For new year, resolve to commit random acts of kindness




















Well, here we are, dear Friends and Neighbors, on the eve of another new year. So much happened to us in 2012 — some good and some bad. But through it all, by the grace of God, we made it to the end of the "old" year.

When I was a young woman, I made a new year’s resolution every year. The new year brings with it that kind of fresh-start magic.

To many of us, the new year really does mean having a second chance; a fresh start; a new beginning, another opportunity to do something that matters, to touch someone’s life in a positive way, and to do random acts of kindness.





I thought about the random-acts-of-kindness thing when, on Christmas day while in Washington, where my granddaughter Afra was appearing in My Fair Lady at the -Arena Stage Theater, I stumbled upon the perfect opportunity. Afra and I, and her mother Mary Anne, were on our way to have Christmas dinner with their longtime friends who live in Maryland. (A Radio City Music Hall Rockette since 2004, Afra had suffered with tendonitis in her right knee and decided to take this season off to let it heal.)

We got to the Metro station and found it practically empty. We headed for a bench where a man and woman were sitting and Afra motioned for me to take a seat. I spoke to the two individuals and wished them a Merry Christmas. A few minutes later, the woman who had been sitting on the bench moved away. She looked a bit uncomfortable. A few seconds later, I understood why. The young man seemed to be mentally challenged and needed to talk to someone about something that happened earlier at the facility where he lived.

Apparently there had been an argument with a caregiver at the facility, and he got upset and yelled at her. When I asked what was the matter, he started crying, "I yelled at her ... I didn’t mean to do it ... I was in a hurry to get to the station."

I touched his shoulder and tried to comfort him. "I’m sure she is not angry with you. She understood you were eager to get the train to spend Christmas with your mother." He stopped crying and told me his name was Gabriel. He asked my name. I told him and introduced him to my granddaughter and her mother, who were looking in disbelief at the two of us. Their eyes seemed to say, "Doesn’t Grandma know she is in a strange city and this man is a stranger who could be very dangerous?"

I did know. But somehow, this didn’t seem like a dangerous situation. Something in my heart said this was a chance to do a random act of kindness. I followed my heart. By the time our train came, Gabriel was smiling.

"I like you," he said. "You are a nice lady."

I reached out and offered a hug. He responded and soon my granddaughter and her mother were hugging him too. It was a wonderful feeling. Gabriel repeated our names over and over, pointing to each of us, so as not to forget them.

In a few minutes, we were at our stop. We said goodbye to our new friend and got off the train. We waved at him as the train pulled away. We didn’t say much about the incident, just smiled knowingly at each other. We knew we had just reached out to another soul who needed to be comforted and by doing so, we had spread a little Christmas cheer.

So, as I write this last column of 2012, I don’t have a list of new year resolutions. What I do have is a determination to live one day at a time, and try to live my life by reaching out to more Gabriels and offering comfort and spreading cheer and good will wherever I can. It may not be in the form of a hug. It just might be a warm smile, a "How do you do?", or "You look nice today". I learned from the Metro Station incident that it doesn’t take much to make somebody’s day. Just be kind. Make it a part of your everyday routine. No resolution is needed. Just do it.

And have a wonderful and healthy New Year!

Arts in the Gardens

Arts at St. Johns will kick off the New Year with the SALA Arts Social at 6:30 p.m. on Jan. 15 at the Miami Beach Botanical Gardens, 2000 Convention Center Dr. SALA is an acronym for Social Action, Local Arts, and is a multi-disciplinary, multi-sensory arts event featuring music, dance, the visual arts, refreshments, drinks, interactive DJ music, networking and a silent auction.

The artists include Tiffany “Hanan” Madera performing Mid-Eastern dance; DJ Madame Turk, who will mix new and old dance club music and Afro/Latin and Brazilian beats.

The visual arts will include a group show by the Artist Colony, a Miami artist collaborative. There will also be a selection of paintings, graphics and assemblages donated for the silent auction by Carol Hoffman-Guzman and her husband Robert Guzman. Carol is the founding director of Arts at St. Johns. She and her husband have been collecting local and emerging artists for over 40 years.

The event celebrates 12 years of SALA presenting performances and art at Arts at St. Johns. According to Hoffman-Guzman, SALA’s name was chosen because it is reflects Arts at St. Johns’ vision to present local artists and art forms and t use the arts to build community, nurture dialogue about social issues and seek to bring about change through the arts.

Tickets to the event are $75 each at the door or online at www.artsatstjohns.com or by calling Hoffman-Guzman at 305-613-2325.





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Buzzmakers: Kate Winslet's Wedding and Rider Strong's Engaged

What had ET readers buzzing this week?

1. Kate Winslet Ties the Knot!

Kate Winslet recently married her boyfriend Ned Rocknroll in a small, secret ceremony in New York.

A rep for the 37-year-old Oscar winner tells ET, "I can confirm that Kate Winslet married Ned Rock'nRoll in NY earlier this month in a private ceremony attended by her two children and a very few friends and family." The rep added that Kate and Ned got engaged over the summer.

British newspapers reported that Kate's Titanic co-star Leonardo DiCaprio gave away the bride in a ceremony so secret that not even the parents of the bride and groom were aware of it.

It is the third marriage for Kate, who split from film director Sam Mendes, the father of her son, in March 2011. She was also previously married for three years to Jim Threapleton, the father of her daughter, before splitting with him in 2001.

Ned, 34, is the nephew of British media/aerospace magnate Sir Richard Branson.

2. 'Boy Meets World' Star Rider Strong Engaged

Amid the holiday engagement rumors (Brandy, Janet Jackson...), Boy Meets World star Rider Strong confirms that he popped the question to his longtime love Alexandra Barreto -- but that's not the crazy part.

Strong, 33, told E! News that he asked Barreto to marry him with "a handmade ring he created himself!"

The actors met on set of the 2006 series Pepper Dennis, and the rest is history. "I asked on December 23, while her parents were visiting for the holidays. I took her for a walk under the redwoods on the property where I grew up in Northern California," Strong tells ETonline. "It was pouring rain, but it didn't look like it was going to stop anytime soon, so I just decided to go for it."

Meanwhile, TheInsider.com confirmed earlier this past November that Strong will not be joining the cast of Disney's Girl Meets World, a spin-off of his wildly popular teen show Boy Meets World. "Girl Meets World will be, and I think it should be, its own show. It will be about Cory and Topanga, their daughter, and a new set of characters. It's the next generation."

3. 'Glee' Creator is A New Dad!

Ryan Murphy had a very merry announcement this holiday season: he's a father!

According to E! News, Murphy and partner David Miller welcomed a son into their family recently, with the couple announcing their new addition on Christmas Eve to friends and family via email.

The announcement revealed the boy, named Logan Phineas Miller Murphy, was born December 24, 2012 9:47 a.m.

Earlier this year, Murphy opened up to Vogue about his desire to become a father. "I thought if I don't do this ... I'm 46 ... I will really, really regret it," he said, adding, "I want the kid to be bold."

4. Jessica Simpson Confirms She's Pregnant, Again!

After weeks of speculation, Jessica Simpson has confirmed that she is pregnant with her second child!

This morning she Tweeted, "Merry Christmas from my family to yours," along with a photo of daughter Maxwell sitting above a message written in the sand. It read: "Big Sis."

Simpson, who gave birth to Maxwell on May 1, has been spotted wearing lots of loose clothing in recent weeks as rumors swirled that she was pregnant again.

This will be the second child for Simpson and her fiance, Eric Johnson.

5. Lady Gaga Announces Documentary

The nearly 33 million Little Monsters who follow Lady Gaga on Twitter got a massive Christmas present this morning as the singer revealed she'll soon be coming to a theater near you!

"Merry Christmas little monsters," Gaga wrote. "Terry Richardson is making a #LadyGagaMOVIE documenting my life, the creation of ARTPOP + you!" "Thank you for being so patient waiting for my new album ARTPOP I hope this gets u excited for things to come. I love you with all my heart!" Gaga announced her fourth album on August 6, 2012 and featured several of the songs in contention for inclusion on her recent Born This Wall Ball. Although no release date is yet known, it's rumored to be due out in Spring 2013.

Gaga has previously collaborated with Richardson on countless magazine covers and 2011's Lady Gaga x Terry Richardson photobook.

Lady Gaga won't be the only major musician to be featured in a documentary next year. It was revealed on November 26 that HBO would be airing a Beyonce documentary on February 16, 2013.

The film promises extensive first-person footage -- some of it shot by Beyonce on her laptop -- in which she reflects on the realities of being a celebrity, the refuge she finds onstage and the joys of becoming a mother after giving birth to her daughter, Blue Ivy Carter, in January 2012. Watch a sneak peek below.

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In my library: Audra McDonald








Audra McDonald will spend New Year’s Eve doing what comes naturally: singing. This time, the five-time Tony winner and “Live from Lincoln Center” host will perform with the New York Philharmonic at its gala tribute to Marvin Hamlisch, the late composer of “A Chorus Line,” “The Way We Were” and much more. “You’d expect that someone who’d achieved so much would be jaded, but that wasn’t it at all,” she says. “He was still so excited about music — any kind of music!” You might say the same for McDonald, who started as a classical voice major at Juilliard and found her calling on Broadway and off. Catch her Monday night at 8 on PBS, along with Josh Groban, Megan Hilty and other Hamlisch fans. Here’s what’s on McDonald’s shelves.





AP






Gone With the Wind

by Margaret Mitchell

I’d seen the movie a bunch of times, but the book was as big as a Bible! One day, I missed the train to Virginia to visit my grandparents and had to take a bus [from New York). I grabbed the “Gone With the Wind,” and the 11-hour trip went too quickly! It was one of the first times I realized the power of imagination.

Porgy

by DuBose Heyward

When I was offered the opportunity to play Bess [on Broadway], I started from scratch. I’d seen the opera so many times, but I wondered, where did Bess come from? The book gave me her backstory. Once I realized she was truly an addict, her character broke open for me. It’s a difficult read, though, because of the dialect. You literally have to read this out loud.

Beloved

by Toni Morrison

My mom had all of Toni Morrison’s books, but I first read “Beloved” at Juilliard, 3,000 miles from my family. Morrison was moved by the story of a woman who fled slavery and, instead of having her children taken from her, kills them. I’d never before openly wept while reading a book, but I get emotional even thinking about it now.

Sanford Meisner on Acting

by Meisner and Dennis Longwell

I’d never really studied acting, but after I got “Carousel,” a dear friend who was in the show said, “I’m telling you this because I love you: You need to look at what you’re doing and start understanding who the character is.” I went to this book and started to understand: It’s not about playing something, but actually doing!









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Week brings startup launches, social media advice for 2013




















Jared Kleinert, a South Florida entrepreneur, plans to soon launch Synergist, a platform that allow social entrepreneurs to meet potential co-founders online, collaborate and crowdfund their new projects. He also just launched AliveNDead, a blog about risk-taking, and he interns for a Silicon Valley startup.

And when he’s not doing all that, he’s going to class — he’s a junior at Spanish River High School in Boca Raton.

Lester Mapp is CEO and founder of the new Miami-based startup called designed by m. His team has just designed a sleek, ultra-thin aluminum iPhone bumper and launched the project on Kickstarter. After just a few days, Mapp is already more than a third of the way to his $20,000 fund-raising goal.





Read about both these entrepreneurs on The Starting Gate blog, where there’s also a post on the most pressing issues facing small businesses in the coming year — taxes, healthcare, lending and a skilled worker shortage, for starters.

And as you are ringing in the New Year, you may be resolving to beef up your business’ social media strategy. Susan Linning's guest post offers five top tips for boosting your social media effectiveness. Among them: Go beyond retweets and make your posts original, fun and personal (but not too personal.) Use visuals, too. Find this and other news, views and tools for entrepreneurs on the blog, which is at the bottom of MiamiHerald.com /business.

Follow me on Twitter @ndahlberg and Happy New Year to all.





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Former Miami Beach resident may be next Israeli ambassador to U.S.




















Ron Dermer, a top adviser to Israeli Prime Minister Benjamin Netanyahu and who has family ties to two former Miami Beach mayors, may soon become the next Israeli ambassador to the United States, according to reports in an Israeli newspaper.

The daily Makor Rishon reported late Friday that the current ambassador, Michael Oren, plans to step down from his post in the spring of 2013 and would be replaced by Dermer.

Dermer was nicknamed “Bibi’s Brain’’ in a 2011 Tablet profile that compared his relationship with Netanyahu to that of Karl Rove and former President George W. Bush.





Dermer, a Florida-born conservative, reportedly planned Republican Mitt Romney’s trip to Israel last summer during the U.S. presidential campaign.

He has been Netanyahu’s senior adviser since 2009.

The Prime Minister’s Bureau and the Prime Minister’s Office declined comment on the newspaper’s report, according to Israeli media.

Family members in Miami Beach contacted by The Miami Herald also declined to comment.

Dermer is the brother of former Miami Beach Mayor David Dermer, whose first campaign he managed, and the son of former mayor Jay Dermer.

His father was a mayor in the 1960’s and his older brother David was mayor from 2001-2007.

Just two weeks before Ron’s bar mitzvah, his father died of a heart attack. Growing up in Miami Beach, he attended a Jewish day school.

Ron Dermer and his younger sister Esther moved to Israel in the late ’90s after completing their studies. He earned a degree in finance and management from the Wharton School of the University of Pennsylvania and a degree in philosophy, politics and economics from Oxford University.

For three years, he wrote a column for the Jerusalem Post and, along with former Soviet dissident and Israeli politician Natan Sharansky, co-authored the book, “The Case for Democracy: The Power of Freedom to Overcome Tyranny and Terror.’’

He and his wife Rhonda have three children: Mayor, Zev and Ezra.

Dermer had to give up his U.S. citizenship in 2005 when he was appointed Minister for Economic Affairs to the Israeli Embassy.

In a 2011 interview with The Tablet, Dermer said he still thinks of himself as an American.

“When I think about Israel, I always ask myself, I call it the WWAD question: ‘What would America do?’”





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Fiscal-cliff deal could be ready for a vote tomorrow








WASHINGTON — Start holding your breath — a fiscal-cliff deal could be ready for a vote by tomorrow.

President Obama and congressional leaders emerged yesterday from last-ditch negotiations at the White House with a grim new determination to seal a deal before the New Year’s Day deadline, when big tax hikes and deep federal spending cuts otherwise will whack America.

“We’ve got to get this done,” Obama declared at a press conference following the 65-minute Oval Office meeting.

Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.) sounded an unusual bipartisan tone after the meeting, agreeing to work on a deal in time for a vote tomorrow.





HEAT’S ON: President Obama speaks at the White House yesterday following his meeting with congressional leaders about a fiscal-cliff deal.

AFP/Getty Images





HEAT’S ON: President Obama speaks at the White House yesterday following his meeting with congressional leaders about a fiscal-cliff deal.





At a minimum, Obama wants a vote on a scaled-down package that keeps Bush-era tax cuts for family incomes up to $250,000, extends unemployment benefits and postpones spending cuts.

The president said he was “modestly optimistic” that one of these deals would get done in time. But he plans to keep pressure on Congress with an appearance tomorrow morning on NBC’s “Meet the Press.”

The Reid-McConnell deal could raise the tax-hike threshold to $400,000 to attract more Republican support, as well as extend the current inheritance-tax rate and dozens of business tax breaks that are also set to expire Tuesday.

“We’ll be working hard to see if we can get this done in the next 24 hours,” McConnell said on the Senate floor.

Reid told the chamber that whatever they come up with will be “imperfect” because they are dealing with big numbers and complicated issues.

“Some people aren’t going to like it. Some people will like it less, but that’s where we are,” he said.

After the meeting, Obama used the White House bully pulpit to put public pressure on Republican leaders to let a proposal — even one that isn’t bipartisan — go to a vote.

Senate rules empower any member to hamstring legislation and House Republican leaders control what reaches the floor.

“If we don’t see an agreement between the two leaders in the Senate, I expect a bill to go on the floor . . . that makes sure taxes on middle-class families don’t go up,” Obama warned.

He said “ordinary folks” don’t understand why everything is a logjam in DC and lawmakers can’t just get the job done.

“The American people are not going to have any patience for a politically self-inflicted wound to our economy,” he said.

Obama, Reid and McConnell were joined at the White House by House Speaker John Boehner (R-Ohio), House Minority Leader Nancy Pelosi (D-Calif.), Vice President Joe Biden and Treasury Secretary Tim Geithner.

During the talks, Boehner told Obama the House would act on whatever legislation the Senate passes, either approving it or amending it, said a Boehner spokesman

Boehner has been sidelined from the negotiations since House Republicans abandoned his “Plan B” that would have limited the tax increases to millionaires.

Obama also issued an executive order to end the pay freeze on federal employees — a move that pumped up the salaries of Biden and members of Congress, The Weekly Standard reported yesterday.

Biden will snag an extra $6,379 each year, bringing his salary to $231,900, while US Senate and House members will make an additional $900.

smiller@nypost.com










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Resources for South Florida small businesses




















•  Florida Small Business Development Centers. Counseling and training at centers in South Florida and around the state, www.floridasbdc.org.

•  SCORE Workshops, online training and free coaching at local branches, www.score.org, miamidade.score.org, browardscore.org, southbroward.score.org

• Florida Women’s Business Center. Provides training, mentoring and resources to women entrepreneurs, http://www.flwbc.org.





• The Commonwealth Institute. Helps women entrepreneurs, CEOs and corporate executives build businesses through peer mentoring programs and annually honors top women-led businesses in Florida, www.commonwealthinstitute.org.

The Hispanic Business Initiative Fund of Florida. Nonprofit, with a Miami office, provides free bilingual seminars, workshops and technical assistance to Hispanic entrepreneurs launching or expanding businesses in Florida. www.HBIFflorida.org.

•  Barry University, Barry Institute for Community and Economic Development. Counseling, workshops and training for Miami-Dade small businesses through the Entrepreneurial Institute, www.barry.edu/biced.

•  Broward College. Offers a 24-credit entrepreneurship certificate, www.broward.edu. For noncredit business courses, including training through its Entrepreneurial Institute, http://www.broward.edu/ce.

•  Florida International University, Pino Global Entrepreneurship Center. Workshops, webinars and more, entrepreneurship.fiu.edu.

•  Miami Dade College. Offers a 12-credit entrepreneurship certificate program, www.mdc.edu/business. For noncredit classes, www.mdc.edu/ce. The Meek Entrepreneurial Education Center offers many programs, www.mdc.edu/north/eec.

•  University of Miami, The Launch Pad. Workshops, networking, resources and coaching, www.thelaunchpad.org.

•  Southern Florida Minority Supplier Development Council. Connects large businesses with minority businesses across South Florida, www.sfmsdc.org.

•  Startup Florida. Programs and training, plus register your company in this Startup America initiative, www.startupfl.org.

•  Partners for Self-Employment. Offers training, technical assistance and loans in Miami-Dade and Broward. www.partnersforselfemployment.com

•  Miami Bayside Foundation. Provides loans of $10,000 to $50,000 to minority-owned businesses in the city of Miami. www.miamibaysidefoundation.org..

•  MetroBroward. Nonprofit offers financing, incubation and training for businesses in low- to moderate-income areas of Broward, www.metrobroward.org.

• ACCION USA. Provides microloans up to $50,000 and financial education, with South Florida offices and programs, www.accionusa.org.

ClearPoint Credit Counseling Solutions. Nonprofit offers one-on-one, over the phone or Internet credit counseling to entrepreneurs and consumers with poor credit. 305-463-6739, ext 1019 or www.clearpointccs.org .

•  Incubate Miami. Start-up businesses in technology can get mentorship, office space and now early-stage funding, www.incubatemiami.com.

• The Technology Business Incubator at the Research Park at Florida Atlantic University. Offers mentors, investor connections and business services, http://www.research-park.org

•  South Florida Urban Ministries’ ASSETS Business Development. Nonprofit offers small business development program including one-on-one business coaching and consulting in areas of start-up, marketing, finance and more, www.sflum.org.

• United Way Center for Financial Stability. Center offers a wide array of tools and resources to help families and individuals achieve financial independence. www.unitedwaymiami.org/WhatWeDo/CFS.

•  The Startup Forum. Organization’s mission is to foster the development of vibrant regional startup communities, www.startupforum.net.

•  StartupDigest. Begun in Silicon Valley as a place to find events for entrepreneurs, this has spread to other cities, including Miami, www.startupdigest.com

If your organization should be on this list, email ndahlberg@miamiherald.com





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Miami-Dade camping law may clash with Supreme Court ruling




















When Miami-Dade commissioners voted unanimously this month to ban overnight camping at “county facility property,” they opened the doors to debate about how police should apply the measure to homeless people.

The action was a clear shot at the Occupy Wall Streeters who flooded public spaces, including outside County Hall, in the summer of 2011.

In addition to making it illegal to camp on county property, the measure toughens permitting rules for public gatherings and permissible “free speech’’ zones. It also gives police the authority to arrest violators, including the homeless.





But a 25-year-old court ruling could present a conflict, some legal observers say. A 1988 U.S. Supreme Court decision in the Pottinger vs. The City of Miami case found that Michael Pottinger and about 6,000 other homeless people in Miami could not be harassed or punished for occupying public property because doing so would violate their fundamental right to travel, and to be free from cruel and unusual punishment.

The new ordinance specifically provides that if police direct a homeless person occupying a county facility to leave, the officer first must look for sleeping space for the homeless person at a county shelter. If there is none, or if the person refuses the option, he or she can be arrested for trespassing if they remain or return to the space.

An ACLU lawyer said the measure could again open the door for police to harass and arrest homeless people.

“We’re prepared to litigate should there be issues in the future,” said attorney Dan Palugyai, who sits on the board of the Greater Miami Chapter of the American Civil Liberties Union. “Our past experience tells us it’s likely, even probable.”

During the commission meeting, County Mayor Carlos Gimenez said the homeless — at least in Miami — were protected from arrest by the Pottinger case.

The new law defines impermissible camping as the “setting up of tents, shacks, or shelters for sleeping activities or making preparations to sleep [including the laying down of bedding for the purposes of sleeping], from the hours of sunset to sunrise.”

Miami First Amendment lawyer Tom Julin said he’s troubled by that wording.

“They’re not allowing the general public to do the same type things that they, or organizations they approve of, do in a park,” he said, referring to the ING Miami Marathon and some concerts at Bayfront Park, both of which allow people to spend the night, even if there is no formal permission granted.

Commissioner Lynda Bell, who sponsored the ordinance, said it was “not meant to harm anyone.’’ After some homeless advocates expressed concern, the language was added directing police to first find shelter for homeless people and to arrest only as a last resort.

“We obviously think it’s legally sufficient,’’ said Assistant County Attorney Danny Frastai.

Still not entirely clear: How the new law would apply to county parks like Matheson Hammock Park or Haulover Beach Park. At the final meeting before the full board of Miami-Dade County Commissioners when the ordinance was adopted, it was amended from not allowing camping on “county property,” to not allowing it on “county facility property.”

“We interpret facility to mean some type of structure, like a building,” said Frastai. “If it’s a park that has a structure, we’d have to look at it.”

That’s just sloppy language, noted Palugyai, the homeless advocate. “Hopefully, there will be opportunities to clean it up.” The Occupy Wall Street crowd gathered on the west lawn at County Hall in Miami from the summer of 2011 until February, when they were finally evicted. The county says it spent $17,000 cleaning up the mess left behind.

Though the group obtained a permit to camp out there, Miami-Dade Internal Services Director Lester Sola said they should have been directed to a different spot. He blamed the confusion on vague wording in the old code, which was what led to the revision. During the discussion, Commissioner Jean Monestime wanted to know why the county needed to legislate a camping ban.

“My apprehension here is we may be opening a can of worms here.”





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Raj will pony up $1.5M

Former hedge-fund manager Raj Rajaratnam has agreed to pay $1.45 million to resolve a civil Securities and Exchange Commission lawsuit related to his alleged insider trading based on tips from former Goldman Sachs Group director Rajat Gupta, according to court documents.

Rajaratnam, founder of Galleon Group, was sentenced to more than 11 years in prison last year after he was convicted of conspiracy and securities fraud in a broad insider-trading scheme, including alleged tips from Gupta. Rajaratnam, 55 years old, is serving his sentence at a federal prison in Massachusetts and is appealing his conviction.




Raj Rajaratnam: Digging deep.

EPA





Raj Rajaratnam: Digging deep.



As part of a consent agreement signed by Rajaratnam earlier this month and approved on Dec. 24, he agreed to disgorge more than $1.29 million, representing his profits or losses avoided as a result of his alleged trading on Gupta’s tips, and to pay prejudgment interest of $147,738.

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5 issues small business owners will face in 2013




















In 2013, small business owners will contend with many of the same issues that made it hard to run their companies during the past 12 months.

They’re also heading into the new year with a lot of uncertainty. It’s unlikely that negotiations in Congress will resolve all of lawmakers’ disagreements over tax and budget issues that affect small businesses. And there are still many questions about the implications of the healthcare law for small companies.

That points to continued caution — and perhaps slow hiring — among the nation’s small companies.





“Uncertainty is the bane of every small business,” says Scott Shane, a professor of entrepreneurship at Case Western Reserve University’s Weatherhead School of Management in Cleveland. “Their only rational response is to pull in their horns and slow down.”

Small businesses aren’t likely to get much encouragement from the economy. It’s expected to grow by no more than 3 percent in 2013, according to the Federal Reserve. That’s a moderate pace, better than the 1.7 percent that the economy grew during the first three quarters of 2012. But it’s also far from robust.

Here’s a look at some of the issues facing small businesses in the coming year:

TAXES

Lawmakers are still haggling over what’s called the fiscal cliff, the combination of billions of dollars in tax increases and budget cuts. Even if Congress reaches an agreement, small business owners won’t have the certainty they need, according to Todd McCracken, president of the National Small Business Association, a group that lobbies on behalf of small companies.

“It almost surely won’t be comprehensive enough that we won’t be revisiting it next year,” McCracken says. He’s concerned that there’ll be another fiscal cliff in six months — which would mean more negotiations and more uncertainty.

Many small business owners are worried about their personal tax rates. Sole proprietors, partners and owners of what are called S corporations, all report the income from their businesses on their individual Form 1040 returns. That means their companies are in effect taxed at personal rates, which can be higher than corporate rates.

One of the most important tax provisions for small businesses, what’s known as the Section 179 deduction, will shrink to $25,000 next year from $125,000 in 2012. The deduction, which applies to equipment purchases, was $500,000 in 2011. Congress can increase the deduction at any time, even after 2013 has begun. But for the time being, business owners can’t count on getting a big break.

“It’s a huge change for companies planning on making investments,” McCracken says.

It’s not known if Congress will extend the 2 percentage point payroll tax cut that workers have had for two years. If it doesn’t, consumers will have less money in their paychecks to spend, and that is likely to affect retailers and any other small businesses that sell directly to the public.

HEALTHCARE

Healthcare has been another source of uncertainty for small business owners. The new year will bring some, but probably not all, of the answers to questions about how the new healthcare law will affect them. Many will have to devote some time to understanding the law — or hire someone to help them do it.





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