Tuesday, July 31, 2012

FOXNews.com: Justice Department says GOP 'Furious' report has 'distortions'

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Justice Department says GOP 'Furious' report has 'distortions'
Aug 1st 2012, 04:00

WASHINGTON –  The Justice Department says Republican lawmakers are engaging in distortions with a report on Operation Fast and Furious.

In their report on the flawed gun-smuggling investigation, Rep. Darrell Issa and Sen. Chuck Grassley said the administration had shifted the emphasis in fighting Mexican drug cartels from merely seizing firearms to identifying the networks that traffic them.

The report concluded that Operation Fast and Furious "was born from this strategy."

A Justice Department spokeswoman said the reality is that "the pattern of flawed tactics dates back to 2006 and the prior administration."

In Operation Fast and Furious and at least three earlier probes during the Bush administration, agents in Arizona employed a risky tactic called gun-walking. The goal of the tactic was to track the guns to major weapons traffickers and drug cartels.

In Operation Fast and Furious, many of the weapons weren't tracked and wound up at crime scenes in Mexico and the U.S., including the site of a shootout that resulted in the death of a border agent, Brian Terry.

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FOXNews.com: Al Qaeda gaining 'operational capability' despite core losses, report shows

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Al Qaeda gaining 'operational capability' despite core losses, report shows
Aug 1st 2012, 02:09

Western strikes on Al Qaeda have shown progress in taking out the terror group's core in Pakistan, but affiliates still are increasing "operational capabilities," the State Department said in releasing its annual Country Reports on Terrorism.

Highlights of the 2011 report include the death of Usama bin Laden and Al Qaeda's relative lack of influence on the so-called Arab Spring revolutions in the Middle East, the State Department's top counterterrorism official, Daniel Benjamin, said Tuesday.

He warned, however, that the United States has "no illusions" that further progress against terrorism will be easy or quick, and certain Al Qaeda affiliates remain a troubling threat.

"The report's narrative notes, among other things, the continued weakening of the Al Qaeda core in Pakistan, but it also demonstrates that the Al Qaeda affiliates, while also suffering losses, increased their overall operational ability," Benjamin said. "And this is particularly true of Al Qaeda in the Arabian Peninsula.

"So for all the counterterrorism successes that we've seen against Al Qaeda and its affiliates, the group and violent extremist ideology and rhetoric continue to spread in some parts of the world."

The report also notes the threat from other terror groups, including the Lebanese-based Hezbollah, which is "engaging in their most active and aggressive campaigns since the 1990s," Benjamin said. He also noted that Iran "remains the pre-eminent state sponsor of terrorism in the world."

The report counted more than 10,000 terrorists attacks in 70 countries in 2011, which resulted in more than 12,500 deaths, though that measurement is down from 2010. The worst regions for terrorist attacks are South Asia and the Near East, and most of the victims are Muslim.

In fact, Benjamin noted that 64 percent of all attacks worldwide occurred in just three countries, Afghanistan, Iraq and Pakistan, though the numbers logged in the first two declined from 2010 to 2011.

The rise of Al Qaeda in the Arabian Peninsula is one of the most alarming trends in terrorism.

"That's a group that benefited from the long political transition, the turmoil that was going on in Yemen," Benjamin said. "And I'm optimistic because in President Hadi we have a very committed, very reliable partner now. ... So while the group did exploit that period of uncertainty, we think the trend lines are going in the right direction now in Yemen."

He also said officials think the number of Al Qaeda fighters participating in the bloodshed in Syria remains rather small, though there remains the risk of unaffiliated foreign fighters traveling to the country and posing the threat of greater violence.

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FOXNews.com: Texas Democrats pick ex-state Rep. Sadler for US Senate

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Texas Democrats pick ex-state Rep. Sadler for US Senate
Aug 1st 2012, 01:16

DALLAS –  Former Texas state lawmaker Paul Sadler has beaten political unknown Grady Yarbrough in a Democratic runoff to capture a U.S. Senate nomination.

Sadler is an attorney who served in the Texas House from 1991 to 2003. He advances to the November election to replace retiring Sen. Kay Bailey Hutchison.

Sadler faced little challenge from Yarbrough, a perennial candidate who ran previously as both a Democrat and a Republican.

Yarbrough likely only made the runoff because he shared a last name with iconic former U.S. Sen. Ralph Yarborough, though he's not related.

Texas hasn't elected a Democrat to the U.S. Senate since Lloyd Bentsen in 1988.

Sadler supports the White House-backed health care reform, Planned Parenthood clinics and allowing tax cuts for the nation's wealthiest residents to expire. 

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FOXNews.com: Reid suggests Romney not releasing tax returns would have 'embarrassed' late father

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Reid suggests Romney not releasing tax returns would have 'embarrassed' late father
Aug 1st 2012, 00:50

Senate Majority Leader Harry Reid, in calling out Republican candidate Mitt Romney for declining to release all but his most recent tax returns, suggested that Romney's late father, also a politician, would have been "embarrassed" at his son's stance.

The remark came as Reid quoted an unnamed former business acquaintance of Romney's as claiming the candidate had avoided taxes for a full decade -- that presumably being the reason he wouldn't want the returns to be made public.

"His poor father must be so embarrassed about his son," Reid said in an interview with the Huffington Post.

George Romney, a Michigan governor, released 12 years of tax returns during his unsuccessful bid for the Republican presidential nomination in 1968. His son has released only his 2010 tax return and an estimate for 2011, years when he was preparing for his own presidential bid or already running.

Reid said someone who had invested with Bain Capital, Mitt Romney's former venture capital firm, told the Democratic leader, "Harry, he didn't pay any taxes for 10 years."

Reid acknowledged that he had no evidence to back up such a claim. Yet he went on to suggest that Romney, though under no requirements to disclose more as presidential candidate, wouldn't get past the nominating process for a Cabinet position if he were to maintain the same level of financial privacy.

Romney has attempted to deflect criticisms of his decision not to release more tax returns, arguing that he has done everything the law requires.

His campaign repeated that refrain Tuesday in response to Reid's comments, with adviser Kevin Madden telling the Huffington Post that Romney had "gone above and beyond the disclosure requirements by releasing two years of personal tax returns in addition to the hundreds of pages of personal financial disclosure documents he has provided to the FEC and made public."

The campaign also has previously denied that Romney went any years without paying any taxes.

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FOXNews.com: Texas GOP chooses tea party-backed Cruz for GOP Senate nomination

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Texas GOP chooses tea party-backed Cruz for GOP Senate nomination
Aug 1st 2012, 01:33

AUSTIN –  Tea party-backed Ted Cruz has defeated Texas Lt. Gov. David Dewhurst for the Republican nomination for U.S. Senate.

The former state solicitor general won the runoff Tuesday. He'd lost the May 29 primary by a large margin but forced the runoff because Dewhurst fell short of a majority. Cruz advances to the November election to succeed retiring Sen. Kay Bailey Hutchison.

Cruz painted Dewhurst as a timid career politician too willing to compromise with Democrats.

The race was seen as a national test of the tea party's influence.

Dewhurst had represented the mainstream GOP choice and had the backing of Gov. Rick Perry. But tea party activists and conservative leaders from across the country supported Cruz. Their funding and grassroots organizing helped him overcome Dewhurst's financial advantage and name recognition.

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FOXNews.com: Bust-gate mea culpa: White House sorry for 'confusion' over Winston Churchill statuette

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Bust-gate mea culpa: White House sorry for 'confusion' over Winston Churchill statuette
Aug 1st 2012, 00:16

The White House apologized Tuesday to Fox News contributor Charles Krauthammer for lambasting him over saying President Obama removed a bust of Winston Churchill from the Oval Office – an act that Krauthammer had argued was symbolic of the president's failure to appreciate the United States' close allies.

White House Communication Director Dan Pfeiffer said in his apology that his comments on the official White House blog – including one dismissing Krauthammer's claim as "ridiculous" – were the result of "internal confusion" about two Churchill busts.

"I take your criticism seriously and you are correct that you are owed an apology," Pfeiffer wrote in an email that Krauthammer asked be made public. "There was clearly an internal confusion about the two busts and there was no intention to deceive."

In the apology, Pfeiffer wrote that he lashed out in the blog because he thought Krauthammer, in his Washington Post op-ed piece last week, was repeating the false argument that the president removed the bust and that the move showed his failure to appreciate the special relationship between England and the United States.

In his post, Pfeiffer wrote that he does not bother dealing with "a rumor that's so patently false" but felt compelled to issue a "fact check" on Krauthammer's charge in the column.

"This is 100% false," Pfeiffer blogged. "The bust still in the White House. In the Residence. Outside the Treaty Room."

The post also included an official White House photo of Obama showing British Prime Minister David Cameron a Churchill bust, which turned out to be the other one.

The British Embassy in Washington then released a statement saying there had been two busts in the White House, prompting Pfeiffer to update his blog post by noting the embassy was correct.

The one Krauthammer had referenced had been loaned to President George W. Bush after the Sept. 11 terrorist attacks and was in the Oval Office. It was returned after his presidency.

The other, which had been in the White House for decades, was the one Pfeiffer had referenced in the photo.

"I clearly overshot the runway on my (blog) post," Pfeiffer wrote in the apology. "A better understanding of the facts on my part and a couple of deep breaths at the outset would have prevented this situation."

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FOXNews.com: Layoff notice, defense cuts set off dispute

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Layoff notice, defense cuts set off dispute
Jul 31st 2012, 22:32

WASHINGTON –  Republicans accused President Barack Obama of trying to keep middle-class Americans in the dark about whether they'll lose their jobs from impending defense cuts as a Labor Department memo cautioning contractors about layoff notices set off political recriminations.

"The president doesn't want people reading about pink slips in the weeks before his election, so the White House is telling people to keep the effects of these cuts a secret until after the election," Senate Minority Leader Mitch McConnell, R-Ky., said Tuesday in a speech on the Senate floor.

The memo advised federal contractors -- major defense firms among them -- that they do not have to warn their employees about potential layoffs from the automatic, across-the-board budget cuts that kick in Jan. 2. A law, known as the WARN Act, says those notices would have to go out 60 days in advance, arriving in mailboxes four days before the Nov. 6 election.

The guidance letter said it would be "inappropriate" for employers to send such warnings because it is still speculative if and where the $110 billion in automatic cuts might occur. About half the cuts would be in defense.

The White House did make clear Tuesday that Obama would exercise his authority under last year's budget law and exempt military personnel from any automatic defense cuts.

Pressed on the issue Tuesday, Labor Department spokeswoman Elizabeth Alexander said "there is an insufficient factual basis for employers to form a business judgment about whether or not their contracts will be affected."

Democrats insist the cuts could be averted if Republicans were willing to consider tax increases on high-wage earners as part of a budget compromise.

"By refusing to replace cuts with revenues, Republicans are putting millionaires ahead of the middle class and the military," Senate Majority Leader Harry Reid, D-Nev., told reporters.

In the midst of the tiff, the White House told agency officials Tuesday to "continue normal spending and operations" since more than five months remain for Congress to act to avert the automatic across-the-board cuts known as "sequestration."

Acting White House budget chief Jeffrey Zients said Obama remains confident that lawmakers will act to address the automatic spending cuts, which he described as "highly destructive." Zients said in a memo to agency heads that the budget office will be consulting with agencies on how the spending cuts would have to be implemented if Congress and Obama together fail to stop them.

Separately, Zients sent a letter to Speaker John Boehner, R-Ohio, saying that the president would spare military personnel from the automatic reductions.

"This is considered to be in the national interest to safeguard the resources necessary to compensate the men and women serving to defend our nation and to maintain the force levels required for national security," Zients wrote. "It is recognized that this action would increase the sequester in other defense programs."

Republicans are using the looming reductions in military spending as an election-year cudgel against Obama, arguing that the commander in chief is willing to risk the nation's security as he uses the leverage in the budget showdown with Congress. Republican presidential candidate Mitt Romney has echoed GOP lawmakers' criticism.

Democrats counter that Republicans who voted for the cuts are trying to wriggle out of last August's deficit-cutting agreement and they must consider tax increases to stave off reductions. McConnell voted for those cuts, so did Sen. John McCain, R-Ariz., who was on a two-day tour of presidential battleground states warning about the impact of the reductions along with Sens. Kelly Ayotte, R-N.H., and Lindsey Graham, R-S.C.

"While I'm all for tightening our belts, we shouldn't add a national security crisis to our fiscal crisis -- and that's what these reductions would do," Ayotte said at a stop at BAE Systems facility in Merrimack, N.H.

Ayotte and McCain warned that the cuts could cost the company 3,600 jobs.

Zients faces questioning by the House Armed Services Committee on Wednesday about the looming cuts and the government planning. Deputy Defense Secretary Ashton Carter also will testify as the panel seeks answers on how the Pentagon would implement the reductions.

The committee chairman, Rep. Howard "Buck" McKeon, R-Calif.,sent letters last week to Zients and Carter with a series of questions on how the cuts will be made, what accounts would be affected and how it would affect contractors.

Congess proceeded to draw up a defense spending bill for next year.

A Senate panel approved a $604 billion defense spending bill that reverses proposed Pentagon cuts in Air Force personnel and equipment. The Appropriations defense subcommittee approved the bill by voice vote Tuesday. The measure would provide $511 billion for the base budget and $93.3 billion for the war in Afghanistan in the fiscal year beginning Oct. 1 as the committee moved money to war funding to meet the budget caps.

The bill is nearly $29 billion less than current spending.

The legislation provides $800 million to halt the Air Force's planned cuts. In its budget proposal, the Pentagon called for a cut of 5,100 from the Air National Guard, 3,900 from active duty and 900 reservists as well as 134 aircraft. That proposal met stiff resistance from the nation's governors and members of Congress.

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FOXNews.com: Warren backtracks on claim of Wall Street support, calls own comment 'silly'

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Warren backtracks on claim of Wall Street support, calls own comment 'silly'
Jul 31st 2012, 21:48

Elizabeth Warren is backtracking on a claim she made about Wall Street executives supporting her in her Senate bid because she will "save capitalism" -- a comment she now calls "silly."

The Democratic hopeful in Massachusetts had told the National Journal that Wall Streets figures had told her they wanted to back her in the race. According to the Boston Herald, Republicans and others were quick to point out the gaffe, as Warren has said throughout her campaign that her opponent, Republican Sen. Scott Brown, is a "favorite" congressman of Wall Street.

"I passed along a comment that was over the top, and it was silly for me to do so," Warren told the Boston Herald at a campaign stop in Somerville on Tuesday.

Warren's reversal of the Wall Street comment comes after claims about her Cherokee ancestry also were contested. The issue is something Warren has dealt with for the last few months during her campaign.

Nevertheless, Democrats are hoping for a Warren win in Massachusetts to help them hold onto their slim majority in the Senate, and she has been selected to speak in a prominent spot at the Democratic National Convention in September.

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FOXNews.com: Republican House leaders drop plans to extend farm bill

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Republican House leaders drop plans to extend farm bill
Jul 31st 2012, 22:26

WASHINGTON –  With Republicans badly split over farm subsidies and cutting food stamps, House GOP leaders Tuesday decided to drop plans to extend the current farm program for one year and instead will press for immediate help for drought-stricken farmers.

The decision comes as Republicans feel pressure to do something for drought-hit farmers and ranchers before Congress begins its summer recess.

The party remains stymied by internal divisions between conservatives and farm-state lawmakers on how to proceed with a broader renewal of farm subsidies and the food stamp program, which have experienced rapid growth in recent years.

Republicans initially had announced plans to extend for one year the current farm and food programs, which expire on Sept. 30. But GOP leaders pulled that measure from Wednesday's floor schedule after Democrats announced opposition to the measure.

Minnesota Rep. Collin Peterson, the senior Democrat on the House Agriculture Committee, opposes the idea, saying it would doom the chances of a five-year farm bill that would make dramatic changes to much-maligned farm subsidies.

Instead, GOP aides said, the House will take up a much smaller measure aimed at dealing with this summer's drought, the worst in about a half-century. The aides required anonymity because rank and file Republicans had not been briefed on the plans.

Details of the drought relief package were not immediately available.

Senate Majority Leader Harry Reid, D-Nev., signaled that Democrats might be able to support the House GOP move.

"I think that what the House should do is take the provisions we have in our bill that we sent to them, and if they want to do something about drought relief, send that to us," Reid told reporters.

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FOXNews.com: DeLauro is latest Connecticut Democrat to join SEIU picket line

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DeLauro is latest Connecticut Democrat to join SEIU picket line
Jul 31st 2012, 20:21

A Connecticut congresswoman has joined with Service Employees International Union members in contract dispute with a retirement home company that claims the unionized workers sabotaged patient records and committed other acts of vandalism during a walkout this month.

Rep. Rosa DeLauro is among several Democratic lawmakers who have sided with workers from a chapter of the SEIU, the largest health care union in North America with roughly 1.1 million members. 

The strike occurred July 3 after roughly 18 months of contract negotiations with HealthBridge Management over such issues as pay, medical insurance and retirement plans.

"It is unfortunate that Congresswoman Rosa DeLauro has decided to choose sides in the ongoing strike … regrettable that she is lining up in favor of the SEIU monopoly."

SEIU has contributed nearly $65,000 to election campaigns for DeLauro, who joined Congress in 1991, according the website OpenSecrets.org.

HealthBridge officials have said the incidents occurred at five of its senior centers and included a wide range of "detestable" and "immoral" acts, such as removing wrist bands from more than 30 residents and switching the names of residents in the memory care unit.

None of the three Connecticut police departments that took the complaints – Danbury, Newington and Stanford – could confirm Tuesday for FoxNews.com that a criminal investigation will follow.

HealthBridge also filed a complaint with the Chief State's Attorney's Office, but that agency also could not confirm whether it has launched or will launch an investigation.

SEIU has denied involvement. However, HealthBridge is asking DeLauro to demand SEIU commission an independent, outside investigation to determine whether union leadership and members were involved.

HealthBridge argues that cuts were necessary as a result of a "very difficult" economic situation that includes increased competition in senior care and big cuts in Medicare.

"I guess they [HealthBridge] figure they can hold out forever," DeLauro told a crowd of striking workers Monday. "They don't know how tough we are."

Top Connecticut Democratic lawmakers, including Sen. Richard Blumenthal, Gov. Daniel Malloy and Attorney General George Jepsen, also have thrown their support behind the union in the protracted labor talks, with Malloy and Jepsen joining picket lines.

Company executives said Jepsen originally rejected their request for an investigation, saying they should instead call the local police. Jepsen has since recused himself from the investigation, and the complaint has been filed with Chief State's Attorney Kevin T. Kane.

Pinpointing the individuals involved is unlikely because the facilities do not have video cameras, in part because they would violate federal patient privacy laws.

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FOXNews.com: Democrats hold ground on 'you didn't build that,' tap Warren for convention speech

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Democrats hold ground on 'you didn't build that,' tap Warren for convention speech
Jul 31st 2012, 20:29

Democrats are digging in after the "you didn't build that" backlash, tapping the firebrand Harvard professor credited with crafting that business-government rhetoric for a plum speaking spot at the party's national convention in early September. 

Elizabeth Warren, who is also running for Senate in Massachusetts against GOP incumbent Scott Brown, was announced overnight as the speaker who will take the stage on the Wednesday of convention week "just before" former President Bill Clinton closes the night.

Democratic National Convention Chairman Antonio Villaraigosa praised her as a champion of the middle class and a deputy in President Obama's efforts to "level the playing field." 

"Like President Obama, Elizabeth is a leader committed to rebuilding the economy from the middle class out, instead of focusing on the top down economics of the past fueled by outsourcing good jobs, risky financial deals and budget-busting tax cuts for only the wealthiest few," Villaraigosa, the Los Angeles mayor, said. 

It was by any measure a bold move by Democrats, considering Warren gave the talk last year that is credited with inspiring Obama's controversial remarks earlier this month on America's businesses. Those remarks have since fueled a wave of GOP attack ads. 

As might be expected, Republicans pounced Tuesday on the decision to grant Warren a prime speaking spot in Charlotte, N.C. 

"Professor Warren represents the arrogance, the anger and the government-knows-best mentality that has put a stranglehold on America's small businesses, and Republicans welcome a very clear contrast in visions for the future that she will present," said Brian Walsh, spokesman for the National Republican Senatorial Committee. 

Though the controversy over Obama's remarks has focused on the disputed remark in which he said to business owners, "you didn't build that," Warren never actually said those words. 

But just as Obama's speech carried the message that America's entrepreneurs owe some measure of success to government investment, Warren made the same case in 2011

"There is nobody in this country who got rich on his own, nobody," she said at the time. "You built a factory out there, good for you. But I want to be clear, you moved your goods to market on the roads the rest of us paid for. You hired workers the rest of us paid to educate. You were safe in your factory because of police forces and fire forces that the rest of us paid for. 

"You didn't have to worry that marauding bands would come and seize everything at your factory and hire someone to protect against this because of the work the rest of us did," she said. 

Warren argued that business owners should keep a "big hunk" of their income, but also "take a hunk of that and pay forward" for the next generation. 

Obama, in Roanoke, Va., made a similar argument, in remarks that have played a starring role in Republican advertising. Mitt Romney's campaign hammered the comments, even as the GOP candidate completed a weeklong overseas tour. 

That the Democrats have picked Warren to introduce former President Clinton shows the party is hardly retreating from the sentiment. 

Though this might be off-putting for independents, Republican commentator and Tea Party 365 founder David Webb said it's actually a good move for the Democrats. "They need to shore up their base," he told Fox News. "They need to play to the progressives and the subsets who they want to stay in line." 

Further, the party could be trying to give Warren a boost in her race against Brown, one of several tight Senate contests that could determine the balance of power in Congress come January. Brown has tried to gain traction recently by raising questions about Warren's past claims of Native American heritage, which she cited while applying for a post at Harvard University. 

Brown's campaign, though, is portraying Warren's speaking slot as a downgrade -- considering that she had already been floated in the media as a possible keynote speaker. She didn't get that job. 

Brown's campaign told the National Journal that her "anti-free enterprise rhetoric" got her "downgraded" in Charlotte. 

In a statement, Warren described the speaking role as an "honor." 

"I grew up in a hardworking family, in an America that was investing in kids like me. President Obama is committed to making sure that America has a level playing field for all our families and to ensuring that every kid has the opportunity to make it," she said. "Mitt Romney and the Republicans want to go back to the same policies that broke this economy. It is time to move forward." 

Mark Hannah, a former aide to the Obama and John Kerry presidential campaigns, suggested the hubbub over Warren's and Obama's remarks is overblown. 

"To come out and say that Elizabeth Warren, by saying we should be collectively responsible on some level for our prosperity in this country ... that is somehow a Communist platform, shows a gross misunderstanding of both Communism and the Democratic platform," he said.   

Still, he said there is clearly a "massive, massive philosophical difference" between the two candidates over how a capitalist economy should be run.

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FOXNews.com: Gay marriage ban supporters seek Supreme Court review

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Gay marriage ban supporters seek Supreme Court review
Jul 31st 2012, 19:56

SAN FRANCISCO –  Backers of California's voter-approved ban on same-sex marriages are asking the U.S. Supreme Court to overrule a federal appeals court that struck down the measure as unconstitutional.

Lawyers for the coalition of religious conservative groups that sponsored the ban, known as Proposition 8, petitioned the Supreme Court Tuesday to review the lower court's finding that the 2008 amendment to the state constitution violated the civil rights of gay and lesbian Californians.

The move had been expected since a panel of the 9th U.S. Circuit Court of Appeals issued its 2-1 decision earlier this year.

If the high court declines to take the case, it would clear the way for same-sex marriages to resume in California. Gay couples could get married in the state for several months before Proposition 8 passed.

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FOXNews.com: US judge strikes down EPA water criteria for mines

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US judge strikes down EPA water criteria for mines
Jul 31st 2012, 19:59

CHARLESTON, W.Va. –  A federal judge says the Environmental Protection Agency overstepped its powers by setting up water-quality criteria for coal mining operations in Appalachia.

U.S. District Judge Reggie B. Walton in Washington ruled Tuesday in a lawsuit filed by a coal mining industry coalition against the EPA and Administrator Lisa Jackson. Walton said the EPA infringed on the authority given to state regulators by federal clean water and surface mining acts.

Last year, the EPA tightened guidelines on the practice of dumping waste into Appalachian valley waterways from surface mine blasting.

The National Mining Association, which had denounced the guidelines as a "jobs destroyer," says it's now time to get miners back to work by allowing state permitting agencies to do their jobs.

A message left with the EPA wasn't immediately returned.

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FOXNews.com: Documents show dozens of questionable GSA conferences, millions in bonuses

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Documents show dozens of questionable GSA conferences, millions in bonuses
Jul 31st 2012, 18:56

Remember Jeff Neely, the government official photographed living it up in a hot tub at a Las Vegas conference? 

"He was the tip of the iceberg," says Rep. John Mica, R-Fla. 

Mica's committee is now looking into wasteful spending at as many as 77 other General Services Administration (GSA) conferences -- all uncovered in documents obtained by Fox News. 

The documents, obtained through a Freedom of Information Act request, show the extent to which GSA dumped money into questionable conferences, sometimes with little or no record of spending. They also show that while the GSA was hosting lavish affairs, they were also doling out bonuses to their party guest employees. 

One of the more troubling conferences was held in 2010 in Crystal City, Va., where GSA employees within the Federal Acquisition Service spent hours drumming in what administrators billed as a "team-building" exercise. 

But while lawmakers first uncovered that conference earlier this month, documents obtained exclusively by Fox News show the event was the setting for millions of dollars worth of bonus handouts. 

According to the records, more than 3,700 employees received bonuses averaging about $1,000 apiece at the conference. The cost to taxpayers was $3.6 million -- minus the cost of the drumsticks, and the consultant who headed up the exercise. 

Practices like this have drawn the ire of government watchdogs. 

"The private company that hands out bonuses and rewards far beyond its ability to pay is going to be out of business. In the government, it seems to matter less because so many people seem to qualify," said Tom Schatz, of Citizens Against Government Waste. 

Fox News' FOIA request found several GSA conferences have no record of spending -- no receipts and no way to account for the cost associated with travel and conference spending. 

"It wouldn't surprise taxpayers to learn that these kinds of omissions occur at every agency. The lack of accountability is so bad that it's impossible to fire anyone," Schatz said. "It takes a hot-tub scandal to get rid of people at these agencies." 

Firing more GSA employees may be exactly what Mica, chairman of the House transportation committee, has in mind when he opens a new round of hearings Wednesday on the lavish GSA conferences. 

"They tried to do everything they could to cover up the October  2010 Las Vegas fiasco. Now, we're hearing there are dozens more. We're going to drag in all the parties involved and get to the bottom of this scandal," Mica told Fox News. 

Questioned about the lack of accountability, a GSA spokesman sent a written response to Fox News which said: 

"As of April 2012 all spending for events, including training conferences, leadership events, team building exercises, award ceremonies, were suspended. The 2010 awards ceremony was an annual event and has been in existence going back to 2002. Under the new GSA leadership these events and this type of spending are not tolerated." 

But Mica wants to inquire if, indeed, some of the wasteful spending practices have continued even after the departures of some administrators who had a hand in the profligate conference spending. "This is very disappointing. Some replacements may be involved in latest scandals so that complicated our investigation," Mica said. 

Still, Mica contends that that GSA's out-of-town conference spending pales in comparison to the taxpayer money wasted on 14,000 vacant or underused properties that GSA oversees. It is part of GSA's job to manage those properties and, when possible, sell them. "The underutilized assets that are sitting idle, wasted and abused cost taxpayers in the billions," Mica said. 

To help demonstrate that waste, The House Transportation and Infrastructure Committee will hold a field hearing  next week  at a vacant federal courthouse in Miami.  

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FOXNews.com: Obama orders new sanctions on Iran

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Obama orders new sanctions on Iran
Jul 31st 2012, 18:51

President Barack Obama is leveling new sanctions on banks in China and Iraq that the White House says have helped Iran evade international sanctions.

The new penalties target China's Bank of Kunlun and Iraq's Elaf Islamic Bank. In a statement, Obama says the sanctions make clear that the U.S. will expose any financial institution that assists "the increasingly desperate Iranian regime" to access the international financial system.

Obama is also expanding sanctions on the purchase or acquisition of Iranian petrochemical products. The sanctions are authorized in part for those who provide support to the National Iranian Oil Company and the Central Bank of Iran.

The election year announcement comes as Obama aims to show he is being tough on Iran amid criticism from Republican rival Mitt Romney.

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FOXNews.com: Reid, Boehner announce stopgap spending deal

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Reid, Boehner announce stopgap spending deal
Jul 31st 2012, 19:12

The top Republican and Democrat on Capitol Hill have announced an agreement to keep the government running on autopilot for six months when the current budget year ends on Sept. 30. 

The announcements by Democratic Senate Majority Leader Harry Reid and GOP House Speaker John Boehner are aimed at averting any chance of a government shutdown this fall. The legislation will pass in September. 

It would also lighten the crush of business in a post-election congressional session agenda that's already overloaded. 

The agreement would fund the government at levels called for by last summer's budget and debt pact between Boehner and President Obama. 

The agreement embraces spending at a total annualized rate of $1.047 trillion for the day-to-day operations of Cabinet departments like the Pentagon and other federal agencies.

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FOXNews.com: Chaffetz wants to fire federal employees who owe back taxes

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Chaffetz wants to fire federal employees who owe back taxes
Jul 31st 2012, 16:48

The House is expected to vote Tuesday on a bill that would fire federal employees for being tax deadbeats.

The bill, which is being proposed by second-term GOP Rep. Jason Chaffetz, also would keep tax scofflaws from getting hired by the federal government in the first place.

Federal civilian employees "draw their compensation and funds from the American taxpayers (so) they owe it to the taxpayers themselves to be compliant," Chaffetz said. "Those that do not should be fired or lose funding."

Chaffetz, R-Utah, cites IRS data that shows nearly 100,000 federal civilian employees owed $1 billion in unpaid federal income taxes in 2009. That number has remained fairly constant since 2004, but the amount owed has increased nearly 70 percent, from $599.8 million, according to the agency.

The bill specifically targets applicants with tax liens.

Those on a plan to repay back taxes or in negotiations with the IRS would be exempt from the proposed change. IRS employees already can be terminated for non-payment of federal income taxes.

In April 2011, the bill was passed out of the House Committee on Oversight and Government Reform, of which Chaffetz is a member.

The bill would include those seeking federal contracts and grants, but exempts uniformed military personnel. In addition, federal agencies would be required to give 60 days notice before taking personnel action.

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FOXNews.com: Romney: Media trying to 'divert' from real issues with focus on foreign gaffes

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Romney: Media trying to 'divert' from real issues with focus on foreign gaffes
Jul 31st 2012, 18:27

Mitt Romney, in an interview with Fox News, accused the media of attempting to "divert" attention from more substantive issues by harping on his so-called gaffes overseas.

"I realize that there will be some that in the fourth estate ... who are far more interested in finding something to write about that is unrelated to the economy, to geo-politics, to the threat of war, to the reality of conflict in Afghanistan today, to nuclearization of Iran," Romney told Fox News' Carl Cameron, after wrapping up his final event in Warsaw, Poland.  

With the candidate heading home after a weeklong tour across three countries, the Republican presidential candidate expressed frustration with the way some of his remarks have been portrayed by both the media and Democratic campaign operatives. Delivering the most outright criticism of the Obama administration since he landed on foreign soil, Romney said: "They'll instead try to find anything else to divert from the fact that these last four years have been tough for our country. They've been years of tumult and war and we need to see a better direction taken on the part of our nation."

Romney also specifically responded for the first time to remarks  he made at a fundraiser in Israel Monday implying that Israel's economy is stronger than Palestine's because of culture. The comments were branded as "racist" by some Palestinian leaders, but Romney denied he was being culturally insensitive.  

"I'm not speaking about it, did not speak about the Palestinian culture or the decisions made in their economy." Instead, he said he's pointing out "that the choices that a society makes has a profound impact on the economy and the vitality of that society."

The fallout from the remarks spilled over into Tuesday as he was finishing a tour of the Tomb of the Unknown Soldier and a memorial for Pope John Paul II in Warsaw. Despite the somber nature of the moment, U.S. reporters shouted questions at him and were told in colorful language by a Romney aide to show respect.

In the interview with Fox News, the GOP candidate maintained that he was "very pleased" with his trip -- which spanned six days and made stops in Great Britain, Israel and Poland -- despite the reports of foreign fumbles.

He sat down with at least a dozen foreign leaders in all three nations, yet his official meetings seemed overshadowed by media reports of missteps.

On his first day in Great Britain he became something of the British press' whipping boy when he questioned the readiness of the U.K. to host the Olympic Games. Headlines read, "Who invited you?" and "Mitt, the party-pooper."  

Romney left Warsaw Tuesday afternoon Boston-bound. He will return to the States campaigning in high gear and to speculation of an impending vice presidential pick announcement.

Though he wouldn't offer a timeline or even a hint as to who the pick may be, the candidate did tell Fox News about a new app called "Mitt's VP," which allows people to be find out via mobile phone the moment he announces.

While overseas, Romney kept largely to his word and refrained from criticizing the president directly, yet he told Cameron that he will not be so restrained when he gets back home.

"I can assure you that when I land tonight, I will be back to my old and direct contrasts," he said.

Fox News' Nicole Busch and Carl Cameron contributed to this report. 

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FOXNews.com: NPR analyst describes Romney's Poland stop as appeal to 'ethnic white voters'

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NPR analyst describes Romney's Poland stop as appeal to 'ethnic white voters'
Jul 31st 2012, 16:26

NPR analyst Cokie Roberts claimed on air that Mitt Romney's stop in Poland was meant to excite "ethnic white voters." 

The comment Monday came as the Republican presidential candidate landed in Poland for the final leg of his three-country tour. 

Roberts, also an analyst with ABC News, inferred that the visit is essentially a bid to attract former Reagan Democrats, especially "descendants" of Polish people. 

"You remember well the Reagan Democrats, those ethnic white voters who had been Democrats for many years, turned out for Ronald Reagan and have been fairly predictable Republicans since then," Roberts said. "Now, it's a smaller percentage of the population, of the voting population than it used to be, but white voters are still much more Republican than any other group in the electorate. 

"They went for McCain in 2008 by 55 percent, and I think that, you know, getting those ethnic voters excited is really what Romney has in mind here. It's more for the folks at home, the descendants of the people that he will be speaking to in Poland," she said. 

Indeed, Poland has a strong Catholic population and the trip could be aimed in part at appealing to some of those voters in the U.S. 

But Romney's visit has been typically portrayed as having more context to it than a bid for Polish-American support. While in Poland, Romney has stressed the alliance between Poland and the U.S., in an implicit dig at President Obama's allegedly accommodating policies toward Russia. 

Plus Romney used an address in Warsaw to herald Poland's free-market policies that helped the country break from the doctrine of Communism, in turn promoting the economic policies he has made a centerpiece of his campaign.

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FOXNews.com: Senate panel OKs $604 billion defense bill

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Senate panel OKs $604 billion defense bill
Jul 31st 2012, 16:28

A Senate panel has approved a $604 billion defense spending bill that reverses proposed Pentagon cuts in Air Force personnel and equipment.

The Appropriations defense subcommittee approved the bill by voice vote Tuesday. The measure would provide $511 billion for the base budget and $93.3 billion for the war in Afghanistan in the fiscal year beginning Oct. 1.

The bill is nearly $29 billion less than current spending.

The legislation provides $800 million to halt the Air Force's planned cuts.

In its budget proposal, the Pentagon called for a cut of 5,100 from the Air National Guard, 3,900 from active duty and 900 reservists as well as 134 aircraft. That proposal met stiff resistance from the nation's governors and members of Congress.

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