Pennies over patriotism? Stars move to tax havens

 France's Socialist government is introducing a 75-percent income tax on those earning over €1 million ($1.3 million), leading some of the country's rich and famous to set up residency in less fiscally demanding countries.
Here's a look at some big names in France and elsewhere whose changes of address over the years have meant lighter taxes.
DEPARTING DEPARDIEU
The French prime minister has accused actor Gerard Depardieu of being "pathetic" and "unpatriotic," saying he set up residence in a small village just across the border in neighboring Belgium to avoid paying taxes in France.
The office of the mayor in Depardieu's new haunts at Nechin, also known as the "millionaire's village" for its appeal to high-earning Frenchmen, said that for people with high income, like Depardieu, the Belgian tax system, capped at 50 percent, is more attractive.
Depardieu, who has played in more than 100 films, including "Green Card" and "Cyrano de Bergerac," has not commented publicly on the matter.
BEATLE TAX
In 2005, the Beatles' Ringo Starr took up residency in Monaco, where he gets to keep a higher percentage of royalties than he would in Britain or Los Angeles. France's tiny neighbor Monaco, with zero percent income tax for most people, has obvious appeal for the 72-year-old drummer and his estimated $240 million fortune.
The Beatles' resentment of high taxes goes back to their 1960s song "Taxman." George Harrison penned it in protest of the British government's 95 percent supertax on the rich, evoked by the lyrics: "There's one for you, nineteen for me."
Harrison reportedly said later, "'Taxman' was when I first realized that even though we had started earning money, we were actually giving most of it away in taxes."
LICENSE TO DODGE?
Former "James Bond" star Sean Connery left the U.K. in the 1970s, reportedly for tax exile in Spain, and then the Bahamas — another spot with zero income tax and one of the richest countries per capita in the Americas. His successor to the 007 mantle, Roger Moore, also opted for exile in the 1970s — this time in Monaco — ensuring his millions were neither shaken nor stirred.
EXILE ON MAIN ST.
In 1972, The Rolling Stones controversially moved to the south of France to escape onerous British taxes. Though it caused a stink at the time, it spawned one of the group's most seminal albums, "Exile on Main St." The title is a reference to their tax-dodging. In 2006, British media branded them the "Stingy Stones" with reports that they'd paid just 1.6 percent tax on their earnings of $389 million over the previous two decades.
FISCAL HEALING
In 1980, U.S. singer Marvin Gaye moved to Hawaii from L.A. to avoid problems with the Internal Revenue Service, the American tax agency. Later that year, Gaye relocated to London after a tour in Europe. Gaye, whose hits include "Sexual Healing" and "I Heard it Through the Grapevine" settled in Belgium in 1981. He was shot to death in 1984.

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State tax revenues continue growing in third quarter

WASHINGTON (Reuters) - State tax revenues have grown for more than two years, but they are still suffering the effects of the 2007-2009 recession, according to a report released by the Rockefeller Institute of Government on Thursday.
Using preliminary data, the New York research group found that collection from major taxes increased in 47 states in the third quarter of 2012 from a year before, marking the 11th straight increase.
The recession caused states' revenues to plummet to lows not seen in decades over the course of five quarters. That forced almost all states to make emergency spending cuts, raise taxes, borrow and turn to the federal government for help just as the newly jobless and homeless increased demand for their services.
While revenues have been growing, the increases have been small. According to the institute, revenues "are still far below where they would have been in the absence of the Great Recession." Moreover, when adjusted for inflation, revenues are 5 percent below the peaks they reached in fiscal 2008, the last year before the recession devastated their budgets.
Rockefeller found that personal income tax collections were up 4.5 percent in the quarter ending in September, and sales taxes grew 3.1 percent. Corporate income taxes, which provide only a sliver of revenues, fell 0.5 percent.
In the third quarter of 2011, personal income tax collections surged 10.2 percent.
Delaware had the largest increases in overall tax collections in the third quarter, 11.7 percent, followed by Colorado, 10.3 percent.

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Muni tax break under threat from bipartisan scrutiny in congress

WASHINGTON (Reuters) - The tax break that U.S. states, cities and counties get on the bonds they issue is in growing jeopardy now that Republicans, in addition to Democrats, are considering limits on the exemption.
As part of the "fiscal cliff" negotiations to raise more federal government tax revenue, Republican lawmakers have joined Democrats in reevaluating the costly tax break, said Republican congressional aides and lobbyists.
Municipal bonds issued by states and localities are a $3.7 trillion U.S. market underpinned by a law that exempts their interest income from taxation. This allows states and localities to tap capital markets more cheaply than private-sector borrowers such as banks and corporations.
"The muni bond exemption is on the table, not only during tax reform, but also during the 'fiscal cliff,'" said Mike Nicholas of the Bond Dealers of America, a lobbying group for fixed-income securities dealers and banks.
That the tax break - deeply embedded in the economy and vital to state and local governments - would draw the interest of Republicans shows how far Washington has come in a short time in considering potentially dramatic tax-and-spending changes.
As the United States grapples with a huge budget deficit and a complex tax code that has not been revamped in 26 years, even once politically untouchable tax breaks are being questioned.
The "fiscal cliff" refers to sharp tax increases and spending cuts that take effect in 18 days unless Congress intervenes soon.
Some lawmakers from both parties are calling for a comprehensive tax code overhaul in 2013 and groups concerned with the muni bond exemption are worried.
"We have not felt this threat level being this real in a long time," said David Parkhurst, legislative director with the National Governors Association, which represents the leaders of U.S. states that rely heavily on the muni bond tax exemption.
SUBSIDIZING STATES, LOCALITIES
The exemption benefits bond investors on one side of the market and state and local governments on the other. Effectively a subsidy for states and localities, the muni exemption cost U.S. taxpayers about $26.2 billion in 2011.
President Barack Obama in 2011 included the exemption among items subject to his proposed 28-percent cap on deductions and other tax breaks for individuals earning more than $200,000.
That proposal alarmed muni bond issuers and investors, who were already on edge because of a proposal to kill the exemption entirely in 2010's Simpson-Bowles deficit reduction plan.
Now, Republicans are rethinking their traditional reluctance to tinker with muni bonds, largely because they want to find ways to increase federal revenues without raising tax rates.
Phasing out the muni bond tax break for individual taxpayers earning more than $200,000 could raise about $10 billion a year - or about $100 billion over a decade - Republican aides said.
In the fight over the "fiscal cliff," Republicans hope to refute Obama's argument that real deficit reduction cannot be achieved without raising tax rates on high-income Americans.
Senator Orrin Hatch, the top Republican on the Senate Finance Committee, said tax breaks of all sorts need to be weighed in the effort to raise revenue and cut the deficit, but that "they are not easy to get rid of."
FROM STATES TO SCHOOLS
New issuance of tax-exempt bonds is expected to hit about $400 billion in 2013, up from about $370 billion this year, according to investment bank Loop Capital Markets LLC.
Jurisdictions that issue tax-exempt bonds range from states to cities, counties and school districts. They defend the bonds as vital to transportation, infrastructure and other public projects, which would be threatened by an exemption roll-back.
"It certainly couldn't come at a worse time," New York State Comptroller Thomas DiNapoli told Reuters last week, referring to the devastation the region suffered during Hurricane Sandy.
"Even before the storm, we had tremendous infrastructure needs that localities were trying to address and now we're going to have even more."
It is unclear exactly what sort of limitations Republicans have in mind. The Obama proposal would apply to all bond issues.
Citigroup Inc muni bond strategist George Friedlander has estimated that Obama's cap, if enacted, would raise state and local government borrowing costs.
The "fiscal cliff" talks and a possible tax code overhaul next year pose "a clear and present danger" for muni bond issuers and investors, Friedlander said in a recent research report.

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Boehner plan would bring top U.S. income tax rate to 39.6 percent: source

 House of Representatives Speaker John Boehner's latest "fiscal cliff" proposal to President Barack Obama would see the top income tax rates rise to 39.6 percent from 35 percent for those with net incomes above $1 million a year, according to a source familiar with the talks.
The source, who asked not to be identified, emphasized that the income tax rate increase would be in exchange for "significant entitlement reforms/spending cuts." Entitlement programs include Medicare and Medicaid healthcare for the elderly and poor and Social Security retirement benefits.
The White House has not accepted Boehner's proposal, according to another source. Under current law, the top tax rate is scheduled to rise to 39.6 percent on January 1, unless Congress extends the current 35 percent, as Republicans had been urging.

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House Republicans eye limited fiscal cliff bill

With time running short before a Dec. 31 deadline, House of Representatives Speaker John Boehner will begin work on legislation that simply would extend current low income tax rates for all families with incomes below $1 million a year, according to an aide.
Negotiations will continue with the White House on a broader tax and spending deal, the Boehner aide said.
Boehner is presenting the plan to rank-and-file Republicans in a closed-door session.
On January 1, income tax increases for most Americans will begin unless Congress acts.
Last July, the Democratic-controlled Senate passed a bill to extend the current low rates for all families with net incomes below $250,000 a year. The House Republican proposal, if passed by the House, would require agreement by the Senate or force a round of negotiations on a compromise between the two chambers.
In excerpts of remarks Boehner was delivering to his Republican members Tuesday morning, the speaker complained that "the White House just can't seem to bring itself to agree to a 'balanced' approach" to deficit-reduction in negotiations. At the same time, Boehner said Republicans were "leaving the door wide open for something better" than just the limited extension of current low tax rates for most Americans.
"Current law has tax rates going up on everyone January 1. The question for us is real simple: How do we stop as many of those rate hikes as possible?" Boehner said.
For months, Democrats have been urging House Republicans to pass a bill protecting middle-class taxpayers from a January 1 rate increase.

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Ubuntu se mete en los celulares con un sistema operativo propio

Al igual que otras plataformas que buscan una convergencia entre el mundo móvil y la PC, Canonical confirmó el arribo de su sistema operativo Ubuntu a los dispositivos móviles. Disponible en una primera instancia como una instalación no oficial para la línea de smartphones Nexus 3, la versión de Linux utilizada en más de 20 millones busca posicionarse como una alternativa ante un mercado dominado por compañías como Apple y Google, junto a las propuestas de Microsoft con Windows Phone y Research in Motion con sus teléfonos BlackBerry.
La compañía dio un primer paso en febrero de 2012 con Ubuntu for Android , una distribución para "mejorar" el Android convencional.
La versión actual es un sistema operativo que sólo comparte con Android el uso de sus drivers (ambos están basados en Linux), pero no usa una máquina virtual Java, por lo que los 700.000 programas con las que cuenta Android no estarán disponibles directamente. Ubuntu tendrá su propia suite de aplicaciones, y permitirá la suma de nuevas que estén programadas en HTML5 o sean nativas.
Canonical también planea lanzar un teléfono de diseño propio que llegaría al mercado en 2014, pero no brindó mayores detalles sobre el fabricante involucrado. Los recientes cambios en la interfaz de Ubuntu, denominada Unity, marcaron una tendencia en la distribución hacia la interacción en pantallas sensibles al tacto, y este lanzamiento representa un primer paso de la distribución para ingresar en el mundo móvil de los smartphones y las tabletas.
Las prestaciones de una PC, en un dispositivo de bolsillo
Según Mark Shuttleworth, CEO de Canonical, en un principio esta versión de Ubuntu apunta a los entusiastas de la plataforma, pero con una rápida expansión hacia el resto de los usuarios. "Por primera vez en la historia los usuarios de los teléfonos celulares pueden tener las prestaciones completas que tiene en una PC, y tenemos una ventaja en esto", dijo el ejecutivo.

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18 million Android devices could get whacked with malware in 2013

One security firm on Thursday claimed that 2013 will be the year of mobile malware for Android users, however no specific numbers had been given. The team at Lookout Mobile Security has painted a similar picture for Google’s (GOOG) operating system. The firm notes that more than 1.2 billion mobile devices are expected to be purchased in 2013 and in the following year users are forecasted to download over 70 billion mobile apps. Due to Android’s popularity, it is estimated that 18 million devices running the operating system may encounter some form of mobile malware. The likelihood that users will encounter malware or spyware, however, is heavily dependent on geographical location and behavior. Research from the security firm reveals that users in the U.S. have a 0.40% chance of seeing malware, compared those in Russia with a 34.7% chance.

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PUC approves writing rules for smart meter opt-out

EL PASO, Texas (AP) -- The Public Utility Commission has decided to develop a set of rules so consumers can opt out of the smart meters installed in millions of Texas homes and businesses.
Consumers have opposed the new meters, citing possible health hazards and privacy concerns. Some have installed steel cages around their analog meters to prevent utility workers from replacing them with the new digital units and one Houston woman held a gun to impede a utility worker from replacing her meter.
PUC spokesman Terry Hadley said Friday that an opt-out would leave already-installed smart meters in place but disable the devices' radio frequency capabilities.
A draft of the new rules will be written and submitted for public comment, Hadley said. After that, the PUC will vote again on whether to adopt them, which means there's still a chance the opt-out will fail. But, he said, "at this point the Commission is leaning toward an opt-out."
It will take several months until the new proposal is drafted and voted, Hadley said.
Smart meters allow for remote metering via radio frequency and are make the billing process cheaper since there is no need to send utility workers to read them. The meters also provide real-time information on energy consumption and help utilities prevent grid overloads during peak times. They also report to the utility when there is a power outage, making reconnection faster.
In websites and meetings organized by PUC, those against smart meters have spoken of possible government snooping and violations of the Fourth Amendment —unreasonable search and seizure — as well as the chance that hackers could access people's information from the meters.
On a petition template that's posted on www.bantexassmartmeters.com , meters are called "surveillance devices" because they record the household occupants' activities and can be used to "gain a highly invasive and detailed view" of their lives. Smart meters record consumption in 15-minute intervals.
Health hazards from the radio frequencies emitted by the meters have also been cited. The Public Utilities Commission says the meters have a lower impact than cellphones and microwave ovens and are well within Federal Communications Commission's standards for radio frequency devices.
It's likely that consumers who opt out will have to pay to have their meters read. As part of the rule-writing process, the Commission will gather information on how much it costs to send employees to read the meters and what disabling the radio frequency device would cost.
Users in California and Nevada pay between $75 and $107 to have the devices replaced along with monthly fees ranging from $8 to $10 to have the meters read. Meanwhile, Vermont legislators decided in May that utilities cannot charge users that opt out.
About 93 percent of the nearly 7 million smart meters in Texas' competitive markets for electricity, mainly in Houston and the Dallas-Fort Worth area, have been deployed, Hadley said.

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Internet regulation seen at national level as treaty talks fail

 The world's major Internet companies, backed by U.S. policymakers, got much of what they wanted last week when many nations refused to sign a global telecommunications treaty that opponents feared could lead to greater government control over online content and communications.
In rejecting even mild Internet language in the updated International Telecommunications Union treaty and persuading dozens of other countries to refuse their signatures, the U.S. made a powerful statement in support of the open Internet, U.S. officials and industry leaders said.
But both technologists and politicians fear the Internet remains in imminent danger of new controls imposed by various countries, and some said the rift that only widened during the 12-day ITU conference in Dubai could wind up hastening the end of the Net as we know it.
"If the international community can't agree on what is actually quite a simple text on telecommunications, then there is a risk that the consensus that has mostly held today around Internet governance within (Web-address overseer) ICANN and the multi-stakeholder model just falls apart over time," a European delegate told Reuters. "Some countries clearly think it is time to rethink that whole system, and the fights over that could prove irresolvable."
An increasing number of nations are alarmed about Internet-based warfare, international cybercrime or internal dissidents' use of so-called "over-the-top" services such as Twitter and Facebook that are outside the control of domestic telecom authorities. Many hoped that the ITU would prove the right forum to set standards or at least exchange views on how to handle their problems.
But the United States' refusal to sign the treaty even after all mention of the Internet had been relegated to a side resolution may have convinced other countries that they have to go it alone, delegates said.
"This could lead to a balkanization of the Internet, because each country will have its own view on how to deal with over-the-top players and will regulate the Internet in a different way," said another European delegate, who would speak only on condition anonymity.
Without U.S. and European cooperation, "maybe in the future we could come to a fragmented Internet," said Andrey Mukhanov, international chief at Russia's Ministry of Telecom and Mass Communications.
HARD LINE IN NEGOTIATIONS
Spurred on by search giant Google and others, the Americans took a hard line against an alliance of countries that wanted the right to know more about the routing of Internet traffic or identities of Web users, including Russia, and developing countries that wanted content providers to pay at least some of the costs of transmission.
The West was able to rally more countries against the ITU having any Internet role than agency officials had expected, leaving just 89 of 144 attending nations willing to sign the treaty immediately. They also endorse a nonbinding resolution that the ITU should play a future role guiding Internet standards, along with private industry and national governments.
Some delegates charged that the Americans had planned on rejecting any treaty and so were negotiating under false pretenses. "The U.S. had a plan to try and water down as much of the treaty as it could and then not sign," the second European said.
Other allied delegates and a U.S. spokesman hotly disputed the claim. "The U.S. was consistent and unwavering in its positions," he said. "In the end—and only in the end—was it apparent that the proposed treaty would not meet that standard."
But the suspicion underscores the unease greeting the United States on the issue. Some in Russia, China and other nations suspect the U.S. of using the Net to sow discontent and launch spying and military attacks.
Ror many technology companies, and for activists who are helping dissidents, the worst-case scenario now would be a split in the structural underpinnings of the Internet. In theory, the electronic packets that make up an email or Web session could be intercepted and monitored near their origin, or traffic could be subjected to massive firewalls along national boundaries, as is the case in China.
Most technologists view the former scenario as unlikely, at least for many years: the existing Internet protocol is too deeply entrenched, said Milton Mueller, a Syracuse University professor who studies Net governance.
"People who want to `secede' from that global connectivity will have to introduce costly technical exceptions to do so," Mueller said.
A more immediate prospect is stricter national regulations requiring Internet service providers and others to help monitor, report and censor content, a trend that has already accelerated since the Arab Spring revolts.
Jonathan Zittrain, co-founder of Harvard University's Berkman Center for Internet Society, also predicted more fragmentation at the application level, with countries like China encouraging controllable homegrown alternatives to the likes of Facebook and Twitter.
Zittrain, Mueller and other experts said fans of the open Net have much work to do in Dubai's wake.
They say government and industry officials should not only preach the merits of the existing system, in which various industry-led non-profit organizations organize the core Internet protocols and procedures, but strive to articulate a better way forward.
"The position we're in now isn't tenable," said James Lewis, a cybersecurity advisor to the White House based at the Center for Strategic and International Studies. "For us to say 'No, it's got be an ad hoc arrangement of non-governmental entities and a nonprofit corporation ... maybe we could get away with that 10 years ago, but it's going to be increasingly hard."
Lewis said the United States needed to concede a greater role for national sovereignty and the U.N., while Mueller said the goal should be a "more globalized, transnational notion of communications governance" that will take decades to achieve.
In the meantime, activists concerned about new regulation can assist by spreading virtual private network technology, which can national controls, Zittrain said.
Backup hosting and distribution could also be key, he said. "We can devise systems for keeping content up amidst filtering or denial-of-service attacks, so that a platform like Twitter can be a genuine choice for someone in China."

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92K Missourians affected by insurance data breach

JEFFERSON CITY, Mo. (AP) -- State officials say the personal information of more than 92,000 Missourians was accessed by potential identity thieves who hacked the computer systems of Nationwide Insurance, which also does business as Allied Insurance.
Missouri's insurance department said Friday the Oct. 3 data breach could affect more than 1.1 million people across the country who did business with Nationwide or Allied.
Missouri's insurance director says the breach affected the records of people who got quotes for auto insurance after August 2011. The department says Nationwide believes the hackers accessed names, Social Security numbers, driver's license numbers and birth dates, among other things.
Nationwide is offering free credit monitoring and identity theft protection to people affected by the data breach. The insurer says it's not aware that the information has been misused.

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