Why Obama is pushing for stimulus in 'fiscal cliff' deal

How about a little government economic stimulus?

That may sound incongruous considering the budget deficit and the push from Republicans to cut government spending.

But President Obama’s first offer to avoid going over the "fiscal cliff" holds out the hope of at least some stimulus. This would include extending the 2 percentage point Social Security payroll tax cut, boosting a tax incentive to businesses, establishing a $50 billion bank for long-term infrastructure projects, and extending unemployment benefits.

RECOMMENDED: 'Fiscal cliff' 101: 5 basic questions answered

The total bill: about $255 billion out of the federal government's pocket – an amount the GOP would likely say needs to be offset by spending cuts elsewhere.

The argument in favor of such stimulus? The tax measures, at least, could minimize the drag on the economy from Mr. Obama's proposed tax increases on the wealthy.

“The increases in the top two income tax brackets would put a drag on consumption, so I think, from the Obama point of view, the spending or tax cuts are designed to offset that drag to consumption,” says Michael Brown, an economist at Wells Fargo Securities in Charlotte, N.C.

But to some budget experts, Obama’s list seems more like an opening round of negotiations, where he has asked for a lot more than he will get.

“It looks to me like these are bargaining chips,” says Pete Davis of Davis Capital Ideas, which advises Wall Street firms. “Even most Democrats had given up on the prospect of getting the payroll tax cut extended.”

Mr. Davis considers the odds of most of the stimulus proposals passing Congress “very low.”

What's needed most, say others, is just buckling down and negotiating an end to the fiscal cliff. “Cancelling the fiscal cliff is economic stimulus,” says Stan Collender, a budget expert and partner at Qorvis Communications in Washington.

If Obama's stimulus were passed, however, here is a look at the impact the four elements might have.

SOCIAL SECURITY PAYROLL TAX CUT

The largest chunk of the Obama plan is the extension of the payroll tax cut. This is the money that comes out of an individual’s paycheck as a contribution to Social Security. Two years ago, in an effort to stimulate the economy, Congress decreased the individual contribution from 6.2 percent to 4.2 percent. The employer’s contribution of 6.2 percent remained unchanged.

The Obama administration estimates extending the cuts would cost the government as much as $115 billion in revenue.

The argument for extending the tax cut is that it helps lower-income workers who live paycheck to paycheck. “The difference in the paycheck might be the ability to pay the electric bill for someone or the chance to go to a sit-down restaurant once a month,” says Chris Christopher, an economist at IHS in Lexington, Mass.

The argument against continuing the cut is that it is weakening the Social Security Trust Fund. In order to make up for the loss of contributions, the government taps the general tax revenues, says Pamela Tainter-Causey, a spokeswoman for the National Committee to Preserve Social Security and Medicare.

“It sets up Social Security to compete for funding from the general fund,” she says. “It’s a perfect set up for people who are gunning for the program and claim we can’t afford it now.”

BUSINESS TAX INCENTIVE

The second largest program proposed by Obama would be the extension of accelerated depreciation for business, which would cost the US Treasury about $65 billion in fiscal year 2013, according to the Congressional Budget Office.

Two years ago, business was allowed to accelerate the write-off of 100 percent of its spending on certain capital equipment. Capital spending on equipment and computer software soared by 18.3 percent in 2011.

Then, this year, the benefit to business was cut in half to 50 percent. Capital spending sank in the third quarter by 2.7 percent compared with the same quarter the prior year. With business interest in using the tax break diminishing, economist Gregory Daco of IHS says “it’s a goner.”

INFRASTRUCTURE BANK

Obama has also proposed a $50 billion infrastructure bank. The idea is to fund roads, bridges, tunnels and other large projects that last for a long period of time. “At the moment the funding is done on a cash basis – you have to pay for it as you build it,” says Mr. Collender.

Democrats have been trying to get Congress to fund the bank for the past 10 years, he says. “It does not have a chance of getting through the House," which is controlled by the Republicans, says Mr. Collender.

UNEMPLOYMENT BENEFITS

And, finally, Obama wants to extend unemployment benefits, which would cost about $30 billion.

Under current law, if Congress does nothing, the maximum number of weeks in which an individual could receive jobless will drop to 26 from the current 73 weeks for states with unemployment over 9 percent and 63 weeks for states with unemployment over 7 percent.

If Congress does nothing about the program during the lame-duck session, some 2.1 million jobless will lose their benefits in the first week of January, says Judy Conti, a federal advocacy coordinator at the National Employment Law Project (NELP) in Washington. By the end of the March, she says, another 900,000 people will lose their benefits.

“Forty percent of the unemployed are long term unemployed,” she says. “They have been out of the workforce for over six months.”

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Shoppers' habits not changed by garment plant fire

NEW YORK (AP) — Before purchasing a shirt, shoppers will run their hands over the fabric, look at the price tag and wonder how it will hold up in the washing machine. Some might even ask if it makes them look fat.

The one detail, however, that is rarely considered: What are the conditions like for the workers making the shirt?

A horrific fire that raced through a Bangladesh garment factory Saturday, killing 112 people, has put the spotlight — at least temporarily — back on those workers and their sometimes treacherous work environment.

The factory, owned by Tazreen Fashions Ltd., made clothing for several retailers around the globe including Wal-Mart, Sears and The Walt Disney Co. All three companies have distanced themselves from responsibility for the incident, saying they didn't know that their subcontractors were using the factory.

Holiday shoppers have also maintained their distance from the tragedy.

"Truthfully, I hadn't even thought about it," said Megan Miller of Philadelphia as she walked out of the Disney Store in Times Square. "I had Christmas on my mind and getting my kids something from New York."

Shoppers from Cincinnati to Paris to Singapore all said the same thing: They were aware of the fatal factory fire, but they weren't thinking about it while browsing stores in the days since. Brand name, fit and — above all — prices were on their minds.

"Either our pockets get lighter or we have to live with more blood on our hands," said Amy Hong, a college student who was at a store in Singapore. "I try not to think about it."

Experts who survey shoppers say the out of sight, out of mind attitude is nothing new.

"When you talk to them about their biggest concerns, where something is made, or the abuses in some country, almost never show up," said C. Britt Beemer, chairman of America's Research Group, which interviews 10,000 to 15,000 consumers a week, mostly on behalf of retailers. "The numbers are so small, I quit asking the question."

Convenience is much more important to shoppers.

Take Tammy Johnson who was at a Walmart in Bloomington, Minn. this week. She lives nearby and appreciates that the store has a large grocery section in addition to clothing and other goods.

"It's easier and it's cheaper," she said of her decision to shop there. "I hate that, but it is true."

Even those who want to make socially responsible purchases a priority have little information available to work with.

There's no widespread system in place to say where all the materials in a shirt come from let alone whether it was made in a sweatshop or not.

A label saying "Made in USA of imported fabrics" doesn't provide as much information to shoppers as they might think. Maybe tailors assembled it under good working conditions, but what about the people who wove the fabrics? Another label saying that a shirt is made from 100 percent organic cotton fails to say anything about the conditions of the factory in which it was made.

"What do they know at the point of sale about where it comes from, other than the tag?" said Paco Underhill, founder of Envirosell, which studies consumer behavior. "Our hearts are generally are in the right places. It's the question of making sure we have the knowledge and pocketbook to follow."

And it's not just clothing. It is hard to tell where televisions or laptop components are made.

Companies selling products say they even struggle to tell. Work is often given to subcontractors who themselves use subcontractors. While many major companies stipulate ethics and standards that their subcontractors must follow, policing them is a costly, time-consuming process that sounds easier than it is.

In the case of the Bangladesh factory, Wal-Mart said it had received a safety audit showing the factory was "high-risk" and had decided months before the blaze to stop doing business with Tazreen. But it said a supplier had continued to use Tazreen without authorization.

In recent years, consumers have become much more aware about the food they eat, and where it comes from.

Supermarkets are full of eggs laid by free-range chickens, organically-grown apples and beef from grass-fed, hormone-free cows. Some upscale restaurants now name the farm that provided them with pork chops. And customers pay a premium for these foods.

The difference: They perceive a direct benefit, since the food is going into their bodies.

Ethical choices when buying clothing — or the latest version of Apple's iPhone — are much more blurred.

Jean MacLeod, who was shopping at a Walmart on the south side of Indianapolis, is willing to pay more for goods if they are made in an ethically responsible manner and does it all the time when she buys food.

Walmart wants the best prices for its customers, she said, but the company also has power as a buyer to make sure factories have decent working conditions.

"They should be able to say, 'Look it, we don't want to buy from you unless you do things a little more our way,'" MacLeod said. "If they don't want to buy from them, then that means that factory will go out of business."

Arguments have been made that producing items with cheap labor isn't necessarily a bad thing.

Factories in the Third World can provide jobs with wages well above a region's average. They can help lift families out of severe poverty. The catch is that there are fewer safeguards to protect workers from being exploited from unscrupulous employers.

At the Bangladesh factory, locked exits prevented many workers from escaping after fire broke out.

It draws eerie parallels to New York's Triangle Shirtwaist Fire of 1911, where 146 people died within 18 minutes of a fire starting in a factory with locked exits.

That fire was the catalyst for widespread changes in labor laws in U.S. But in the 100 years since, the desire for cheap clothing hasn't abated and costly labor has just shifted to factories overseas.

"To put it maybe too frankly, profit and efficiency and competition always trump safety and health," said James A. Gross, a labor relations professor at Cornell University.

Not every company sees things that way.

Los Angeles-based American Apparel promotes itself as a line of "sweatshop free" clothing. Its founder and CEO, Dov Charney, said that companies can control working conditions — they just need to bring production closer to home. American Apparel knits, dyes, cuts and sews all of its products in-house.

"When the company knows the face of its worker, that's important," Charney said. "You can control working conditions and quality."

Yes, American Apparel spends more on labor, but it isn't as much as you would expect. Charney estimates that an imported T-shirt selling for $6 at Walmart would cost about $6.30 if produced domestically thanks to the company's massive scale.

"The consumer can care. They can buy from companies that are committed to fair trade and try to seek out those companies," he said.

Take Nike.

In the mid-1990s, the sneaker giant came under pressure to change its ways after numerous reports of child labor, low wages and poor working conditions. Eventually wages climbed, minimum age requirements were put in place and Nike increased monitoring at its factories.

But such change only comes after persistent public pressure.

"Clothes makers will always do what they want, but the buyer should educate himself," said Paris shopper Pierre Lefebvre.

Not all buyers have that luxury. Family budgets are tight.

"Especially with this economy, we like our money to go as far as it can," said Lesley Schuldt, who left a Cincinnati Macy's this week with five shopping bags worth of jewelry, cookware and gifts. "I have no idea where half the stuff I bought was made, but I imagine it was not in the U.S."

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Associated Press reporters Amanda Lee Myers in Cincinnati, Josh Freed in Bloomington, Minn., Tom Murphy in Indianapolis, Meghan Barr in New York, Heather Tan in Singapore and Thomas Adamson in Paris contributed to this report.

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Scott Mayerowitz can be reached at http://twitter.com/GlobeTrotScott.

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Adkins explains Confederate flag earpiece

NEW YORK (AP) — Trace Adkins wore an earpiece decorated like the Confederate flag when he performed for the Rockefeller Center Christmas Tree Lighting but says he meant no offense by it.

Adkins appeared with the earpiece on a nationally televised special for the lighting on Wednesday. Some regard the flag as a racist symbol and criticized Adkins in Twitter postings.

But in a statement released Thursday, the Louisiana native called himself a proud American who objects to any oppression and says the flag represents his Southern heritage.

He noted he's a descendant of Confederate soldiers and says he did not intend offense by wearing it.

Adkins — on a USO tour in Japan — also called for the preservation of America's battlefields and an "honest conversation about the country's history."

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Online:

http://www.traceadkins.com

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Ukraine fights spreading HIV epidemic

BUCHA, Ukraine (AP) — Andrei Mandrykin, an inmate at Prison No. 85 outside Kiev, has HIV. He looks ghostly and much older than his 35 years. But Mandrykin is better off than tens of thousands of his countrymen, because is he receiving treatment amid what the World Health Organization says is the worst AIDS epidemic in Europe.

Ahead of World AIDS Day on Saturday, international organizations have urged the Ukrainian government to increase funding for treatment and do more to prevent HIV from spreading from high-risk groups into the mainstream population, where it is even harder to manage and control.

An estimated 230,000 Ukrainians, or about 0.8 percent of people aged 15 to 49, are living with HIV, the virus that causes AIDS. Some 120,000 are in urgent need of anti-retroviral therapy, which can greatly prolong and improve the quality of their lives. But due to a lack of funds, fewer than a quarter are receiving the drugs — one of the lowest levels in the world.

Ukraine's AIDS epidemic is still concentrated among high-risk groups such as intravenous drug users, sex workers, homosexuals and prisoners. But nearly half of new cases registered last year were traced to unprotected heterosexual contact.

"Slowly but surely the epidemic is moving from the most-at-risk, vulnerable population to the general population," said Nicolas Cantau of The Global Fund to Fight AIDS, Tuberculosis and Malaria, who manages work in Eastern Europe and Central Asia. "For the moment there is not enough treatment in Ukraine."

Stigma is also a big problem for those with HIV in Ukraine. Liliya, a 65-year-old woman who would give only her first name, recently attended a class on how to tell her 9-year-old great-granddaughter that she has HIV. The girl, who contacted HIV at birth from her drug-abusing mother, has been denied a place in preschool because of her diagnosis.

"People are like wolves, they don't understand," said Liliya. "If any of the parents found out, they would eat the child alive."

While the AIDS epidemic has plateaued elsewhere in the world, it is still progressing in Eastern Europe and Central Asia, according to Cantau. Nearly 21,200 new cases were reported in Ukraine in 2011, the highest number since the former Soviet republic registered its first case in 1987, and a 3 percent increase over 2010. As a result of limited and often delayed treatment, the number of AIDS-related deaths grew 17 percent last year to about 3,800.

Two years ago, Mandrykin, the prisoner, was on the verge of becoming part of that statistic, with his level of crucial CD4 immune cells — a way to measure the strength of the immune system — dropping to 11. In a healthy person, the CD4 count is usually over 600.

"I was lying in the hospital, I was dying," said Mandrykin, who is serving seven years for robbery, his fourth stint in jail. "It's a scary disease."

After two years of treatment in a small prison clinic, his CD4 count has risen to 159 and he feels much better, although he looks exhausted and is still too weak to work in the workshop of the medium-security prison.

The Ukrainian government currently focuses on testing and treating standard cases among the general population. The anti-retroviral treatment of more than 1,000 inmates, as well as some 10,000 HIV patients across Ukraine who also require treatment for tuberculosis and other complications and all prevention and support activities, are paid for by foreign donors, mainly the Global Fund.

The Global Fund is committed to spending $640 million through 2016 to fight AIDS and tuberculosis in Ukraine and then hopes to hand over most of its programs to the Ukrainian government.

Advocacy groups charge that corruption and indifference by government officials help fuel the epidemic.

During the past two years, Ukrainian authorities have seized vital AIDS drugs at the border due to technicalities, sent prosecutors to investigate AIDS support groups sponsored by the Global Fund and harassed patients on methadone substitution therapy, prompting the Global Fund to threaten to freeze its prevention grant.

Most recently, Ukraine's parliament gave initial approval to a bill that would impose jail terms of up to five years for any positive public depiction of homosexuality. Western organizations say it would make the work of AIDS prevention organizations that distribute condoms and teach safe homosexual sex illegal and further fuel the epidemic. It is unclear when the bill will come up for a final vote.

AIDS drug procurement is another headache, with Ukrainian health authorities greatly overpaying for AIDS drugs. Advocacy groups accuse health officials of embezzling funds by purchasing drugs at inflated prices and then pocketing kickbacks.

Officials deny those allegations, saying their tender procedures are transparent.

Much also remains to be done in Ukraine to educate people about AIDS.

Oksana Golubova, a 40-year-old former drug user, infected her daughter, now 8, with HIV and lost her first husband to AIDS. But she still has unprotected sex with her new husband, saying his health is in God's hands.

"Those who are afraid get infected," Golubova said.

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Obama takes roadtrip to promote his plan to avoid the 'fiscal cliff'

WASHINGTON (Reuters) - President Barack Obama, reapplying his re-election campaign theme of protecting the middle class, heads to Pennsylvania on Friday suggesting that Republicans could spoil Christmas by driving the country over the "fiscal cliff."

The president's road trip, visiting a factory that makes Tinkertoys, is infuriating Republicans, with House of Representatives Speaker John Boehner calling it a "victory lap" Thursday as he rejected Obama's proposals to avoid the cliff, which is a combination of tax increases and spending cuts set to start taking effect in January.

But Boehner confronts challenges not only from Democrats but increasingly from other Republicans, some of whom have advocated greater flexibility than their leadership on Obama's demand that Congress approve tax increases for the wealthy as well as extend tax cuts for the middle class as part of a deal to avoid the cliff. Most Republicans oppose raising any tax rates.

While Republicans are unhappy with the Obama's opening bid of deficit reduction measures, drawn mostly from previous presidential budget proposals, they are nervously eyeing the markets as well as polls indicating that the public is likely to blame Republicans if there is no deal at year's end to avoid the tax increases and severe spending cuts that economists say could tip the economy into a recession.

What the president is doing, Republican Representative Lee Terry of Nebraska told MSNBC on Thursday, "is setting us up to be the fall people for going over the fiscal cliff. And, frankly, going over the fiscal cliff is a win for the president. So either way, we're going to get it."

Obama will visit a manufacturing facility in Hatfield, Pennsylvania, operated by The Rodon Group, a plastic-injection molding company that supplies, among other things, Tinkertoys and Angry Birds building sets for children.

"As we move into holiday season, Democrats and Republicans should come together to renew middle class tax cuts so families have more certainty at this critical time for our economy," the White House said in announcing Friday's trip.

(Editing by Vicki Allen)

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Myanmar cracks down on mine protest; dozens hurt

MONYWA, Myanmar (AP) — Security forces used water cannons, tear gas and smoke bombs Thursday to clear protesters from a copper mine in northwestern Myanmar, wounding villagers and Buddhist monks in by far the biggest use of force against demonstrators since the reformist government of President Thein Sein took power last year.

Opposition leader Aung San Suu Kyi, who arrived in the area hours later on a previously scheduled visit, said she would try to negotiate a solution.

In a statement broadcast on state television, the government initially acknowledged using the riot-control measures but said it did not use excessive force. But in an unusual move, it later retracted the statement, apparently sensitive to the great respect in which monks are held in the predominantly Buddhist country.

Monks and other protesters had serious burns after the crackdown at the Letpadaung mine near the town of Monywa. Protesters who oppose the mine's environmental and social impact had occupied the area for 11 days.

"I didn't expect to be treated like this, as we were peacefully protesting," said Aung Myint Htway, a peanut farmer whose face and body were covered with black patches of burned skin.

The police action risks becoming a public relations and political fiasco for Thein Sein's government, which has been touting its transition to democracy after almost five decades of repressive military rule.

"This is unacceptable," said Ottama Thara, a 25-year-old monk who was at the protest. "This kind of violence should not happen under a government that says it is committed to democratic reforms."

Police moved early Thursday to disperse protesters after most heeded earlier warnings to leave.

"Around 2:30 a.m. police announced they would give us five minutes to leave," Aung Myint Htway said. He said police fired water cannons first and then shot what he and others called flare guns.

"They fired black balls that exploded into fire sparks. They shot about six times. People ran away and they followed us," he said, still writhing hours later from pain. "It's very hot."

Photos of the wounded monks showed they had sustained serious burns on parts of their bodies. It was unclear what sort of weapon caused them, or whether the burns were caused by their shelters catching fire from whatever devices police used.

The government had defended its actions in a statement issued by the government's official information office Thursday afternoon. It denied using excessive force and said it used fire hoses, tear gas and smoke bombs according to international standards for riot control. The statement declared that the authorities took action for the sake of rule of law and in the interests of the country and its people, and said the project operated in accordance with international environmental standards.

Later, however, the president's office issued a one-sentence statement recalling the information office's statement. It may reflect sensitivities over the injuries monks suffered, or second thoughts over admitting that authorities used force.

Suu Kyi's visit to nearby Kan-Kone village had been scheduled before the crackdown. The Nobel Peace laureate, elected to parliament after spending most of the last two decades under house arrest, unexpectedly went to the mine to meet with officials and its operators before making her speech.

"I already met one side. I met with mine operators. I want to meet with villagers and protesters," she said. "I want to negotiate hearing from both sides."

She asked the crowd to be patient. "I haven't made any decision yet. I want to meet with both sides and negotiate," she said in a speech that lasted less than 15 minutes. "Will you agree with my negotiating?" The crowd shouted its assent.

Some of Suu Kyi's comments suggested that she may not fully embrace the tactics of the protesters. "When dealing with people, I don't always follow what people like. I only tell the truth," she said. "I will work for the long-term benefit of the country."

The protesters oppose the environmental and social damage they say is being caused by the mining operation, which is being expanded. It is a joint venture between a Chinese company and a holding company controlled by Myanmar's military.

Most people remain suspicious of the military, while China is widely seen as having propped up army rule for years, in addition to being an aggressive investor exploiting the country's many natural resources.

Government officials had publicly stated that the protest risked scaring off foreign investment that is key to rebuilding the economy after decades of neglect.

State television had broadcast an announcement Tuesday night that ordered protesters to cease their occupation of the mine by midnight or face legal action. It said the protesters began occupying the mine area Nov. 18, and operations had been halted since then.

Some villagers among a claimed 1,000 protesters left the mine after the order was issued. But others stayed through Wednesday, including about 100 monks.

The protesters' concerns about the mine do not yet appear to be widely shared by the broader public. But hurting monks — as admired for their social activism as they are revered for their spiritual beliefs — is sure to antagonize many ordinary people, especially as Suu Kyi's visit highlights the events.

Aung Myint Htway said he didn't care that police treated him badly but added, "I won't forgive them for what they did to our monks."

According to a nurse at a Monywa hospital, 27 monks and one other person were admitted with burns caused by some sort of projectile that released sparks or embers. Two monks with serious injuries were sent for treatment in Mandalay, Myanmar's second-biggest city, a 2½ hour drive away.

Other evicted protesters gathered at a Buddhist temple about 5 kilometers (3 miles) from the mine's gates.

The protest is the latest major example of increased activism by citizens since the elected government took over last year.

Political and economic liberalization under Thein Sein has won praise from Western governments, which have eased sanctions imposed on the previous military government because of its poor record on human and civil rights.

However, the military still retains major influence over the government, and some critics fear that democratic gains could easily be rolled back.

The government's surprise suspension last year of a Chinese-backed hydroelectric project, in response to similar concerns about social and economic consequences, was seen as a significant indicator of its commitment to democratic reform. But China was unhappy about the decision, and Thein Sein's ministers have warned about offending Myanmar's big neighbor to the north.

President's Office Minister Aung Min told villagers at a recent meeting in Monywa that he would submit their demands to the president, but also told them to be careful not to upset China. Defense Minister Lt. Gen. Wai Lwin likewise warned parliament that if the protest succeeded in stopping the project, it would discourage desperately needed foreign investment.

China's foreign ministry defended the mining venture Thursday as mutually beneficial and said that environmental remediation and compensation to relocate affected residents all conformed to Myanmar law.

Like many throughout the country. Villagers near the project are keen to have Suu Kyi involved in the issue.

"We feel really encouraged when we heard Mother Su is coming," said Sartone village resident Thein Thein, using a popular familiar term for Suu Kyi. "She's our only hope."

Suu Kyi, however, recently told Myanmar reporters that not everything should be resolved through demonstrations, and sometimes it is better to use negotiations.

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Past hosts teaming for Spike Video Game Awards

LOS ANGELES (AP) — The Spike Video Game Awards are assembling past hosts.

The cable network announced Thursday that the gaming extravaganza’s previous emcees would join “The Avengers” star and four-time VGAs host Samuel L. Jackson at next week’s show.

Previous hosts Zachary Levi, Snoop Lion, Jack Black and Neil Patrick Harris are set to appear at the 10th annual ceremony.

The show will also feature debut footage from upcoming games “BioShock Infinite,” ”Castlevania: Lords of Shadow 2″ and “Tomb Raider,” and from downloadable content “Spartan Ops” for “Halo 4″ and “The Tyranny of King Washington” for “Assassin’s Creed III.”

“Assassin’s Creed III,” ”Dishonored,” ”Journey,” ”Mass Effect 3″ and “The Walking Dead: The Game” are vying for the best game trophy.

The VGAs will air live on Spike on Dec. 7 from Sony Picture Studios in Culver City, Calif.

Gaming News Headlines – Yahoo! News

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Lindsay Lohan arrested on assault charge in NYC

NEW YORK (AP) — Actress Lindsay Lohan was arrested Thursday after police said she hit a woman during an argument at a New York City nightclub.

The "Mean Girls" and "Freaky Friday" star was arrested at 4 a.m. and charged with third-degree assault.

She left a police precinct nearly four hours later with a black jacket pulled over her head. She was wearing leggings, a green mini skirt and high-heels, and drove off in a black SUV with a driver and another man who was seen going in and out of the precinct.

She allegedly got into the spat with another woman at Club Avenue, in Manhattan's Chelsea section. She struck the woman in face with her hand, police said. The woman did not require medical attention.

Lohan's publicist did not immediately return a call for comment.

The arrest is Lohan's latest brush with law enforcement in New York City.

She was involved in a NYPD investigation in September after alleging a man had assaulted her in a New York hotel, but charges against the man were later dropped.

Also in September, the actress was accused of clipping a man with her car outside another Manhattan nightclub, but prosecutors chose not to move ahead with charges.

In October, police were called to her childhood home on Long Island after a report of fight between her and her mother. An investigation revealed "no criminality."

The actress was also involved in a car accident in California this summer that sent her and an assistant to a hospital, but didn't result in serious injuries for anyone. The accident remains under investigation.

In May, she was cleared of allegations that she struck a Hollywood nightclub manager with her car.

Lohan remains on informal probation for taking a necklace from a jewelry store without permission last year. That means she doesn't have to check in with a judge or probation officer but could face a jail term if arrested again.

Her latest film, "Liz & Dick," in which she portrays screen icon Elizabeth Taylor, premiered on Lifetime on Sunday.

Lohan also recently filmed "The Canyons," an indie film written by "Less Than Zero" and "American Psycho" author Bret Easton Ellis.

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Simple measures cut infections caught in hospitals

CHICAGO (AP) — Preventing surgery-linked infections is a major concern for hospitals and it turns out some simple measures can make a big difference.

A project at seven big hospitals reduced infections after colorectal surgeries by nearly one-third. It prevented an estimated 135 infections, saving almost $4 million, the Joint Commission hospital regulating group and the American College of Surgeons announced Wednesday. The two groups directed the 2 1/2-year project.

Solutions included having patients shower with special germ-fighting soap before surgery, and having surgery teams change gowns, gloves and instruments during operations to prevent spreading germs picked up during the procedures.

Some hospitals used special wound-protecting devices on surgery openings to keep intestine germs from reaching the skin.

The average rate of infections linked with colorectal operations at the seven hospitals dropped from about 16 percent of patients during a 10-month phase when hospitals started adopting changes to almost 11 percent once all the changes had been made.

Hospital stays for patients who got infections dropped from an average of 15 days to 13 days, which helped cut costs.

"The improvements translate into safer patient care," said Dr. Mark Chassin, president of the Joint Commission. "Now it's our job to spread these effective interventions to all hospitals."

Almost 2 million health care-related infections occur each year nationwide; more than 90,000 of these are fatal.

Besides wanting to keep patients healthy, hospitals have a monetary incentive to prevent these infections. Medicare cuts payments to hospitals that have lots of certain health care-related infections, and those cuts are expected to increase under the new health care law.

The project involved surgeries for cancer and other colorectal problems. Infections linked with colorectal surgery are particularly common because intestinal tract bacteria are so abundant.

To succeed at reducing infection rates requires hospitals to commit to changing habits, "to really look in the mirror and identify these things," said Dr. Clifford Ko of the American College of Surgeons.

The hospitals involved were Cedars-Sinai Medical Center in Los Angeles; Cleveland Clinic in Ohio; Mayo Clinic-Rochester Methodist Hospital in Rochester, Minn.; North Shore-Long Island Jewish Health System in Great Neck, NY; Northwestern Memorial Hospital in Chicago; OSF Saint Francis Medical Center in Peoria, Ill.; and Stanford Hospital & Clinics in Palo Alto, Calif.

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Online:

Joint Commission: http://www.jointcommission.org

American College of Surgeons: http://www.facs.org

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Palestinians certain to win recognition as a state

UNITED NATIONS (AP) — The Palestinians are certain to win U.N. recognition as a state Thursday in a General Assembly vote that Israel and the United States warn could delay hopes of achieving an independent Palestinian homeland through peace talks with Israel.

The United States, Israel's closest ally, mounted an aggressive campaign to head off the General Assembly vote, which the Palestinians view as a historic step in their quest for global recognition.

In a last-ditch move Wednesday, U.S. Deputy Secretary of State William Burns made a personal appeal to Palestinian President Mahmoud Abbas promising that President Barack Obama would re-engage as a mediator in 2013 if Abbas abandoned the effort to seek statehood. The Palestinian leader refused, said Abbas aide Saeb Erekat.

With most of the 193 General Assembly member states sympathetic to the Palestinians, the vote is certain to succeed. Several key countries, including France, have recently announced they would support the move to elevate the Palestinians from the status of U.N. observer to nonmember observer state. However, a country's vote in favor of the status change does not automatically imply its individual recognition of a Palestine state, something that must be done bilaterally.

The Palestinians say they need U.N. recognition of a Palestinian state in the West Bank, Gaza and east Jerusalem, the lands Israel captured in 1967, to be able to resume negotiations with Israel. They say global recognition of the 1967 lines as the borders of Palestine is meant to salvage a peace deal, not sabotage it, as Israel claims.

The non-member observer state status could also open the way for possible war crimes charges against the Jewish state at the International Criminal Court.

Israeli Prime Minister Benjamin Netanyahu said Thursday the recognition of an independent state of Palestine in the U.N. General Assembly will not advance the Palestinians' quest for a homeland. He said the Palestinians will not win a state until they recognize Israel as the Jewish homeland, declare an end to their conflict with the Jewish state and agree to security arrangements that protect Israel.

While Israel argues that Abbas is trying to dictate the outcome of border talks by going to the U.N., the recognition request presented to the world body in fact calls for a quick resumption of negotiations on all core issues of the conflict, including borders.

Netanyahu's predecessors accepted the 1967 lines as a basis for border talks. Netanyahu has rejected the idea, while pressing ahead with Jewish settlement building on war-won land, giving Abbas little incentive to negotiate.

For Abbas, the U.N. bid is crucial if he wants to maintain his leadership and relevance, especially following the recent conflict between his Hamas rivals in Gaza and Israel. The conflict saw the Islamic militant group claim victory and raise its standing in the Arab world, while Abbas' Fatah movement was sidelined and marginalized.

The Palestinians chose the "International Day of Solidarity with the Palestinian People" for the vote. Before it takes place, there will be a morning of speeches by supporters focusing on the rights of the Palestinians. Abbas is scheduled to speak at that meeting, and again in the afternoon when he will present the case for Palestinian statehood in the General Assembly.

U.S. Secretary of State Hillary Clinton warned Wednesday that the U.N. vote will not fulfill the goal of independent Palestinian and Israeli states living side by side in peace, which the U.S. strongly supports because that requires direct negotiations.

"We need an environment conducive to that," she told reporters in Washington. "And we've urged both parties to refrain from actions that might in any way make a return to meaningful negotiations that focus on getting to a resolution more difficult."

The U.S. Congress has threatened financial sanctions if the Palestinians improve their status at the United Nations.

Ahead of the vote, Republican Sen. Orrin Hatch filed an amendment to a defense bill Wednesday that would eliminate funding for the United Nations if the General Assembly changes Palestine's status.

"Increasing the Palestinians' role in the United Nations is absolutely the wrong approach, especially in light of recent military developments in the Middle East," he said in a statement. "Israel is one of America's closest allies, and any movement to strengthen one of its fiercest enemies must not be tolerated."

Israeli government spokesman Mark Regev said that by going to the U.N., the Palestinians violate "both the spirit and the word of signed agreements to solve issues through negotiations," which broke down four years ago.

But Israeli officials appeared to back away from threats of drastic measures if the Palestinians get U.N. approval, with officials suggesting the government would take steps only if the Palestinians use their new status to act against Israel.

Regev, meanwhile, affirmed that Israel is willing to resume talks without preconditions.

U.N. diplomats said they will be listening closely to Abbas' speech to the General Assembly on Thursday afternoon before the vote to see if he makes an offer of fresh negotiations with no strings, which could lead to new talks. The Palestinians have been demanding a freeze on Israeli settlements as a precondition.

As a sign of the importance Israel attaches to the vote, Israeli Foreign Minister Avigdor Lieberman flew to New York and was scheduled to meet Secretary-General Ban Ki-moon before the vote. Israel's U.N. Ambassador Ron Prosor had been scheduled to speak in the General Assembly after Abbas, but it appears Lieberman may now make Israel's case opposing the resolution.

Unlike the Security Council, there are no vetoes in the General Assembly. The world body is dominated by countries sympathetic to the Palestinian cause and the resolution to raise its status from an observer to a nonmember observer state only requires a majority vote for approval. To date, 132 countries — over two-thirds of the U.N. member states — have recognized the state of Palestine.

The Palestinians have been courting Western nations, especially the Europeans, seen as critical to enhancing their international standing. A number have announced they will vote "yes" including France, Spain, Norway, Denmark and Switzerland. Those opposed or abstaining include the U.S., Israel, Germany, Canada, the Netherlands and Australia.

The Palestinians turned to the General Assembly after the United States announced it would veto their bid last fall for full U.N. membership until there is a peace deal with Israel.

Following last year's move by the Palestinians to join the U.N. cultural agency UNESCO, the United States withheld funds from the organization, which amount to 22 percent of its budget. The U.S. also withheld money from the Palestinians.

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