WASHINGTON - Echoing John F. Kennedy, President Barack Obama prodded business leaders Monday to "ask yourselves what you can do for America," not just for company bottom lines, even as he sought to smooth his uneasy relations with the nation's corporate executives.

Speaking to the U.S. Chamber of Commerce, the president urged the business community to help accelerate the slow economic recovery by increasing hiring and unleashing some of the $2 trillion piling up on their balance sheets.

"I want to encourage you to get in the game," Obama said.

He enumerated new efforts by his administration to improve the nation's business infrastructure, spend more to support entrepreneurs and foster greater innovation. He vowed to address "a burdensome corporate tax code," and go after "unnecessary and outdated regulations."

But to a polite, subdued audience of about 200 he also offered a stout defense of health care and financial regulation overhauls - two signature administration initiatives that caused some of the most rancorous disputes with the Chamber last year.

"I want to be clear: Even as we make America the best place on earth to do business, businesses also have a responsibility to America," Obama said.

"As we work with you to make America a better place to do business, ask yourselves what you can do for America. Ask yourselves what you can do to hire American workers, to support the American economy, and to invest in this nation."

President Kennedy, in his inaugural address 50 years ago, memorably declared, "Ask not what your country can do for you; ask what you can do for your country."

The U.S. Chamber mounted a vigorous lobbying campaign against the health care bill and the financial regulation overhaul, particularly a provision creating a consumer financial protection agency. It also spent at least $32 million in the 2010 elections, most of it in advertising campaigns against Democrats.

Still, the Chamber and the White House have mutual interests.

Obama needs the centrist cloak that the business community can offer, as he seeks to win independent voters for his re-election bid next year. The Chamber can benefit by softening the sharp edges it developed fighting the health care overhaul and tighter financial rules.

Federal tax bills dip to historic lows

WASHINGTON - Taxes too high?

Actually, as a share of the nation's economy, Uncle Sam's take this year will be the lowest since 1950, when the Korean War was just getting under way.

And for the third straight year, American families and businesses will pay less in federal taxes than they did under former President George W. Bush, thanks to a weak economy and a growing number of tax breaks for the wealthy and poor alike.

Income tax payments this year will be nearly 13 percent lower than they were in 2008, the last full year of the Bush presidency. Corporate taxes will be lower by a third, according to projections by the nonpartisan Congressional Budget Office.

The poor economy is largely to blame, with corporate profits down and unemployment up. But so is a tax code that grows each year with new deductions, credits and exemptions. The result is that families making as much as $50,000 can avoid paying federal income taxes, if they have at least two dependent children. Low-income families can actually make a profit from the income tax, and the wealthy can significantly cut their payments.

U.S. to recognize Southern Sudan as independent state

WASHINGTON - President Barack Obama says the United States intends to formally recognize Southern Sudan as a sovereign, independent state in July.

Obama made the announcement Monday in a statement congratulating the people of Southern Sudan for "a successful and inspiring" referendum.

Election officials said Monday that more than 98 percent of ballots in the Jan. 9 vote were for independence. That means South Sudan will become the world's newest country in July.

Obama said that after decades of conflict the image of millions of southern Sudanese voters deciding their own future was an inspiration to the world. He also said it's another step forward in Africa's long journey toward justice and democracy.

Fire in Rio hits Carnival area hard

RIO DE JANEIRO - A fire Monday gutted warehouses holding many of the elaborate, feather-and-sequin costumes and extravagant floats for Rio's Carnival parade, destroying the dreams and hard work of thousands of mostly poor Brazilians who toil year-round to stage one of world's most spectacular celebrations.

Seamstresses, set designers and musicians watched in tears as firefighters struggled to control the blaze that raged through four warehouses. The fire devoured about 8,400 outfits and the ornate sets built each year in the battle to be the city's top samba group.

Carnival is a time when Rio's residents and more than 700,000 visitors pour into the streets for a cathartic, nearly weeklong party.

- The Associated Press