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World / Nation briefs September 24, 2011

| September 24, 2011 9:00 PM

Palestinians resist pressure, request UN membership

UNITED NATIONS - The Palestinian leader took his people's quest for independence to the heart of world diplomacy on Friday, hoping to galvanize their flagging statehood campaign by seeking U.N. recognition of Palestine and sidestepping negotiations that have foundered for nearly two decades under the weight of inflexibility, violence and failure of will.

The bid to recognize a state in the West Bank, Gaza Strip and east Jerusalem - submitted against the will of a U.S. administration that had pressured President Mahmoud Abbas to drop it - laid bare the deep sense of exasperation the Palestinians feel after 44 years of Israeli occupation. International reservations about the move has had the perhaps unintended effect of reenergizing international efforts to seek a negotiated settlement.

After Abbas submitted his formal application, international mediators called on Israelis and Palestinians to return to long-stalled negotiations and reach an agreement no later than next year. The "Quartet" - the U.S., European Union, U.N. and Russia - urged both parties to draw up an agenda for peace talks within a month and produce comprehensive proposals on territory and security within three months.

Disaster aid debate could prompt new budget impasse

WASHINGTON - Just a week away from a possible government shutdown, lawmakers boxed themselves into a new budget impasse Friday.

With Congress' approval ratings already at an all-time low, a tit-for-tat over disaster aid left Republicans and Democrats - and the House and Senate - in a faceoff that's all too familiar to millions of Americans. Deep partisan disputes pushed the government to the edge of a partial shutdown in April, and to the brink of a debt ceiling crisis in late July.

On Friday, the Democratic-controlled Senate blocked a Republican House bill that would provide stopgap federal spending, plus aid for people battered by hurricanes, tornadoes and other natural disasters. The legislation also calls for $1.6 billion in spending cuts to help defray the disaster costs.

Democrats say it's unprecedented and unfair to require spending cuts to accompany badly needed emergency aid. They are especially unhappy that the GOP measure would tap clean-energy programs credited with creating jobs.

Republicans say that with a $14 trillion-plus national debt, business-as-usual spending is no longer acceptable.

California governor signs compromise on Internet taxes

SAN FRANCISCO - Gov. Jerry Brown signed legislation Friday that postpones new sales taxes rules that would have affected online purchases in California, granting more time for traditional and online retailers to lobby Congress for a national standard on the high-stakes issue.

The bill, crafted as a compromise among Amazon.com, traditional retailers and California lawmakers searching for ways to raise revenue, delays until at least September 2012 online tax rules that were implemented as part of this year's state budget package.

Under the compromise, Amazon will drop a ballot referendum planned for next year to overturn the law passed earlier in the summer, a move that promised an ugly and expensive campaign fight between online and traditional retailers.

"When you get two threats, that gives you an opportunity to find a compromise," Brown said. "Hopefully, (the bill) will set an example for our colleagues in Washington that they too can cooperate."

If that effort fails, Amazon has agreed to start collecting sales tax from California customers. The budget bill signed previously by Brown forced more online retailers to collect the state sales tax effective July 1.

The compromise bill will cost California an estimated $200 million in tax revenue during the current fiscal year but helps both sides avoid a costly election contest and the possibility of legal challenges. State taxing authorities estimate that California loses at least $83 million a year in uncollected state and local use tax attributed to Amazon's sales.

- The Associated Press