A tax even Chuck Schumer hates








Among the five new ObamaCare tax hikes that kicked in Jan. 1, one in particular is attracting opposition from both Republicans and Democrats: the tax on medical devices.

Last month, 18 Democratic senators and senators-elect (including New York’s own Sens. Charles Schumer and Kirsten Gillibrand) wrote Majority Leader Harry Reid, asking him to delay implementation of this 2.3 percent excise tax on the sales of everything from pacemakers to tongue depressors. The House already voted to repeal the tax, which is projected to extract as much as $29 billion from medical-device firms.




There’s a reason that lawmakers from both parties are looking to scrap the tax: It will cost many Americans their jobs, stifle innovation and lower job-creation in the sector.

Indeed, it puts a stranglehold on one of the few industries in America that is actually thriving and creating jobs. As those 18 senators pointed out in their letter, “The medical-technology industry directly employs over 400,000 people in the United States and is responsible for a total of 2 million high-skilled manufacturing jobs.”

By burdening an industry that has proven an engine of job growth, the excise tax could cost the American economy up to 43,000 jobs.

* Minneapolis-based Medtronic anticipates laying off around 1,000 workers — and a loss of $175 million in 2013.

* Michigan-based Stryker plans to eliminate 1,170 jobs. More than 100 of those cuts will come at the company’s Orchard Park and West Seneca facilities in western New York.

* At Welch Allyn — a medical diagnostics manufacturer headquartered in Skaneateles, NY — 275 jobs will be casualties.

The tax will also put a damper on medical innovation. Most new medical devices are invented by small, venture-backed companies that invest heavily in research and development — and so run losses for years before getting their device approved by federal regulators and ultimately turning a profit.

If they come up with a promising prototype, their financial futures are still not secure. Bringing a new, low-risk medical device from concept to market can cost around $31 million — $24 million for activities related to gaining regulatory approval.

Yet the tax applies to gross sales of applicable devices, regardless of a company’s profitability or ability to pay. So companies with weak balance sheets (innovative small firms among them) may face bankruptcy.

The tax will also precipitate a slowdown in a manufacturing sector where America still leads the world. The medical-technology industry exports $5.4 billion more than it imports. And in 2008, the United States accounted for 40 percent of the world’s medical-technology market.

Congress has long known about the tax’s ugly impact on the economy — and on patients. In 2010, Richard Foster, the chief actuary at the Centers for Medicare and Medicaid Services, wrote that the device tax “would generally be passed through to health consumers in the form of higher drug and device prices and higher insurance premiums.” He predicted that annual health-care spending would increase $18.2 billion by 2018 thanks to the tax and other similar fees in ObamaCare.

None of this — not even the pleadings of his own party — has moved President Obama to reconsider the device tax. He explained in a recent interview, “The health care bill is going to provide those medical device companies 30 million new customers . . . so this additional tax essentially comes back to them as new customers.”

Problem is, most of the new customers who gain coverage through ObamaCare will be young, healthy Americans — hardly the device industry’s core customers.

History shows that an influx of newly insured individuals doesn’t necessarily lead to more revenue for medical-device firms. Massachusetts saw no greater growth in the sale of medical technology (compared to other states) after it implemented its own version of ObamaCare in 2006.

With 45 Republicans opposed to all ObamaCare, those 18 Democrats mean that nearly two-thirds of the Senate wants to kill the tax — and it’s rare indeed that two-thirds of the Senate agrees on anything.

The president should heed the Senate — and scrap this job-killing tax.

Sally C. Pipes is president and CEO at the Pacific Research Institute. Her latest book is “
The Pipes Plan: The Top Ten Ways to Dismantle and Replace ObamaCare.”



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Billionaire Phillip Frost an ‘entrepreneur’s entrepreneur’




















For that blind first date, a half-century ago, the young doctor, Phillip Frost, showed up at Patricia Orr’s family house in suburban New York, with an unusual gift: a miniature mushroom garden.

In the 50 years since, Frost, the son of a shoe store owner, has gone on to amass a fortune of $2.4 billion, according to Forbes magazine, becoming the 188th wealthiest man in the United States by developing and selling pharmaceutical companies. Along the way, he and Patricia have become major philanthropists in Miami-Dade County and they’ve signed a pledge to give away at least $1 billion more.

“He’s a relentless guy,” says Miami banker Bill Allen, who’s know him for more than 40 years. “He’s not afraid to take risks. ... He knows the intimate details of the chemistry of products, and he’s the kind of guy who can examine 50 deals while eating a sandwich.”





CNBC’s Jim Cramer recently praised Frost’s “incredible track record” for developing companies, calling Frost’s latest endeavor, OPKO Health, a “very risky” investment while noting it could offer huge gains under Obamacare.

But back in 1962, Patricia’s first impression was that Phil Frost was a bit of a nerd, finishing his medical internship with a strong interest in research — including mushrooms. She figured an academic career loomed.

“My mother was very impressed,” recalls Patricia, not so much by the M.D. behind Frost’s name but by the gift, something more serious than the usual flowers or candy. Serious was fine with Patricia, who was living at home while working toward a master’s degree in education at Columbia University. For their first date, they listened to a classical music concert.

Frost’s rise to riches may seem highly distinctive, but in an odd coincidence he has much in common with another prominent Miamian. Frost, 76, and car dealer Norman Braman, 80, both frequently appear on the Forbes list of wealthiest Americans. Both grew up in Philadelphia — Frost the son of a man who sold shoes, Braman son of a barber. Both are Jewish, well-known art collectors and philanthropists.

“He’s an entrepreneur’s entrepreneur,” says Braman. “We have a lot in common, coming from very poor families. But he went to Central High (a public school for exceptional students) and I was not qualified to go there.”

There are other differences. While Braman is voluble and highly visible in the causes he supports, Frost tends to be a reticent, almost shy speaker, given to careful pauses.

‘Lucky chances’

Told that a former colleague had called Frost “lucky,” Frost thought for a long moment. He could have cited many national business stories about his business acumen. Instead, he responded crisply: “I’ll be satisfied with lucky. I benefited from chance meetings.”

Frost spent his first years living above the shoe shop within an Italian market in South Philly. His two brothers were 15 and 16 years older. “I was an afterthought.”

The family was religiously observant, and Frost recalls his father singing him songs in Yiddish when he was small. He lived at home while attending the University of Pennsylvania, except for a year abroad in France. He took many science courses, but his major was French literature.





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Scott Israel talks about BSO’s future




















On Tuesday, Broward Sheriff-elect Scott Israel will take over the most powerful elected post in the county, overseeing about 5,500 employees and a $670 million budget.

Past Broward sheriffs have generated colorful and political headlines. Nick Navarro, elected in 1984, ordered deputies to cook crack cocaine to use in drug stings, and ordered the arrest of the rap group 2 Live Crew for obscenity. Ken Jenne, a former state senator, plastered his name on everything from pencils to Frisbees to rugs before he pleaded guilty to tax evasion in 2007 and landed in federal prison.

Then Gov. Charlie Crist appointed longtime BSO official Al Lamberti as sheriff. On Election Day a year later, Lamberti won as a Republican in Florida’s most Democratic county. Tens of thousands of voters who turned out to elect President Barack Obama skipped the sheriff’s race, helping Lamberti defeat Israel, a Democrat.





But in 2012, fewer voters skipped the sheriff’s race on their ballot and Israel — with the help of key political allies — ousted Lamberti.

Israel set to work changing BSO immediately. In December, his transition team sent emails to 28 high-ranking employees telling them they would be out once Israel took over. Many top officials had already announced they would be leaving, including BSO spokesman Jim Leljedal, attorney Judith Levine and Undersheriff Tom Wheeler.

After 35 years at BSO, Lamberti said Friday that he has not applied for any jobs and doesn’t plan to open a security firm. (He has been joking about the fact that there is an opening at the CIA.)

Bob Butterworth, a former Broward sheriff and Florida attorney general, calls the sheriff’s job the “most challenging office” in Broward.

“If you can deal with the issues of substance abuse and mental health — and a sheriff can if they wish to do that — I think you can reduce crime in this community by a lot and also reduce the jail population,” Butterworth said.

Beyond staff changes, it is not yet clear how Israel, a 56-year-old former Fort Lauderdale police captain and North Bay Village police chief — will change BSO.

But emails from Israel’s transition team to BSO show that Israel has sought information about every aspect of the agency, including budget forecasts, contracts for everything from garbage collection to lobbying, statistics about the race of employees and even about the protocol for military casket arrivals.

Israel’s senior command staff includes many who played key roles in his campaign, including his new general counsel, Ron Gunzburger, son of County Commissioner Sue Gunzburger, and Lisa Castillo, who worked on Israel’s campaign. The name of her husband, Pembroke Pines Commissioner Angelo Castillo, is also being bandied about as having a role in the Israel administration.

Israel, who lives with his wife, Susan, and teenage triplets in Parkland, will be sworn in at a public ceremony by Broward Circuit Judge Ilona Holmes at 11 a.m. Tuesday at The Faith Center in Sunrise.

The Miami Herald spoke to Israel recently about his views on gun control, politics and other topics.

Q. The Broward sheriff is often described as the most powerful elected post in Broward. Your predecessor, Al Lamberti, tried to define himself as a law enforcement professional — not a politician. Do you view yourself as a politician?





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Alleged Ohio rapists may not get fair trial: defendant’s lawyer






(Reuters) – Two Ohio high-school football players accused of raping a teenage girl may not get a fair trial after a photo and video allegedly associated with the case were posted on the Internet by the computer hacking group Anonymous, a lawyer for one of the accused said on Friday.


Ma’lik Richmond and Trenton Mays, both 16 and members of the Steubenville High School football team, are charged with raping a 16-year-old fellow student last August, according to statements from their attorneys to local and national media.






Their juvenile court trial is scheduled for February in Steubenville, a city of 19,000 about 40 miles west of Pittsburgh.


The case shot to national prominence this week when Anonymous activists made public a picture allegedly of the rape victim, being carried by her wrists and ankles by two young men, and of a video that showed several other young men joking about an alleged assault.


Richmond’s lawyer, Walter Madison, said on CNN that his client was one of the young men in the photograph, but does not appear in the video.


But the picture “is out of context,” Madison said. “That young lady is not unconscious,” as has been widely reported.


“A right to a fair trial for these young men has been hijacked,” Madison said, adding that social media episodes such as this have become a major threat to a criminal defendant’s right to a fair trial.


“It’s very, very serious and fairness is essential to getting the right decision here,” he said.


Mays’ attorney Adam Nemann could not immediately be reached for comment on Friday. In an interview on Thursday with Columbus, Ohio, broadcaster WBNS-10TV, Nemann raised concerns about the effect the Anonymous postings could have on potential witnesses in the case.


“This media has become so astronomically ingrained on the Internet and within that society, I am concerned witnesses might not want to come forward at this point. I would be surprised now, if there weren’t witnesses now who might want to start taking the Fifth Amendment,” Nemann told the station.


The Fifth Amendment to the U.S. Constitution offers protection against self-incrimination in criminal proceedings.


The case has also been a challenge for local officials because of conflicts of interest. Both the local prosecutor and police have close ties to the school that the defendants attend.


As a result, the case is being investigated and prosecuted by Ohio Attorney General Mike DeWine’s office.


Interviewed on CNN on Friday, DeWine said it was not unusual for his office to prosecute or investigate cases in small towns where close ties within the community caused conflicts of interest to arise.


He also voiced concern about how social media may affect the case.


“This case needs to be tried not in the media, not in social media,” DeWine said.


He said Anonymous’ attempt to shame the alleged attackers had actually harmed the victim.


Not only is the victim hurt by the initial crime, but “every time something goes up on the Internet, the victim is victimized again,” DeWine said.


(Reporting by Dan Burns and Peter Rudegeair; Editing by Bernadette Baum)


Internet News Headlines – Yahoo! News





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Smash Season Two TCA Trailer

After a very public behind the scenes shake-up, the newly installed Smash EP, Joshua Safran, and the cast addressed the press at the Television Critics Association Tour in Pasadena, CA today.

First thing first, Safran wanted to make it clear that this rejiggered season is still very much the Smash you fell in love with last year. "I don't really think it's changed that much. The stuff you loved last year is still there and the stuff you thought went off on tangents, we tried to find ways to pull together."


VIDEO - How Katharine McPhee Became A Smash

"It's bigger, with more music, younger in some regards, but I hope the people who watched it still see the same show they loved."

Having watched the two-hour premiere, I can attest that what Safran says is true. The episode is fast-paced, more grounded yet dares all the characters to dream higher. All in all, it's simply more of what you loved to begin with.

To play off that, Smash introduces Hit List, a second burgeoning Broadway musical this season, which is how newbies Jeremy Jordan and Andy Mientus (they play Hit List's writers) come into the picture. "We have more original music, more musical sequences per episode [and] more diverse styles," Safran added. "If you look at Broadway, there are shows that take place in the 1800s and shows that take place today. I wanted to represent that [on our show]."


RELATED - 12 Best Shows of 2012

Check out a brand new sneak peek above and tune in to the season two premiere of Smash, February 5 at 9 p.m. on NBC.

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Syria’s agony








The death toll in Syria’s 22-month civil war has topped a staggering 60,000 — far higher than had been suspected.

That’s according to an “exhaustive analysis” undertaken by the UN’s human-rights chief, Navi Pillay.

And even that figure is probably an underestimate, experts say.

What’s ironic is that the number of Bashar al-Assad’s victims is now higher than the number of Arabs, including Palestinians, killed in wars with Israel since the 1967 Six-Day War.

But the UN Security Council — which automatically races to condemn Israel every time a West Bank Palestinian gets so much as a hangnail — has remained silent on Syria.





AP



John McCain





To her credit, Pillay castigated the Security Council in her report, saying Assad’s unchecked bloodshed “shames us all.”

Particularly President Obama — who, as Sen. John McCain noted last week, isn’t “leading from behind,” as he did on Libya, but “waiting from behind.”

This, even as the rate of killings has accelerated since July to more than 5,000 a month.

McCain has called on the White House to establish a no-fly zone over part of Syria and to directly arm the anti-Assad rebels.

To no avail.

True, the US and European countries have provided “humanitarian” aid — but experts say 70 percent of that winds up in government hands.

As has happened in so many previous “humanitarian aid” efforts.

Obama says he has a red line in Syria that will prompt strong US action: if Assad uses chemical weapons.

But McCain says he’s been told by Syrians that Assad sees this not as a red line but a green light — “to use all other weapons of war to massacre them with impunity.”

The Syrian body count is an affront. What will it finally take to shame the world into action — starting with Washington?



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Needle reaches the inner groove for Spec’s




















In the end, even the almighty Adele and Taylor Swift could not hold back the inevitable.

Spec’s, one of the last great record stores, will close its flagship location in Coral Gables on U.S.1, thus joining once-favored chains like Virgin, Tower and Peaches, locally and abroad, that have withered from Internet shopping.

With the closing, sometime in January after the merchandise is liquidated, 64 years of history becomes memory for countless people who discovered a love of music in the home Martin “Mike” Spector built in 1948 when U.S.1 was but a two-lane road.





The original store, which sold cameras alongside 78-rpm records, was a few blocks south on the highway in South Miami and is now an Einstein’s bagel spot. The present location, opened in 1953 in Coral Gables, lived through the bobby sox era, Beatlemania, disco, punk, hip hop/rap, grunge, electronic dance music and all the format changes including 12-inch vinyl, 45-rpm, reel to reel, 8-track, cassette, compact disc and mp3.

After the first music industry recession in the late 1970s, Spec’s still managed to double in size by breaking through the walls of two restaurants in 1980 on its north side. The original room on the south side of the building would house, first, Spec’s’ VHS movie rentals and sales — Saturday Night at Spec’s! — and, later, one of the most expansive collections of classical music in town.

“It’s the soundtrack of our lives,” said store manager Lennie Rohrbacher, who spent 23 years of his life working at Spec’s, from Clearwater to Coral Gables

Music sales

At its peak, the Spec’s chain grew to some 80 stores in Florida and Puerto Rico. In 1993, annual sales exceeded $70 million. Spec’s went public in 1985 and, in 1998, the Spectors sold to Camelot Music Group, which was acquired by Trans World Entertainment Corp.

Trans World, which did not return several telephone messages, shrewdly kept the Spec’s name attached to the flagship store as goodwill even though, technically, it operated under the company’s retail subsidiary, F.Y.E. (For Your Entertainment).

But those are the cold, hard business facts.

Spec’s was “not like another Eckerd’s,” a drug store chain that also slipped into oblivion amid changing times, said Rohrbacher. “This was part of the community, part of my life. It’s not another store going under.”

Indeed, Spec’s was, first and foremost, a community gathering spot to share a love of music. In the ‘70s and ‘80s Spec’s resembled a makeshift camp site where people would sleep overnight in the parking lot to get the best shot at concert tickets in a pre-Internet world. Spec’s, a hop-skip from the University of Miami’s music school, served as its own music education outlet thanks to a knowledgeable sales staff.

Music education

“The proximity to the UM is prime real estate. Not to have it there will really be different. Even if they didn’t have what I was looking for, the staff was knowledgeable and you were sort of tapping into this knowledge base of people who could turn you on to new music. That’s what I’ll miss about it and the community around the store,” said Margot Winick, an employee at the Coral Gables Spec’s in the mid-1980s when she was a freshman at the UM.





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America’s Next Top Model brings its fierce style to Lauderdale




















South Florida’s fiercest braved the rain Saturday for a chance to become America’s Next Top Model.

The CW network reality TV show hosted auditions at the Fort Lauderdale Art Institute, and for the first time welcomed male models to try out.

Miami Gardens resident Gregory Boudreaux, 24, was there with his best asset: his hair. His 6-inch afro sticks straight up into pointy peaks.





“I usually get casted because of my hair,” said Boudreaux, who works in a retail store setting up displays and has walked in some Miami Beach fashion shows.

Even the makeup artist took notice of his ‘do as she dabbed foundation under Boudreaux’s eyes.

“Your hair, oh my God,” said makeup artist Jude Andam. “It’s so angular. It looks... not real.”

More than 300 gorgeous guys and gals auditioned in Fort Lauderdale with the goal to land a spot on the show, created and hosted by supermodel Tyra Banks. On the show, in its 20th cycle, supermodel wanna-bes live together and compete through photo shoots in exotic locations. Past contestants have lived in New York and Los Angeles, and have traveled as far as China, Brazil and Italy for photo shoots.

One by one, models get booted off the show while the rest move closer to top prize: a modeling feature, $100,000 and partnerships with fashion companies to help launch a top-notch modeling career.

Judges on Saturday were looking for models between the ages 18 to 27. Women under 5’7” and men under 5’10” were cautioned to not apply.

A panel of industry experts will pick their local favorites and recommend them to the casting director. Viewers can also pick their favorite by voting online starting Jan. 7-14. The judges’ and viewers’ picks will be revealed in a spot inside the premiere of TV show Carrie Diaries 8 p.m. on Jan. 14 on SFL-TV, The CW.

Jeslie Mergal got her picture snapped for the viewer’s choice contest. Her nerves began to bubble up as she got closer to her short appearance in front of judges.

“Standing in line, it’s not that bad. But as you get closer, it gets worse and worse,” she admitted.

Mergal grew up in Hialeah but moved to Orlando in elementary school. She made the drive down to Fort Lauderdale with her father for two reasons: to audition for the show, and to celebrate her birthday with her grandmother in Hialeah Gardens. The nursing student turned 21 the same day.

The only thing standing in the way of a carefree birthday lunch with her family was a nerve-wracking stint in front of the judges.

Mergal took to the short, wooden platform that served as a catwalk, and introduced herself.

“Why do you want to be on America’s Next Top Model?” a judge asked.

It’s the same question every contestant gets — Mergal knew that. But up until moment before, she admitted she wasn’t sure how’d she answer.

“I know if you put me on the show, I’m going to win,” she answered to the judges. “I will make it: whether it’s here or somewhere else.”

Then she strutted up and down the short catwalk, and ended with a smile and her hands on her hips.

The whole ordeal — from signing up, to orientation, to hair and makeup, and finally, the audition — took about two hours.

“I can’t wait to get my callback,” Mergal said.

Follow @Cveiga on Twitter.





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We Salute the First Baby Senator






We realize there’s only so much time one can spend in a day watching new trailers, viral video clips, and shaky cell phone footage of people arguing on live television. This is why every day The Atlantic Wire highlights the videos that truly earn your five minutes (or less) of attention. Today:


RELATED: Claire McCaskill and How to Attack the Opponent You’re Rooting For






Here’s our suggestion to improve the (already pretty hilarious) swearing-in process for U.S. Senators: Each new member of Congress must bring a cute baby.


RELATED: Rand Paul Doesn’t Want You to Go to Jail for Smoking Pot


RELATED: Larry David’s Two-Minute Guide to Etiquette


Apparently the BBC has decided to market a line of lunch boxes specifically made for hungry polar bears. They are still working out the kinks: 


RELATED: Homer Simpson, Fox News Pundit; Books After Dark


RELATED: Bo Obama Stays On Message; Sarah Palin Can See HBO in Her House


The Golden Globes will be bittersweet this year. Don’t get us wrong — we’re really excited to watch Amy Poehler and Tina Fey entertain us. But we’ll also be also really sad when this thing is over because it means the end of these promos:


And finally, it’s Friday. And it’s time to dance. Enjoy your weekend. 


Wireless News Headlines – Yahoo! News





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Cher Signs Development Deal with Logo

Logo just announced at The Television Critics Association in Pasadena, CA that the network has signed a development deal with the ultimate gay icon, Cher.


AUDIO - Listen to Cher's New Song

The show, which is in its earliest stages of development, would mark Cher's first regular TV gig since The Sonny and Cher Show ended in 1977.

While this could change before the show hits the air (if it actually does), Cher's Logo show is set to revolve around Hollywood in the 1960s. It's unknown what Cher's on-screen participation will be like at this time. 

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