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Middle class faces Medicare hit WASHINGTON (AP) — Retired city worker Sheila Pugach lives in a modest home on a quiet street in Albuquerque, N.M., and drives an 18-year-old Subaru. Pugach doesn’t see herself as upper-income by any stretch, but President Barack Obama’s budget would raise her Medicare premiums and those of other comfortably retired seniors, adding to a surcharge that already costs some 2 million beneficiaries hundreds of dollars a year each.

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PORT SAID, Egypt (AP) Thousands of mourners chanting for the downfall of Egypt's president marched in funerals again Tuesday in the restive city of Port Said as the army chief warned the state could collapse if the latest political crisis drags on.