Closing Tax Loopholes Not Enough to Avert 'Cliff'?

Closing "corporate tax loopholes" sure sounds good to the average, non-corporate American -- so good, in fact, that politicians talk about it all the time.

House Speaker John Boehner's fiscal-cliff proposal purports to raise $1.6 trillion in revenue by "clos[ing] special-interest loopholes and deductions while lowering rates."

The White House, meanwhile, has complained that Boehner hasn't offered specific loopholes to cut.

On the other side of the aisle, House Democrats have repeatedly offered up "closing overseas tax loopholes" as a means to pay for spending bills -- a plan Republicans routinely reject. In the last two and a half years, President Obama has often been heard griping about writeoffs for corporate jets.

For both Republicans and Democrats, "corporate tax loopholes" are an old saw. But, like most things in politics, raising revenue from "loopholes" gets a bit stickier when the specifics are hashed out.

A misconception about tax "loopholes," some experts say, is that they're loopholes -- gaps in the tax law that corporations have exploited against the law's intent.

Carolyn Kaster/AP Photo; Pablo Martinez Monsivais/AP Photo

Fiscal Cliff Battle: President Obama vs. Speaker John Boehner Watch Video

"Most of these proposals were not 'loopholes,' these were incentives," said Eric Toder, co-director of the left-leaning Tax Policy Center.

For example, take the research-and-development tax credit. During the campaign, both Obama and Mitt Romney suggested making it permanent.

"One wouldn't call the research credit a loophole," Toder said.

Cashing in by closing the biggest "loopholes" could be a politically fraught endeavor. To generate meaningful revenue, House Republicans would have to sign off on measures that raised it from taxing the overseas profits of multinational corporations, from ending immediate writeoffs of equipment purchases, or from ending a credit for domestic manufacturing.

When the Joint Committee on Taxation scored some of these provisions, as part of a tax-reform bill pushed by Democratic Sen. Ron Wyden and then-GOP-senator Judd Gregg, it found the government could save significantly:

Savings Over 10 Years: 2011-2021

Taxing Overseas Profits of Multinational Corps: $582.7 billion. In other words, the "overseas tax loophole" Democrats are fond of trashing. While most countries with large economies tax only profits made at home, the U.S. code taxes all income everywhere. To offset the different, U.S. multinational corporations receive credits to prevent double taxing. They also can defer paying any tax on foreign income, until they transfer the money back to the United States.

Taxing that profit could generate significant revenue. But this could be controversial, and large corporations would fight it. A senior aide to one business lobbying group said ending foreign-income deferral would amount to double-taxing U.S. companies and put them at a disadvantage to foreign competitors; one supporter of ending deferral suggested U.S. companies have been able to hide profits overseas, avoiding taxes altogether.

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IMF loan to Egypt delayed amid political turmoil

CAIRO (Reuters) - A vital $4.8 billion International Monetary Fund loan to Egypt will be delayed until next month, its finance minister said on Tuesday, intensifying the political crisis gripping the Arab world's most populous nation.

As rival factions gathered in Cairo for a new round of demonstrations, Finance Minister Mumtaz al-Said said the delay in the loan agreement was intended to allow time to explain a heavily criticised package of economic austerity measures to the Egyptian people.

The announcement came after President Mohamed Mursi on Monday backed down on planned tax increases, seen as key for the loan to go ahead. Opposition groups had greeted the tax package, which included duties on alcoholic drinks, cigarettes and a range of goods and services, with furious criticism.

"Of course the delay will have some economic impact, but we are discussing necessary measures (to address that) during the coming period," the minister told Reuters, adding: "I am optimistic ... everything will be well, God willing."

Prime Minister Hisham Kandil said Egypt had requested that the loan be delayed by a month.

"The challenges are economic not political and must be dealt with aside from politics," he told a news conference.

Kandil said the reforms would not hurt the poor. In a bid to rebuild consensus, he said there would be a national dialogue about the economic program next week.

GUNMEN OPEN FIRE

On the streets of the capital, tensions ran high after nine people were hurt when gunmen fired at protesters camping in Tahrir Square, according to witnesses and Egyptian media.

The opposition has called for a major demonstration it hopes will force Mursi to postpone a referendum on a new constitution.

Thousands of flag-waving Islamist Mursi supporters, who want the vote to go ahead as planned on Saturday, assembled at a nearby mosque, setting the stage for further street confrontations in a crisis that has divided the nation of 83 million.

The upheaval following the fall of Hosni Mubarak last year is causing concern in the West, in particular the United States, which has given Cairo billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

The turmoil has also placed a big strain on the economy, sending foreign currency reserves down to about $15 billion, less than half what they were before the revolt two years ago as the government has sought to defend the pound.

"Given the current policy environment, it's hardly a surprise that there's been a delay, but it is imperative that the delay is brief," said Simon Williams, HSBC economist in Dubai. "Egypt urgently needs that IMF accord, both for the funding it brings and the policy anchor it affords."

The IMF deal had been seen as giving a seal of approval to investors and donors about the government's economic plans, vital for drawing more cash into the economy to ease a crushing budget deficit and stave off a balance of payments crisis.

MASKED ATTACKERS

In central Cairo, police cars surrounded Tahrir Square in central Cairo, the first time they had appeared in the area since November 23, shortly after a decree by Mursi awarding himself sweeping temporary powers that touched off widespread protests.

The attackers, some masked, also threw petrol bombs that started a small fire, witnesses said.

"The masked men came suddenly and attacked the protesters in Tahrir. The attack was meant to deter us and prevent us from protesting today. We oppose these terror tactics and will stage the biggest protest possible today," said John Gerges, a Christian Egyptian who described himself as a socialist.

The latest bout of unrest has so far claimed seven lives in clashes between the Islamist Muslim Brotherhood and opponents who are also besieging Mursi's presidential palace.

The elite Republican Guard which protects the palace has yet to use force to keep protesters away from the graffiti-daubed building, now ringed with tanks, barbed wire and concrete barricades.

The army has told all sides to resolve their differences through dialogue, saying it would not allow Egypt to enter a "dark tunnel". For the period of the referendum, the army has been granted police powers by Mursi, allowing it to arrest civilians.

The army has portrayed itself as the guarantor of the nation's security, but so far it has shown no appetite for a return to the bruising front-line political role it played after the fall of Mubarak, which severely damaged its standing.

OPPOSITION MARCHES

Leftists, liberals and other opposition groups have called for marches to the presidential palace later on Tuesday to protest against the hastily arranged constitutional referendum planned for December 15, which they say is polarising the country and could put it in a religious straightjacket.

Mohamed ElBaradei, a prominent opposition leader and Nobel prize winner, called for dialogue with Mursi and said the referendum should be postponed for a couple of months due to the chaotic situation.

"This revolution was not staged to replace one dictator with another," he said in an interview with CNN.

Outside the presidential palace, anti-Mursi protesters huddled together in front of their tents, warming themselves beside a bonfire in the winter air.

"The referendum must not take place. The constitution came after blood was spilt. This is not how a country should be run," said Ali Hassan, a man in his 20s.

Opposition leaders want the referendum to be delayed and hope they can get sufficiently large numbers of protesters on the streets to change Mursi's mind.

Islamists, who dominated the body that drew up the constitution, have urged their followers to turn out "in millions" in a show of support for the president and for a referendum they feel sure of winning.

The opposition says the draft constitution fails to embrace the diversity of the population, a tenth of which is Christian, and invites Muslim clerics to influence lawmaking.

(Writing by Giles Elgood; Editing by Peter Graff and Will Waterman)

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SAF serviceman injured onboard ship berthed at Changi Naval Base

SINGAPORE: A Singapore Armed Forces (SAF) regular serviceman has been critically injured while onboard the Landing Ships Tank RSS Endeavour, which is berthed at Changi Naval Base.

29-year-old ME2 Chee Weng Fai Jason, a Weapon Systems Supervisor, was checking on a berthing rope that was being tightened on Monday afternoon when he got caught between a motorised winch and the rope, said the Ministry of Defence (MINDEF).

The base's medical centre was alerted to the incident at 2.25pm and attended to Mr Chee within five minutes, said the ministry.

According to a statement from MINDEF, Mr Chee was attended to by a medical team led by four medical officers from the Changi Naval Medical Centre, who stabilised his condition before Mr Chee was sent via an SAF ambulance from the RSS Endeavour to Changi General Hospital.

Mr Chee has undergone emergency surgery and remains in critical condition.

The SAF is conducting an investigation to determine the cause of the incident.

- CNA/jc

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BlackBerry 10 won't be PlayBook redux. Here's why

The PlayBook was a flop, but that doesn't mean BlackBerry 10 has to be one too.

(Credit:
James Martin/CNET)

commentary Research in Motion's BlackBerry 10 is no PlayBook, and that's a good thing.

There's concern that RIM's next-generation smartphone operating system may fall flat on its launch, are drawing comparisons to the company's critically lambasted
tablet as an example. AllThingsD, citing an analyst from Wedge Partners, says the same issues that hamstrung PlayBook sales will hurt BlackBerry 10's prospects as well.

The comparison is an easy one to make, but I don't buy it.

Of course, RIM and BlackBerry 10 face more than their fair share of challenges, and it remains to be seen whether the new operating system will resonate with consumers. But there are a lot of differences between its upcoming launch in January and the PlayBook launch last year, which RIM hopes will be enough to avoid launching with another thud.

The PlayBook was a product that was clearly rushed out the door in response to the burgeoning success of Apple's iPad, a fact that was pretty obvious when playing with the device. It was missing critical features such as access to BlackBerry e-mail, calendar, and its BlackBerry Messenger service.

A BlackBerry product without BlackBerry e-mail? It's kind of funny until you realize that really happened.

The PlayBook came with no carrier support. In fact, a RIM executive boasted to me during the launch that the carriers were excited to sell the device -- something that was apparently news to the carriers when I checked in with them. In fact, few had even cleared the app necessary to bridge the PlayBook with a BlackBerry, another "feature" that was confusing and annoying. It's clear the carriers realized what a dud the tablet was and were quick to distance themselves from it.

RIM subsequently updated the PlayBook with improved software, filled in the missing features, and slashed the price on the devices, but at that point, consumers had moved on. Even at its bargain bin price, it faced rising competition from the
Kindle Fire, and the subsequent wave of lower priced tablets have blown it away.

You can't accuse RIM of rushing out BlackBerry 10. If anything, the operating system is way overdue. But the company has clearly spent the time to work out the kinks, and the early experience with the software has been pleasantly surprising.

RIM isn't aping a trend or trying something completely new with BlackBerry 10, it's actually focusing on its core smartphone product.

At the same time, the carriers have been enthusiastic when talking about RIM and its prospects. The leadership, which has been overhauled under new CEO Thorsten Heins, have promised a massive global launch. The carriers want a third viable mobile operating system, and if Windows Phone falters, RIM could have its opening. Bottom line: the carriers won't be abandoning BlackBerry 10 like they did the PlayBook.

That's not to say BlackBerry 10 has a clear path to success. The later launch of the platform in January, which is a quieter time of the year, may backfire for RIM. Windows Phone could take off this holiday, reducing the urgency that the carriers feel to back an upstart mobile operating system.

The competitive environment hasn't gotten any better, with more
Android smartphones than ever and Apple's iPhone 5 dominating sales. And the BlackBerry name may be too tarnished and irrelevant to draw back consumers -- BlackBerry 10 will be a good test of how loyal those 80 million subscribers really are.

But to write BlackBerry 10 off as another PlayBook debacle is silly. RIM should get a fairer shake than that.

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N. Korea extends rocket launch window a week

SEOUL, South Korea North Korea on Monday extended the launch period for a controversial long-range rocket by another week, until Dec. 29, citing technical problems.

An unidentified spokesman for the North's Korean Committee of Space Technology told state media scientists found a "technical deficiency in the first-stage control engine module of the rocket." The statement didn't elaborate, but said technicians were "pushing forward" with final preparations for the launch.

North Korea is making its second attempt of the year to launch a rocket that the United Nations, Washington, Seoul and others call a cover meant to test technology for missiles that could be used to strike the United States. They have warned North Korea to cancel the launch or face a new wave of sanctions.

The North Koreans call the launch a peaceful bid to advance their space program, and a last wish of late leader Kim Jong Il, who died a year ago, on Dec. 17. North Korea is also celebrating the centennial this year of the birth of national founder Kim Il Sung, current leader Kim Jong Un's grandfather. An April launch broke apart seconds after liftoff.

The announcement of the planned rocket launch has sparked worry because of the timing: South Korea and Japan hold key elections this month, President Obama begins his second term in January, and China has just formed a new leadership.

The North had originally set up a 13-day launch window, starting Monday, but it announced early Sunday that it may delay the liftoff for unspecified reasons.

Experts in Seoul and Tokyo had speculated that technical glitches may have forced scientists to postpone the launch of the finicky three-stage rocket, its fifth attempt since 1998.

Temperatures in the border city of Sinuiju, near the launch site, dropped to 8.6 degrees Fahrenheit Monday morning, and the Korean Peninsula has been seized by early winter storms and unusually cold weather, the Korea Meteorological Administration said in Seoul.

Engineers can launch a rocket when it's snowing, but lightning, strong wind and freezing temperatures have the potential to stall liftoff, said Lee Chang-jin, an aerospace professor at Seoul's Konkuk University.

Snow covered the North's launch site last week, according to commercial satellite imagery taken by GeoEye on Dec. 4 and shared with The Associated Press by the 38 North and North Korea Tech websites. The road from the main assembly building to the launch pad showed no fresh tracks, indicating that the snowfall may have stalled the preparations.

Still, Japanese Prime Minister Yoshihiko Noda said Monday that his government would maintain vigilance. Tokyo has mobilized its military to intercept any debris from the rocket.

"At this moment, we are keeping our guard up," Defense Minister Satoshi Morimoto told reporters Monday. "We have not seen any objective indication that would cause us to make any change to our preparedness."

In addition to four failed launches, North Korea has unveiled missiles designed to target U.S. soil and has tested two atomic devices in recent years. It has not yet proven to have mastered the technology for mounting a nuclear warhead to a long-range missile, however.

A successful launch would mean North Korea could develop an intercontinental ballistic missile capable of striking the U.S. mainland within two to three years, said Chong Chol-Ho, a weapons of mass destruction expert at the private Sejong Institute near Seoul.

Six-nation negotiations to offer North Korea much-needed aid in exchange for nuclear disarmament have been stalled since early 2009.

Last week, U.S. Secretary of State Hillary Rodham Clinton said Washington was deeply concerned, and urged foreign ministers from NATO and Russia to demand that Pyongyang cancel its plans. Moscow joined calls on Pyongyang to reconsider.

China, North Korea's main ally and aid provider, also noted its concern, acknowledging North Korea's right to develop its space program but urging Pyongyang to harmonize the bid with restrictions, including those set by the U.N. Security Council.

International pressure and the prospect of dialogue may be a factor in the delay, analysts in Seoul said.

China must have sent a "very strong" message calling for the North to cancel the launch plans, said analyst Baek Seung-joo of the South Korean state-run Korea Institute for Defense Analyses.

North Korea may also be holding off if the U.S., its longtime Korean War foe, actively engages Pyongyang in dialogue, said Koh Yu-hwan, a professor of North Korean studies at Seoul's Dongguk University.

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Royal Hoax: DJs 'Shattered' After Nurse's Suicide

The two Australian radio DJs who prank-called the London hospital where Kate Middleton was being treated last week said they were "shattered" and "gutted" after the nurse who answered their call apparently killed herself.

Shock jocks Mel Greig, 30, and Michael Christian, 25, cried as they spoke to Australia's Channel 9 overnight in their first public interview since Jacintha Saldanha, 46, the nurse who last week connected the pair to the duchess' room, was found dead Friday morning.

"I'm shattered, gutted, heartbroken," Christian said. "Mel and myself are incredibly sorry for the situation and what's happened. I had the idea. … It was just a simple harmless phone call. It was going to go on for 30 seconds. We were going to get hung up on."

FULL COVERAGE: Royal Baby

The host of the "2Day" FM radio show pretended to be Queen Elizabeth and Prince Charles, asking for an update on Middleton's condition when they called up King Edward VII Hospital in central London. With no receptionist on duty overnight, Saldanha answered the prank call and put it through.

"It was just something that was fun and light-hearted and a tragic turn of events that I don't think anyone had expected," Christian said.

A Current Affair/ABC News

Jacintha Saldanha Dead: Could DJs Face Charges? Watch Video

Jacintha Saldanha Outrage: DJs Responsible for Prank Are in Hiding Watch Video

Saldanha was found dead Friday morning after police were called to an address near the hospital to "reports of a woman found unconscious," according to a statement from Scotland Yard.

Investigators have not said how she might have killed herself.

Greig cried today when asked about the moment she heard of the death of Saldanha, a mother of two.

"It was the worst phone call I've ever had in my life," she said through tears. "There's not a minute that goes by that we don't think about her family and the thought that we may have played a part in that is gut-wrenching."

The DJs said they never expected to get through to Middleton's nurse and assumed "the same phone calls had been made 100 times that morning," Christian said.

Grieg said, "We wanted to be hung up on with our silly voices and wanted a 20-second segment to air of us doing stupid voice. … Not for a second did we expect to even speak to Kate or even have a conversation with anyone at the hospital. We wanted to be hung up on."

The global backlash against the duo has been fierce, from online death threats to calls for prison time. Their radio station has announced it is banning phony phone calls altogether, and suspending advertising indefinitely.

Max Moore-Wilton, the chairman of Southern Cross Austereo, said in a letter Sunday to Lord Glenarthur, chairman of King Edward VII's Hospital, that the company is reviewing the station's broadcast policies, the AP reported.

"I can assure you we are taking immediate action and reviewing the broadcast and processes involved," Moore-Wilton said in the letter. "As we have said in our own statements on the matter, the outcome was unforeseeable and very regrettable."

Greig and Michael have been taken off the air, silenced indefinitely.

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Egypt army gets temporary power to arrest civilians

CAIRO (Reuters) - Egypt's government has temporarily given the military the authority to arrest civilians to help safeguard a constitutional referendum planned for Saturday, the official gazette said.

The order, gazetted late on Sunday, said the military would support police and liaise with them to protect "vital institutions" until the referendum result is declared.

The decree gave army officers the right to make arrests and transfer detainees to prosecutors.

Despite its limited nature, the edict will revive memories of Hosni Mubarak's emergency law, also introduced as a temporary expedient, under which military or state security courts tried thousands of political dissidents and Islamist militants.

But a military source stressed that the measure, introduced by a civilian government, would have a short shelf-life.

"The latest law giving the armed forces the right to arrest anyone involved in illegal actions such as burning buildings or damaging public sites is to ensure security during the referendum only," the military source said.

"The armed forces secured polling stations during previous elections when it was in charge of the country," the source said, referring to 16 months of army rule after Mubarak fell.

"Now the president is in charge. In order for the armed forces to be involved in securing the referendum, a law had to be issued saying so," the source added.

Presidential spokesman Yasser Ali said the committee overseeing the vote had requested the army's assistance.

"The armed forces will work within a legal framework to secure the referendum and will return (to barracks) as soon as the referendum is over," Ali said.

On Saturday, the military urged rival political forces to solve their disputes via dialogue and said the opposite would drag the country into a "dark tunnel", which it would not allow.

A statement issued by the military spokesman and read on state radio and television made no mention of President Mohamed Mursi, but said a solution to the political crisis should not contradict "legitimacy and the rules of democracy".

A military source close to top officers said the statement "does not indicate any future intervention in politics".

A military council took over after a popular revolt ended Mubarak's 30 years of army-backed rule last year. It then handed power to Mursi, who became Egypt's first freely elected leader in June. The military has not intervened in the latest crisis.

The army statement said the military's duty was to protect national interests and secure vital state institutions.

"The armed forces affirm that dialogue is the best and only way to reach consensus," it added. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."

Hassan Abu Taleb of the Al Ahram Center for Political and Strategic Studies said Saturday's army statement suggested the military wanted both sides to talk out their differences, but discounted the chance of direct military intervention.

"They realize that interfering again in a situation of civil combat will squeeze them between two rocks," he said.

(Additional reporting by Yasmine Saleh; Writing by Alistair Lyon; editing by Philippa Fletcher)

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Frankfurt airport axes 150 flights after snowfall

FRANKFURT: Frankfurt airport cancelled 150 incoming and outgoing flights on Sunday because of snowfall and warned that more cancellations could be expected.

Intercontinental, domestic and European flights were all affected at the airport, Europe's third-busiest, and the conditions would delay other flights, a spokesman said.

A total of 1,250 flights had been scheduled for Sunday at what is Germany's biggest airport.

Berlin was also hit by snowy conditions on Sunday, but a spokesman at the capital's airport said that while there were delays of up to 20 minutes were expected as they cleared landing strips, no flights had been cancelled.

- AFP/xq

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Square launches gift cards

Twitter and Square founder Jack Dorsey at TechCrunch Disrupt in San Francisco in September.

(Credit:
Daniel Terdiman/CNET)

Square, a leader in mobile payments, today launched a gift card service tied to its Square Wallet program and that could be aimed at attracting some would-be Apple Passbook users.

The new service appears designed to let anyone purchase a gift card for friends or family at any of the more than 250,000 businesses nationwide that accept Square Wallet, an iOS and
Android app that lets users pay automatically with their mobile device. The recipient would then redeem the value of the gift using Square Wallet on their own device.

The value of a service like this is that it avoids the use of physical gift cards and lets merchants that accept Square Wallet easily set up the transaction with Square Register, a system that lets them take credit cards, track sales and inventory, and generate analytics.

The gift card business is estimated to be worth $100 billion annually, yet tens of millions of dollars of such gifts expire every day, according to CouponTrade.com. Apple has recently attempted to get in on the gift card game by letting iOS 6 users store the cards in Passbook. Square is clearly hoping it can be the digital gift card service of choice for millions of iOS and Android users. The San Francisco startup has been developing more and more ways for users to pay. It started by providing merchants with plug-in dongles for iOS devices that let anyone take credit cards, and then launched Square Wallet and Square Register.

The company, which is already processing more than $10 billion in annualized transactions, also recently launched a partnership that lets customers pay using Square Wallet at more than 7,000 Starbucks outlets in the United States.

CNET expects to have more detail from Square later today. Please stay tuned.

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Authors exercise their "write" to self-publish

(CBS News) Even John Lennon - a Beatle - needed a publisher for his first book, "In His Own Write," back in 1964. Today authors nobody ever heard of can publish their OWN work all by themselves . . . IN THEIR OWN WRITE, as it were. Our Cover Story is reported now by Rita Braver:

Richard Paul Evans went from a 700-square-foot Salt Lake City house to a much larger one, all because of a little tale he wrote for his daughters.

Did he think he could sell it and that everyone would fall in love with his book? Negative, Evans said.

"The idea of being a novelist is really romantic, but it's kind of the same as being President of the United States - it's not gonna happen," he said.

But it DID happen for Rick Evans. You may remember "The Christmas Box," a mega hit 20 years ago.

Evans first printed only 20 copies of the book. But in the days before the Internet took off, friends started passing dog-eared copies around - and bookstores started asking for it.

"At that point I thought, you know, maybe I should send this to publishers, and they all quickly rejected the book," Evans said.

So Evans self-published, and only after his book hit the bestseller list did a major publisher buy it, for a reported $4 million! So in a way he became a godfather to a whole new generation of authors who are writing the next chapter in the saga of self-publishing.

Take Stephanie Bond, who's issuing her latest work right from her Atlanta home.

"This is actually a 'boxed set'" she was publishing, Bond said. It's called "Love Can Be Murder."

That's right, with just a few strokes Bond is creating an electronic book, or "e-book."

"That's it, I'll get an e-mail from Amazon saying, 'Your book is live and congratulations,'" Bond said.

It's one of the strongest trends in publishing, with estimates that more than 200,000 books were self-published last year - authors like Bond, by-passing the traditional publishing houses.

"For the longest time publishers have been able to dictate what is on the shelf," Bond said. "They've been the gatekeepers."

But not any more. Bond did have 60 books - mostly romance novels - published the traditional way, before she struck out on her own.

Was it a little scary? "It was," she said. "But at that point I really didn't have a choice. My publisher decided that they were going to drop the series that I had written, and I didn't have any money coming in."

But now, with romance one of the hottest categories for self-published books, her novels are flying off the virtual shelves. This past week a Bond book, "Stop the Wedding," was number 2 on Amazon's Kindle bestseller list.

Although she no longer gets advances, or upfront payments for her work, she gets royalties of up to 70 percent, instead of the 10-15 percent publishers usually pay.

And even with charging only 99 cents for some books, Bond says she made more than half a million dollars in the last year.

But not everyone sees this as a bonanza.

"When you price a book at 99 cents, $1.99, I personally think it devalues the author's time and effort," said Jamie Rabb, the chief of Grand Central Publishing, part of Hachette books. Her label puts out books by a lot of heavy hitters, and many lesser-known writers, too.

"There is almost a movement amongst some popular writers who are self-published to say, 'Don't go to publishers, they rip you off, they don't really promote your books unlike they're a really big seller.' Don't those authors have a point?" asked Braver.

"No, they don't," Rabb laughed. "I've worked in publishing a long time, and I see what happens to a book when it's acquired. First of all it's copyedited, it's proofread. They have a team of professional artists and markets that come up with a wonderful package, who try to figure out - even for books we don't spend a lot of money on - how to get them to the public."

But Raab is well aware that she is part of a shrinking industry, and even without the backing of a big-time publisher, a number of self-published authors are racking up huge sales.

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