilometers) down. Normally less than an inch (one to two centimeters) long in other deep-sea areas, the amphipods collected on the expedition measured 7 inches (17 centimeters). (Related: "Deep-Sea, Shrimp-like Creatures Survive by Eating Wood.")

Bartlett also noted that sea cucumbers, some of which may be new species, dominated many of the areas the team sampled in the New Britain Trench. The expedition visited this area before the dive to Challenger Deep.

Marine geologist Patricia Fryer with the University of Hawaii described some of the deepest seeps yet discovered. These seeps, where water heated by chemical reactions in the rocks percolates up through the seafloor and into the ocean, could offer hints of how life originated on Earth.

And astrobiologist Kevin Hand with the Jet Propulsion Laboratory in Pasadena, California, spoke about how life in these stygian ecosystems, powered by chemical reactions, could parallel the evolution of life on other planets.


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Majority Back Clinton for Presidential Bid in 2016


ap hillary clinton jp 121204 wblog Hillary Clinton Wins High Popularity, Majority Support for a 2016 Bid

Kevin Lamarque/AP Photo


Carried by a new high in personal popularity and broad approval of her work as secretary of state, Hillary Clinton closes out her diplomatic career with majority support as a candidate for president in 2016.


Fifty-seven percent in the latest ABC News/Washington Post poll say they’d back a run by Clinton to succeed Barack Obama, vs. 37 percent opposed. That includes a broad gender gap – 66 percent support for Clinton among women, dropping to 49 percent among men.


See PDF with full results, charts and tables here.


Clinton is expected to step down soon from her leadership of the State Department, a position she accepted after narrowly losing the Democratic presidential nomination to Obama in 2008. She’s demurred on the prospect of another bid for the presidency.


Clinton’s fared well during her tenure at State; 68 percent approve of her work, second only to Colin Powell among the last five secretaries of state. (He managed a remarkable 85 percent approval in 2002 and 2003.) Similarly, two-thirds in this poll, produced for ABC by Langer Research Associates, see Clinton favorably overall, numerically a new high in her long public career as first lady, U.S. Senator, presidential candidate and top U.S. diplomat.


Clinton’s recovered from personal favorability as low as 44 percent in April 2008, during her presidential run; she also dropped that low in June 2003, when she was discussed as a possible candidate in the 2004 presidential race, and in June 1996, during the Whitewater controversy. Those dips underscore the potential risks should she climb back into the political fray.


In another sign of the challenges of a political candidacy, intensity of sentiment is better for Clinton personally, and as secretary of state, than it is for her as a candidate. Her “strongly” favorable rating and strong approval of her job performance outnumber her strong negatives, in both cases, by more than 2-1 margins. Strong support for her as a candidate also outweighs strong opposition, but much more narrowly, by 9 percentage points, 36 to 27 percent.


2016 and GROUPS – Politics are comparative, so actual support for Clinton as a candidate would depend more than anything on her opponents, in the Democratic primaries and general election alike. That said, having 57 percent willing to give you a look (55 percent among registered voters) is not a bad starting point – and the differences among groups are telling.


In addition to the gender gap there are sharp differences between age and racial groups, generally similar to Obama’s support patterns. Young adults, age 18 to 29, support Clinton for president by nearly 2-1; that falls to an even split among seniors. And while she gets 52 percent support among whites, that jumps to 70 percent among nonwhites, a strongly Democratic group.


Clinton does less well among nonwhites than did Obama, who won re-election with 80 percent of their support last month. That said, while majorities of white men and married men say they’d oppose a Clinton candidacy, she’s backed by more than six in 10 white women and married women – two groups that Obama lost.


Among other groups, support for Clinton in 2016 tops out at eight in 10 Democrats and liberals, vs. 23 and 24 percent of Republicans and strong conservatives, respectively. About two-thirds of moderates and six in 10 independents say they’d support a Clinton candidacy.


It’s hard to see Clinton winning 23 percent of Republicans in an actual campaign; no Democrat has come close to that mark in exit polls dating back 36 years. That’s another sign that, while currently her numbers are positive, actually running for president can be messier than it looks from a popular perch at Foggy Bottom.


METHODOLOGY – This ABC News/Washington Post poll was conducted by landline and cell phone Nov. 28-Dec. 2, 2012, among a random national sample of 1,020 adults. Results have a margin of sampling error of 4 points. The survey was produced for ABC News by Langer Research Associates of New York, N.Y., with sampling, data collection and tabulation by SSRS/Social Science Research Solutions of Media, Pa.

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Motor Racing: Hamilton hopes to improve on Mercedes car next season






SINGAPORE: Former Formula One world champion Lewis Hamilton hopes to improve on the Mercedes car next season.

The 2008 champion is back in Singapore to inspire and give out grants to 33 Institute of Technical Education students at the ITE College West.

The scholarship was set up by billionaire Peter Lim in 2010 to nurture local sporting talents.

When asked about the recent controversy surrounding the F1 title, Hamilton brushed it off saying he couldn't care less if Sebastian Vettel or Fernando Alonso won it.

Hamilton, who will join the Mercedes F1 team next season, admitted he had to work with a slight disadvantage at Mercedes.

"I'm really excited about it. They have a slightly worse car at the moment, but if I was able to go there and help them direct that car and turn it into a good car, that's the best feeling I could probably have, he said."

- CNA/de



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FDI in retail is death knell for small industries: Sushma Swaraj

NEW DELHI: Asserting that FDI in multi-brand retail will sound the "death knell" for small industries and traders, BJP leader Sushma Swaraj on Tuesday accused the government of having failed to evolve a political consensus on the controversial issue despite making a promise in parliament.

Initiating the debate in the Lok Sabha on FDI in retail, the leader of opposition said the government claim that foreign investment would benefit farmers, consumers and generate employment was a myth. "The government has gone back on its promise of holding consultation with all stakeholders before allowing FDI in retail. It is sad that no effort was made to make a political consensus and no meeting or any consultation was held with even the main opposition party," she said.

"International experience shows that retailers do predatory pricing, and once they come to India, they will reduce prices so that smaller shops get shut... and when the competition is over, they will raise prices and the consumers will have no option but to buy at high prices," said Sushma Swaraj in a forceful speech.

Trashing the government's assertion that foreign investment would put an end to middlemen, she said: "FDI in retail will not end the middlemen culture. There are instances like in sugar industry where there are no middlemen but still farmers have to struggle for sugarcane pricing."

She quoted Punjab's example saying Pepsi promised to buy potatoes and tomatoes from farmers, but backed out later.

Countering the government's claim that FDI will increase employment, she said: "Government says that FDI will generate employment for 40 lakh people. But going by figures if we have to employ so many people, then all companies like Wal-Mart, Tesco and others coming to India need to open over 36,000 stores in 53 cities, which means over 600 stores in each city."

Sushma Swaraj said FDI in retail would sound the death knell for small industries.

"Government says that foreign companies will have to take 30 percent product from Indian small and medium enterprises, which means 70 percent will be imported."

"Can any industry be viable at 30 percent production? And 90 percent of the imported stuff will come from China and it will generate employment and growth in China, not India," she said.

"Small shops, retailers have been wiped out in countries which allowed FDI in retail. About 12 crore people will go out of jobs in India due to the UPA government's decision to allow FDI in retail," she said.

She quoted US President Barack Obama saying small business are engines of growth in the US.

"President Obama is spearheading the campaign to encourage Americans to shop at small business establishments. When the rest of the world is questioning FDI in retail, why are we welcoming it," she said.

Sushma Swaraj also read out from a letter of Prime Minister Manmohan Singh, which he wrote as the then leader of opposition in the Rajya Sabha, in which he opposed FDI in retail.

Targeting the prime minister, Sushma Swaraj said: "PM makes bold statements like if we must go down, we'll go down fighting. You must Mr PM, but fight for the poor, not the rich, fight for country, not multi-nationals, fight for small, not big."

FDI in retail "is not the step to success and improvement but is the way to the pits of destruction".

"I am not against FDI; however I am against FDI in retail. FDI should be allowed in power, airports but not retail," she said.

"We don't want to defeat you and get our way, we want to convince you and win. But if you are adamant, we will force you," she said.

"If the government does not take the decision back, then I appeal to my colleagues here, vote with us and defeat FDI (in retail)," she added.

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Mars Rover Detects Simple Organic Compounds


NASA's Mars rover Curiosity has detected several simple carbon-based organic compounds on Mars, but it remains unclear whether they were formed via Earthly contamination or whether they contain only elements indigenous to the planet.

Speaking at the American Geophysical Union annual meeting in San Francisco, Curiosity mission leaders also said that the compound perchlorate—identified previously in polar Mars—appeared to also be present in Gale Crater, the site of Curiosity's exploration.

The possible discovery of organics—or carbon-based compounds bonded to hydrogen, also called hydrocarbons—could have major implications for the mission's search for more complex organic material.

It would not necessarily mean that life exists now or ever existed on Mars, but it makes the possibility of Martian life—especially long ago when the planet was wetter and warmer—somewhat greater, since available carbon is considered to be so important to all known biology.

(See "Mars Curiosity Rover Finds Proof of Flowing Water—A First.")

The announcements came after several weeks of frenzied speculation about a "major discovery" by Curiosity on Mars. But project scientist John Grotzinger said that it remains too early to know whether Martian organics have been definitely discovered or if they're byproducts of contamination brought from Earth.

"When this data first came in, and then was confirmed in a second sample, we did have a hooting and hollering moment," he said.

"The enthusiasm we had was perhaps misunderstood. We're doing science at the pace of science, but news travels at a different speed."

Organics Detected Before on Mars

The organic compounds discovered—different combinations of carbon, hydrogen, and chlorine—are the same or similar to chlorinated organics detected in the mid-1970s by the Viking landers.

(Related: "Life on Mars Found by NASA's Viking Mission?")

At the time, the substances were written off as contamination brought from Earth, but now scientists know more about how the compounds could be formed on Mars. The big question remains whether the carbon found in the compounds is of Martian or Earthly origin.

Paul Mahaffy, the principal investigator of the instrument that may have found the simple organics—the Sample Analysis at Mars (SAM)—said that while the findings were not "definitive," they were significant and would require a great deal of further study.

Mahaffy also said the discovery came as a surprise, since the soil sample involved was hardly a prime target in the organics search. In fact, the soil was scooped primarily to clean out the rover's mobile laboratory and soil-delivery systems.

Called Rocknest, the site is a collection of rocks with rippled sand around them—an environment not considered particularly promising for discovery. The Curiosity team has always thought it had a much better chance of finding the organics in clays and sulfate minerals known to be present at the base of Mount Sharp, located in the Gale Crater, where the rover will head early next year.

(See the Mars rover Curiosity's first color pictures.)

The rover has been at Rocknest for a month and has scooped sand and soil five times. It was the first site where virtually all the instruments on Curiosity were used, Grotzinger said, and all of them proved to be working well.

They also worked well in unison—with one instrument giving the surprising signal that the minerals in the soil were not all crystalline, which led to the intensive examination of the non-crystalline portion to see if it contained any organics.

Rover Team "Very Confident"

The simple organics detected by SAM were in the chloromethane family, which contains compounds that are sometimes used to clean electronic equipment. Because it was plausible that Viking could have brought the compounds to Mars as contamination, that conclusion was broadly accepted.

But in 2010, Chris McKay of NASA's Ames Research Center and Rafael Navarro-Gonzalez of the National Autonomous University of Mexico published an influential paper describing how dichloromethane can be a byproduct of the heating of other organic material in the presence of the compound perchlorate.

They conducted the experiment because NASA's Phoenix mission had discovered large amounts of perchlorate in the northern polar soil of Mars, and it seems plausible that it would exist elsewhere on the planet.

"In terms of the SAM results, there are two important conclusions," said McKay, a scientist on the SAM team.

"The first is confirming the perchlorate story—that it's most likely there and seems to react at high temperatures with organic material to form the dichloromethane and other simple organics."

"The second is that we'll have to either find organics without perchlorates nearby, or find a way to get around that perchlorate wall that keeps us from identifying organics," he said.

Another SAM researcher, Danny Glavin of Goddard, said his team is "very confident" about the reported detection of the hydrocarbons, and that they were produced in the rover's ovens. He said it is clear that the chlorine in the compounds is from Mars, but less clear about the carbon.

"We will figure out what's going on here," he said. "We have the instruments and we have the people. And whatever the final conclusions, we will have learned important things about Mars that we can use in the months ahead."

Author of the National Geographic e-book Mars Landing 2012, Marc Kaufman has been a journalist for more than 35 years, including the past 12 as a science and space writer, foreign correspondent, and editor for the Washington Post. He is also author of First Contact: Scientific Breakthroughs in the Hunt for Life Beyond Earth, published in 2011, and has spoken extensively to crowds across the United States and abroad about astrobiology. He lives outside Washington, D.C., with his wife, Lynn Litterine.


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Insiders Reveal 2012 Election Secrets


ht obama romney meeting wy 121129 wblog New Revelations From Obama/Romney Campaign on Immigration, Facebook and That Eastwood Speech

Pete Souza/White House


The 2012 election cycle came full circle last week when representatives from the Obama and Romney campaigns, as well as top advisers to many of the GOP primary candidates and several influential outside groups, gathered at the Harvard Kennedy School of Government for a 2012 debrief — finally answering some of the lingering questions about the race.


On neutral ground in Cambridge, Mass., fierce rivals (think Romney campaign manager Matt Rhoades and strategist Stuart Stevens and Obama campaign manager Jim Messina and strategist David Axelrod) met for the first time since the election — and many for the first time ever.


The conference, organized by Harvard’s Institute of Politics, featured a who’s who of political bold-faced names from campaign 2012, including senior campaign aides like Romney political director Rich Beeson and pollster Neil Newhouse, Obama deputy campaign manager Stephanie Cutter and digital director Teddy Goff, Rick Santorum adviser John Brabender, former Rick Perry campaign operatives Rob Johnson and Dave Carney and even Mark Block, who ran Herman Cain’s short-lived but much-talked-about presidential bid.


Representatives from the outside groups that had so much influence — and spent so much money — on the election were also on hand, including Bill Burton, senior strategist for the pro-Obama super PAC, Priorities USA Action; Steven Law, head of the pro-Republican group American Crossroads; and Tim Phillips, president of the conservative Americans for Prosperity.


Dozens of campaign 2012 veterans and journalists were on hand for the sessions, which covered the GOP primary, the general election, campaign strategy, the debates, conventions and the emerging power of the super PACS.


Here are some of the highlights from the conference:


Romney’s Campaign Concedes Immigration Position in Primary Was a Mistake


Mitt Romney’s decision to take a hard-line stance on immigration during the GOP primary was considered a big reason for his paltry 27 percent showing among Latino voters. But, the conventional wisdom has suggested that Romney couldn’t have won the primary without drawing a strong contrast with Texas Gov. Rick Perry on this hot-button issue.


Romney campaign manager Matt Rhodes, however, says that his candidate could have won the primary without attacking Perry’s support for in-state tuition for illegal immigrants.  When asked by panel moderator Jonathan Martin of Politico whether he “regret[s] trying to outflank Perry on the right on immigration,” Rhoades took a long pause, and then shifted the conversation to Perry’s controversial statements about Social Security. Romney had attacked the Texas governor for calling the popular entitlement program a “Ponzi scheme” and a “failure.”


“In retrospect,” Rhoades said. “I believe we probably could have just beaten Perry with the Social Security hit.”


So while Rhoades never said he wished that Romney had never uttered the words, “self-deportation” he essentially conceded that he regrets the immigration position the governor took in the primary.


The Obama Campaign Only Fully Committed to Florida in Mid-September


If there was one state that the Romney campaign felt confident they were going to win it was Florida. And, until mid-September, the Obama campaign wasn’t convinced that they were going to contest the state. That changed in the aftermath of the strong convention in Charlotte, however, and the Obama campaign decided that they were going to go “full out” to win there.


Obama campaign strategist David Axelrod:


“One of the things that we had discussed internally was the state of Florida and how we were going to treat Florida. We had made a decision that we were going to wait until mid September and after the conventions to see where we were in Florida before we fully committed. We were in, we had invested a lot, but we hadn’t been in the Miami media market. When we emerged from conventions not only had we gotten a little bump, but we saw Florida remained very competitive and made the decision to go full out in Florida.”


Team Romney Never Read Clint Eastwood Speech


Romney strategist and convention director Russ Schrieffer was asked by panel moderator Ron Brownstein of National Journal if anyone actually read a copy of Eastwood’s speech. The answer: not so much.


Russ Schrieffer: “I said [to Eastwood] are you going to do what we talked about, are you going to talk about what you talked about at these fundraisers. And he looked at me and said.. ‘Yep.’ ”


Laughter followed Schrieffer’s comments to which he replied:


“It’s Clint Eastwood, you argue with him.”


Republicans Are Worried (And Rightly So) About the Technology Gap With Democrats: 


Jon Huntsman’s campaign manager Matt David noted that “one area we should freak out about is technology. The GOP is far behind there.”


The Obama campaign used social media as a means to an end — using technology as a way to recruit, persuade, target and turn out voters.  Obama’s digital campaign guru Teddy Goff pointed to the power of Facebook in helping to find a previously unreachable group of potential voters: the friends of those who were already voting for the President.


In 2008, said Goff, they found that “99 percent of our email list voted.” As such, Goff said, “We entered into this election, with an understanding that anyone we were talking to directly, the vast majority were voting for us. So the question was … how can we serve them with stuff that will make them go out and get their friends.” And, Obama’s Facebook fans were a great place to start. Obama’s 33 million Facebook fans globally are friends with 98 percent of the U.S. Facebook population, Goff said.


Facebook also helped the campaign track down their coveted 18-to-29-year-old cohort. Goff explained that they were unable to reach half of their 18-to-29 GOTV targets by phone because they didn’t have a phone number for them. But, he said, they could reach 85 percent of that group via a Friend of Barack Obama on Facebook. “We had an ability to reach those people who simply otherwise couldn’t be reached,” Goff said.


Was the Romney High Command Really and Truly Shocked on Election Night? 


Neil Newhouse, Romney pollster:


“Here’s what we saw in the data: you have to give credit to the Obama campaign for undercutting it. We saw in the last two weeks, an intensity advantage, a campaign interest advantage, an enthusiasm advantage for Republicans and Mitt Romney. … Just the same as we saw four years ago on behalf of Barack Obama. We thought it would tilt the partisan make-up of the electorate a couple points in our direction.


“We weren’t surprised by racial composition; we were surprised by the partisan composition. … The real hidden story here on our side, the number of white men who didn’t vote in this election compared to four years ago was extraordinary. And these white men were replaced by white women. We were taking a group we won by 27 points and replacing them with a group we won by 12-14 points.”


Perry Should Have Waited Until Late Fall, Not Summer, to Jump In:


Perry strategist Dave Carney said the biggest tactical mistake made by Perry was that “we should have started years ago.” Perry, as governor in a state with a part-time legislature, “had a lot of time on his hands” — he should have used that time, and his role as RGA chair, to meet donors and travel the country before 2011. Once Perry decided to get in, however, Carney argues the Perry should have waited until mid-October or November to get into the race. That extra few months, said Carney, “would have given us more time to be prepared and do the groundwork that was necessary on the issues.”


What Role Did Karl Rove Play With Republican Outside Groups Like American Crossroads, Which He Co-founded?


Steven Law, president and CEO of American Crossroads and president CrossroadsGPS:


“Karl … recognized it was really important to not simply have an organization exist in a particular cycle for a tactical use but to … start to build enduring institutional strength on the right the way that we saw the unions providing that for the Democrats. … And then there were certain other parts that I think Karl really gets credit for. The first is encouraging us to reach out to other center-right groups and to try to start to collaborate where we were legally permitted to do so to share information and encourage people to pull the oars in the same direction. On the fundraising side both he and Ed [Gillespie] and then later on Haley Barbour were all tremendously instrumental in harvesting their Rolodexes and relationships. Karl is a guy that’s got tremendously good ideas, and again, not so much on the tactical side but more kind of broad strategic moments and was a tremendously useful and valuable source of ideas along the way.”


Bill Burton, senior adviser, Priorities USA Action:


“He also helped us raise money. I probably e-mailed out every one of his columns to our donors — our high-dollar list — to point out what they were saying on the Republican side and how confident Rove was. … When he would go on TV bursting with confidence about Romney winning, that little click went around every single time. Karl Rove is an enduring figure for both sides.”


After Rove’s Appearance on Fox News on Election Night, Is He Discredited Within the Republican Party?


Steven Law:


“Absolutely not. We all get our turn in the barrel.”

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ICPAS encourages companies to open channels for whistle-blowing






SINGAPORE: Recent fraud cases in the public sector and alleged breaches by Singapore-listed companies like China Sky Chemical Fibre have put the spotlight on whistle-blowing.

Experts said whistle-blowing has a role to play in uncovering fraud and it is necessary to ensure that channels are open for whistle-blowing.

The Institute of Certified Public Accountants of Singapore (ICPAS) -- the largest professional body in Singapore -- has called for companies to build a culture of ethics and governance.

Organisations should also put in place systems for its staff and external parties to be more vigilant and report wrongdoings.

Experts said fostering a culture that encourages whistle-blowing may help the authorities uncover issues or discrepancies within an organisation.

ICPAS's president, Mr Ernest Kan, said: "Whistle-blowing is not a new topic, but of late, it has gained much attention judging from the number of stories that have gripped our headlines."

Some industry observers said short-seller Carson Block and his research house, Muddy Waters' recent attacks on Singapore-listed commodities trader Olam may be regarded as a form of whistle-blowing.

But many point out that Carson Block should not be considered a whistle-blower.

Instead, he is an analyst who had raised questions about the company's accounting methods in the firm's research report.

Nanyang Business School's associate professor, Ms Tan Lay Hong, said: "The matter is really very contentious because you look at what Muddy Waters is questioning. It is their way of valuing the natural resources -- which is basically mark to market."

Given the recent rise in frauds in Chinese companies such as Sino-forest, experts said whistle-blowers should actively sound the alarm for any discrepancies they spot in listed companies.

Harry Elias Partnerships' managing partner, Mr Philip Fong, said: "Whistle-blowers also have a responsibility to make sure that what they are reporting is true to their best of their knowledge and in a sense, provide as many facts as possible to substantial their complaint."

In Singapore, there are laws to protect the identities of whistle-blowers who may be a staff member or external parties.

According to lawyers, whistle-blowers who made complaints based on good faith will be insulated from defamation lawsuits.

- CNA/lp



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Arvind Kejriwal's party joins protest by Bhopal gas tragedy victims

NEW DELHI: Arvind Kejriwal-led Aam Aadmi Party today joined a protest by Bhopal gas tragedy victims near the Prime Minister's office and alleged the government's agenda of wooing foreign investments is acting as a deterrent in ensuring justice for those affected.

The party's chief spokesperson Manish Sisodia took part in the protest on the 28th anniversary of the gas tragedy and said if voted to power, the party will make a law which will put guilty corporations and their officials responsible for the tragedy behind the bars.

"I think the push for attracting foreign investments is acting as a deterrent in taking strong action against the accused company and the politicians," Sisodia told reporters.

The Bhopal gas tragedy in December 1984, the world's worst industrial disaster, killed thousands of people, with several lakhs still suffering from the lethal consequences of the gas leak.

The protesters demanded Prime Minister Manmohan Singh's intervention to punish the guilty corporations and their officials and adequately compensate all victims.

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Photos: Kilauea Lava Reaches the Sea









































































































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Will Mortgage Deduction Survive Fiscal Cliff?













When politicians talk about closing tax loopholes, it seems like they're targeting greedy corporations. But they're also talking about Jaclyn Picarillo, 33, mom of two and American homeowner.


The home mortgage interest tax deduction is one of the biggest tax breaks available and it allows individuals to deduct the interest they pay to their mortgage company.


It has encouraged millions of Americans to become homeowners. But as lawmakers search for ways to control federal spending, reform the tax code and avoid the "fiscal cliff," there's a good chance they'll take a look at the mortgage deduction. It's worth more than $100 billion each year. All or part of that money could go a long way to finding the $1.6 trillion in additional tax revenue President Obama wants negotiators in Washington to agree to.


Picarillo, who lives with her husband, a three-year-old and a 15-month-old in Fairfield, Ct., a New York City suburb with both high housing costs and a high cost of living, bought her first home last year after previously renting. Picarillo and her husband decided to buy because they knew they were getting the tax break, and they used that money to renovate the home as well as make a down payment on a new car Picarillo needed.








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The mortgage deduction has been fiercely guarded until now, although it costs the government over $100 billion a year by most estimates, because of the sentimental attachment to it and the idea that it helps middle class families afford homes. While those who benefit from the deduction, including homeowners and people in the real estate industry, are passionate about keeping the deduction in place, others say it should be eliminated because it overwhelmingly helps the wealthy and those who can afford to buy a home already.


"By getting rid of the [home mortgage interest tax deduction], I'm more likely to hold on to my car longer and less likely to hire a builder to improve the house," Picarillo said. "Why would you become a homeowner without it? There are so many worries with owning a home, many people might think it's easier to rent."


If Picarillo sounds savvy about the deduction, it's because she is. She is also in the real estate industry, working with her mother to sell homes in Fairfield County, which includes Westport, Ct., where some of the country's most expensive homes are located.


She says that many of her customers are "on the fence" about buying in a market that has been struggling the last few years.


Picarillo describes her family as "definitely middle class" and says without the deduction she will have to "work a lot harder" to maintain the lifestyle she currently has.


The deduction, which has been around in some form or another since 1913, overwhelmingly helps people in areas like the Northeast and metro areas with high home prices. Edward Kleinbard, the former chief of staff to the U.S. Congress's Joint Committee on Taxation, says it should be up for elimination or reduction because it just doesn't help the majority of Americans.


"The bottom 80 percent of America, which includes the middle class, is only getting 20 percent of the tax benefit," Kleinbard, who is also a professor at the University of Southern California Gould School of Law, explained. "That's a very top-weighted distribution and it doesn't apply to the middle class because by definition the middle class is the 50 percent."






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