4 ways to save on holiday travel

Holiday airfares are already higher than last year -- and they will only get more expensive the longer you wait.

NEW YORK (CNNMoney)

The average round-trip flight between December 16 and January 1 is $423, up from $355 in 2011, according to Travelocity. And fares will only get more expensive the longer you wait. Hotels, too, will be filling up fast and charging higher rates the closer you get to your travel dates.

Here are four ways you can cut your travel costs:

Be flexible: When booking a flight, flexibility can be a big cash saver. Flights on Christmas Eve or Christmas Day can cost about 19% less than flights on Dec. 23 or the two days following Christmas, according to Hotwire.

The time of day you fly can also factor in, with early morning or red-eye flights generally costing a couple of hundred dollars less than flights at other times.

Related: Know your flier's rights

Also, remember to check alternate airports -- try Fort Lauderdale's airport rather than Miami International, for example. A flight between New York and Fort Lauderdale the weekend before Christmas was nearly $100 cheaper than one between New York and Miami, a recent search on Travelocity found.

Bundle up: Travel sites, such as Travelocity and Hotwire, offer last-minute deals and packages that bundle flights, hotels and sometimes car rentals for a discounted price. Hotwire, for example, recently offered a package deal from San Francisco to New York for $796 a person, including round-trip airfare and three nights at a 3 1/2-star hotel in Midtown Manhattan from Dec. 23 to Dec. 26.

If you are really going to procrastinate, try Expedia's Last Minute Deals, which offers deep discounts for the upcoming weekend and the next couple of weekends on flights, hotels and cruises. Just expect to pay up for the holiday weekends -- especially New Year's -- if you're booking last minute.

Think outside the hotel room. If you can bring yourself to forgo room service, you can save a lot of money by skipping hotels altogether. Instead, live in someone else's home. The savings can add up to hundreds of dollars a night, especially for families who would otherwise have to book multiple hotel rooms over the holidays.

HomeExchange.com offers home swaps with 43,000 listings in 140 countries, says Keghan Hurst, director of public relations. After paying a yearly $120 membership fee (there's no exchange or penalty fees), swappers can select from studios in SoHo to five-bedroom villas in Italy. In many cases, you can also use the family's cars or bicycles to get around.

Related: Maximize your frequent flier miles

Don't feel like letting strangers stay at your place? Try Airbnb.com, a website with listings in 192 countries that allows you to rent someone else's place, usually for much less than a hotel.

For a more upscale experience, there's Onefinestay, a London-based company that recently expanded to include New York City. The homes are pricier but pristine. And they include all the benefits of a hotel, such as housekeeping and concierge services, as well as an iPhone fully loaded with the owner's tips for places to go and see locally. A one bedroom in New York's West Village, for example, goes for $365 a night, while a three bedroom in the Shoreditch neighborhood of London goes for $530 a night.

Don't forget your membership perks! This is the time when that AAA or AARP membership can really pay off.

AAA members can look for discounts on its website. Current offers include Peabody Orlando Resort in Florida for $149 a night, the VDARA Hotel and Spa in Las Vegas for $99 a night, and the Conrad New York in Manhattan for $209 a night, all offered at nearly 60% off.

Just keep in mind any extra expenses when booking a hotel, such as Wi-Fi or a complimentary breakfast, advises Heather Hunter, AAA's public relations manager.

First Published: December 7, 2012: 2:32 PM ET

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American Airlines pilots ratify labor deal

Deal between American Airlines and their pilots could help the company emerge from bankruptcy and merge with US Airways.

NEW YORK (CNNMoney)

The Allied Pilots Association said that 73% of the roughly 8,000 active pilots voted for the deal.

The pact includes some concessions on work rules and benefits but is better than an earlier deal the pilots rejected in August.

The election process was contentious. Union president Keith Wilson criticized some members who he said preferred to see the airline go out of business rather than agree to the concessions. And despite the vote, it's clear that the union is still very critical of American management.

"The APA leadership continues to support a merger with US Airways as the best path to a stronger, more competitive American Airlines," Wilson said.

American Airlines, whose parent AMR Corp. (AAMRQ, Fortune 500) filed for bankruptcy just over a year ago, said it was pleased with the vote. It said also it will move ahead with plans to come out of bankruptcy. The company faces a March deadline to have a reorganization plan approved by a bankruptcy judge.

"Today's ratification gives us the certainty we need for American to successfully restructure," said Denise Lynn, American Airlines senior vice president.

Related: Four ways to save on holiday travel

The airline has said it is looking at strategic alternatives, which include a possible merger with US Airways.

American has confirmed that is has shared confidential financial information with US Airways (LCC, Fortune 500) management as part of discussions on a possible deal. US Airways had no comment on the pilots' vote Friday.

The pilots union, as well as the Transport Workers union, which represents ground workers and the Association of Professional Flight Attendants, are all on record supporting a deal with US Airways.

The other two unions had already approved their own concession deals with the airline.

After the pilots rejected the original labor deal with American in August, the airline won bankruptcy court approval to impose new contract terms on the union members.

In response, the airline said there was a spike in pilots calling in sick and filing maintenance complaints on minor items, which caused flight cancellations and delays to soar.

The union denied any coordinated effort, but the service problems largely vanished after the airline agreed to resume contract talks with the pilots in late September.

First Published: December 7, 2012: 2:42 PM ET

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Gay marriage case: Financial benefits at stake

Adele Hoppe-House (left) says she will save up to $5,000 a year in taxes if DOMA is overturned and she and her wife, Jennifer, are recognized as married by the federal government.

NEW YORK (CNNMoney)

On Friday, the court announced it will hear a case challenging the Defense of Marriage Act -- a 1996 law known as DOMA that defines marriage as between a man and a woman.

If DOMA is found unconstitutional, same-sex couples married at the state level will become eligible for the same federal treatment as opposite-sex couples when it comes to financial matters like taxes and Social Security benefits.

The court's ruling is expected by the end of June. The justices also took up Proposition 8, a California measure banning gay marriage in the state.

Gay marriage is legal in nine states and Washington, D.C. More than nine other states grant civil unions or domestic partnerships, but couples in those states are unlikely to be impacted, said Judi O'Kelley, deputy director of development at nonprofit Lambda Legal.

Related: Supreme Court will tackle same-sex marriage

Some of the biggest changes would be seen in tax bills. To start, couples would be able to file their taxes jointly. This would reduce many couples' tax liability by as much as thousands of dollars a year -- especially when one spouse earns significantly more than his or her partner.

The tax that many same-sex couples must now pay if one partner is covered by the other's health insurance plan would also disappear.

Adele Hoppe-House, who is 45, said she and her wife, Jennifer, would save between $3,000 and $4,000 a year on health insurance taxes if DOMA is overturned.

The couple, who married in 2008 and live in Los Angeles, would also be able to trim about $1,000 per year from their income tax bill by filing jointly, since merging their incomes would allow them to qualify for a lower tax rate. Of course, filing jointly won't help in some cases -- typically where the two incomes are similar.

Related: Same-sex couples could see tax windfalls

Couples can file protective refund claims with the IRS to someday recoup taxes if DOMA is overturned. The Hoppe-Houses, for example, hope to receive a refund of more than $13,000 for the extra income tax and health insurance tax they paid over the past three years.

"[DOMA being overturned] would be further confirmation that we are no different from anyone else and that we shouldn't be treated differently," said Adele.

Rochelle, a 56-year-old from California who asked that her last name not be used, expects that she and her wife will save at least $2,400 in income tax per year if DOMA is overturned. Rochelle is semi-retired, while her wife still works full-time. Since there is such a disparity in their income, filing jointly would enable them to take advantage of a lower tax rate and two exemptions.

The two met 28 years ago when they were both enlisted in the military and stationed overseas, and they married in 2008. If DOMA is overturned, they could receive a refund of more than $7,000 for the extra income tax paid over the past three years -- money they would use to start an emergency fund.

Related: Same-sex couples: 'We just want equal benefits'

Currently, estate taxes can also hit same-sex couples hard.

Surviving spouses in heterosexual marriages don't have to pay taxes on their deceased spouse's estate, while same-sex widows must pay a 35% estate tax on anything in excess of the $5 million exemption.

If DOMA is overturned, same-sex spouses would no longer have to pay this tax. And those who paid taxes on their deceased partner's estate in the last three years could amend their returns and be refunded the money.

In the DOMA case before the court, Edith Windsor of New York sued to get back more than $363,000 she paid in estate taxes when her partner died.

Other benefits are also at stake.

Same-sex spouses would no longer have to pay tax when giving their partners gifts. They would get easier access to spousal pension plans and health care benefits and become eligible for Social Security survivors benefits.

Related: Firms make financial planning more gay-friendly

Federal workers in same-sex marriages would be granted a large number of spousal benefits that they currently aren't eligible for, and military and veterans benefits would become available. COBRA, the federal health insurance program, would cover the family of a same-sex spouse who loses his or her job.

"Right now, same-sex couples are operating in a world where they have to have a belt and suspenders and hold on tight to make sure nothing falls," said O'Kelley. "If DOMA is struck down there will be a safety network in place for them in the same way it is in place for different-sex couples."

--CNN's Bill Mears contributed to this report.

How would your financial situation change if DOMA is overturned? E-mail blake.ellis@turner.com for the chance to be included in an upcoming story for CNNMoney.com.

First Published: December 7, 2012: 5:19 PM ET

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4 ways to save on holiday travel

Holiday airfares are already higher than last year -- and they will only get more expensive the longer you wait.

NEW YORK (CNNMoney)

The average round-trip flight between December 16 and January 1 is $423, up from $355 in 2011, according to Travelocity. And fares will only get more expensive the longer you wait. Hotels, too, will be filling up fast and charging higher rates the closer you get to your travel dates.

Here are four ways you can cut your travel costs:

Be flexible: When booking a flight, flexibility can be a big cash saver. Flights on Christmas Eve or Christmas Day can cost about 19% less than flights on Dec. 23 or the two days following Christmas, according to Hotwire.

The time of day you fly can also factor in, with early morning or red-eye flights generally costing a couple of hundred dollars less than flights at other times.

Related: Know your flier's rights

Also, remember to check alternate airports -- try Fort Lauderdale's airport rather than Miami International, for example. A flight between New York and Fort Lauderdale the weekend before Christmas was nearly $100 cheaper than one between New York and Miami, a recent search on Travelocity found.

Bundle up: Travel sites, such as Travelocity and Hotwire, offer last-minute deals and packages that bundle flights, hotels and sometimes car rentals for a discounted price. Hotwire, for example, recently offered a package deal from San Francisco to New York for $796 a person, including round-trip airfare and three nights at a 3 1/2-star hotel in Midtown Manhattan from Dec. 23 to Dec. 26.

If you are really going to procrastinate, try Expedia's Last Minute Deals, which offers deep discounts for the upcoming weekend and the next couple of weekends on flights, hotels and cruises. Just expect to pay up for the holiday weekends -- especially New Year's -- if you're booking last minute.

Think outside the hotel room. If you can bring yourself to forgo room service, you can save a lot of money by skipping hotels altogether. Instead, live in someone else's home. The savings can add up to hundreds of dollars a night, especially for families who would otherwise have to book multiple hotel rooms over the holidays.

HomeExchange.com offers home swaps with 43,000 listings in 140 countries, says Keghan Hurst, director of public relations. After paying a yearly $120 membership fee (there's no exchange or penalty fees), swappers can select from studios in SoHo to five-bedroom villas in Italy. In many cases, you can also use the family's cars or bicycles to get around.

Related: Maximize your frequent flier miles

Don't feel like letting strangers stay at your place? Try Airbnb.com, a website with listings in 192 countries that allows you to rent someone else's place, usually for much less than a hotel.

For a more upscale experience, there's Onefinestay, a London-based company that recently expanded to include New York City. The homes are pricier but pristine. And they include all the benefits of a hotel, such as housekeeping and concierge services, as well as an iPhone fully loaded with the owner's tips for places to go and see locally. A one bedroom in New York's West Village, for example, goes for $365 a night, while a three bedroom in the Shoreditch neighborhood of London goes for $530 a night.

Don't forget your membership perks! This is the time when that AAA or AARP membership can really pay off.

AAA members can look for discounts on its website. Current offers include Peabody Orlando Resort in Florida for $149 a night, the VDARA Hotel and Spa in Las Vegas for $99 a night, and the Conrad New York in Manhattan for $209 a night, all offered at nearly 60% off.

Just keep in mind any extra expenses when booking a hotel, such as Wi-Fi or a complimentary breakfast, advises Heather Hunter, AAA's public relations manager.

First Published: December 7, 2012: 2:32 PM ET

14.44 | 0 komentar | Read More

American Airlines pilots ratify labor deal

Deal between American Airlines and their pilots could help the company emerge from bankruptcy and merge with US Airways.

NEW YORK (CNNMoney)

The Allied Pilots Association said that 73% of the roughly 8,000 active pilots voted for the deal.

The pact includes some concessions on work rules and benefits but is better than an earlier deal the pilots rejected in August.

The election process was contentious. Union president Keith Wilson criticized some members who he said preferred to see the airline go out of business rather than agree to the concessions. And despite the vote, it's clear that the union is still very critical of American management.

"The APA leadership continues to support a merger with US Airways as the best path to a stronger, more competitive American Airlines," Wilson said.

American Airlines, whose parent AMR Corp. (AAMRQ, Fortune 500) filed for bankruptcy just over a year ago, said it was pleased with the vote. It said also it will move ahead with plans to come out of bankruptcy. The company faces a March deadline to have a reorganization plan approved by a bankruptcy judge.

"Today's ratification gives us the certainty we need for American to successfully restructure," said Denise Lynn, American Airlines senior vice president.

Related: Four ways to save on holiday travel

The airline has said it is looking at strategic alternatives, which include a possible merger with US Airways.

American has confirmed that is has shared confidential financial information with US Airways (LCC, Fortune 500) management as part of discussions on a possible deal. US Airways had no comment on the pilots' vote Friday.

The pilots union, as well as the Transport Workers union, which represents ground workers and the Association of Professional Flight Attendants, are all on record supporting a deal with US Airways.

The other two unions had already approved their own concession deals with the airline.

After the pilots rejected the original labor deal with American in August, the airline won bankruptcy court approval to impose new contract terms on the union members.

In response, the airline said there was a spike in pilots calling in sick and filing maintenance complaints on minor items, which caused flight cancellations and delays to soar.

The union denied any coordinated effort, but the service problems largely vanished after the airline agreed to resume contract talks with the pilots in late September.

First Published: December 7, 2012: 2:42 PM ET

14.44 | 0 komentar | Read More

Gay marriage case: Financial benefits at stake

Adele Hoppe-House (left) says she will save up to $5,000 a year in taxes if DOMA is overturned and she and her wife, Jennifer, are recognized as married by the federal government.

NEW YORK (CNNMoney)

On Friday, the court announced it will hear a case challenging the Defense of Marriage Act -- a 1996 law known as DOMA that defines marriage as between a man and a woman.

If DOMA is found unconstitutional, same-sex couples married at the state level will become eligible for the same federal treatment as opposite-sex couples when it comes to financial matters like taxes and Social Security benefits.

The court's ruling is expected by the end of June. The justices also took up Proposition 8, a California measure banning gay marriage in the state.

Gay marriage is legal in nine states and Washington, D.C. More than nine other states grant civil unions or domestic partnerships, but couples in those states are unlikely to be impacted, said Judi O'Kelley, deputy director of development at nonprofit Lambda Legal.

Related: Supreme Court will tackle same-sex marriage

Some of the biggest changes would be seen in tax bills. To start, couples would be able to file their taxes jointly. This would reduce many couples' tax liability by as much as thousands of dollars a year -- especially when one spouse earns significantly more than his or her partner.

The tax that many same-sex couples must now pay if one partner is covered by the other's health insurance plan would also disappear.

Adele Hoppe-House, who is 45, said she and her wife, Jennifer, would save between $3,000 and $4,000 a year on health insurance taxes if DOMA is overturned.

The couple, who married in 2008 and live in Los Angeles, would also be able to trim about $1,000 per year from their income tax bill by filing jointly, since merging their incomes would allow them to qualify for a lower tax rate. Of course, filing jointly won't help in some cases -- typically where the two incomes are similar.

Related: Same-sex couples could see tax windfalls

Couples can file protective refund claims with the IRS to someday recoup taxes if DOMA is overturned. The Hoppe-Houses, for example, hope to receive a refund of more than $13,000 for the extra income tax and health insurance tax they paid over the past three years.

"[DOMA being overturned] would be further confirmation that we are no different from anyone else and that we shouldn't be treated differently," said Adele.

Rochelle, a 56-year-old from California who asked that her last name not be used, expects that she and her wife will save at least $2,400 in income tax per year if DOMA is overturned. Rochelle is semi-retired, while her wife still works full-time. Since there is such a disparity in their income, filing jointly would enable them to take advantage of a lower tax rate and two exemptions.

The two met 28 years ago when they were both enlisted in the military and stationed overseas, and they married in 2008. If DOMA is overturned, they could receive a refund of more than $7,000 for the extra income tax paid over the past three years -- money they would use to start an emergency fund.

Related: Same-sex couples: 'We just want equal benefits'

Currently, estate taxes can also hit same-sex couples hard.

Surviving spouses in heterosexual marriages don't have to pay taxes on their deceased spouse's estate, while same-sex widows must pay a 35% estate tax on anything in excess of the $5 million exemption.

If DOMA is overturned, same-sex spouses would no longer have to pay this tax. And those who paid taxes on their deceased partner's estate in the last three years could amend their returns and be refunded the money.

In the DOMA case before the court, Edith Windsor of New York sued to get back more than $363,000 she paid in estate taxes when her partner died.

Other benefits are also at stake.

Same-sex spouses would no longer have to pay tax when giving their partners gifts. They would get easier access to spousal pension plans and health care benefits and become eligible for Social Security survivors benefits.

Related: Firms make financial planning more gay-friendly

Federal workers in same-sex marriages would be granted a large number of spousal benefits that they currently aren't eligible for, and military and veterans benefits would become available. COBRA, the federal health insurance program, would cover the family of a same-sex spouse who loses his or her job.

"Right now, same-sex couples are operating in a world where they have to have a belt and suspenders and hold on tight to make sure nothing falls," said O'Kelley. "If DOMA is struck down there will be a safety network in place for them in the same way it is in place for different-sex couples."

--CNN's Bill Mears contributed to this report.

How would your financial situation change if DOMA is overturned? E-mail blake.ellis@turner.com for the chance to be included in an upcoming story for CNNMoney.com.

First Published: December 7, 2012: 5:19 PM ET

14.44 | 0 komentar | Read More

U.S. closer to being major natural gas exporter

A report from the Energy Department issued Wednesday said the benefits of exporting natural gas far outweigh the costs. The gas would be liquefied and sent abroad by ship.

NEW YORK (CNNMoney)

A long awaited report from the Energy Department issued Wednesday said the benefits of exporting the gas far outweigh the costs.

The report clears the way for the approval of of up 15 pending natural gas export facilities -- multi-billion dollar projects situated mostly along the Gulf and Mid Atlantic coasts.

The projects are controversial, with critics saying they will raise the cost of natural gas and electricity for consumers and industry, and increase the use of hydraulic fracturing -- or fracking -- a method of extracting oil and gas that some say is contaminating the ground water.

The Energy Department approved one natural gas export facility at Sabine Pass, La., last year, but said it was waiting for this study before approving any additional projects.

The report modeled several export scenario cases -- everything from allowing zero exports to allowing unlimited exports.

"In all of these cases, benefits that come from export expansion more than outweigh the losses from reduced capital and wage income to U.S. consumers," said the study, which was done by NERA Economic Consulting, a division of the insurance and consulting firm Marsh and McLennan. "Exports have net economic benefits in spite of higher domestic natural gas prices."

Losers: The "reduced capital and wage income" comes from less money people may have in their pocket as a result of higher natural gas prices. The study noted that U.S households that receive all of their income from either wages or welfare payments will not benefit under increased exports.

Natural gas prices could rise between 3% and 9% if exports are approved, according to a recent study by the Energy Information Administration that was used in the NERA report. Electricity prices could rise by 1% to 3%, EIA said.

Related: 10 most expensive energy projects in the world

Consumers use natural gas to both cook and heat homes. Many industries -- notably petrochemicals -- use natural gas as either a fuel source or feedstock, and some have been vocal opponents of allowing additional exports. Attracted by cheap natural gas prices, several companies have announced plans for new manufacturing plants in the United States.

But the NERA report said the impacts of these plants would be minimal. It said employment in industries that are heavily energy dependent represents just a half a percent of overall U.S. employment, and that "no sector analyzed in this study would experience reductions in employment more rapid than normal turnover."

Overall impact on jobs in the country would be negligible, the study said, as workers required to drill more gas wells and build the exports plants would likely come from other sectors of the economy.

Winners: The winners in all this are the owners of the natural gas resources that benefit from higher prices and expanded markets.

That would include landowners who have natural gas on their property, as well as the oil and gas companies. It would also include millions of Americans that own stock in these firms either directly or through insurance plans, pension funds or other retirement accounts.

Exports would also have a positive effect on government tax receipts and the trade balance.

"The net result is an increase in U.S. households' real income and welfare," the study said.

Other winners could include companies in the wind and solar energy space, which have been struggling to compete with cheap natural gas prices.

The environment: The study did not address the environmental impacts of extracting more gas.

Many industry experts believe that, with the right regulations, fracking can be done safely -- a position the Obama administration seems to believe as well.

But many in the environmental community question that assumption, as do some researchers at leading institutions, including Cornell University and Duke.

The Environmental Protection Agency is studying the issue, but isn't expected to issue a final report on the matter until late 2014.

Fracking aside, some environmentalists support increased natural gas exports, which could help curb the use of coal in places such as India or China. Coal generally emits twice the level of greenhouse gases as does natural gas.

The Energy Department is now taking public comment on the 15 export applications, and will begin ruling on them in the next few months.

First Published: December 6, 2012: 1:04 PM ET

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Napster enemy Metallica signs with Spotify

Spotify CEO Daniel Ek unveiled the music-sharing platform's new personalization options at a splashy press event.

NEW YORK (CNNMoney)

As The Clash's "Rock the Casbah" played, Spotify CEO Daniel Ek took the stage to unveil the music-sharing platform's new personalization options. A new "Follow" tab lets users check out recommendations from friends on Facebook (FB), Twitter and Tumblr. They can also choose to follow other "influencers," like musical acts and media outlets.

The "Discover" tab will include all of those recommendations, plus suggestions based on listening history and new releases from artists whom the user follows. Users can save songs and albums to their "Collection" for listening later. The new features will be available on Spotify's desktop client over the next few weeks, and will come to both the web and mobile platforms soon after the new year.

"This means everyone's Spotify is going to look different," Ek said. "If you're a metal fan, Spotify will be all about metal."

Ek showed off the new Discover page, which will surface related music below the song the user is currently playing. They can choose to play it, save it for later, or skip to a new suggestion. An audio preview feature lets users jump from playing one song to checking out a short clip of a recommendation. They can then automatically leap back to where they left off in the original song.

When users choose to play a new song, the related artists/music page automatically refreshes.

The goal is "to keep people going down that path and trying new music," Ek said.

Ek also revealed a few stats. Spotify now has more than 20 million active users, and 5 million are paid subscribers. Of those paying customers, 1 million are in the U.S. Spotify hit American shores in July 2011.

Ek ended the feature reveal with a perk for artists: They'll be able to send push notifications to users' mobile phones when they release new music. Ek showed off a message popping up on his Apple (AAPL, Fortune 500) iPhone.

After that demo, things got weird.

First, Napster co-founder and former Facebook president Sean "You-Know-What's-Cool-A-Billion-Dollars" Parker walked onto the stage. Moments later, Metallica drummer Lars Ulrich joined him. Parker and Ulrich hugged -- shocking many of those in attendance.

In Napster's heyday, Ulrich was the most outspoken critic of both Napster specifically and of illegal file-sharing in general. Metallica ended up suing Napster in 2000, in a landmark case that ultimately led to Napster's demise.

The point of Ulrich's appearance was that Metallica, which regained control of its own catalog on November 30, will now makes its music available on Spotify.

Parker, a Spotify investor and board member, spent a while waxing poetic with Ulrich about their newfound friendship. The pair chalked up their past disagreements to both miscommunication and media hype.

"We wanted music to be free as in freedom, not for free," said Parker, who blamed the press for twisting Napster's mission.

Ulrich said the misunderstanding between Metallica and Napster was "about control, not money." (That drew a catcall from the audience: "You sued your fans, Lars!")

Parker added that if "we'd just sat down and talked about what our intentions were," the lawsuit might not have happened at all.

Metallica's change of heart developed over several years, Ulrich said. He blamed the band's former reticence on both "being younger" and not fully understanding Napster's point of view. He liked Spotify's music streaming approach from the start, he claimed.

Metallica famously declared that its attitude toward Napster was "you f--- with us, we'll f--- with you."

Those profane feelings appear to be long behind Parker and Ulrich, who ended their onstage chat with yet another hug.

First Published: December 6, 2012: 3:41 PM ET

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Ford hybrids don't live up to MPG hype - Consumer Reports

The Ford C-Max, a tall compact wagon, is available in a hybrid and a plug-in hybrid version, shown here. Consumer Reports tested the standard hybrid version.

NEW YORK (CNNMoney)

Consumer Reports does its own fuel economy tests separately from those conducted by the EPA. But the magazine says that its results usually track more closely to the EPA's.

The EPA estimates that both the Fusion Hybrid and C-Max Hybrid get 47 miles per gallon in both city and highway driving. In Consumer Reports testing, the Fusion Hybrid got 35 mpg in city driving and 41 on the highway. That works out to 8 mpg less than EPA estimates in combined city and highway driving. The C-Max hybrid, meanwhile, got 35 mpg in city driving and 38 on the highway in the Consumer Reports test. That's 10 mpg less than EPA estimates in combined driving.

"This is the biggest discrepancy of any current model," said Jake Fisher, head of auto testing at Consumer Reports.

Still, he added, both vehicles get outstanding fuel economy, by either measure. In fact, the Fusion Hybrid still gets the best fuel economy of any mid-sized sedan that Consumer Reports has ever tested.

Related: Cool cars from the Los Angeles Auto Show

Nevertheless, Fisher felt it was important to call attention to the big differences in their fuel economy readings. Consumer Reports' mileage tests usually come with in a mile or two per gallon of the EPA ratings, he said.

"Even though the fuel economy is excellent," Fisher said, "if a consumer expects 47 mpg when they purchase that vehicle, they're going to be very disappointed."

Vehicle owners can report their own fuel economy figures on the EPA's fueleconomy.gov Web site, and the average owner-reported mileage is 39.5 mpg for both vehicles.

The C-Max is Ford's new compact wagon. It's available only in hybrid and plug-in hybrid versions.

At least some owners have had good experience with the fuel mileage in both vehicles, Ford said in a statement.

"Early C-MAX Hybrid and Fusion Hybrid customers praise the vehicles and report a range of fuel economy figures, including some reports above 47 mpg," the automaker said. "This reinforces the fact that driving styles, driving conditions, and other factors can cause mileage to vary."

The EPA was not immediately able to respond to a request for comment.

Differences between EPA and Consumer Reports fuel economy testing are usually larger for hybrid cars than for others. For instance, following Ford's (F, Fortune 500) C-Max and Fusion, the next five vehicles with the biggest discrepancies are all hybrids, according to Consumer Reports. They are the Toyota (TM) Prus C, Toyota Prius, Honda (HMC) Civic Hybrid, Infiniti M35h and Lexus ES300h.

Differences between EPA estimates and real-world fuel economy have become a focus since Korean automakers Hyundai and Kia were found to have over-estimated their fuel economy in EPA-mandated tests. Both automakers have agreed to compensate vehicle owners for the differences.

First Published: December 6, 2012: 4:36 PM ET

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Perils of going over the cliff temporarily

Lawmakers say they want a fiscal cliff deal this year. But they may fail to reach one. And if the country goes over temporarily no one can say with confidence how that would hit the economy.

NEW YORK (CNNMoney)

Some lawmakers and pundits suggest it won't be a big deal to go over the cliff for a short while. But that is assuming a lot, especially since Congress will be navigating uncharted waters.

Experts say policymakers probably have a grace period of a few weeks in January to cut a deal and reverse the more than $500 billion in scheduled tax increases and spending cuts.

But by the end of January, if not sooner, family budgets and the broader economy could start feeling the pinch.

To be sure, policymakers could make certain adjustments to temporarily delay the impact of the fiscal cliff.

For example, Treasury Secretary Tim Geithner may have the authority to tell the IRS not to change employers' withholding tables. So even though income tax rates will have gone up, the hit to workers' paychecks would be minimized.

And spending cuts could be delayed. Even though the $109 billion in automatic cuts will officially be in effect, the White House budget office could instruct federal agencies to accelerate their spending as needed in the first part of the year, according to OMB Watch, a group that follows federal budget issues.

The agencies themselves can also manage their books to mitigate the impact of the spending cuts for at least a few weeks.

Fiscal cliff: What's in it?

But there's plenty that could upend the "it won't be a big deal" scenario.

To start, January could be a slow legislative month, partly because new members of Congress will be getting up to speed on the issues and finding their way around the Capitol, said Steve Bell, a longtime legislative staffer who now runs the economic policy project at the Bipartisan Policy Center.

That coupled with other factors may stall the process of reversing various fiscal cliff policies.

The political dynamic changes: If the country goes over the cliff, the benchmark for how much revenue is collected goes up and the benchmark for how much money is spent goes down.

"That will change the political dynamic. And no one can predict what the dynamic will be. It will be like opening Pandora's box," said budget expert Charles Konigsberg.

Democrats are banking on Republicans agreeing to restore the Bush tax cuts in full for everyone except households making more than $250,000.

Even if that happens, there's no telling how long it would take to pass a new tax bill since it could be subject to debate, amendments and filibusters. And it still could require the high hurdle of 60 votes in the Senate, Konigsberg noted. "It could take weeks."

On the spending side, getting agreement to overturn the cuts could be even more protracted, he said. Liberals may not be so willing to add money back to the defense budget and conservatives may not be eager to add money back to nondefense programs.

The longer it takes lawmakers to reach a deal in early 2013, the more fiscal tightening will occur. And the closer Congress will come to the always fractious debate over raising the debt ceiling.

Paychecks shrink: Geithner might not exercise his authority to preserve the withholding tables in their current form. Then everyone's paychecks in January will be smaller than they've been because of the income tax increases. Further shrinking workers' take-home pay would be the expiration of the payroll tax cut.

Refunds are delayed: If lawmakers fail to protect the middle class from having to pay the Alternative Minimum Tax for tax year 2012 by Dec. 31, the IRS has said it would have to tell more than 60 million taxpayers that they may not file or receive a refund until it changes its systems, which could take until late March.

It's still highly unlikely lawmakers would fail to patch the AMT. But if they don't do so soon, it's possible that tens of billions of dollars in refunds won't be spent in the economy in early 2013. Since 2009, Treasury has paid out $72 billion in refunds on average in the first two months of the year.

A further chilling effect takes hold: Uncertainty about how the fiscal cliff will be resolved is already putting a damper on economic activity.

Prolonging that into 2013 could further chill business investment and hiring. And markets could pitch a fit. A serious stock dive would hurt Americans' savings and possibly their confidence.

First Published: December 5, 2012: 12:19 PM ET

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