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New fire causes evacuations in California

SACRAMENTO, July 8 (UPI) -- Firefighters say they gained momentum Tuesday in battling California wildfires in Goleta and Big Sur and were trying to slow the flames' approach toward homes.

However, 100-degree temperatures were predicted for the higher reaches of the fire zone, causing concerns among firefighters, the Los Angeles Times reported.

"A lot of the guys are tired," said Capt. Eli Iskow, of the Santa Barbara County Fire Department. "We have to make sure they don't push themselves too hard."

But they were encouraged about slowing down the fire's approach to ranches and homes in the 9,000-acre Gap fire in Goleta, Iskow said.

"We're way ahead of the curve. With a lot of hard work, we may not let it get there," he said of the effort along the Gap fire's north and northwestern borders.

In Big Sur region, fire officials told residents they could begin returning to their homes Tuesday. The fire burned more than 80,000 acres and is 23-percent contained, officials said.

Elsewhere, evacuations for hundreds of people were ordered Tuesday in two Butte County communities in Northern California as a wind shift sent the Camp Fire roaring toward about 300 homes.

McCain seeks to lower business tax rate

WASHINGTON, July 8 (UPI) -- Sen. John McCain, likely GOP presidential nominee, is pushing his plan to cut the business tax rate from 35 percent to 25 percent to stimulate the U.S. economy.

"The first consideration we should have when debating tax policy is how we can help (small businesses) grow and increase the prosperity of the millions of American families whose economic security depends on their success," McCain said Tuesday during the 79th annual League of United Latin American Citizens Convention in Washington.

Employers can hire more employees or pay more taxes, the Arizona Republican said. "They can rarely do both. ... I propose to reduce the business tax rate from 35 percent to 25 percent."

The United States must recognize the "global economy is here to stay," and not be afraid of foreign competition, he said.

"America is the biggest exporter, importer, producer, manufacturer, and innovator in the world," he said. "Any confident, competent country and its government should embrace competition ... not hide from our competitors and cheat our consumers and workers."

More jobs and higher wages are created when trade barriers are lowered, he said.

"Our future prosperity depends on opening more of these markets, not closing them," McCain said.

Economists doubt Obama spending pledges

WASHINGTON, July 8 (UPI) -- Some U.S. economists are warning that Sen. Barack Obama's proposed spending plan may be too ambitious and will not have the revenues to make it work.

The Los Angeles Times said Tuesday that the presumptive Democratic presidential nominee has put a long list of federal programs on the table that some analysts believe is simply too expensive.

"There will definitely need to be a recalibration of these proposals once someone is in office," said Isabel Sawhill, a former Clinton administration budget official who is now at the Brookings Institution. "The fiscal situation just isn't going to permit doing what Sen. Obama or anyone else would like."

Alice Rivlin, who was director of the Office of Management and Budget for President Clinton, cautioned that, "Savings from (ending) the Iraq war will not be all that great."

Obama, D-Ill., has vowed to beef up spending to help get the nation through the worsening economic slump, including tax relief for lower and middle-class families and increased spending on infrastructure and extended health insurance.

The Times said analysts expect that, if elected, Obama would have to re-evaluate his spending proposals.

Aircraft carrier moves to Gulf of Oman

KABUL, Afghanistan, July 8 (UPI) -- U.S. military officials said Tuesday the aircraft carrier USS Abraham Lincoln has moved into the Gulf of Oman to give its warplanes access to Afghanistan.

The carrier moved there from the Persian Gulf so its fighter jets could avoid overflying Iranian airspace to conduct possible strikes against Taliban militants, CNN reported.

"This puts it in a position where it has ability to strike far inland," a U.S. defense official told the broadcaster.

Israel reopens Gaza crossings

GAZA, July 8 (UPI) -- Israeli Defense Minister Ehud Barak Tuesday reopened border crossings between Israel and Gaza after earlier mortar fire prompted their closings.

The Jerusalem Post, without naming sources, reported Barak made the decision to allow the movement of goods and humanitarian aid into Gaza at the urging of Egyptian intelligence chief Omar Suleiman, who reportedly told Barak that reopening the crossings would help in negotiations with Palestinian militants Hamas, who control Gaza.

Israel and Hamas are meeting to secure the release of kidnapped Israeli soldier Gilad Shalit. A Hamas delegation was set to arrive in Cairo Tuesday to discuss Shalit as well as the option of reopening another crossing, the Post said.

"There are several small offshoots (of the major terror groups) in Gaza trying to disrupt the truce, but we have one address, and that is Hamas," an unnamed Israeli security official told the newspaper. "We know Hamas has dispatched forces to track down these renegade cells, but (the group) is not (doing) enough."