Corporate tax rate overhaul may be part of a 'fiscal cliff' deal









WASHINGTON — Amid the wrangling over the so-called fiscal cliff, President Obama and congressional Republicans can agree on something: They want to lower the corporate tax rate.


The U.S. has the highest overall rate of any of the world's developed economies. It took the top spot in March after Japan reduced its rate, mimicking other countries that have lowered taxes to lure new businesses and keep existing companies from leaving.


Negotiations to avert automatic income tax increases and federal spending cuts scheduled to kick in Jan. 1 could provide the impetus for U.S. policymakers to tackle an overhaul of the corporate tax code next year.





The White House wants to put a corporate tax overhaul, along with changes to the individual income tax system, on a fast track as part of any deal to avoid the "fiscal cliff."


The centerpiece of an overhaul would be slashing the 35% corporate tax rate, a goal long sought by corporate executives and lobbyists.


Quiz: How much do you know about the 'fiscal cliff'?


"In the name of global competitiveness, I think that has largely been agreed to," Jim McNerney, chief executive of Boeing Co., said about how both parties view the need for major corporate tax changes.


In February, Obama proposed lowering the federal rate to 25% for manufacturing companies and to 28% for other firms. Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, has been pushing a plan to lower the rate to 25% for all corporations.


In both cases, the rate cuts would be accompanied by the elimination of some of the numerous tax breaks that allow many companies to pay a much lower effective tax rate — and sometimes to avoid paying any corporate taxes at all.


"The administration's position on this is very much in sync with what Republicans say they want, which is a lower rate and a broader base," said Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities and the former chief economist for Vice President Joe Biden.


But there still are some obstacles to a deal.


Some Democrats want to use an overhaul to increase the amount of tax revenue coming from corporations, while Republicans want to keep the amount the same. The White House and congressional Republicans also differ on how the U.S. should treat money earned abroad.


And the business community itself is divided. Many small companies file taxes as individuals. They're opposed to any "fiscal cliff" deal that would raise their rates while giving corporations a rate reduction.


Analysts said the obstacles could be overcome because there is consensus around the broader point that the U.S. needs to bring its corporate tax rate in line with other developed nations.


"Regardless of your political persuasion, it is unquestionably the case that the nominal U.S. corporate tax rate is much higher than that of peer countries," said Edward Kleinbard, a USC law professor and former chief of staff of Congress' Joint Committee on Taxation.


The case for corporate tax reform got a boost when the overall U.S. rate of 39.1%, which includes federal, state and local corporate taxes, became the highest this year among the 34 nations in the Organization for Economic Cooperation and Development. Two decades ago, the U.S. was 13th.


"At one time in the '80s, we had a competitive corporate tax rate," said Dorothy Coleman, vice president of tax and domestic economic policy for the National Assn. of Manufacturers. "We've fallen behind by standing still."


Quiz: The year in business


But the rate in the tax code isn't what many companies pay because of a host of deductions and tax credits. In 2011, the effective corporate tax rate in the U.S. was 29.2%, roughly in line with the 31.9% average of the six other largest developed economies, the Obama administration said.


The White House said that parity does not mean the statutory rate shouldn't be reduced. It simply means that many tax breaks should be eliminated, allowing the rate to be lowered without adding to the deficit.





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China may require real name registration for internet access


BEIJING (Reuters) - China may require internet users to register with their real names when signing up to network providers, state media said on Tuesday, extending a policy already in force with microblogs in a bid to curb what officials call rumors and vulgarity.


A law being discussed this week would mean people would have to present their government-issued identity cards when signing contracts for fixed line and mobile internet access, state-run newspapers said.


"The law should escort the development of the internet to protect people's interest," Communist Party mouthpiece the People's Daily said in a front page commentary, echoing similar calls carried in state media over the past week.


"Only that way can our internet be healthier, more cultured and safer."


Many users say the restrictions are clearly aimed at further muzzling the often scathing, raucous - and perhaps most significantly, anonymous - online chatter in a country where the Internet offers a rare opportunity for open debate.


It could also prevent people from exposing corruption online if they fear retribution from officials, said some users.


It was unclear how the rules would be different from existing regulations as state media has provided only vague details and in practice customers have long had to present identity papers when signing contracts with internet providers.


Earlier this year, the government began forcing users of Sina Corp's wildly successful Weibo microblogging platform to register their real names.


The government says such a system is needed to prevent people making malicious and anonymous accusations online and that many other countries already have such rules.


"It would also be the biggest step backwards since 1989," wrote one indignant Weibo user, in apparent reference to the 1989 pro-democracy protests bloodily suppressed by the army.


Chinese internet users have long had to cope with extensive censorship, especially over politically sensitive topics like human rights, and popular foreign sites Facebook, Twitter and Google-owned YouTube are blocked.


Despite periodic calls for political reform, the ruling Communist Party has shown no sign of loosening its grip on power and brooks no dissent to its authority.


(Reporting by Ben Blanchard and Huang Yan; Editing by Michael Perry)



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Pagano back to coach Colts after cancer treatment


INDIANAPOLIS (AP) — Chuck Pagano stepped to the podium Monday, hugged his team owner, thanked his family for its support and wiped a tear from his eye.


He might, finally, turn out the lights in his office, too.


Nearly three months to the day after being diagnosed with leukemia, the Colts' first-year coach returned to a team eager to reunite with a boss healthy enough to go back to work.


"I told you my best day of my life was July 1, 1989," Pagano said, referring to his wedding date. "Today was No. 2. Getting to pull up, drive in, get out of my car, the key fob still worked. I was beginning to question whether it would or not. When I asked for Bruce to take over, I asked for him to kick some you-know-what and to do great. Damn Bruce, you had to go and win nine games? Tough act to follow. Tough act to follow. Best in the history of the NFL. That's what I have to come back to."


The comment turned tears into the laughter everyone expected on such a festive occasion.


For Pagano and the Colts, Monday morning was as precious as anyone could have imagined when Pagano took an indefinite leave to face the biggest opponent of his life, cancer.


In his absence, all the Colts was win nine of 12 games, make a historic turnaround and clinch a playoff spot all before Sunday's regular-season finale against Houston, which they pegged as the day they hoped to have Pagano back. If all goes well at practice this week, Pagano will be on the sideline for the first time since a Week 3 loss to Jacksonville.


Pagano endured three rounds of chemotherapy to put his cancer in remission.


That Pagano's return came less than 24 hours after Indy (10-5) locked up the No. 5 seed in the AFC and the day before Christmas seemed fitting, too.


"I know Chuck is ready for this challenge. In speaking to his doctor multiple times, I know that the time is right for him to grab the reins, get the head coaching cap on and begin the journey," owner Jim Irsay said. "It's been a miraculous story. It really is a book. It's a fairytale. It's a Hollywood script. It's all those things but it's real."


The reality is that he's returning to a vastly different team than the one he turned over to Arians, his long-time friend and first assistant coaching hire.


Back then, the Colts were 1-2 and most of the so-called experts had written them off as one of the league's worst teams. Now, they're ready to show the football world that they can be just as successful under Pagano as they were under Arians, who tied the NFL record for wins after a midseason coaching change.


Pagano also has changed.


The neatly-trimmed salt-and-pepper hair and trademark goatee that were missing in November have slowly returned, and the thinner man who appeared to be catching his breath during a postgame speech in early November, looked and sounded as good as ever Monday.


He repeatedly thanked fans for their prayers and letters, the organization and his family for their unwavering help and promised to provide comfort and support to other people who are facing similar fights. During one poignant moment that nearly brought out tears again, Pagano even recounted a letter sent to him by a 9-year-old child who suggested he suck on ice chips and strawberry Popsicles in the hospital and advised him to be nice to the nurses regardless of how he felt — and he never even paused.


"I feel great, my weight is back, my energy is back and again, it's just a blessing to be back here," Pagano said.


In the minds of Colts players and coaches, Pagano never really left.


He continually watched practice tape and game film on his computer, used phone calls and text messages to regularly communicate with players and occasionally delivered a pregame or postgame speech to his team.


"He texted me and called me so much, it was like he was standing there in my face every day," said receiver Reggie Wayne, who has been friends with Pagano since the two were working together at the University of Miami.


But the Colts found plenty of other ways to keep Pagano's battle in the forefront.


They began a fundraising campaign for leukemia research, calling it Chuckstrong. Players had stickers with the initials CP on their locker room nameplates, and Arians wore an orange ribbon on his baseball cap during games. Orange is the symbolic color for leukemia. At one point, nearly three dozen players shaved their heads to show their ailing coach they were with him.


That's not all.


Arians and first-year general manager Ryan Grigson decided to leave the lights on in Pagano's office until he returned. Pagano noted the team even installed plastic clips to make sure those lights were not mistakenly turned off while he was gone. Those clips were removed when Pagano arrived Monday morning.


And Arians said nobody sat in the front seat of the team bus.


"He's always been our head coach," Arians said.


So after getting medical clearance from his oncologist, Dr. Larry Cripe, to return with no restrictions, Pagano couldn't wait to get to the office Monday morning.


Arians arrived at 7 a.m., three hours early for the scheduled team meeting. By then, Pagano had already driven past the inflatable Colts player with the words "Welcome Back Chuck" printed on its chest and was back in his office preparing for the Texans.


Players showed up a couple of hours later, and when the torch was passed from Arians back to Pagano, players gave their returning coach a standing ovation that Wayne said was well-deserved.


All Pagano wants to do now is emulate the success Arians and his players have had this season.


"I asked him (Arians) if he would lead this team and this ballclub and this organization and take over the reins," Pagano said. "What a masterful, masterful job you did Bruce. You carried the torch and all you went out and did was win nine ballgames. You got us our 10th win yesterday and you got us into the playoffs. You did it with dignity and you did it with class. You're everything that I always knew you were and more."


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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Queen delivers 1st Christmas message in 3D






LONDON (AP) — Queen Elizabeth II has hailed the holidays in a new dimension, delivering her Christmas message for the first time in 3D.


In the annual, prerecorded broadcast, the monarch paid tribute to the armed forces, “whose sense of duty takes them away from family and friends” over the holidays, and expressed gratitude for the outpouring of enthusiasm for her Diamond Jubilee celebrations.






The queen said she was struck by the “strength of fellowship and friendship” shown by well-wishers to mark her 60 years on the throne.


“It was humbling that so many chose to mark the anniversary of a duty which passed to me 60 years ago,” she said as footage showed crowds lining the Thames River in the rain earlier this year for a boat pageant. “People of all ages took the trouble to take part in various ways and in many nations.”


The queen also reflected on Britain’s hosting of the Olympic games in 2012, praising the “skill, dedication, training and teamwork of our athletes” and singling out the volunteers who devoted themselves “to keeping others safe, supported and comforted.”


Elizabeth’s message aired shortly after she attended a traditional church service at St. Mary Magdelene Church on her sprawling Sandringham estate in Norfolk.


Wearing a turquoise coat and matching hat, the monarch rode to church in a Bentley, accompanied by granddaughters Beatrice and Eugenie. Her husband, Prince Philip, walked from the house to the church with other members of the royal family.


Three familiar faces were missing from the family outing. Prince William is spending the holiday with his pregnant wife Kate and his in-laws in the southern England village of Bucklebury. Prince Harry is serving with British troops in Afghanistan.


After the church service, the royals usually gather to watch the queen’s prerecorded television broadcast, a tradition that began with a radio address by King George V in 1932.


The queen has made a prerecorded Christmas broadcast on radio since 1952 and on television since 1957. She writes the speeches herself and the broadcasts mark the rare occasion on which the queen voices her own opinion without government consultation.


Her switch to 3D was not the only technological leap for prominent British figures this Christmas.


The Archbishops of Canterbury and York chose to tweet their sermons for the first time, in order to bring Christmas to a new digital audience.


In his speech, Archbishop of Canterbury Rowan Williams said he has been inspired by meeting victims of suffering over the past decade while leading the world’s 80 million-strong Anglican Communion.


Delivering his final Christmas Day sermon from Canterbury Cathedral, Williams also acknowledged how a vote against allowing women to become bishops has damaged the credibility of the church.


Still, he said, it was “startling” to see after the vote how many people “turned out to have a sort of investment in the church, a desire to see the church looking credible and a real sense of loss when — as they saw it — the church failed to sort its business out.”


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Predicting who's at risk for violence isn't easy


CHICAGO (AP) — It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes.


Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say.


But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings.


"They're yellow flags. They only become red flags once the blood is spilled," he said.


Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known.


Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.)


Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said.


Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed.


"In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy."


The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through."


In a guidelines for families, the academy lists several risk factors for violence, including:


—Previous violent or aggressive behavior


—Being a victim of physical or sexual abuse


—Guns in the home


—Use of drugs or alcohol


—Brain damage from a head injury


Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn.


Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence.


Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others.


According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms.


Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them.


Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment.


And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state.


All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment.


Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school.


Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care.


Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.


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Online:


American Academy of Child & Adolescent Psychiatry: http://www.aacap.org


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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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Reaction to the death of actor Jack Klugman


Celebrities on Monday reacted to the death of "Odd Couple" star Jack Klugman, who died Monday at age 90. Here are samples of sentiments expressed on Twitter:


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"R.I.P. Jack Klugman, Oscar, Quincy a man whose career spanned almost 50 years. I first saw him on the Twilight Zone. Cool guy wonderful actor." — Whoopi Goldberg.


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"You made my whole family laugh together." — Actor Jon Favreau, of "Swingers," ''Iron Man" and other films.


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"I worked with Jack Klugman several years ago. He was a wonderful man and supremely talented actor. He will be missed" — Actor Max Greenfield, of the "New Girl" on Fox.


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"So sorry to hear that Jack Klugman passed away. I learned a lot, watching him on television" — Dan Schneider, creator of Nickelodeon TV shows "iCarly," ''Drake and Josh" ''Good Burger," ''Drake & Josh."


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Rumored iPad 5 to be thinner















































That iPad 3 you got last March? Forget it. It's like the eight-track tape  of tablets. (Kids: Ask your parents what that means.) Even that iPad 4 you're about to unwrap Christmas morning that you think is so darn new is about to become yesterday's news. 


At least, that is, if the latest iPad rumors are true. According to the Japanese blog Macotakara, the next iPad is due to hit in March. At which time, all previous versions of the iPad will feel like bricks.


QUIZ: What set the Internet on fire in 2012? 








The site reports that the fifth version of the iPad will be thinner and lighter than the last iPad. For those of you hoping that Apple's next version of the iPad would be heavier and clunkier, this is no doubt crushing news.


For the rest of the planet, however, this is pretty much what you'd expect from Apple. Macotakara says its sources say the next iPad will be 2 millimeters thinner and 17 millimeters narrower. 


If true, it marks a continuation of the accelerated product update cycle that kicked into gear this past year under Apple CEO Tim Cook. 


According to 9to5Mac.com, if the dimensions are correct, "The new supposed thinness would mean the next iPad is nearly as thin as the 7.2mm thin iPad mini."


Speaking of the Mini, Macotakara reports that Apple is cooking up a retina screen for the next iPad mini. 


Here's the real thing iPad owners need to fear: How long will Apple continue to support those older iPads? It already doesn't let owners of the first iPad download new versions of iOS. 


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Follow me on Twitter @obrien.






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2 firefighters fatally shot in ambush at blazing NY house









WEBSTER, N.Y. -- A gunman ambushed four volunteer firefighters responding to an intense pre-dawn house fire Monday morning outside Rochester, N.Y., killing two before ending up dead himself, authorities said. Police used an armored vehicle to evacuate more than 30 nearby residents.

The gunman fired at the firefighters when they arrived shortly after 5:30 a.m. at the blaze near the Lake Ontario shore in Webster, town Police Chief Gerald Pickering said. The first Webster police officer who arrived chased the suspect and exchanged gunfire with him, authorities said.


“It does appear it was a trap” for the first responders to the fire, Pickering said at a news conference.











Authorities didn't say how the gunman died or whether anyone might have died in the fire itself.


One of the dead firefighters was also a town police lieutenant; it wasn't clear whether he returned fire. An off-duty police officer who was driving by was injured by shrapnel, Pickering said.


The fire started in one home and spread to two others and a car, officials said. The gunfire initially kept firefighters from battling the blazes. Police say four homes were destroyed and four damaged.


The West Webster Fire District learned of the fire early Monday after a report of a car and house on fire on Lake Road, on a narrow peninsula where Irondequoit Bay meets Lake Ontario, Monroe County Sheriff Patrick O'Flynn said.


The fire appeared from a distance as a pulsating ball of flame glowing against the early morning sky, flames licking into treetops and reflecting on the water, with huge bursts of smoke billowing away in a brisk wind.


Two of the firefighters arrived on a fire engine and two in their own vehicles, Pickering said. After the gunman fired, one of the wounded men managed to flee, but the other three couldn't because of flying gunfire.


A police armored vehicle was used to recover two of the men, and eventually it evacuated 33 people from nearby homes, the police chief said.


The dead men were identified as Police Lt. Michael Chiapperini, 43, the Webster Police Department's public information officer; and Tomasz Kaczowka, also a 911 dispatcher, whose age was not released.


Pickering described Chiapperini as a “lifetime firefighter” with nearly 20 years with the department, and called Kaczowka a “tremendous young man.”


The two wounded firefighters, Joseph Hofsetter and Theodore Scardino, were in guarded condition in the intensive care unit at Strong Memorial Hospital, authorities said. Both were awake and alert and are expected to recover.


Hofsetter, also a full-timer with the Rochester Fire Department, was hit once in the pelvis, and the bullet lodged in his spine, authorities said. Scardino was hit in the chest and knee.


Monday's shooting and fires were in a neighborhood of seasonal and year-round homes set close together across the road from the lakeshore. The area is popular with recreational boaters but is normally quiet this time of year.


“We have very few calls for service in that location,” Pickering said. “Webster is a tremendous community. We are a safe community, and to have a tragedy befall us like this is just horrendous.”


O'Flynn lamented the violence, which comes on the heels of other shootings including the massacre of 20 students and six adults at Sandy Hook Elementary School in Newtown, Conn.


“It's sad to see that that this is becoming more commonplace in communities across the nation,” O'Flynn said.


Webster, a middle-class suburb, now is the scene of violence linked to house fires for two Decembers in a row.


Last Dec. 7, authorities say, a 15-year-old boy doused his home with gasoline and set it ablaze, killing his father and two brothers, 16 and 12. His mother and 13-year-old sister escaped with injuries. He is being prosecuted as an adult.


Associated Press and Reuters contributed





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Instagram furor triggers first class action lawsuit


SAN FRANCISCO (Reuters) - Facebook's Instagram photo sharing service has been hit with what appears to be the first civil lawsuit to result from changed service terms that prompted howls of protest last week.


In a proposed class action lawsuit filed in San Francisco federal court on Friday, a California Instagram user leveled breach of contract and other claims against the company.


"We believe this complaint is without merit and we will fight it vigorously," Facebook spokesman Andrew Noyes said in an e-mail.


Instagram, which allows people to add filters and effects to photos and share them easily on the Internet, was acquired by Facebook earlier this year for $715 million.


In announcing revised terms of service last week, Instagram spurred suspicions that it would sell user photos without compensation. It also announced a mandatory arbitration clause, forcing users to waive their rights to participate in a class action lawsuit except under very limited circumstances.


The current terms of service, in effect through mid-January, contain no such liability shield.


The backlash prompted Instagram founder and CEO Kevin Systrom to retreat partially a few days later, deleting language about displaying photos without compensation.


However, Instagram kept language that gave it the ability to place ads in conjunction with user content, and saying "that we may not always identify paid services, sponsored content, or commercial communications as such." It also kept the mandatory arbitration clause.


The lawsuit, filed by San Diego-based law firm Finkelstein & Krinsk, says customers who do not agree with Instagram's terms can cancel their profile but then forfeit rights to photos they had previously shared on the service.


"In short, Instagram declares that 'possession is nine-tenths of the law and if you don't like it, you can't stop us,'" the lawsuit says.


Kurt Opsahl, a senior staff attorney with the Electronic Frontier Foundation who had criticized Instagram, said he was pleased that the company rolled back some of the advertising terms and agreed to better explain their plans in the future.


However, he said the new terms no longer contain language which had explicitly promised that private photos would remain private. Facebook had engendered criticism in the past, Opsahl said, for changing settings so that the ability to keep some information private was no longer available.


"Hopefully, Instagram will learn from that experience and refrain from removing privacy settings," Opsahl said.


The civil lawsuit in U.S. District Court, Northern District of California, is Lucy Funes, individually and on behalf of all others similarly situated vs. Instagram Inc., 12-cv-6482.


(Reporting by Dan Levine; Editing by Dan Grebler)



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Pagano back to coach Colts after cancer treatment


INDIANAPOLIS (AP) — Chuck Pagano was so eager to get back to work Monday, he was the first one to show up at team headquarters.


Long before meeting with his players, the Colts first-year coach drove quietly into the complex, walked into the office where the lights have remained on for nearly three months and began preparing for Sunday's game against AFC South champion Houston like it was another at the day office.


Hardly. It was the biggest milestone yet in an incredibly emotional season in which Pagano has beaten leukemia and the Colts have been a most pleasant surprise in reaching the playoffs under interim coach Bruce Arians.


"I asked him if he would ... take over the reins and what a masterful, masterful job you did Bruce," Pagano said with Arians nearby at the news conference. "You carried the torch and all you went out and did was win ballgames, you got our 10th win yesterday and you got us into the playoffs and you did it with dignity and you did it with class. I can't thank you enough."


Players, coaches and staff members had been anticipating this day from the moment they learned Pagano was taking an indefinite leave to fight cancer, Oct. 1.


So when the 52-year-old first-time head coach returned, the 24-hour rule was cast aside — giving the Colts (10-5) another 24 hours to celebrate something far more important than reaching the playoffs.


"I know Chuck is ready for this challenge," said Colts owner Jim Irsay. " I know the time is right for him to grab the reins and get the head coaching cap on and begin the journey.


"The great thing about the National Football League is that so much attention gets paid to it, so many other things happen beside win and losses and the inspiration Chuck has shown to others and the time Chuck has spent connecting with others, it really is miraculous. It's a fairytale story, its' a Hollywood script, it's all of those things."


When Pagano arrived, he drove past an inflatable Colts player with the words "Welcome Back Chuck" printed on its chest. Normally, that spot is reserved for a message for the Colts to beat their next opponent.


When he spoke at a private team meeting, cheering could be heard in the media room.


If all goes well at practice this week, Pagano will be back on the sideline for the first time since Jacksonville scored a last-minute touchdown on an 80-yard TD pass in Week 3, handing Indy it's only home loss this season.


Pagano began the first of three rounds of chemotherapy Sept. 26, after the team completed its final practice during a bye week.


Arians, a prostate cancer survivor, immediately established the goal: Play long enough so Pagano could return to the sideline this season.


Indianapolis did better than anyone could have expected under Arians, who had spent two decades as an NFL assistant but had never been in charge of an NFL team. The Colts went 9-4 under Arians, who tied the league record for wins after a midseason coaching change, joined the 2008 Miami Dolphins as the only teams in league history to lose 14 or more games one season and win 10 or more the next and became the fourth team in league history to win only two games one season and 10 or more the next.


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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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