Thursday, December 27, 2012

Obamacare Tax Hikes May Just Be Getting Started

New taxes are coming Jan. 1 to help finance President Barack Obama's health care overhaul. Most people may not notice.

But they will pay attention if Congress decides to start taxing employer-sponsored health insurance, one option in play if lawmakers can ever agree on a budget deal to reduce federal deficits.

The tax hikes already on the books, taking effect in 2013, fall mainly on people who make lots of money and on the health care industry. But about half of Americans benefit from the tax-free status of employer health insurance.

Workers pay no income or payroll taxes on what their employer contributes for health insurance, and in most cases on their own share of premiums as well.

It's the single biggest tax break the government allows, outstripping the mortgage interest deduction, the deduction for charitable giving and other better-known benefits.

If the value of job-based health insurance were taxed like regular income, it would raise nearly $150 billion in 2013, according to congressional estimates. By comparison, wiping away the mortgage interest deduction would bring in only about $90 billion.

"If you are looking to raise revenue to pay for tax reform, that is the biggest pot of money of all," said Martin Sullivan, chief economist with Tax Analysts, a nonpartisan publisher of tax information.

It's hard to see how lawmakers can avoid touching health insurance if they want to eliminate loopholes and curtail deductions so as to raise revenue and lower tax rates.

Congress probably wouldn't do away with the health care tax break, but limit it in some form. Such limits could be keyed to the cost of a particular health insurance plan, the income level of taxpayers or a combination.

Many economists think some kind of limit would be a good thing because it would force consumers to watch costs, and that could help keep health care spending in check.

Obama's health law took a tentative step toward limits by imposing a tax on high-value health insurance plans. But that doesn't start until 2018.

Next spring will be three years since Congress passed the health care overhaul but, because of a long phase-in, many of the taxes to finance the plan are only now coming into effect.

Medicare spending cuts that help pay for covering the uninsured have started to take effect, but they also are staggered.

The law's main benefit, coverage for 30 million uninsured people, will take a little longer. It doesn't start until Jan. 1, 2014.

The biggest tax hike from the health care law has a bit of mystery to it. The legislation calls it a "Medicare contribution," but none of the revenue will go to the Medicare trust fund.

Instead, it's funneled into the government's general fund, which does pay the lion's share of Medicare outpatient and prescription costs, but also covers most other things the government does.

The new tax is a 3.8 percent levy on investment income that applies to individuals making more than $200,000 or married couples above $250,000. Projected to raise $123 billion from 2013-2019, it comes on top of other taxes on investment income.

While it does apply to profits from home sales, the vast majority of sellers will not have to worry since another law allows individuals to shield up to $250,000 in gains on their home from taxation. (Married couples can exclude up to $500,000 in home sale gains.)

Investors have already been taking steps to avoid the tax, selling assets this year before it takes effect.

The impact of the investment tax will be compounded if Obama and Republicans can't stave off the automatic tax increases coming next year if there's no budget agreement.

High earners will face another new tax under the health care law Jan. 1. It's an additional Medicare payroll tax of 0.9 percent on wage income above $200,000 for an individual or $250,000 for couples. This one does go to the Medicare trust fund.

Donald Marron, director of the nonpartisan Tax Policy Center, says the health care law's tax increases are medium-sized by historical standards. The center, a joint project of the Brookings Institution and the Urban Institute, provides in-depth analyses on tax issues.

They also foreshadow the current debate about raising taxes on people with high incomes.

"These were an example of the president winning, and raising taxes on upper-income people," said Marron. "They are going to happen."

Other health care law tax increases taking effect Jan. 1:

  • A 2.3 percent sales tax on medical devices used by hospitals and doctors. Industry is trying to delay or repeal the tax, saying it will lead to a loss of jobs. Several economists say manufacturers should be able to pass on most of the cost.
  • A limit on the amount employees can contribute to tax-free flexible spending accounts for medical expenses. It's set at $2,500 for 2013, and indexed thereafter for inflation.

Source: http://www.cnbc.com/id/100338999

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Fiscal Cliff: Obama Will Return To Washington From Hawaii To Work On Deal

HONOLULU ? President Barack Obama will cut short his traditional Christmas holiday in Hawaii, planning to leave for Washington on Wednesday evening as he and lawmakers consider how to prevent the economy from going over the so-called fiscal cliff.

Obama was expected to arrive in Washington early Thursday, the White House said Tuesday night. First lady Michelle Obama and the couple's two daughters will remain in Hawaii.

In the past, the president's end-of-the-year holiday in his native state had stretched into the new year. The first family had left Washington last Friday night.

Congress was expected to return to Washington on Thursday. Before he departed for Hawaii, Obama told reporters he expected to be back in the capital the following week.

Automatic budget cuts and tax increases are set to begin in January, which many economists say could send the country back into recession. So far, the president and congressional Republicans have been unable to reach agreement on any alternatives.

Lawmakers have expressed little but pessimism for the prospect of an agreement coming before Jan. 1. On Sunday, Sen. Kay Bailey Hutchison, R-Texas, said she expects any action in the waning days of the year to be "a patch because in four days we can't solve everything."

The Obamas were spending the holiday at a rented home near Honolulu. On Christmas Day, the president and first lady visited with members of the military to express thanks for their service.

"One of my favorite things is always coming to base on Christmas Day just to meet you and say thank you," the president said at Marine Corps Base Hawaii's Anderson Hall. He said that being commander in chief was his greatest honor as president.

Obama took photos with individual service members and their families.

On Christmas Eve, Obama called members of the military to thank them for serving the nation, then joined his family for dinner, the White House said. The Obamas opened gifts Christmas morning, ate breakfast and sang carols.

Friends were joining the Obamas for Christmas dinner Tuesday night, the White House said.

Related on HuffPost:

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Source: http://www.huffingtonpost.com/2012/12/25/obama-fiscal-cliff_n_2363343.html

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Wednesday, December 26, 2012

Enzyme PRSS3 Linked To Prostate Cancer

Researchers have identified an enzyme,? PRSS3,?specifically linked to aggressive prostate cancer, and have also developed a compound that inhibits the ability of this molecule to promote the metastatic spread of the cancer.

They made the discovery by investigating publicly available databases, derived from clinical studies, which contain data on molecules that are upregulated - irregularly switched on - in cancer. They had previously discovered a link between the protease and the earlier stages of breast cancer. The research team wanted to see if any other cancer abnormally expresses this protease, and at what stages so they mined multiple databases.?

"This molecule is a protease, which means it digests other molecules. Our data suggests PRSS3 activity changes the environment around prostate cancer cells ? perhaps by freeing them from surrounding tissue ? to promote malignancy and invasiveness," says the study's senior investigator, Evette Radisky, Ph.D., a cancer biologist in the Mayo Clinic Cancer Center in Florida. "I don't think PRSS3 is the only factor involved in driving aggressive prostate cancer, but it may be significant for a certain subset of this cancer ? the kind that is potentially lethal.

"The link between PRSS3 activity and aggressive prostate cancer jumped out at us. We found a definitive trend of increasing PRSS3 expression with cancer progression."

Then, in mice models of prostate cancer, the researchers demonstrated that expression of the protease was critical for prostate cancer metastasis. Cancer did not spread in mice in which PRSS3 was silenced.

The group had earlier crystallized the structure of the PRSS3 protease, and discovered a place on the enzyme where a small protein therapeutic could bind to plug up the "scissoring" action of the molecule.

"The protease has an active site that breaks down other proteins, and our inhibiting agent sticks to the site, shutting it down," Radisky says.

The researchers say their finding suggests several possible future clinical applications. And the researchers' prototype drug provides a template upon which to build an agent that can be used to treat these same patients. "Our inhibitor does not have the characteristics we need for a clinically useful drug. But it puts us on the right path to develop one."

Published in?
Molecular Cancer Research




Source: http://www.science20.com/news_articles/enzyme_prss3_linked_prostate_cancer-99330

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Iran says defeats cyber attack on industrial sites

DUBAI (Reuters) - An Internet virus attacked computers at industrial sites in southern Iran, in an apparent extension of a covert cyber war that initially targeted the country's nuclear facilities, an Iranian official said.

Iran, the world's No. 5 oil exporter, has tightened online security since its uranium enrichment centrifuges were hit in 2010 by the Stuxnet computer worm, which Tehran believes was planted by arch-adversaries Israel or the United States.

The unit tasked with fighting cyber attacks, the Passive Defence Organisation, said a virus had infected several sites in Hormozgan province in recent months but was neutralised.

"Enemies are constantly attacking Iran's industrial units through Internet networks in order to create disruptions," Ali Akbar Akhavan, head of the Hormozgan branch of the organisation, was quoted as saying by the Iranian Students' News Agency on Tuesday.

"This virus has even penetrated some manufacturing industries in Hormozgan province, but with timely measures and the cooperation of skilled hackers in the province, the progress of this virus was halted," Akhavan said.

"As an example, the Bandar Abbas Tavanir Co., a producer of electricity in the province and even adjacent provinces, has been the target of Internet attacks in recent months," he said.

Bandar Abbas is the capital of Hormozgan province on Iran's southern coast and home to an oil refinery and container port.

Israeli officials have threatened military action against Iranian nuclear facilities if Western sanctions on Tehran's banking and oil sectors do not persuade the Islamic Republic to shelve its disputed atomic program.

Western powers suspect Iran is trying to develop the means to produce nuclear weapons. Tehran says it is enriching uranium only for civilian energy.

Iranian authorities said in April that a computer virus was detected inside the control systems of Kharg Island - which handles the vast majority of Iran's crude oil exports - but the terminal had remained operational.

Cyber attackers also slowed Iran's Internet and attacked its offshore oil and gas platforms this year, Iranian officials have said.

(Reporting By Yeganeh Torbati; Editing by William Maclean and Pravin Char)

Source: http://news.yahoo.com/iran-says-defeats-cyber-attack-industrial-sites-101435374.html

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Tuesday, December 25, 2012

Pakistan, Afghanistan trying to turn Taliban into political movement

KABUL (Reuters) - Pakistan is genuine about backing a nascent Afghan peace process and shares the Kabul government's goal of transforming the Taliban insurgency into a political movement, a senior Afghan government official told Reuters.

Pakistan is seen as critical to U.S. and Afghan efforts to promote peace in Afghanistan, a task that is gaining urgency as NATO troops prepare to withdraw by the end of 2014 and hand over security responsibilities to government forces.

"They have told us that they share the vision contained in our roadmap which is basically to transform the Taliban from a military entity into a political entity to enable them to take part in the Afghan political process and peacefully seek power like any other political entity in Afghanistan," the official said, referring to Pakistan.

"This is the vision that they share."

The official's remarks signaled unprecedented optimism from Afghanistan that Pakistan - long accused of backing Afghan insurgents - was now willing to put its weight behind reconciliation efforts, which are still in early stages and vulnerable to factionalism.

Mutual suspicions between Afghanistan and its nuclear-armed neighbor, Pakistan, have hampered efforts to tackle militancy in one of the world's most explosive regions.

Pakistan has long been seen as determined to block the influence of old rival India in Afghanistan and has been believed to be quietly supporting the Taliban in the hope they would exclude from power rival, pro-India Afghan factions.

Afghanistan and Pakistan appear to now agree that it is in their interests to work more closely together, with the NATO deadline looming.

Failure to do so could embolden Taliban hardliners determined to re-impose their austere version of Islam.

"I think we are also seeing a situation where the extremist threat is developing in a direction that is getting out of everybody's control," said the senior Afghan government official. Pakistan is battling its own, home-grown Taliban.

"That is only bad news for everyone who has any interest in stability for their own country."

The official, who is closely involved in reconciliation efforts, said recent face-to-face talks between senior Taliban members and Afghan officials in France were an "enormously helpful" step in building a wider environment for peace.

The Taliban spokesman was not immediately available to comment on the discussions in France. The talks included former members of the Northern Alliance faction, which fought the Taliban for years, and Afghan peace negotiators.

The Taliban say they were represented by prominent figures in the movement such as Shahabuddin Delawar, from its political office, which is based in the Gulf Arab state of Qatar.

Until now, the Taliban and Afghan officials only made indirect contacts.

"We are very optimistic. We believe that they are genuine in this discussion with us," said the Afghan official.

Another track for talks, between the Taliban and the United States held in Qatar, was suspended by the militants. They said inconsistencies in the U.S. negotiating position were discouraging.

The Afghan official cautioned that in order to sustain Kabul's confidence, Pakistan would need to take further concrete steps after releasing some mid-level Afghan Taliban members from detention, who may be useful in promoting peace.

Pakistan would gain more trust from Kabul by meeting a request to release from detention the Taliban's former second in command, Mullah Abdul Ghani Baradar.

Asked whether Pakistan had indicated it would hand him over, the Afghan official said: "Not in concrete terms".

WARRING FACTIONS

Pakistan's powerful army chief has made reconciling warring factions in Afghanistan a top priority, Pakistani military officials and Western diplomats told Reuters, the clearest signal yet that Islamabad means business in promoting peace.

General Ashfaq Kayani, arguably the most powerful man in Pakistan, is backing dialogue partly due to fears that the end of the U.S. combat mission in Afghanistan in 2014 could energize a resilient insurgency straddling the shared frontier, according to commanders deployed in the region.

The Afghan government official had a similar assessment.

"I think there is a sense that we are also getting, that cooperation from Pakistan now is bound to be meaningful, substantive," he said.

"The reason is frankly, most in Pakistan, in our view, have reached the conclusion that time is running out. That it is no longer just about Afghanistan's instability and Afghanistan's insecurity but it's very much a question of security for themselves."

Cooperation between Kabul and Islamabad has in the past been undermined by attacks which Kabul said were plotted in Pakistan.

On December 6, a Taliban suicide bomber with explosives hidden in his underwear and posing as a peace messenger, wounded Afghanistan's intelligence chief in Kabul. The Afghan Taliban claimed responsibility.

Afghan President Hamid Karzai said the attack was planned in the Pakistani city of Quetta and that he would raise the issue with Islamabad.

The Haqqani militant network - which has more experience in guerrilla warfare than the Afghan Taliban - is seen as a potential spoiler in the peace process. The group is allied with the Taliban but diplomats say it is highly unpredictable.

Nevertheless, it would be welcomed to the peace process as long as it met certain conditions, said the official.

"From our point of view, the door of peace is open to anyone. The Haqqanis are a pretty challenging group of people," he said.

"But if they choose to come over to the peace process, then I am sure the peace process will include them."

Pakistan's intelligence agency denies Afghan accusations that it uses the Haqqani network and other militant groups as proxies to counter India in Afghanistan.

The Haqqanis have been blamed for several high-profile attacks on Western targets, including embassies, in Kabul, highlighting the resilience of insurgents after years of fighting Western forces equipped with superior firepower and technology.

The senior Afghan official said Afghanistan hoped to start formal negotiations with the Taliban next year.

"The Taliban should be able to make some form of transformation towards being a political entity soon," he said.

"The key period is 2013. If Pakistan and Afghanistan work hard enough we should be able to achieve some progress on that front."

(Additional reporting by Mehreeen Zahra- Malik in WANA and Matthew Green in ISLAMABAD; Editing by Robert Birsel)

Source: http://news.yahoo.com/pakistan-genuine-backing-afghan-peace-efforts-afghan-official-040032861.html

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Monday, December 24, 2012

Cliff Negotiations Take Holiday Break (WSJ)

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Egypt opposition alleges vote fraud in referendum

Egyptian election workers count ballots at the end of the second round of a referendum on a disputed constitution drafted by Islamist supporters of president Mohammed Morsi at a polling station in Giza, Egypt, Saturday, Dec. 22, 2012. Egypt's Islamist-backed constitution headed toward likely approval in a final round of voting on Saturday, but the deep divisions it has opened up threaten to fuel continued turmoil. (AP Photo/Nasser Nasser)

Egyptian election workers count ballots at the end of the second round of a referendum on a disputed constitution drafted by Islamist supporters of president Mohammed Morsi at a polling station in Giza, Egypt, Saturday, Dec. 22, 2012. Egypt's Islamist-backed constitution headed toward likely approval in a final round of voting on Saturday, but the deep divisions it has opened up threaten to fuel continued turmoil. (AP Photo/Nasser Nasser)

An Egyptian election worker shows his colleagues an invalid ballot while counting ballots at the end of the second round of a referendum on a disputed constitution drafted by Islamist supporters of president Mohammed Morsi at a polling station in Giza, Egypt, Saturday, Dec. 22, 2012. Egypt's Islamist-backed constitution headed toward likely approval in a final round of voting on Saturday, but the deep divisions it has opened up threaten to fuel continued turmoil. (AP Photo/Nasser Nasser)

Egyptian election workers count ballots at the end of the second round of a referendum on a disputed constitution drafted by Islamist supporters of president Mohammed Morsi at a polling station in Giza, Egypt, Saturday, Dec. 22, 2012. Egypt's Islamist-backed constitution headed toward likely approval in a final round of voting on Saturday, but the deep divisions it has opened up threaten to fuel continued turmoil. (AP Photo/Nasser Nasser)

Egyptian election workers unseal a ballot box for counting at the end of the second round of a referendum on a disputed constitution drafted by Islamist supporters of president Mohammed Morsi at a polling station in Giza, Egypt, Saturday, Dec. 22, 2012. Egypt's Islamist-backed constitution headed toward likely approval in a final round of voting on Saturday, but the deep divisions it has opened up threaten to fuel continued turmoil. (AP Photo/Nasser Nasser)

An Egyptian election worker counts ballots at the end of the second round of a referendum on a disputed constitution drafted by Islamist supporters of president Mohammed Morsi at a polling station in Giza, Egypt, Saturday, Dec. 22, 2012. Egypt's Islamist-backed constitution headed toward likely approval in a final round of voting on Saturday, but the deep divisions it has opened up threaten to fuel continued turmoil. (AP Photo/Nasser Nasser)

CAIRO (AP) ? Egypt's opposition said Sunday it will keep fighting the Islamist-backed constitution after the Muslim Brotherhood, the main group backing the charter, claimed it passed with a 64 percent "yes" vote in a referendum.

The opposition alleged vote fraud and demanded an investigation ? a sign that the referendum will not end the turmoil that has roiled this country for nearly two years since the uprising that ousted authoritarian leader Hosni Mubarak. Many Egyptians, especially the tens of millions who live in extreme poverty, had hoped the new constitution might usher in a period of more stability.

A heated political debate over the past month leading up to the referendum at times erupted into deadly street battles. There were no mass opposition demonstrations on Sunday after the unofficial results came out.

Renewed violence and political tensions have further imperiled Egypt's already precarious economy, reeling from dwindling resources and a cash-strapped government whose plans to borrow from the International Monetary Fund had to be pushed back because of the turmoil.

The finance ministry said Sunday the budget deficit reached $13 billion in the five months from July-November, about 4.5 percent higher compared to the same period last year.

Official results of the referendum are not expected until Monday. If the unofficial numbers are confirmed, it will be a victory Islamist President Mohammed Morsi, who is from the Brotherhood.

But the opposition allegations look likely to prolong the fight. Beyond allegations of fraud, the opposition will likely challenge new laws issued on the basis of the constitution as well as Morsi's economic policies.

"The referendum is not the end game. It is only a battle in this long struggle for the future of Egypt," said the National Salvation Front, the main opposition group. "We will not allow a change to the identity of Egypt or the return of the age of tyranny."

The opposition claims the new constitution seeks to enshrine Islamic rule in Egypt and accuses the Islamists of trying to monopolize power.

Critics say it does not sufficiently protect the rights of women and minority groups and empowers Muslim clerics by giving them a say over legislation. Some articles were also seen as tailored to get rid of Islamists' enemies and undermine the freedom of labor unions.

The latest political battle began with Morsi's Nov. 22 decrees that gave him powers to protect the Islamist-dominated panel writing the constitution and dismiss the country's top prosecutor, a holdover from the Mubarak era.

Although Morsi subsequently rescinded the powers that gave him immunity from judicial oversight, his decision to replace the prosecutor general was viewed by many in the judiciary as trampling over their powers. Hundreds of prosecutors held a rally Sunday demanding the new, Morsi-appointed prosecutor general quit, days after he retracted his resignation claiming it was rendered under pressure.

The prosecutors said in a news conference that they will be on strike until he quits.

Scores of lawyers who support Morsi's decision held an earlier rally, demanding that the top prosecutor stay, and accusing the opposition of being "thugs."

One major concern in the aftermath of the constitutional turmoil is Egypt's deteriorating economy, which has been battered by the two years of turmoil and taken an added hit from renewed violence recently.

Adding to the anxiety, state television reported on Saturday amidst voting on the referendum that the central bank governor had resigned, then retracted the report. The governor turned up at a meeting of the government's economic team Sunday in an apparent attempt to quell nervousness over the state of the economy.

The government stressed the urgency of stability.

"The financial and economic situations are dire," government spokesman Alaa el-Hadidi said, according to comments published by the state news agency MENA. With the referendum behind, el-Hadidi said economic policies must be at the center of attention, adding that the government will work to improve the investment environment to attract foreign investors.

The government had to postpone a request for $4.8 billion of IMF loans, putting off unpopular tax increases and reforms to after the referendum for fear they would only stoke political tensions.

A day before the official results of the constitution are expected, the opposition front said it filed complaints to the country's top prosecutor and the election commission asking for an investigation.

"The results of the referendum are for sure because of the rigging, violations and mismanagement that characterized it," the National Salvation Front said.

It alleged the vote was marred by lack of complete judicial supervision, which led to overcrowding that pushed down the voting rate. It also charged there was interference by those who were supposed to be supervising the vote, with some instructing people to vote "yes." Many judges who traditionally supervise elections boycotted supervising the vote.

"We don't think the results reflect the true desires of the Egyptian people," Khaled Dawoud, the front's spokesman, told The Associated Press.

However, the Brotherhood insisted violations were limited and should not affect the referendum's integrity.

The Freedom and Justice Party, the Brotherhood's political arm, said it hoped the passage of the constitution would be a "historic opportunity" to heal Egypt's divisions and launch a dialogue to restore stability and build state institutions.

If the violations are considered serious enough, there could be new votes in some areas that alter the results slightly.

The referendum was conducted in two stages with the first vote on Dec. 15 and the second on Saturday. The Muslim Brotherhood and some media outlets have accurately tallied the outcome of past elections by compiling numbers released by electoral officials at thousands of individual polling stations shortly after voting closes.

Turnout for the vote was 32 percent of Egypt's more than 51 million eligible voters, according to the Muslim Brotherhood. That was significantly lower than other elections since the uprising ended in February 2011. The opposition has pointed to the low turnout as well as allegations of violations in the voting to cast doubt on the legitimacy of the referendum.

The Brotherhood said 64 percent voted "yes" to the constitution in a tally of both stages of voting. For Saturday's second stage only, the Brotherhood said 71 percent of those who voted said "yes" with 99 percent of polling stations accounted for.

As expected, it was a jump from the first round of voting when about 56 percent said "yes." The provinces that voted in the second round were known for being a base for Brotherhood supporters.

Only about eight million of the 25 million Egyptians eligible to vote in the second stage ? a turnout of about 30 percent ? cast their ballots. Some 32 percent of eligible voters participated in the first round.

The Front said that regardless of the results, it welcomed the participation of many who rejected the constitution and refused to consider it a vote on Islamic law. The group vowed to continue to "democratically" work to change the constitution and praised the high turnout of women.

The Islamists say Islam is core to Egypt's identity and they view the constitution as a foundation to move forward, elect a parliament and build state institutions.

The new constitution will come into effect once official results are announced.

Once that happens, Morsi is expected to call for the election of parliament's lower chamber, the more powerful of the legislature's two houses, within two months.

The opposition said that even though it is challenging the results of the referendum, it will continue to prepare for the upcoming parliamentary elections.

Until the lower chamber is elected, the normally toothless upper house, or Shura Council, will have legislative powers.

On Sunday, Morsi appointed 90 new members to the Islamist-controlled Shura Council as part of his efforts to make the council more representative. The new appointments included at least 30 Islamists and a dozen Christians. They also include eight women, four of them Christians.

The opposition front said it did not want its members nominated to the Shura Council, now made up of 270 members.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/3d281c11a96b4ad082fe88aa0db04305/Article_2012-12-23-Egypt/id-15f444327e42423f85773a413d93802e

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