President Barack Obama: Millionaires should pay 30 percent in taxes

President Barack Obama said Tuesday that the US middle class deserves tax cuts, while people with incomes above $1 million per year should pay at least 30 percent in taxes.

"Congress needs to make the Buffet rule a reality," the president said. "This is common sense. If you make more than $1 million a year, you should pay a tax rate of at least 30 percent."

The Buffet rule was inspired by the complaints of billionaire investor Warren Buffet, who said last year that he is taxed at a lower rate than his secretary.

In his speech, Obama thanked citizens who brought pressure to bear so that an agreement could be achieved in Congress between Democrats and Republicans to extend the payroll-tax cut for 160 million workers.

The president said that Congress should not stop there and now has to approve a law so that the victims of the mortgage bubble can refinance their debt, given that banks are now enjoying historically low interest rates.

He also called for measures to support small and medium businesses who want to export their products instead of favouring those who send their production operations offshore.

Obama, who is seeking re-election in November, urged Americans to continue pressuring their representatives in Congress to make advances in the economy and improvements for the working class.

"Americans do not have the luxury of putting off tough decisions," he said. "There is a lot more we can do if we want to build an economy where every American can have a chance to find a job."

Pakistan SC to indict PM Gilani with contempt of court

Pakistan's embattled Prime Minister Yousuf Raza Gilani was on today indicated by the Supreme Court for contempt of court over his refusal to reopen graft cases against President Asif Ali Zardari.

A seven-member bench of the Supreme Court said that Gilani was given two years to act on its repeated orders to revive cases of alleged money laundering against Zardari in Switzerland but he failed to comply.

All the judges on the bench concurred with the charges and signed the chargesheet. 59-year-old Gilani, who was personally present in the court, was asked whether he understands the charge against him, to which Gilani said, “I have done no wrong.”

Gilani refused to accept the charges and maintained that President Zardari enjoy immunity. Importantly, the Prime Minister was asked to stand on the rostrum as the charges were read out against him.

Meanwhile, the hearing on the contempt case has been adjourned till February 27. PM Gilani has been exempted from appearing in person during the next hearing.

Also, the Attorney General has been asked by the court to submit relevant documents by February 16.

On February 22 and 27, the prosecution and defence would put up evidence.

With Gilani refusing to bow down, the stage is set for a protracted battle in the court. Gilani is the first Prime Minister of Pakistan to have been indicted for contempt of court.

The Prime Minister had, earlier too, appeared in the court when it took up the contempt case on January 19 and said the government could not reopen the cases against the President because he enjoys complete immunity in Pakistan and abroad.

Refusing to buy his arguments, the SC told Gilani that he had no option but to write to Swiss authorities to revive graft cases against Zardari as no one was above the law.

If Gilani is convicted, he could be imprisoned for six months and face possible removal from office after being disqualified from holding public office for five years.

Pakistan's I&B Minister Firdaus Ashiq today backed PM Gilani, saying the Constitution provides immunity to President Zardari.

However, legal experts pointed out that the President had the power to pardon him after his conviction. SM Zafar, a noted lawyer and parliamentarian, said such a presidential pardon would apply only to the punishment handed down by the court while the conviction would remain on record.

Therefore, the premier could be disqualified despite the pardon, he remarked.

The apex court has been pressuring the government to reopen the cases since December 2009, when it struck down the National Reconciliation Ordinance, a graft amnesty issued by former military ruler Pervez Musharraf that benefited Zardari and over 8,000 others.

Arrested Filipino ex-leader moved to govt hospital

Former Philippine President Gloria Macapagal Arroyo is being transferred to a military hospital to be detained on electoral fraud charges.

It is latest chapter in the political drama pitting Arroyo against her popular, reformist successor who wants to drive home his anti-corruption agenda.

The convoy carrying Arroyo is moving under tight security Friday in heavy rain and road traffic from the private hospital where was arrested last month while being treated for a bone ailment.

Arroyo told a TV station Thursday that the charges against her are all "demagoguery." She accused President Benigno Aquino III of trying to destroy her reputation.

She is charged with ordering the rigging of 2007 congressional elections but says her conscience is clear.