Thursday,  June 05, 2014 • Vol. 16--No. 322 • 24 of 30

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vergence has developed over four decades and accelerated in recent years.
• Economic statistics show that incomes for the top 1 percent of U.S. households soared 31 percent from 2009 through 2012, after adjusting for inflation, yet inched up an average of 0.4 percent for those making less. Many economists are sounding alarms that the income gap, greater now than at any time since the Depression, is hurting the economy by limiting growth in consumer spending.
• Yet those concerns aren't resonating in some states. Last year, at least 10 states passed income tax cuts targeted at businesses or those in the top individual brackets. Several more already have cut taxes this year, including Democratic-led New York and Republican-led Oklahoma. Yet over the past three years, nearly one-fifth of the states have pared back unemployment benefits, and more cutbacks are under consideration.
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Key questions for GM's attorney as probe of mishandled ignition switch recall is released

• DETROIT (AP) -- Along rows of cubicles at the General Motors Technical Center in suburban Warren, engineers knew for years about faulty ignition switches in small cars. Safety officials in the same complex knew, too. So did the lawyers downtown.
• That knowledge loitered inside GM for at least a decade until this February, when the company recalled 2.6 million cars to repair the switches. During that time, at least 13 people lost their lives in crashes tied to the problem. Why that delay happened -- and who is responsible -- should be revealed Thursday, when a report by former U.S. Attorney Anton Valukas is made public.
• The report, paid for by GM with the promise of an "unvarnished" inquiry, also will address just how high in the company knowledge of the problem reached. Valukas isn't expected to place blame with CEO Mary Barra. She has denied knowing the details until Jan. 31.
• Although Valukas is expected to name names, it's likely that he'll find GM's bureaucratic structure at least partly responsible.
• The switches can slip out of the run position, shut off the cars' engines and knock out power-assisted steering. This can make steering difficult and cause drivers to lose control. Congress and the Justice Department are investigating the delayed recall, too. Criminal charges are possible.
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