Common Sense: High Taxes Are Not a Prime Reason for Relocation, Studies Say

Pool photo by Mikhail Klimentyev

Gerard Depardieu with Vladimir Putin in January. Russia granted Mr. Depardieu a passport after his spat with France over taxes.

Last month, Vladimir V. Putin hugged his newly minted fellow Russian citizen, the actor Gerard Depardieu, posing for cameras at the Black Sea port of Sochi. “I adore your country,” Mr. Depardieu gushed — especially its 13 percent flat tax on personal income.

Sochi may not be St. Tropez, but it does have winter temperatures in the 60s and even palm trees. Mr. Putin’s deputy prime minister confidently predicted a “mass migration of wealthy Europeans to Russia.”

Here in the United States, the three-time Masters champion Phil Mickelson recently walked off the 18th hole at Humana Challenge and said he might move from California because the state increased its top income tax rate to 13.3 percent from 10.3 percent.

“Hey Phil,” Gov. Rick Perry of Texas wrote in a Twitter message, “Texas is home to liberty and low taxes ... we would love to have you as well!!” Tiger Woods later said that he had left California for Florida for just that reason years ago. Mr. Mickelson can “vote with his Gulfstream,” a Wall Street Journal editorial noted, and warned California to “expect a continued migration.”

It’s an article of faith among low-tax advocates that income tax increases aimed at the rich simply drive them away. As Stuart Varney put it on Fox News: “Look at what happened in Britain. They raised the top tax rate to 50 percent, and two-thirds of the millionaires disappeared in the next tax year. Same things are happening in France. People are leaving where the top tax rate is 75 percent. Same thing happened in Maryland a few years ago. New millionaire’s tax, the millionaires disappeared. You’ve got exactly the same thing in California.”

That, at least, is what low-tax advocates want us to think, and on its face, it seems to make sense. But it’s not the case. It turns out that a large majority of people move for far more compelling reasons, like jobs, the cost of housing, family ties or a warmer climate. At least three recent academic studies have demonstrated that the number of people who move for tax reasons is negligible, even among the wealthy.

Cristobal Young, an assistant professor of sociology at Stanford, studied the effects of recent tax increases in New Jersey and California.

“It’s very clear that, over all, modest changes in top tax rates do not affect millionaire migration,” he told me this week. “Neither tax increases nor tax cuts on the rich have affected their migration rates.”

The notion of tax flight “is almost entirely bogus — it’s a myth,” said Jon Shure, director of state fiscal studies at the Center on Budget and Policy Priorities, a nonprofit research group in Washington. “The anecdotal coverage makes it seem like people are leaving in droves because of high taxes. They’re not. There are a lot of low-tax states, and you don’t see millionaires flocking there.”

Despite the allure of low taxes, Mr. Depardieu hasn’t been seen in Russia since picking up his passport and seems to be hedging his bets by maintaining a residence in Belgium. Meanwhile, Russian billionaires are snapping up trophy properties in high-tax London, New York and Beverly Hills, Calif.

“I don’t hear about many billionaires moving to Moscow,” said Robert Tannenwald, a lecturer in economic policy at Brandeis University and former Federal Reserve economist. Along with Nicholas Johnson, he and Mr. Shure are co-authors of “Tax Flight Is a Myth,” a 2011 research paper.

Of course, some people do move for tax reasons, especially wealthy retirees, athletes and other celebrities without strong ties to high-tax locations, like jobs and families. In renouncing his French citizenship, Mr. Depardieu follows other French celebrities, the chef Alain Ducasse, the singer Johnny Hallyday and Yannick Noah, a former tennis star. Several Paris hedge fund managers have decamped to London and the fashion mogul Bernard Arnault applied for Belgian citizenship, though not, he has said, for tax reasons.

Stars like Mr. Depardieu and Mr. Mickelson certainly have incentives to move. Mr. Depardieu complained that he paid 85 percent of his income in taxes in France last year and has paid 145 million euros over 45 years. France has a top rate of 41 percent as well as a wealth tax, and the Socialist president, François Hollande, is trying to impose a temporary surcharge of 75 percent on incomes over 1 million euros. Mr. Mickelson earned more than $60 million last year, Sports Illustrated estimates, which means the three-percentage-point California tax increase could add up to an additional $1.8 million in tax.

This article has been revised to reflect the following correction:

Correction: February 15, 2013

An earlier version of this column misstated Mr. Depardieu’s citizenship. He has applied for residency in Belgium; he is not a citizen of that nation. The earlier version also misidentified the golf tournament at which the golfer Phil Mickelson said he might move from California to escape its taxes. It was the Humana Challenge, not Pebble Beach.

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Former Bell official says he voted for pay raise out of fear

One of the former Bell city leaders accused of plundering the town's treasury by taking oversized salaries testified Thursday that the fat paychecks and other extraordinary benefits that came with the job were all but forced on him.

George Cole, a former steelworker, returned to the witness stand for a second day and testified that he voted for a 12% annual pay raise for a City Council board in 2008 only because he feared retribution from then-City Manager Robert Rizzo.

"He had shown himself to be very vindictive if you crossed him at that time," Cole said. "I was worried that if I didn't vote for this, if I voted against it, he would do whatever he could to destroy the work that was important to me and the community. I knew that was his character."

Cole said it was the most difficult decision he ever made while on the council but was in the best interest of Bell — a city, he said, where he had devoted decades to advocating for new schools and programs for at-risk youths and senior citizens.

Cole, along with Luis Artiga, Victor Bello, Oscar Hernandez, Teresa Jacobo and George Mirabal, is accused of drawing an inflated salary from boards and authorities that rarely met and did little work.

The pay increases for the authorities were placed on the consent calendar — a place for routine and non-controversial items that are voted on without discussion. Cole defended the practice and said the agendas, minutes and staff reports were always available to the public at City Hall and at the library.

"I never tried to hide what we were doing," Cole said.

He also testified that the minutes did not reflect work done for those authorities.

Cole justified his vote for previous City Council pay raises to allow for a more diverse pool of council candidates who could use the money. And when he voted for a council salary increase in 2005, Cole noted that Bell was in a "very strong financial position."

The 63-year-old also told jurors that when he discovered $15,500 had been deposited into a 401(k)-style account for him, he complained. Cole said Rizzo refused to remove the money.

Initially, Cole said, Rizzo was a first-rate city administrator, making improvements such as repairing and keeping streets clean and erecting a protective fence around the city's largest park.

"From the time he started, he was able to accomplish things other managers previous to him said couldn't be done or were unable to do," Cole said.

Cole said the two would sometimes meet for breakfast to discuss city matters. "It was business," he said. "It wasn't two chums getting together."

But when Cole decided to give up his salary during his last year in office, he said it fractured his relationship with Rizzo. When he learned about Rizzo's near-$800,000 salary from a story published in The Times in 2010, he said he felt sick.

"I just felt like the dumbest person in the world that this guy had just pulled one of the biggest cons I've ever seen on, not just me, but on the city of Bell," Cole testified.

Rizzo faces 69 felony corruption charges. He and his former assistant, Angela Spaccia, are expected to go on trial later this year.

Cole's top annual salary was $67,000, his attorney said. At the time, he was earning nearly $95,000 a year as chief executive of the Steelworkers Old Timers Foundation.

In 2004, the city paid the state pension system $36,648 to buy Cole an additional five years of service time. Cole was one of 11 Bell administrators for whom the city bought service time.

CalPERS — the state's largest public pension program — has disallowed the service time the city bought, saying the buy-ins were not council-approved and that a municipality cannot pay for them.

Cole also was among the 40 or so Bell employees who were scheduled to receive additional payments through Bell's own supplemental retirement plan, established in 2003. In combination with the CalPERS pension, the payout was among the best retirement plans for non-safety employees in the state. The council never approved the plan.

jeff.gottlieb@latimes.com

corina.knoll@latimes.com

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Never Tell Me the Odds: A Look at <cite>Star Wars</cite> Tabletop Gaming's Past and Present

Before J.J. Abrams was a twinkle in George Lucas' eye, Star Wars fans had another outlet for the continued adventures of their favorite characters: the tabletop. Whether playing with board games, miniatures, or pen-and-paper role-playing games, Star Wars has been a setting of choice for three decades and counting.

Throughout this gallery, you'll find both hidden gems from Star Wars' past as well as recent hits, proving that the franchise is anything but running out of steam. In fact, when put into the hands of creative game designers, Star Wars has continuously led to some truly engaging experiences.

Above:

As if the combination of Star Wars and Angry Birds was not enough to drive fans wild, Hasbro rolled the combo into its own Jenga game. Rather than plucking pieces with a steady hand, you'll be flinging those iconic birds to knock out as many Jenga blocks as possible. The destruction doesn't end there, though. An entire line of Star Wars Angry Birds games was launched last year, with six other titles featuring everything from Jabba's Palace to the ice planet Hoth.

Image courtesy of Hasbro

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Well: Ask Well: Swimming to Ease Back Pain

Many people find that recreational swimming helps ease back pain, and there is research to back that up. But some strokes may be better than others.

An advantage to exercising in a pool is that the buoyancy of the water takes stress off the joints. At the same time, swimming and other aquatic exercises can strengthen back and core muscles.

That said, it does not mean that everyone with a case of back pain should jump in a pool, said Dr. Scott A. Rodeo, a team physician for U.S.A. Olympic Swimming at the last three Olympic Games. Back pain can have a number of potential causes, some that require more caution than others. So the first thing to do is to get a careful evaluation and diagnosis. A doctor might recommend working with a physical therapist and starting off with standing exercises in the pool that involve bands and balls to strengthen the core and lower back muscles.

If you are cleared to swim, and just starting for the first time, pay close attention to your technique. Work with a coach or trainer if necessary. It may also be a good idea to start with the breaststroke, because the butterfly and freestyle strokes involve more trunk rotation. The backstroke is another good option, said Dr. Rodeo, who is co-chief of the sports medicine and shoulder service at the Hospital for Special Surgery in New York.

“With all the other strokes, you have the potential for some spine hyperextension,” Dr. Rodeo said. “With the backstroke, being on your back, you don’t have as much hyperextension.”

Like any activity, begin gradually, swimming perhaps twice a week at first and then progressing slowly over four to six weeks, he said. In one study, Japanese researchers looked at 35 people with low back pain who were enrolled in an aquatic exercise program, which included swimming and walking in a pool. Almost all of the patients showed improvements after six months, but the researchers found that those who participated at least twice weekly showed more significant improvements than those who went only once a week. “The improvement in physical score was independent of the initial ability in swimming,” they wrote.

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DealBook: S.E.C. Is Said to Be Investigating Trading Before Heinz Deal

Regulators are scrutinizing unusual trading surrounding the planned $23 billion takeover of the food company H. J. Heinz, raising questions about potential illegal activity in one of the biggest deals in recent memory, a person briefed on the matter said.

The Securities and Exchange Commission opened an insider trading inquiry on Thursday as Berkshire Hathaway and the investment firm 3G Capital agreed to pay $72.50 a share for Heinz, this person said. Regulators first noticed a suspicious spike in trading on Wednesday.

If the S.E.C.’s preliminary inquiry turns into a broader investigation, it could cast a shadow over the deal. As part of the process, authorities would turn their focus toward the limited universe of insiders who could have tipped off traders about the deal.

The agency’s inquiry is expected to be centered on options trading in Heinz, activity that soared this week as news of the deal circulated Wall Street. In what is known as a call option, investors can place a bullish bet on a stock, without actually committing to buy the shares. Instead, investors have the opportunity to buy at a given price and future date.

As recently as Tuesday, there was scant activity in Heinz options. But by Wednesday, as the companies were putting the finishing touches on the deal, options trading jumped, data from Bloomberg shows.

The price of Heinz’s stock soared after the deal was announced. The stock finished up nearly 20 percent on Thursday to close at $72.50, matching the offer price.

The S.E.C. is focusing on the sudden leap in options trading Wednesday, building on a related case it filed last year that also involved 3G, a company with Brazilian roots. In September, the agency obtained an emergency court order to freeze the assets of a Brazilian man suspected of insider trading around 3G Capital’s takeover of Burger King. The trader, a Brazilian citizen who worked at Wells Fargo in Miami, reportedly received the tip from a 3G investor.

Neither the company nor any individual at 3G has been accused of any wrongdoing in that case or in the Heinz inquiry.

While the inquiry is in its early stages, the person briefed on the matter said that regulators could take relatively prompt action. If it is concerned that traders might move the money overseas, the S.E.C. could ask a federal court to freeze the traders’ assets.

The S.E.C. routinely opens inquiries into trading activity after major mergers are announced, but often does not bring charges. The agency, however, has renewed its focus on insider trading, mounting dozens of cases in recent years.

An S.E.C. spokesman declined to comment. Bloomberg News earlier reported that S.E.C. investigators were reviewing the surge in Heinz options trading.

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Vintage piano given Valentine's Day deadline

HALF MOON BAY, Calif. — The piano was delivered to its bluff-top perch under cover of fog nearly two weeks ago. It is scheduled to leave this coastal enclave in a burst of flames on Sunday.

In between the fog and the fire, musician and sculptor Mauro Ffortissimo has been treating his neighbors to an illicit outdoor concert series grandly dubbed Sunset Piano. Chopin, Debussy, a tango or two. The performances are timed to end the moment the sun sinks below the horizon.

He plays to cyclists and dog walkers, babies in strollers, his landlady in a folding chair, the charmed, the perplexed. Every night the battered baby grand has sounded just a little bit worse as the elements erode the aging, al fresco instrument. Every night, the audience has grown.

Ffortissimo (not his real name, but you probably figured that out already) had hoped to serenade the residents of Half Moon Bay for a month. But it didn't take long for reality to intrude on the 50-year-old artist's well-laid plans.

Two days after Ffortissimo and friends rolled the piano out to a scenic spit of city land, a code enforcement officer sent a warning via email. Someone had complained.

No permit, no piano.

The 90-year-old Estey "appears to be an unauthorized encroachment onto public property," wrote Lamonte Mack. If you can't prove the installation is authorized, he told Ffortissimo, "please remove the piano — and platform — within 10 (ten) days."

That made the deadline Valentine's Day, an occasion to celebrate love, if not misplaced musical instruments.

The artist legally known as Mauro Dinucci has taken the bad news in stride. Asked about the end of the piano during Tuesday night's crowded concert, he crowed: "Woo, hoo! Valentine's Day! Bring chocolate!" and promised that "before we burn this baby, we give it one last boat ride."

Thursday will be the piano's last scheduled bluff-side concert along the Coastside Trail at the end of Kelly Avenue. Friday, Ffortissimo said, he has been invited to play the instrument at the Half Moon Bay Yacht Club.

Saturday he'll give a sunset performance on the water, a nod to the piano's earlier owners who once sent it from California to Panama and back by sea. Sunday he plans to set the piano ablaze in the flower-strewn field behind his studio.

"The idea of the burning," Ffortissimo said, "is a cremation, to liberate the piano from its physical form … I just hope it won't be a 'Spare the Air' day."

Not everyone is as happy as Ffortissimo about the piano's upcoming freedom.

Mayor Rick Kowalczyk, who has yet to hear the Sunset Piano himself, said he was trying to "see if I can't get something done in the short term to allow Mauro to stay." Kicking the Estey off of the bluff, he said, "feels a little bit like a child has a lemonade stand and the city shuts it down."

On Tuesday evening, more than 100 music lovers gathered round as the sun — and the temperature — dropped. Two women danced together on the grass. Wine was sipped and beer chugged. Children ate cold pizza. Shorebirds glided by.

Far away from Half Moon Bay, President Obama was preparing to give his State of the Union address. Christopher Dorner was thought to be shooting it out with police.

But here on a bluff overlooking the Pacific Ocean, Susan Swanson of Redwood City poured white wine from a blue metal flask as Ffortissimo played Albinoni's "Adagio in G Minor." She'd read about the piano performance in the local newspaper, she said, "and it's the kind of news I like to read — good news.

"This to me is everything," said the trying-to-retire office manager. "It's a perfect moment. Once in a lifetime maybe. It's so odd, isn't it?"

maria.laganga@latimes.com

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Tesla Driving Logs Contradict <em>New York Times</em> Claims

Data released by Tesla Motors late Wednesday night directly contradicts a damning review of the automaker’s Model S sedan by the New York Times.

The data, pulled directly from the electric sedan’s on-board computer, claims that New York Times reporter John M. Broder never ran out of energy during his extended drive of the Model S, despite his account to the contrary.

Broder’s trip in the Model S began outside of Washington D.C., up to Norwich, CT and then down to Milford, CT over the course of two days. The drive was intended as a way to evaluate Tesla’s newly installed Supercharger stations, which allow Model S owners to top up their batteries for free at solar-powered charging stations lining major thoroughfares along the east and west coasts.

According to Tesla, Broder was given explicit instructions for his drive: keep the speed at 55 mph and turn down the climate control. Broder claims to have set the cruise control at 54 mph and at one point writes he, “limped along at about 45 miles per hour.” However, the logs released by Tesla show that he drove at speeds ranging from 65 to 81 mph, and kept the interior temperature at 72 degrees, increasing it to 74 degrees at one point.

Tesla’s data claims that Broder never completely charged the Model S during three separate charging sessions, including one charge before the final leg of his trip, when Broder disconnected the charger with an indicated range of 32 miles, despite planning to drive 61 miles. Additionally, Broder claims to have charged for 58 minutes during the second leg of his trip, although Tesla’s data alleges it was only connected to the Supercharger for 47 minutes.

While driving on the highway, Broder says the Model S’ display informed him that it was about to shut the car down. “I was able to coast down an exit ramp in Branford, Conn., before the car made good on its threat,” Broder describes in his story.

According to Tesla, the Model S never shut down as was implied by Broder – he simply pulled over. Tesla claims that its “State of Charge” log shows that the battery never ran out of energy at any point during his trip.

The automaker is also questioning the length of a trip Broder made through Manhattan, reportedly giving his brother a ride in the car, as well claiming that the writer drove around in circles outside a Supercharger station for malicious reasons.

Tesla’s data dump comes five days after Broder’s report appeared on the New York Times site. Three days later, Tesla co-founder and CEO, Elon Musk, took to Twitter to refute the story, going so far as to call the New York Times‘ piece a “fake“.

The chemistry of the lithium-ion batteries in the Model S are affected by cold temperatures – especially the sub-freezing temps Broder experienced during his drive – which would reduce the overall range of Tesla’s electric sedan.

In an earlier statement released by the newspaper, the Times stood behind Broder’s portrayal of the drive, calling it “completely factual” and stating that “[a]ny suggestion that the account was ‘fake’ is, of course, flatly untrue.” Calls for a follow-up statement from the Times and Mr. Broder have gone unanswered.

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Epic to pull song with offending Lil Wayne lyric

NASHVILLE, Tenn. (AP) — Epic Records is going to “great efforts” to take down a new Future remix leaked over the weekend with a vulgar Lil Wayne lyric that has offended the family of Emmett Till.

The New Orleans rapper made a sexual reference to the beating death of Till, a 14-year-old Chicago boy tortured and shot in Mississippi in 1955 for whistling at a white woman. Till’s family objected and the Rev. Jesse Jackson reached out to his management, The Blueprint Group, on the family’s behalf.

The label issued a statement Wednesday night apologizing for the release of the song.

“We regret the unauthorized remix version of Future’s ‘Karate Chop,’ which was leaked online and contained hurtful lyrics,” the statement said. “Out of respect for the legacy of Emmett Till and his family and the support of the Reverend Jesse L. Jackson, Sr. … we are going through great efforts to take down the unauthorized version.”

Epic will release an official version of the song that “will not include such references.”

Neither Jackson nor members of Till’s family could be reached late Wednesday. A publicist says Lil Wayne has had no comment so far.

He appears briefly on the song, alluding to the black teenager’s beating in a way too vulgar to print.

Till, a native of Chicago, was in Mississippi visiting family in 1955 when he was killed. He was beaten, had his eyes gouged out and was shot in the head before his assailants tied a cotton gin fan to his body with barbed wire and tossed his body into the Tallahatchie River. Two white men, including the woman’s husband, were acquitted of the killing by an all-white jury.

Till’s body was recovered and returned to Chicago where his mother, Mamie Till, insisted on having an open casket at his funeral. The pictures of his battered body helped push civil rights into the cultural conversation in the U.S.

Bob Dylan wrote a song about it: “The Death of Emmett Till.”

A Facebook posting on the Mamie Till Mobley Memorial Foundation page Wednesday night said Epic Records Chairman and CEO LA Reid had reached out to the family to personally apologize.

___

Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott

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Use of Morning-After Pill Is Rising, Report Says

The use of morning-after pills by American women has more than doubled in recent years, driven largely by rising rates of use among women in their early 20s, according to new federal data released Thursday.

The finding is likely to add to the public debate over rules issued by the Obama administration under the new health care law that require most employers to provide free coverage of birth control, including morning-after pills, to female employees. Some religious institutions and some employers have objected to the requirement and filed lawsuits to block its enforcement.

Morning-after pills, which help prevent pregnancy after sex, were used by 11 percent of sexually active women from 2006 to 2010, the period of the study. That was up from just 4 percent in 2002. Nearly one in four women between the ages of 20 and 24 who had ever had sex have used the pill at some point, the data show.

Morning-after pills are particularly controversial among some conservative groups who contend they can cause abortions by interfering with the implantation of a fertilized egg that the groups regard as a person.

Medical experts say that portrayal is inaccurate, and that studies provide strong evidence that the most commonly used pills do not hinder implantation, but work by delaying or preventing ovulation so that an egg is never fertilized in the first place, or thicken cervical mucus so sperm have trouble moving.

This month, the Obama administration offered a proposal that could expand the number of groups that do not need to provide or pay for birth control coverage. But the proposal did not end the political fight over the issue, which legal experts say may end up in the Supreme Court.

The new data was released by the National Center for Health Statistics and based on interviews with more than 12,000 women from 2006 to 2010. Researchers asked sexually active women if they had ever used emergency contraception, “also known as Plan B, Preven or morning-after pills,” as well as about their use of other forms of birth control.

Over all, 99 percent of sexually active women ages 15 to 44 have used contraception at some point in their lives, or about 53 million women, up slightly from 2002. An earlier report found that 62 percent of all women of reproductive age were currently using some form of birth control.

The new report found that 98.6 percent of sexually active Catholic women had used contraception at some point, but the data did not show how many Catholic women currently use contraception.

Condom use has risen markedly. More than 93 percent of women said they had partners who had used condoms at some point, compared with 82 percent of women in 1995, a likely effect of strong public advocacy for condom use during the AIDS epidemic.

In contrast, women who had used intrauterine devices, or IUDs, at some point in their lives declined to about 8 percent from 10 percent in 1995. The use of birth control pills has remained steady since 1995 at 82 percent.

Eighty-nine percent of white women said they had used birth control pills at some point, compared with 67 percent of Hispanic women, 78 percent of black women and 57 percent of Asian women.

Education played a role in the type of contraception used. Forty percent of women without a high school diploma said they chose sterilization, while just 10 percent of women with a bachelor’s degree said they used that method. Those without a high school diploma were also far more likely to use three-month injectables, like Depo-Provera — 36 percent compared with 13 percent of women with a college degree.

About 12 percent of college graduates said they had used emergency contraception, while 7 percent of women with only a high school degree said they had used it.

Educated women were far more likely to have practiced periodic abstinence based on the menstrual cycle. About 28 percent of women with a master’s degree or higher had practiced this method, while just 13 percent of women without a high school diploma had, the report found.

White women, American-born Hispanic women and black women were most likely to practice withdrawal, with more than half of women in each group saying they have used that method. Just 44 percent of foreign-born Hispanics said they practiced withdrawal.

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Christopher Dorner shootout: Body found in burned cabin

There were conflicting reports tonight about whether a body was located inside the burned-out cabin Tuesday night where Christopher Jordan Dorner was believed to have kept law enforcement authorities at bay.

Several sources told The Times and many other news organizations that a body was located in the rubble. But LAPD officials just said that the cabin is still too hot to search and no body has been found.

Another update is expected within the next hour from law enforcement officers near the scene, and officials said they might have an update clarifying the confusion.

PHOTOS: Manhunt for ex-LAPD officer

As authorities moved into the cabin earlier Tuesday, they heard a single gunshot.

According to a law enforcement source, police had broken down windows, fired tear gas into the cabin and blasted over a loud speaker, urging Dorner to surrender. When they got no response, police deployed a vehicle to rip down the walls of the cabin "one by one, like peeling an onion," a law enforcement official said.

By the time they got to the last wall, authorities heard a single gunshot, the source said. Then flames began to spread through the structure, and gunshots, probably set off by the fire, were heard. 

PHOTOS: Manhunt for ex-LAPD officer

As darkness descended on the mountainside, Dorner's body had not been found, authorities said. Police were planning to focus their search in the basement area, the source said.

Earlier Tuesday, a tall plume of smoke was rising as flames consumed the wood-paneled cabin. Hundreds of law enforcement personnel had swooped down on the site near Big Bear after the gun battles between Dorner and officers that broke out in the snow-covered mountains where the fugitive had been eluding a massive manhunt since his truck was found burning in the area late last week.

Law enforcement personnel in military-style gear and armed with high-powered weapons took up positions in the heavily forested area as the tense standoff progressed. 

One San Bernardino County sheriff's deputy died after he and another deputy were wounded in an exchange of gunfire outside the cabin in which hundreds of rounds were fired, sources told The Times. The deputy was airlifted to Loma Linda University Medical Center, where he died of his wounds.

The afternoon gun battle was part of a quickly changing situation that began after Dorner allegedly broke into a home, tied up a couple and held them hostage. He then stole a silver pickup truck, sources said.

Then Dorner was allegedly spotted by a state Fish and Wildlife officer in the pickup truck, sources said. A vehicle-to-vehicle shootout ensued. The officer's vehicle was peppered with multiple rounds, according to authorities.

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