Thursday, May 31, 2012

FOXNews.com: Defense of Marriage Act appears headed to Supreme Court after appeals court finds law unconstitutional

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Defense of Marriage Act appears headed to Supreme Court after appeals court finds law unconstitutional
Jun 1st 2012, 05:33

BOSTON –  A battle over a federal law that defines marriage as a union between a man and a woman appears headed for the Supreme Court after an appeals court ruled Thursday that denying benefits to married gay couples is unconstitutional.

In a unanimous decision, the three-judge panel of the 1st U.S. Circuit Court of Appeals in Boston said the 1996 law deprives gay couples of the rights and privileges granted to heterosexual couples.

The court didn't rule on the law's more politically combustible provision -- that states without same-sex marriage cannot be forced to recognize gay unions performed in states where it's legal. It also wasn't asked to address whether gay couples have a constitutional right to marry.

The law was passed at a time when it appeared Hawaii would legalize gay marriage. Since then, many states have instituted their own bans on gay marriage, while eight states have approved the practice, led by Massachusetts in 2004.

The court, the first federal appeals panel to rule against the benefits section of the law, agreed with a lower court judge who in 2010 concluded that the law interferes with the right of a state to define marriage and denies married gay couples federal benefits given to heterosexual married couples, including the ability to file joint tax returns. The ruling came in two lawsuits, one filed by the Boston-based legal group Gay & Lesbian Advocates & Defenders (GLAD) and the other by state Attorney General Martha Coakley.

"For me, it's more just about having equality and not having a system of first- and second-class marriages," said plaintiff Jonathan Knight, a financial associate at Harvard Medical School who married Marlin Nabors in 2006.

"I think we can do better, as a country, than that," said Knight, a plaintiff in the GLAD lawsuit.

Knight said the Defense of Marriage Act costs the couple an extra $1,000 a year because they cannot file a joint federal tax return.

Opponents of gay marriage blasted the decision.

"This ruling that a state can mandate to the federal government the definition of marriage for the sake of receiving federal benefits, we find really bizarre, rather arrogant, if I may say so," said Kris Mineau, president of the Massachusetts Family Institute.

Since Congress passed the law, eight states have approved gay marriage, including Massachusetts, Connecticut, New York, Iowa, New Hampshire, Vermont, Maryland, Washington state and the District of Columbia. Maryland and Washington's laws are not yet in effect and may be subject to referendums.

Last year, President Barack Obama announced that the Department of Justice would no longer defend the constitutionality of the law. After that, House Speaker John Boehner convened the Bipartisan Legal Advisory Group to defend it. The legal group argued the case before the appeals court.

White House spokesman Jay Carney said the appeals court ruling is "in concert with the president's views." Obama, who once opposed gay marriage, declared his unequivocal personal support on May 9.

Carney wouldn't say whether the government would actively seek to have the law overturned if the case goes before the Supreme Court.

"I can't predict what the next steps will be in handling cases of this nature," Carney said.

The 1st Circuit said its ruling would not be enforced until the Supreme Court decides the case, meaning that same-sex married couples will not be eligible to receive the economic benefits denied by the law until the high court rules.

That's because the ruling only applies to states within the circuit -- Massachusetts, Rhode Island, Maine and New Hampshire -- and Puerto Rico. Only the Supreme Court has the final say in deciding whether a law passed by Congress is unconstitutional.

Until Congress passed the law, "the power to define marriage had always been left to individual states, the appeals court said in its ruling.

"One virtue of federalism is that it permits this diversity of governance based on local choice, but this applies as well to the states that have chosen to legalize same-sex marriage," Judge Michael Boudin wrote for the court. "Under current Supreme Court authority, Congress' denial of federal benefits to same-sex couples lawfully married in Massachusetts has not been adequately supported by any permissible federal interest."

Several times in its ruling, the appeals court noted that the case will probably end up before the high court, at one point saying, "only the Supreme Court can finally decide this unique case."

Carl Tobias, a constitutional law professor at the University of Richmond, said the court kept its ruling narrow, declaring unconstitutional only the section of the law on federal benefits. Although supporters and opponents of gay marriage may depict the ruling as the beginning of the end of the law, he said, the Supreme Court is likely to limit its ruling to the benefits issue as well.

"I think lawyers could argue that the arguments are equally applicable to the other sections of the law, but you have to stretch. You have to take those out of the context in which it's being applied, and I don't think the court will do that," Tobias said.

During arguments before the court last month, a lawyer for gay married couples said the law amounted to "across-the-board disrespect." The couples argued that the power to define and regulate marriage had been left to the states for more than 200 years before Congress passed the law.

Paul Clement, a Washington, D.C., attorney who defended the law on behalf of the Bipartisan Legal Advisory Group, argued that Congress had a rational basis for passing the Defense of Marriage Act in 1996, when opponents worried that states would be forced to recognize gay marriages performed elsewhere.

The group said Congress wanted to preserve a traditional and uniform definition of marriage and has the power to define terms used to federal statutes to distribute federal benefits.

"But we have always been clear we expect this matter ultimately to be decided by the Supreme Court, and that has not changed," he said in a statement.

Two of the three judges who decided the case Thursday were Republican appointees, while the other was a Democratic appointee. Boudin was appointed by President George H.W. Bush. Judge Juan Torruella was appointed by President Ronald Reagan. Chief Judge Sandra Lynch is an appointee of President Bill Clinton.

In California, two federal judges have found this year that the law violates the due-process rights of legally married same-sex couples.

In the most recent case, a judge found the law unconstitutional because it denies long-term health insurance benefits to legal spouses of state employees and retirees. The judge also said a section of the federal tax code that makes the domestic partners of state workers ineligible for long-term care insurance violates the civil rights of people in gay and lesbian relationships.

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FOXNews.com: Nancy Reagan endorses Romney's bid for president

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Nancy Reagan endorses Romney's bid for president
Jun 1st 2012, 04:20

Los Angeles –  Former first lady Nancy Reagan served lemonade and cookies to Mitt Romney and his wife and offered the Republican presidential nominee something extra -- her endorsement.

The widow of President Ronald Reagan says she is firmly behind Romney. And she says that her "Ronnie" would have liked Romney's business background and what she calls his "strong principles."

Romney and his wife, Ann, visited Mrs. Reagan at her Los Angeles home on Thursday. The Republican presidential candidate has been campaigning and raising money on the West Coast this week.

In a statement issued after the Romneys' visit, Mrs. Reagan said she believes that Romney has the experience and leadership skills that, in her words, "our country so desperately needs."

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FOXNews.com: Judge blocks parts of Florida voting law

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Judge blocks parts of Florida voting law
Jun 1st 2012, 03:20

TALLAHASSEE, Fla. –  A federal judge says some of Florida's new limits on voter registration drives are likely unconstitutional.

U.S. District Judge Robert Hinkle on Thursday temporarily blocked implementation until a trial can be held.

One provision requires groups or individuals signing up voters to submit their registration forms to election officials within 48 hours of collecting them.

Others impose what the judge called "burdensome record-keeping and reporting requirements that serve little if any purpose."

The ruling was a victory for the League of Women Voters and other groups that challenged the provisions.

They say the restrictions passed by the Republican-controlled Legislature are aimed at suppressing turnout. Republicans contend they are needed to prevent election fraud.

Those and other parts of a new election law also are being challenged in another case.

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FOXNews.com: Democrats, supporters appear split over Charlotte as convention choice

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Democrats, supporters appear split over Charlotte as convention choice
May 31st 2012, 22:27

CHARLOTTE, N.C. –  In less than 100 days, Democrats will gather in Charlotte, N.C., for their presidential nominating convention.

The city was a natural choice after President Obama in 2008 turned a reliably red state to blue for the first time since Jimmy Carter won it in 1976.

But how things can change in four years.

Since the president squeaked out victory in the Tar Heel state, Republicans took control of the legislature for the first time in 100 years; Democratic Gov. Bev Perdue declined to seek re-election; unemployment moved to fifth-worst in the country; and voters passed an amendment to ban same-sex marriage just days before Obama announced his support for gay marriage.

All of this has many people asking – why was it that the Democrats picked Charlotte?

"It seemed like a good idea at the time," said Larry Sabato, director of the University of Virginia Center for Politics. "It sent the right message for Democrats that they were going to fight. 

"As it has happened, with lots of different events including the gay marriage referendum and the fact that some polls have Romney leading in North Carolina, maybe it wasn't the best place to have the convention."

Scott Stone, a Republican who ran unsuccessfully for mayor of Charlotte in 2011,  agrees.

"If the (Democratic National Committee) chose Charlotte because they want a great venue with great folks and have a good time, they picked absolutely the right place," he told Fox News. "If they picked it because they think Charlotte is going to help them win North Carolina, they're absolutely wrong because North Carolina will not go Democratic in 2012."

It wouldn't take much to swing North Carolina back to the red column. 

Obama won there by just 14,000 votes, out of 4.2 million cast.

Statewide polls have the race neck-and-neck, though a recent Rasmussen poll puts Romney ahead 51 percent to 43 percent.  

Of all the issues concerning North Carolina voters, same-sex marriage is perhaps the one that most shows the divide between the president and the direction of the state.

A surprising number of black voters came out in support of the ban, revealing a split in the president's most reliable demographic.

Charlotte Mayor Anthony Foxx hopes voters are thinking about other things by November. 

The same-sex amendment is "one issue of a thousand that people have to think about and parse through in this election," he told Fox News. "I think, frankly, by the time the election comes around, the thing that's going to be on most people's minds is who is going to create more jobs."

When the amendment passed, supporters of same-sex marriage appealed to the DNC to move the convention from Charlotte. A petition drive on www.change.org has drawn more than 32,000 signatures.  

The DNC insists Charlotte is the perfect place for the Sept. 3-6 convention -- a way for the president to keep his toehold in the South and a possible route to victory in November.

"We can't just retreat to safe territory," said DNC spokesman Brad Woodhouse.  "We can't go back to a map where we're not growing the electorate, but where we're shrinking it.  So we have to be in places like North Carolina."

The DNC hopes to use the convention as a focal point for a drive to register new voters and get them out to the polls in November.

"Without a big margin in the Charlotte area, Obama has no chance to carry North Carolina," Sabato said. "So it is important that he use the convention as a staging ground to improve his standing which is clearly deteriorated since 2008."

Getting out the vote will be crucial for the president. But unions, one of his biggest machines, also are not pleased with the convention site. 

North Carolina is a right-to-work state. And unions are so upset about the location that they have withheld their important financial contribution to the convention. 

The DNC is trying to appease them by bringing union labor in from out of state to work the event.  

The Democrats' big bash will also offer some intriguing and possibly uncomfortable contrasts.

When the president accepts his party's nomination, he will do it in a stadium bearing the name Bank Of America, which is headquartered in the city. 

The bank received tens of billions of dollars in federal bailout funds, much of which was used to pay executive bonuses.

 And the president's relentless attack on the financial industry may not play well in a town that has reinvented itself around banking.  

"He can't keep demagoging the banks because in North Carolina, you cannot compare Wall Street against Main Street, because the banks – in Charlotte – they are our main street," Stone said.

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FOXNews.com: Hill GOP leaders make new offer on student loans

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Hill GOP leaders make new offer on student loans
May 31st 2012, 20:32

Top congressional Republicans are making a new offer to President Barack Obama in the fight over interest rates for 7.4 million students with federal college loans.

Until now, the two sides have agreed that the current 3.4 percent interest rate for subsidized Stafford loans should be extended for another year, rather than doubling as scheduled on July 1.

But they have fought over how to cover the $6 billion cost.

House Speaker John Boehner, Senate Minority Leader Mitch McConnell and other leaders sent a letter to the president Thursday. They are offering a collection of savings to pay the cost, including making it harder for some states to collect Medicaid reimbursements from the federal government.

Several proposals are modeled on savings Obama has proposed in the past.

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FOXNews.com: Clinton to campaign for Wis. recall challenger

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Clinton to campaign for Wis. recall challenger
May 31st 2012, 20:23

MILWAUKEE –  Former President Bill Clinton is coming to Wisconsin to campaign for Milwaukee Mayor Tom Barrett ahead of next week's gubernatorial recall election.

The Barrett campaign says Clinton will be in Milwaukee on Friday. Details are being finalized.

Clinton would be the third prominent Democrat in three days to appear in Wisconsin on behalf of Barrett, who faces Republican Gov. Scott Walker in next Tuesday's election.

Maryland Gov. Martin O'Malley, who chairs the Democratic Governors Association, is in Madison Thursday. Debbie Wasserman Schultz, who heads the Democratic National Committee, rallied about 100 volunteers in Racine on Wednesday.

A poll released Wednesday by Marquette University Law School showed Walker with a slight 7-point lead over Barrett, 52 percent to 45 percent. The poll's margin of error was 4.1 percentage points.

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FOXNews.com: Warren defends personal history, tells Brown that family is off-limits

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Warren defends personal history, tells Brown that family is off-limits
May 31st 2012, 19:56

Democratic Senate candidate Elizabeth Warren says in a recently discovered video that she repeatedly had to explain her predicament in the late 1970s as the "first nursing mother to take a bar exam in the state of New Jersey."

However, the Massachusetts Democrat found herself explaining again, amid questions about the validity of such a claim.

"Try explaining [breast-feeding breaks] 1,000 times," to test proctors, Warren told an audience at the 2011 Chicago Humanities Festival in 2011, in a video posted on the group's website.

The episode is another in a series in which Warren, who is attempting to unseat Massachusetts GOP Sen. Scott Brown, has had to defend or clarify statements.

And she is now pushing back, saying she learned about her Native American heritage from her parents and grandparents.

"Scott Brown even questioned the honesty of my parents," Warren said in a letter to supporters. "They are not fair game. … Keep fighting the smears."

The letter followed two Warren campaign statements that appeared to attempt to move past the candidate's personal history and get people focused on voter issues.

"Elizabeth was making a point about the very serious challenges she faced as a working mom -- from taking an all-day bar exam when she was still breast-feeding, to finding work as a lawyer that would accommodate a mom with two small children," the Warren campaign said about the candidate's comments on the 2011 video.

Warren also publicly acknowledged for the first time that she told officials at Harvard University and the University of Pennsylvania that she had Native American heritage.

The Warren campaign said Wednesday night the candidate gave that information to the schools only after she had been hired by them.

Warren, who taught at Harvard Law School, has provided no documentation of Native American heritage, despite saying it is part of her family lore

"When I was a little girl, I learned about my family's heritage the same way everyone else does -- from my parents and grandparents," Warren said in the letter. "I never had any reason to doubt them. What kid asks their grandparents for legal documentation to go along with their family stories?"

Brown, who is seeking a second term, reportedly responded by saying, "My mom and dad have told me a lot of things, too, but they're not always true."

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FOXNews.com: Jury reaches verdict in Edwards trial

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Jury reaches verdict in Edwards trial
May 31st 2012, 18:29

The jury has reached a verdict in the case of former Democratic presidential candidate John Edwards. 

He is on trial in Greensboro, N.C., for allegedly skirting campaign finance law by using contributions to help keep secret his extramarital affair during the 2008 campaign.

The verdict, expected to be announced Thursday afternoon, comes after nine days of jury deliberations. The trial began more than a month ago. 

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FOXNews.com: Ann Romney: 'If Mitt loses, the country loses'

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Ann Romney: 'If Mitt loses, the country loses'
May 31st 2012, 14:16

Ann Romney, putting the 2012 presidential campaign in stark terms, told Fox News that "if Mitt wins, the country wins" and "if Mitt loses, the country loses." 

The wife of the Republican presidential candidate discussed her husband's aspirations during a lengthy interview with her husband in San Diego. Describing the stakes, she said the country is "in danger" and pitched her husband as the man to correct course. 

"I believe if Mitt wins, the country wins. If Mitt loses, the country loses," she said. "I really believe that. I think that we are at a ... a real fork in the road as to which direction this country can go in, and I really believe that there is a sense in the country that we are in danger, and that we have got to turn this country around." 

Asked about any disagreements the couple has, Romney said she doesn't think they're "ever exactly on the same page 100 percent." 

She added, "I completely support 90 percent of where Mitt is," without going into specifics on the other 10 percent -- noting "I'm not the one running for president." 

Mitt Romney, who clinched the GOP nomination by winning the Texas primary Tuesday, said that so far he's tried not to read any of the "negative" coverage of his campaign. 

But he did accuse President Obama's campaign and its supporters of trying to "denigrate me as a person." 

"They said early on that their objective in that campaign was to quote 'kill Mitt Romney' -- now not literally but figuratively obviously," he said. 

Romney said he's running because he cares "very deeply about the country." 

The Obama campaign has run a string of tough ads and videos on Romney in recent weeks, digging into his tenure at private equity firm Bain Capital. The next phase is to target his days as Massachusetts governor. 

Obama campaign strategist David Axelrod was heading to Boston Thursday as part of a push to highlight Romney's gubernatorial days. He recently issued a five-page campaign memo casting Romney as a poor steward of the state economy during his tenure as governor. 

Obama has justified his attacks on Romney's track record at Bain Capital by arguing his opponent has been steering the national dialogue towards his business experience rather than his time as governor. 

"Governor Romney, his main calling card for why he thinks he should be president is his business expertise," the president said in Chicago on May 21. "He is not going out there touting his experience in Massachusetts. He is saying, I'm a business guy and I know how to fix it, and this is his business."

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FOXNews.com: Debate heats up over proposal to ban gender-based abortions

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Debate heats up over proposal to ban gender-based abortions
May 31st 2012, 16:20

The debate over a bill that would ban sex-selective abortions became red-hot Thursday in the run-up to an expected floor vote, as Republicans used the vote to try to shame Democrats who might oppose it. 

The proposal would make it a federal crime to carry out an abortion based on the gender of the fetus. The measure takes aim at the aborting of female fetuses, a practice more common to countries such India and China, where there is a strong preference for sons, but which is also thought to take place in the U.S. 

The White House and Democratic lawmakers oppose the bill out of concern that it could end up subjecting doctors to strict punishment, suggesting the law would be difficult to follow. 

"The administration opposes gender discrimination in all forms, but the end result of this legislation would be to subject doctors to criminal prosecution if they fail to determine the motivations behind a very personal and private decision," White House Press Secretary Jay Carney said Thursday. 

But GOP lawmakers pointed to the opposition as further proof of the administration's abortion advocacy. 

"It is inconceivable to me how our Nobel Prize-winning president can refuse to protect little girls from the violence of sex-selection abortion," Rep. Chris Smith, R-N.J., said Thursday. 

Bill sponsor Rep. Trent Franks, R-Ariz., said "there has never been a more pro-abortion president in the White House ... I'm astonished the leader of the free world would fail to protect the unborn from being aborted on the basis of sex." 

The mainly Republican supporters of the bill characterized the vote as a sex-discrimination issue at a time when Democrats are accusing Republicans of waging a war on women. A day before the vote, Planned Parenthood also launched an ad against GOP presidential candidate Mitt Romney accusing him of planning to "deny women the right to make their own medical decisions." 

To help assure passage in a vote expected Thursday afternoon, the authors removed a contentious provision of the bill that would have also banned abortions based on the race of the fetus. 

Even if it passes the House, the measure faces a dim future in the Democratic-controlled Senate. 

The legislation would make it a federal offense, subject to up to five years in prison, to perform, solicit funds to perform or coerce a woman into a sex-selection abortion. Bringing a woman into the country to obtain such an abortion would also be punishable by up to five years in prison. 

Franks and others say there is evidence of sex-selection abortions in the United States among certain ethnic groups from countries where there is a traditional preference for sons. The bill notes that countries such as India and China, where the practice has contributed to lopsided boy-girl ratios, have enacted bans on the practice. 

But the Guttmacher Institute, an organization that favors abortion rights, said evidence of sex selection in the United States is limited and inconclusive. It said that while there is census data showing some evidence of son preference among Chinese-, Indian- and Korean-American families when older children are daughters, the overall U.S. sex ratio at birth in 2005 was 105 boys to 100 girls, "squarely within biologically normal parameters." 

Marcia Greenberger, co-president of the National Women's Law Center, said the bill fosters discrimination by "subjecting women from certain racial and ethnic backgrounds to additional scrutiny about their decision to terminate a pregnancy." 

The Associated Press contributed to this report.

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FOXNews.com: House GOP releases documents on health care deals

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House GOP releases documents on health care deals
May 31st 2012, 17:11

House Republicans are releasing emails and documents that shed light on dealings between the White House and the drug industry as President Barack Obama maneuvered to move his health care overhaul through Congress.

The materials released Thursday cover a critical period in the summer of 2009 when the legislation was bogging down in Congress. An $80-billion financial commitment by the drug companies gave Obama some momentum.

The deal included better prescription coverage for Medicare recipients. Broad outlines were known at the time.

Drug makers succeeded in avoiding new requirements to pay rebates to the government for Medicare drugs. Ultimately, they were also able to preserve an existing ban against patients importing lower-priced medications from overseas.

The powerful House Energy and Commerce Committee obtained the emails from industry.

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FOXNews.com: Federal court rules centerpiece of gay marriage law unconstitutional

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Federal court rules centerpiece of gay marriage law unconstitutional
May 31st 2012, 16:05

BOSTON –  A federal appeals court Thursday declared that the Defense of Marriage Act unconstitutionally denies federal benefits to married gay couples, a groundbreaking ruling all but certain to wind up before the U.S. Supreme Court. 

In its unanimous decision, the three-judge panel of the 1st U.S. Circuit Court of Appeals in Boston said the 1996 law that defines marriage as a union between a man and a woman deprives gay couples of the rights and privileges granted to heterosexual couples. 

The court didn't rule on the law's more politically combustible provision, which said states without same-sex marriage cannot be forced to recognize gay unions performed in states where it's legal. It also wasn't asked to address whether gay couples have a constitutional right to marry. 

The law was passed at a time when it appeared Hawaii would legalize gay marriage. Since then, many states have instituted their own bans on gay marriage, while eight states have approved it, led by Massachusetts in 2004. 

The court, the first federal appeals panel to deem the benefits section of the law unconstitutional, agreed with a lower level judge who ruled in 2010 that the law interferes with the right of a state to define marriage and denies married gay couples federal benefits given to heterosexual married couples, including the ability to file joint tax returns. 

The 1st Circuit said its ruling wouldn't be enforced until the U.S. Supreme Court decides the case, meaning that same-sex married couples will not be eligible to receive the economic benefits denied by DOMA until the high court rules. 

That's because the ruling only applies to states within the circuit, including Massachusetts, Rhode Island, Maine, New Hampshire and Puerto Rico. Only the Supreme Court has the final say in deciding whether a law passed by Congress is unconstitutional. 

Although most Americans live in states where the law still is that marriage can only be the union of a man and a woman, the power to define marriage had always been left to the individual states before Congress passed DOMA, the appeals court said in its ruling. 

"One virtue of federalism is that it permits this diversity of governance based on local choice, but this applies as well to the states that have chosen to legalize same-sex marriage," Judge Michael Boudin wrote for the court. "Under current Supreme Court authority, Congress' denial of federal benefits to same-sex couples lawfully married in Massachusetts has not been adequately supported by any permissible federal interest." 

During arguments before the court last month, a lawyer for gay married couples said the law amounts to "across-the-board disrespect." The couples argued that the power to define and regulate marriage had been left to the states for more than 200 years before Congress passed DOMA. 

An attorney defending the law argued that Congress had a rational basis for passing it in 1996, when opponents worried that states would be forced to recognize gay marriages performed elsewhere. The group said Congress wanted to preserve a traditional and uniform definition of marriage and has the power to define terms used to federal statutes to distribute federal benefits. 

Since DOMA was passed in 1996, many states have instituted their own bans on gay marriage, while eight states have approved it, including Massachusetts, Connecticut, New York, Iowa, New Hampshire, Vermont, Maryland, Washington state and the District of Columbia. Maryland and Washington's laws are not yet in effect and may be subject to referendums. 

Last year, President Barack Obama announced the U.S. Department of Justice would no longer defend the constitutionality of the law. After that, House Speaker John Boehner convened the Bipartisan Legal Advisory Group to defend it. The legal group argued the case before the appeals court. 

Gay & Lesbian Advocates & Defenders, the Boston-based legal group that brought one of the lawsuits on behalf of gay married couples, said the law takes one group of legally married people and treats them as "a different class" by making them ineligible for benefits given to other married couples. 

"We've been working on this issue for so many years, and for the court to acknowledge that yes, same-sex couples are legally married, just as any other couple, is fantastic and extraordinary," said Lee Swislow, GLAD's executive director. 

Two of the three judges who decided the case Thursday were Republican appointees, while the other was a Democratic appointee. Boudin was appointed by President George H.W. Bush, while Judge Juan Torruella was appointed by President Ronald Reagan. Chief Judge Sandra Lynch is an appointee of President Bill Clinton.

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FOXNews.com: Feds issue two dreary economic reports, in sign economy will top voter concerns

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Feds issue two dreary economic reports, in sign economy will top voter concerns
May 31st 2012, 14:12

The U.S. government issued two downbeat economic reports Thursday, numbers that are sure to fuel the presidential campaign rhetoric as they signal jobs and the economy will remain top voter concerns going into the election. 

The Commerce Department reported the economy grew at an annual rate of 1.9 percent in the first quarter of 2012, slower than first estimated.

The Labor Department reported the number of Americans seeking jobless benefits rose last week to a five-week high, evidence that the job market remains sluggish.

The figures come in advance of the labor report that routinely turns into a political football -- the monthly jobs report, set for release on Friday. Economists expect 158,000 jobs were created in May, slightly better than the past two months but far below the pace this past winter. They also expect no change in the unemployment rate.

The numbers continue to hang over the candidates and require each to continue to make a case for how he can improve the economy.

GOP presidential candidate Mitt Romney has touted his experience in corporate finance. President Obama has said he helped stabilize and improve the downward-spiraling economy he inherited and needs more time to complete the task.

"As with all of the numbers we've seen every month, they all tell the same story, that President Obama promised for the past three years to turn around the economy but has failed," said Kirsten Kukowski, a Republican National Committee spokeswoman. "While things get slightly better, they are nowhere near where they need to be."

The Democratic National Committee did not respond to a request for comment. The Obama campaign, though, has started to aggressively criticize Romney's record in the private sector during his time as Bain Capital. The campaign is also opening up a new front, going after his days as Massachusetts governor. 

The Commerce Department originally said estimated growth from January-March was 2.2 percent. The agency then revised the number, saying the change was largely because consumers spent less than estimated, business restocked more slowly and the U.S. trade deficit grew sharply.

Still, analysts think the economy will grow at a slightly faster rate this spring. They estimate growth at an annual rate of 2 percent to 2.5 percent in the April-June quarter. Many expect the economy will maintain that pace for all of 2012, an improvement from last year's 1.7 percent growth.

However, growth of 2.5 percent is typically enough just to keep pace with population changes. Most economists say it takes almost twice as much growth to lower the unemployment rate by 1 percentage point over a year.

The unemployment rate has fallen a full percentage point since August -- from 9.1 percent to 8.1 percent last month. Part of the reason for the drop is that employers added 1.5 million jobs during that time. But it has also declined because some people have grown discouraged and given up looking for work. The government only counts people as unemployed if they are actively looking for a job.

The Associated Press contributed to this report.

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FOXNews.com: More questions surface about porn film at Los Angeles Memorial Coliseum

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More questions surface about porn film at Los Angeles Memorial Coliseum
May 31st 2012, 15:45

The company that produced a sex movie at the taxpayer-owed Los Angeles Memorial Coliseum reportedly had a permit, but questions remain about whether producers disclosed the movie was pornographic and who approved the project.

The Los Angeles Times reported Thursday the Anabolic Video company obtained a permit but the document didn't state the historic venue – home to the USC football team and where John F. Kennedy accepted the Democratic presidential nomination – would be used for a hard-core sex film.

The newspaper also reported the stadium's governing commission did not approve production on the film.

The stadium is owned by the city, the county and California governments.

The permit was issued by the nonprofit group that handles film shoots for the city and county and lists the coliseum's address as the movie site. The description states the scenes will be "models against scenery" and a "re-enactment of [football] players in practice game." However, about a dozen players have sex with a cheerleader in the movie, according to the newspaper.

The movie was filmed in 2001 and released in 2002, but the report appears to be the latest about the possible mismanagement of the stadium and follows a corruption scandal related to stadium officials. 

Two former stadium managers have been indicted on corruption-related charges. The indictments followed more than a year of Times reports on coliseum financial irregularities and lax oversight by the nine-member governing commission, which includes four elected officials.

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FOXNews.com: Obama Plays Hardball and Loses Favorability

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Obama Plays Hardball and Loses Favorability
May 31st 2012, 14:07

"The president wants to make this a personal attack campaign; he's going after me as an individual. Look, I'm an American, I love this country. I have experience in the economy that's going to help me get good jobs for Americans so we can be secure again."

-- Republican presidential nominee Mitt Romney in an interview with FOX News colleague Bill Hemmer.

President Obama has adopted a new, tough-guy persona for the general election, but so far it doesn't seem to be paying off.

The rationalization for the harsh new Obama approach is that unless Democrats destroy Romney now, the president will get swamped in a flood of negative advertising from conservative groups in the fall. By making it ugly, early Obama hopes to press his advantage in organization and money while it still exists and define Romney as a bad man.

-

Obama, stung for years by complaints from his political base that he was a pushover and facing a Republican rival clearly unafraid to throw punches, the president is trying to show some edge.

The opening argument of the general election from Obama has been weeks of attack ads and harsh personal attacks on the character of GOP nominee Mitt Romney. On the stump, Obama has called out Romney by name and said that the former Massachusetts governor was too cruel to be president.

Simultaneously, the administration is touting the president's role as a terrorist killer. The lavishly leaked New York Times piece on how Obama passes sentence on suspected terrorists for push-button assassinations overseas, including American citizens, is part of a longer effort to show Obama has evolved from his dovish days.

The new message from Obama: Times are tough, and so am I.

One of Obama's leading biographers John Heilemann, laid out the new-look Obama persona in New York Magazine. His extensively sourced, well-reported piece shows the Obama organization remade as a blunt instrument. Profane, tough-talking, cynical campaign leaders explain why they are trying to absolutely destroy Romney. Short answer: because that's what it takes to win.

One adviser explains to Heilemann that even though some voters are presumably racist, Romney can be shown to be such a villain that they would still prefer the company of the half-African-American Obama:

"[Romney is] not likable. He's not trustworthy. He's not on your side. You live in Pittsburgh and you've got dirt under your fingernails, who do you want to have a beer with? It ain't f***ing Mitt Romney. You're like, 'S**t, I'd rather have a beer with the black guy than him!'"

His point is that even those who bitterly cling (in this case, to an ice-cold can of Iron City instead of guns and religion) can be made to find Romney more personally objectionable than Obama.

This swagger is comforting to some Democrats who worried that Team Obama lacked the thick-skin and aggressive instincts to do battle with Romney, who has a gift for getting in the heads of his political opponents.

Attack politics are hardly new to the Obama organization, but the concern among many on the Blue Team was that the president wasn't taking the threat from Romney seriously.

There's little doubt of that now. No incumbent American president has ever gone so negative, so early against an opponent. As in other cases, like dropping out of federal limits on campaign contributions in 2008 or blessing unlimited political action committee expenditures this year, Obama's argument is that he has no choice but to do what is wrong now in order to have the power to do the right thing later on.

The rationalization for the harsh new Obama approach is that unless Democrats destroy Romney now, the president will get swamped in a flood of negative advertising from conservative groups in the fall. By making it ugly, early Obama hopes to press his advantage in organization and money while it still exists and define Romney as a bad man.

So far, though, it's not going so well.

The latest ABC News/Washington Post poll shows Romney's favorability ratings are up 8 points since late March, just before the Obama launched his spring offensive. Obama's numbers are going the other direction, down 4 points.

The worrisome thing for the president is where this movement is happening. While Romney can credit much of his gains to the gradual coalescence of the Republican Party following the flame-throwing final act of their nominating process, swing voters are moving Romney's way.

Romney showed substantial favorability gains among moderates, independents and saw his largest jump among female voters, a full 10 points. Obama, on the other hand, lost ground in all of the key categories. While Obama still holds a 5-point edge in overall favorability, Romney does 4 points better on unfavorability.

Put simply, 97 percent of voters have an opinion on Obama, and it's an even split. Voters are also evenly divided on Romney, but only 88 percent have rendered a decision.

Romney has more room to grow, or, as Obama hopes, farther to fall.

Team Obama understands well the risks of negative campaigning, especially for a candidate whose previous persona was one of hopeful change and healing. But their calculation is that they can afford to take the beating now for the sake of ruining Romney and then have time in the fall to shift back to a less grim message.

The goal is that when Obama takes the stage to formally accept the Democratic nomination in Charlotte, that he will find a way to unite and inspire and that swing voters will have forgotten or forgiven his spring and summer attacks. Remember, Obama and his team very much believe in his power to reset the debate with a speech. Obama's oration at Bank of America Stadium will be a seriously high-stakes affair.

Team Obama says it wants a replay of the 2004 election, just a pumped up version. Incumbents in tough times want choice elections, a referendum on issues, rather than stewardship elections, a referendum on the leadership of the incumbent.

In 2004, the choice was about the Iraq war. John Kerry wanted to leave, George W. Bush wanted to stay the course. Lots of things were said and done, but the election boiled down to that choice: stay or go.

Team Obama says the choice this time is between "forward" and "a return to the failed policies of the past." This choice devolves quickly into minutiae about tax rates, mortgage incentive programs, Pell grants and other policy points. There is nothing like the starkness of the choice in 2004. Kerry explicitly wanted to leave Iraq. Bush explicitly wanted to stay. Voters narrowly chose the latter.

Given the repetitive nature of Obama's policy proposals in the past two years, it seems highly unlikely that he will be offering any such bright-line choices. Certainly he could make it a choice election about his policies, particularly his 2010 health law, but that would not work out very well.

The actual choice Obama is seeking is between the two men personally and is right now whaling away on Romney in a hope that the dirty-fingernail set in the swing states will deem the former Massachusetts governor and quarter-billionaire unacceptable.

But unless Obama can crystallize for voters what the real choice here is, Obama risks just looking mean spirited and nasty, the very qualities he hopes voters come to see in Romney.

The Day in Quotes

"It has been clear for years that the Obama administration believes the shadow war on terrorism gives it the power to choose targets for assassination, including Americans, without any oversight. On Tuesday, The New York Times revealed who was actually making the final decision on the biggest killings and drone strikes: President Obama himself. And that is very troubling."

-- New York Times editorial, "Too Much Power for a President."

"…some of the achievements that defined the civil rights movement now hang in the balance."

-- Attorney General Eric Holder, speaking before the Council of Black Churches, decrying efforts in some states to require voters to show identification.

"Obviously, the world economy is still in a delicate place because of what's going on in Europe and the fact that some of the emerging countries have been slowing down."

-- President Obama alluding to signs of a weakening economy in a speech given ahead of signing a re-authorization of the Import-Export Bank.

"Sex-selection abortion is extreme violence against unborn baby girls and their mothers."

-- Rep. Trent Franks, R-Ariz., speaking in support of a bill he has sponsored that would enact a federal ban on gender-based abortion.

"This has come up because I think somebody decided politically it was a difficult place to put people in. [But] any interpretation that voting against this bill is therefore for abortions for the purposes of selecting gender would be wrong – period."

-- House Minority Whip Steny Hoyer talking to reporters about Franks' legislation, due for a vote today.

The Big Numbers

"70 percent"

-- Decrease in membership in the American Federation of State, County and Municipal Employees chapter that represents Wisconsin state workers since the state stopped automatically collecting dues from worker paychecks last spring, according to the Wall Street Journal. Statewide, the union's overall membership dropped from 62,818 to 28,745.

"7 points"

-- Lead by Wisconsin Gov. Scott Walker over Democratic challenger Tom Barrett in Tuesday's gubernatorial recall election, according to a survey of likely voters by Marquette University Law School.

And Now, A Word From Charles

"You have to ask yourself, how could a feminist oppose this legislation? After all, gender selection [in abortion] is the ultimate in gender discrimination.  It's the killing of a female -- it's almost always a female -- in utero, and you would expect a huge protest."

-- Charles Krauthammer on "Special Report with Bret Baier."

Chris Stirewalt is digital politics editor for Fox News, and his POWER PLAY column appears Monday-Friday on FoxNews.com.

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FOXNews.com: Economy grows at 1.9 percent annual rate in 1st quarter, slower than first estimated

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Economy grows at 1.9 percent annual rate in 1st quarter, slower than first estimated
May 31st 2012, 12:47

The U.S. economy grew at an annual rate of 1.9 percent in the first three months of the year, slower than first estimated. 

The Commerce Department says the downward revision from an initial estimate of 2.2 percent growth in the January-March quarter was largely because consumers spent less than first estimated, business restocked more slowly and the U.S. trade deficit grew sharply. 

Analysts believe the economy is growing at a slightly faster rate this spring. They estimate growth at an annual rate of between 2 percent and 2.5 percent in the April-June quarter. Many expect the economy will maintain that pace for all of 2012. That would represent an improvement from last year's anemic 1.7 percent growth.

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FOXNews.com: Wisconsin unions see ranks drop ahead of recall vote

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Wisconsin unions see ranks drop ahead of recall vote
May 31st 2012, 11:52

Public-employee unions in Wisconsin have experienced a dramatic drop in membership -- by more than half for the second-biggest union -- since a law championed by Republican Gov. Scott Walker sharply curtailed their ability to bargain over wages and working conditions. 

Now with Mr. Walker facing a recall vote Tuesday, voters will decide whether his policies in the centrist state should continue -- or whether they have gone too far. 

The election could mark a pivot point for organized labor. 

Mr. Walker's ouster would derail the political career of a rising Republican star and send a warning to other elected officials who are battling unions. But a victory for the governor, who has been leading his Democratic opponent in recent polls, would amount to an endorsement of an effort to curtail public-sector unions, which have been a pillar of strength for organized labor while private-sector membership has dwindled. 

That could mean the sharp losses that some Wisconsin public-worker unions have experienced is a harbinger of similar unions' future nationwide, union leaders fear. Failure to oust Mr. Walker and overturn the Wisconsin law "spells doom," said Bryan Kennedy, the American Federation of Teachers' Wisconsin president. 

Wisconsin membership in the American Federation of State, County and Municipal Employees-the state's second-largest public-sector union after the National Education Association, which represents teachers-fell to 28,745 in February from 62,818 in March 2011, according to a person who has viewed Afscme's figures. A spokesman for Afscme declined to comment.

Click for more from The Wall Street Journal

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FOXNews.com: Pakistan militant group denies ties to doctor in bin Laden hunt despite court claims

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Pakistan militant group denies ties to doctor in bin Laden hunt despite court claims
May 31st 2012, 11:27

The militant group that according to a Pakistan court had close ties to the doctor who helped the United States track Usama bin Laden is claiming to have no association with him. 

A commander from the group Lashkar-e-Islam told AFP that "We have no link to such a shameless man. If we see him we'll chew him alive." 

The comment -- and the apparent enmity between the group and Dr. Shakil Afridi -- casts serious doubt on the allegations made in the court judgment used as the basis for Afridi's 33-year prison sentence. 

It was initially assumed that Afridi was sentenced for his role in helping the U.S. find bin Laden. 

But after U.S. officials expressed outrage at the Pakistani government and threatened to cut off aid, the judgment in the case emerged -- it accused him not of aiding U.S. intelligence but assisting Lashkar-e-Islam. 

It claimed Afridi provided "financial assistance" to the group as well as "medical assistance" to its "militant commanders" while working at a hospital. 

However, the Afridi tribe has actually had long-running tensions with Lashkar-e-Islam, which the commander speaking to the AFP seemed to confirm. 

The unnamed commander acknowledged that Afridi paid Lashkar e Islam two million rupees ($21,000), but said the money was a fine imposed for over-charging patients. 

"Afridi and his fellow doctor were fleecing tribesmen, giving them fake medicines and doing fake surgeries. We had a lot of complaints against them and imposed a fine of two million rupees on them," the commander said. 

Afridi was sentenced to 33 years in prison in Peshawar after he was found guilty of treason last week. The ruling was made under the tribal justice system of Khyber district, part of Pakistan's semi-autonomous tribal belt. 

He was also fined 320,000 rupees ($3,500). 

Afridi ran the fake vaccination program close to bin Laden's Abbottabad home in an attempt to collect DNA from the former terror leader's family. 

Since his sentencing, the family of Afridi has appealed to the U.S. for help in providing lawyers and financial assistance in the case. 

Lawmakers have also pushed to cut off at least part of Pakistan's funding unless they release Afridi. 

In Washington, Sen. Rand Paul, R-Ky., said he would introduce a pair of bills next week to address Afridi's plight. One would strip Pakistan, which received $2.1 billion from the U.S. for the current fiscal year, of all foreign aid until Afridi's 33-year sentence is overturned and he's allowed to leave the country; the other bill would grant Afridi U.S. citizenship. 

The measures would go beyond the vote by a Senate panel last week to strip Pakistan of $33 million in aid. 

NewsCore contributed to this report.

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