Bill Clinton: Extend all tax cuts temporarily

Former President Bill Clinton speaks during a campaign event for President Barack Obama at the Waldorf Astoria, Monday, June 4, 2012, in New York.

WASHINGTON (AP) -- Former President Bill Clinton said Tuesday that broad tax cuts that expire in January should be temporarily renewed, including for the wealthiest Americans, to give lawmakers time to reach a deal on a longer-term extension that should exclude the rich.

Clinton's comments were in contrast to President Barack Obama, whose re-election he is supporting. Obama has opposed renewing the tax reductions for people earning over $250,000 a year, saying they must contribute to the effort to control rampant federal deficits.

Reductions in income tax rates and other levies first enacted under President George W. Bush expire in January, at the same time that $1.2 trillion in automatic spending cuts begin to take effect. The nonpartisan Congressional Budget Office and others have warned that letting both events occur would suck so much money out of the economy that it could spark a renewed recession next year.

"What I think we need to do is to find some way to avoid the fiscal cliff, to avoid doing anything that would contract the economy now, and then deal with what's necessary in the long-term debt reduction plan as soon as they can, which presumably will be after the election," Clinton said on CNBC's "Closing Bell With Maria Bartiromo."

Asked whether that meant extending the tax cuts, Clinton said, "They will probably have to put everything off until early next year. That's probably the best thing to do right now."

He also said Republicans will press to include the wealthy in a permanent extension of the tax cuts, adding, "I don't think the president should do that."

White House officials would not comment immediately on Clinton's remarks. But officials pointed out that Obama has said repeatedly that he would not extend the Bush tax cuts for higher earners after they expire.

After the interview, Clinton spokesman Matt McKenna said the former president has said before that he favored extending all the tax cuts as part of a compromise tax and jobless benefits bill in 2010, "but does not believe the tax cuts for the wealthiest Americans should be extended again."

Republicans have insisted that tax rates for the rich should be kept low, saying many of them run companies that create jobs.

Besides the spending cuts and expiration of the tax cuts, the government is expected to need a renewal of its authority to borrow money and avoid a federal default by early next year, something that is up to Congress to decide. Without action, January will also see an end to a one-year Social Security payroll tax cut and to a provision avoiding deep cuts in Medicare reimbursements to doctors.

A postelection lame duck session of Congress is expected to address those issues, with the results depending on who wins the White House and control of the House and Senate on Election Day Nov. 6. Many lawmakers believe final decisions won't be made until next year.

Last week, Clinton said GOP presidential challenger Mitt Romney had a "sterling" record at private equity firm Bain Capital, departing from efforts by Obama's campaign to criticize the Republican's experience there as having little to do with job creation.

Obama and Clinton have improved their relationship since 2008, when Obama defeated Hillary Rodham Clinton in a bitter Democratic contest for the presidential nomination.

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Men accused of plotting attacks around NATO summit

Accused persons from right Brent Vincent Betterly, Jared Chase, Brian Church

CHICAGO (AP) -- Three activists who traveled to Chicago for a NATO summit were accused Saturday of manufacturing Molotov cocktails in a plot to attack President Barack Obama's campaign headquarters, Mayor Rahm Emanuel's home and other targets.

But defense lawyers shot back that Chicago police had trumped up the charges to frighten peaceful protesters away, telling a judge it was undercover officers known by the activists as "Mo" and "Gloves" who brought the firebombs to a South Side apartment where the men were arrested.

"This is just propaganda to create a climate of fear," Michael Deutsch said. "My clients came to peacefully protest."

On the eve of the summit, the dramatic allegations were reminiscent of previous police actions ahead of major political events, when authorities moved quickly to prevent suspected plots but sometimes quietly dropped the charges later.

Prosecutors said the men were self-described anarchists who boasted weeks earlier about the damage they would do in Chicago, including one who declared, "After NATO, the city will never be the same."

At one point, one of the suspects asked the others if they had ever seen a "cop on fire."

Police Superintendent Garry McCarthy dismissed the idea that the arrests were anything more than an effort to stop "an imminent threat."

"When someone was in the position (of having) Molotov cocktails - that's pretty imminent," he said. "It was not a completed investigation."

The men allegedly bought fuel at a gas station for the makeshift bombs, poured it into beer bottles and cut up bandanas to serve as fuses.

The suspects are Brian Church, 20, of Ft. Lauderdale, Fla.; Jared Chase, 24, of Keene, N.H.; and, Brent Vincent Betterly, 24, of Oakland Park, Fla.

If convicted on all counts - conspiracy to commit terrorism, material support for terrorism and possession of explosives - the men could get up to 85 years in prison.

Outside the courtroom, Deutsch said the two undercover police officers or informants were also arrested during the Wednesday raid, and defense attorneys later lost track of the two.

"We believe this is all a setup and entrapment to the highest degree," Deutsch said.

The suspects were each being held on $1.5 million bond. Six others arrested Wednesday in the raid were released Friday without being charged.

The three who remained in custody apparently came to Chicago late last month to take part in May Day protests. Relatives and acquaintances said the men were wanderers who bounced around as part of the Occupy movement and had driven together from Florida to Chicago, staying with other activists.

Court records indicated no prior violent behavior.

Longtime observers of police tactics said the operation seemed similar to those conducted by authorities in other cities before similarly high-profile events.

For instance, prior to the Republican National Convention in 2008 in St. Paul, Minn., prosecutors charged eight activists who were organizing mass protests with terrorism-related crimes after investigators said they recovered equipment for Molotov cocktails, slingshots with marbles and other items.

The protesters, who became known as the RNC Eight, denied the allegations and accused authorities of stifling dissent. The terrorism charges were later dismissed. Five of the suspects eventually pleaded guilty to misdemeanor charges, and three had their cases dismissed altogether.

Molotov cocktails are dangerous weapons, but it "kind of stretches the bounds to define that as terrorism," said Michael Scott, director of the Center for Problem-Oriented Policing at the University of Wisconsin-Madison.

He said police have a history of abusing such tactics, sometimes infiltrating purely peaceful protest groups to search for troublemakers.

But if the allegations are true, police were justified in moving quickly to take the men off the streets, even if the terrorism charges don't stick.

Just one week before their arrest, at least two of the suspects were involved in a minor confrontation with police captured on a video that was then posted on YouTube and aired widely by Chicago media, said another defense attorney, Sarah Gelsomino.

The men had been stopped by police after turning their car into a private driveway.

In the video, one officer asks another what Chicago police would have said in 1968 when they clashed with demonstrators at the Democratic National convention.

"Billy club to the ... skull," the officer responds. Another officer says to the men in the car, who the police take as protesters, "We'll come look for you."

Documents filed by prosecutors in support of the charges in Chicago painted an ominous portrait of the men, saying the trio also discussed using swords, hunting bows and knives with brass-knuckle handles in their attacks.

Relatives and acquaintances painted a starkly different picture.

Activist Bill Vassilakis, who said he let the men stay in his apartment, described Betterly as an industrial electrician who had volunteered to help with wiring at The Plant, a former meatpacking facility that has been turned into a food incubator with the city's backing.

"All I can say about that is, if you knew Brent, you would find that to be the most ridiculous thing you've ever heard. He was the most stand-up guy that was staying with me. He and the other guys had done nothing but volunteer their time and energy," he said.

Betterly appears to have a history of minor run-ins with law enforcement.

Earlier this year, he was cited for disorderly intoxication in February in Miami-Dade County, Fla., but the case has been dismissed, according to online court records.

Authorities in Oakland Park, Fla., said Betterly and two other young men walked into a public high school last fall after a night of tequila drinking and took a swim in the pool, according to a report in the South Florida Sun-Sentinel.

They stole fire extinguishers from three school buses, discharged one and smashed a cafeteria window with another. The vandalism caused about $2,000 in damage. Betterly was charged with burglary, theft and criminal mischief, the newspaper said.

Chase grew up in Keene, N.H., and moved to Boston a few years ago before becoming active in the Occupy movement, said his aunt, Barbara Chase of Westmoreland, N.H.

Jared Chase's father, Steve Chase, died about five weeks ago after a long struggle with a disease that left him disabled, Barbara Chase said. The family had been waiting for him to come home before having a funeral.

She said she was stunned to learn of the charges against her nephew.

"That surprised me because he's not that dumb," said Barbara Chase. "He always seemed harmless, but who knows? Outside influences sometimes can sway people to do things that they normally wouldn't do."

Elsewhere around Chicago, demonstrations remained relatively small. Scattered groups of protesters gathered in some neighborhoods, including several hundred who marched to the mayor's house.

Late in the day, another group gathered in the Loop business district and marched down the city's famous Michigan Avenue. Police on horseback and bicycle kept them away from diners at outdoor cafes who ventured downtown despite wide-ranging security precautions.

The largest protests were expected Sunday, when thousands of people were expected to march from a band shell on Lake Michigan to the McCormick Place convention center, where NATO delegates will meet.

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Obama Courts Young Voters With Student Loan Appeal

President Barack Obama greets students

Wooing the young voters crucial to his re-election, President Obama today launched a passionate campaign-style appeal to students as he pressed lawmakers to prevent the cost of college from rising.

Speaking to a rowdy crowd at the University of North Carolina at Chapel Hill, the president said he understands the financial burdens students face. “Michelle and I, we’ve been in your shoes,” Obama said. “We didn’t come from wealthy families.  When we graduated from college and law school, we had a mountain of debt.  When we married, we got poorer together.”

While the president did not call out the presumptive GOP nominee by name, he drew a sharp contrast between his background and that of Mitt Romney, who comes from a wealthier family. “This is something Michelle and I know about firsthand,” Obama said. “I didn’t just read about this… I didn’t just get some talking points about this. I didn’t just get a policy briefing on this.”

“Check this out, all right?  I’m the president of the United States.  We only finished paying off our student loans about eight years ago,” he said to laughter from the crowd of roughly 8,000. “That wasn’t that long ago.”

While young voters still overwhelmingly support the president — Obama enjoys a substantial 60 to 34 percent lead over Romney — their interest has waned since 2008.

According to an NBC/Wall Street Journal poll, 63 percent of 18- to 34-year-olds took a major interest in the election in 2008. Today, just 45 percent have the same level of interest in this presidential election.

Obama is spending Tuesday and Wednesday visiting three key battleground states to push for low-rate college loans, wooing young voters while targeting a financial burden that hits the middle class and threatens the economic recovery.

In North Carolina Obama urged lawmakers to extend a 2007 law that cut student loan rates to 3.4 percent. If Congress does not act, interest rates will double to 6.8 percent on July 1.

“For each year that Congress doesn’t act, the average student with these loans will rack up an additional thousand dollars in debt,” the president said. “That’s basically a tax hike for more than 7 million students across America, more than 160,000 students here in North Carolina alone.”

Obama is expected to make a similar argument at stops in Colorado and Iowa.

While Romney has come out in support of the extension, the president targeted Republican lawmakers who oppose the measure. “Republicans who run Congress right now have not yet said whether or not they’ll stop your rates from doubling.  We’re two months away,” Obama said, asking those watching to call, email or tweet their members of Congress.

The White House maintains the president’s trip this week is purely official business, but it was hard to ignore Obama’s campaign cadence as he riled up what appeared to be a largely supportive crowd.

“The fact is that since most of you were born, tuition and fees at America’s colleges have more than doubled. That forces students like you to take out a lot more loans.  There are fewer grants.  You rack up more debt.  Can I get an amen?” the president asked.

“Amen!” the crowd cheered.

“The average student who borrows to pay for college now graduates with about $25,000 in student loan debt.  That’s the average.  Some are more.  Can I get an amen for that?” Obama asked again.

“Amen!” the students replied.

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U.S. fears reprisals after Afghan shooting rampage

An Afghan man sits next to the dead bodies killed by US Army

(Reuters) - U.S. officials warned on Monday of possible reprisal attacks after 16 Afghan villagers, mostly children and women, were killed in a likely "rogue" shooting by a U.S. soldier that weakens the West's tenuous grip on a decade-old war.

Washington has rushed to distance the shootings, blamed on a lone U.S. soldier, from the efforts of the 90,000-strong U.S. force in Afghanistan, but the rampage in southern Kandahar province is certain to inflame anti-Western anger once again.

It comes less than three weeks after U.S. troops inadvertently burned copies of the Koran, the Muslim holy book, at the main NATO base in Afghanistan, sparking widespread protests in which 30 people were killed.

"The U.S. Embassy in Kabul alerts U.S. citizens in Afghanistan that as a result of a tragic shooting incident in Kandahar province involving a U.S. service member, there is a risk of anti-American feelings and protests in coming days, especially in the eastern and southern provinces," the embassy said in an emergency statement on its website.

Kandahar is the birthplace of the Taliban, toppled by U.S.-backed forces in late 2001. Southern and eastern provinces have seen some of the fiercest fighting of the war, increasingly unpopular among Americans and their European allies.

Early on Monday, the embassy said on its Twitter feed restrictions had been placed on the movements of all embassy personnel in the south.

A sharp increase in attacks on U.S. troops by Afghan forces followed the Koran burning. Sunday's incident in Kandahar was one of the worst of its kind, witnesses describing it as a "night-time massacre" that killed nine children and three women.

Villagers in three houses were attacked and many civilians were wounded, a spokesman for the NATO-led International Security Assistance Force (ISAF) said.

Deeply saddened, U.S. President Barack Obama called Afghan counterpart Hamid Karzai, promising to establish the facts quickly and "to hold fully accountable anyone responsible.

"This incident is tragic and shocking and does not represent the exceptional character of our military and the respect that the United States has for the people of Afghanistan," Obama said in a statement.

However, such incidents fuel anti-Western sentiment among Afghans and are quickly exploited by the insurgents. The Afghan Taliban said it would take revenge.


WIDESPREAD ANGER

The burning of copies of Koran at Bagram air base touched off widespread anger among Afghan officials, security forces and civilians alike. It also shows the challenges that remain as foreign forces prepare to withdraw combat troops and hand security responsibility to Afghans by the end of 2014.

Sunday's attack may also harden a growing consensus in Washington about what can be accomplished in Afghanistan even after a troop surge meant to turn the war around.

The bill for the war has already exceeded $500 billion and more than 1,900 U.S. troops have been killed, with the total number of foreign troops killed approaching 3,000.

"These killings only serve to reinforce the mindset that the whole war is broken and that there's little we can do about it beyond trying to cut our losses and leave," said Joshua Foust, a security expert with the American Security Project.

Karzai, whose relationship with his Western backers is fraught at the best of times, seethed. Civilian casualties caused by U.S. and other Western forces have long been a major cause of friction between Washington and Kabul.

He condemned the rampage as "intentional murders" and demanded an explanation. Karzai's office released a statement quoting a villager as saying "American soldiers woke my family up and shot them in the face".

There were conflicting accounts of how many U.S. soldiers were involved, with witness accounts saying there were several.

Officials from the U.S. Embassy, ISAF and from Washington said it appeared there was only one. An ISAF spokesman said the lone U.S. soldier "walked back to the base and turned himself in to U.S. forces this morning", adding there had been no military operations in the area.

The soldier in custody was described by one U.S. official in Washington as a staff sergeant who was married with three children. The sergeant had served three tours in Iraq but was on his first deployment in Afghanistan, the official said.

Neighbors and relatives of the dead said they saw a group of U.S. soldiers arrive at their village in Panjwai district, about 35 km from the provincial capital Kandahar City, at about 2 a.m. They said the soldiers entered homes and opened fire.

However, Afghan Minister of Border and Tribal Affairs Asadullah Khalid said a U.S. soldier burst into three homes near his base in the middle of the night, killing a total of 16 people, including 11 people in the first house.

Villager Haji Samad said his children and grandchildren were among 11 relatives killed.

"They (Americans) poured chemicals over their dead bodies and burned them," a weeping Samad told Reuters at the scene, with blood splattered on the walls of his home.

Neighbours said they had awoken to crackling gunfire from American soldiers, who they described as laughing and drunk.

"Their bodies were riddled with bullets," said Agha Lala, who visited one of the homes where the killings took place.

A senior U.S. defence official in Washington rejected such accounts. "Based on the preliminary information we have this account is flatly wrong," the official said. "We believe one U.S. service member acted alone, not a group of U.S. soldiers."

Defense Secretary Leon Panetta also called Karzai to offer his condolences. "I condemn such violence and am shocked and saddened that a U.S. service member is alleged to be involved, clearly acting outside his chain of command," Panetta said.

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