Showing posts with label fiscal cliff. Show all posts
Showing posts with label fiscal cliff. Show all posts
8:35 AM
The issue is the "American Dream" and optimism. Can we all really "make it"? Perhaps it's time to change our paradigm. John Oliver explains:
The wealth gap increased as, according to NBC Nightly News, the 1% had 19.3% of the income in 2013.Policies that benefit the few have been supported by the many. John Oliver says because of optimism. He calls optimism America's greatest quality. Could it also be our greatest downfall? America has a system where wealth is disbursed by a lottery of wealth. We have accepted it.
Here's the source of the story from Salon.com
The wealth gap increased as, according to NBC Nightly News, the 1% had 19.3% of the income in 2013.Policies that benefit the few have been supported by the many. John Oliver says because of optimism. He calls optimism America's greatest quality. Could it also be our greatest downfall? America has a system where wealth is disbursed by a lottery of wealth. We have accepted it.
Here's the source of the story from Salon.com
8:14 AM
Ever wonder what the early warning signs are of a financial meltdown?
Here's some mentioned in a blog post I found:
- CNBC reports retailers had the worst holiday shopping season since 2008.
- Intel announced the elimination of 5,000 jobs this year.
- Venezuela devalued their currency by 40%
- Ukraine is rapidly coming apart at the seems
Tax Return Software and More
10:31 PM
GDP could decrease by 0.5% and 90% of Americans taxes will go up. Some analysts have reduced their GDP growth below 2.0%.
Infographic from technology-in-business.com
8:48 PM
The stock market's gains seem emotional to me. I know optimism is good. "Think positive" is a popular theme. We are positive going into a new year. We should be. Our journey through an ever-changing economic landscape is just beginning. Not every dollar going through our economy goes through Wall Street. But the Wall Street click has a good pulse on what consumers are doing. The market optimism has gained after the fiscal cliff drama has closed.
But what is really coming down the middle-class economy staircase?
We are going to be taxed more. The employee portion of Social Security tax withholding goes up to 6.2% from 4.2% on January 1, 2013. Employers have until February 15th to make the change from the previous rate, but the IRS bulletin on the topic instructs employers to make up any difference due from late adoption by March 31, 2013.
Approximately 79.1% of all U.S. households make less than $100,000 and are therefore subject to the entire impact of the Social Security tax. How much less will these households be taking home? Assuming a household makes $50,000 per year, that's $1,000.
Companies that rely on the middle-class consumer are going to face new challenges. However these challenges are going to exhibited in the market when they hit home, not before. After all, we're having too good a time.
But what is really coming down the middle-class economy staircase?
We are going to be taxed more. The employee portion of Social Security tax withholding goes up to 6.2% from 4.2% on January 1, 2013. Employers have until February 15th to make the change from the previous rate, but the IRS bulletin on the topic instructs employers to make up any difference due from late adoption by March 31, 2013.
Approximately 79.1% of all U.S. households make less than $100,000 and are therefore subject to the entire impact of the Social Security tax. How much less will these households be taking home? Assuming a household makes $50,000 per year, that's $1,000.
Companies that rely on the middle-class consumer are going to face new challenges. However these challenges are going to exhibited in the market when they hit home, not before. After all, we're having too good a time.
10:30 PM
Lawmakers voted 257-167 to send the compromise to President Barack Obama
to sign into law. Eighty-five Republicans and 172 Democrats backed the
bill, which had sailed through the Senate by a lopsided 89-8 margin
shortly after 2 a.m. Opposition comprised 151 Republicans and 16
Democrats.
Republican House Speaker John Boehner voted in favor of the deal, as did House Budget Committee Chairman Paul Ryan, his party's failed vice presidential candidate. But Republican House Majority Leader Eric Cantor and Majority Whip Kevin McCarthy voted against it.
Source story from Yahoo news
Republican House Speaker John Boehner voted in favor of the deal, as did House Budget Committee Chairman Paul Ryan, his party's failed vice presidential candidate. But Republican House Majority Leader Eric Cantor and Majority Whip Kevin McCarthy voted against it.
Source story from Yahoo news
10:21 PM
Boehner for, Cantor against. Cantor wants tax cuts.
Link to the story
from breitbart.com
Link to the story
from breitbart.com
LIVE: House voting now on #FiscalCliff legislation; Rep. John Boehner votes yes. Tune in to BTV:
12:49 PM
- Obama and Boehner pick up talks where they left off.
- A big drop in the stock market sends a message.
- The government goes off the fiscal cliff.
- No deal for at least six weeks.
- Boehner calls a House vote on what President Obama wants.
- A partial deal is struck.
- Stock markets hang in there and President Obama and Congress think the fiscal cliff isn't so bad.
Obama has dropped his proposal to extend a temporary cut in Social Security payroll taxes paid by 163 million workers. Republicans want that tax to go back up.Obama is offering to reduce cost-of-living increases for Social Security recipients. Republicans have been seeking this as a key to long-term deficit reduction. Obama continues to reject the Republican plan to raise the eligibility age for Medicare from 65 to 67. Boehner now says raising the eligibility age is not essential. Obama and Boehner both propose raising taxes on dividends and capital gains from 15 percent to 20 percent.
CNBC source story #2
11:08 AM
Charts from Center on Budget and Policy Priorities
The first $2 trillion is the easiest. Now the second $2 trillion. Bowles-Simpson gets $2.6 in new revenues from the expiration of the Bush tax cuts. Capital gains and dividends would be taxes as ordinary income.
President Obama said today that the meeting with Congressional leaders went well and he is positive a deal can be reached. The debt ceiling will not be part of a substantive agreement. Mitch McConnell said the meeting went well. The deadline is Sunday the 30th.
Source story for this article from theatlantic.com
The deficit dynamic can not be handled with just revenue (tax) increases. That's why we are already over the cliff.
9:47 AM
The economic state of the U.S. as we close-out 2012 is not good. What seems to be a lack of leadership with our president and congress has given us the feeling that our government is not functioning properly. Economic growth is weak and the signals for inflation and modest job creation are loud and clear.
Irwin M. Stelzer wrote that the fiscal cliff drama is a sideshow. He probably is right. The ideology of both sides has a lot of light shown it. Tax increases and spending, higher or lower, are the topics that get the most attention. 2012 was a test of spending and tax policy. The path to compromise is full of potholes.
A new item has come up too. The debt ceiling. It is to be reached on Monday, the 31st. Republicans may be the group that this spotlight shines on. Republicans may hold out and waive spending cuts in return for a rise in the debt ceiling. The debt ceiling may be the only arena to check President Obama's spending.
There is no plan of attack to grapple $1 trillion in deficits. Reforms of healthcare costs and retirement have also been ignored. We have borrowed to pay for current consumption since the 1960's; to the point where the structural deficit in America is 7% of GDP.
Can our economic numbers get any less manageable? About 100 million Americans are unemployed. Household median income in America has fallen for four straight years.
Is the U.S. Congress incompetent? The accusations of one side to the other is that there isn't a balanced approach. At least Reps and Dems can agree on one point. The Americans aren't buying the notion of a lack of a balanced approach. Is the mortgage deduction still on the table?
Currently our economic growth is under 2%. The Federal Reserve pegged 2012 growth at 3.7%. Our economy requires $5 worth of debt to provide $1 worth of economic growth. Prosperity is broken. Our rate of growth is not strong enough to improve levels of income and employment.
Is it too late for offers and counteroffers? Most likely. So taxes increase and spending will do what?
Somebody put the offer out to tell us that.
Source links:
Doug Ross on directorblue.blogspot.com
Irwin L. Stelzer and the Weekly Standard
Lance Roberts on Business Insider
Brad DeLong story
Irwin M. Stelzer wrote that the fiscal cliff drama is a sideshow. He probably is right. The ideology of both sides has a lot of light shown it. Tax increases and spending, higher or lower, are the topics that get the most attention. 2012 was a test of spending and tax policy. The path to compromise is full of potholes.
A new item has come up too. The debt ceiling. It is to be reached on Monday, the 31st. Republicans may be the group that this spotlight shines on. Republicans may hold out and waive spending cuts in return for a rise in the debt ceiling. The debt ceiling may be the only arena to check President Obama's spending.
There is no plan of attack to grapple $1 trillion in deficits. Reforms of healthcare costs and retirement have also been ignored. We have borrowed to pay for current consumption since the 1960's; to the point where the structural deficit in America is 7% of GDP.
Can our economic numbers get any less manageable? About 100 million Americans are unemployed. Household median income in America has fallen for four straight years.
Is the U.S. Congress incompetent? The accusations of one side to the other is that there isn't a balanced approach. At least Reps and Dems can agree on one point. The Americans aren't buying the notion of a lack of a balanced approach. Is the mortgage deduction still on the table?
Currently our economic growth is under 2%. The Federal Reserve pegged 2012 growth at 3.7%. Our economy requires $5 worth of debt to provide $1 worth of economic growth. Prosperity is broken. Our rate of growth is not strong enough to improve levels of income and employment.
Is it too late for offers and counteroffers? Most likely. So taxes increase and spending will do what?
Somebody put the offer out to tell us that.
Source links:
Doug Ross on directorblue.blogspot.com
Irwin L. Stelzer and the Weekly Standard
Lance Roberts on Business Insider
Brad DeLong story
9:10 AM
Remember Ted Knight's famous line in the movie Caddyshack?
"You'll have nothing and like it!"
"You'll have nothing and like it!"
This story reminds me of that. President Obama playing Judge Smails.
Link to story:
Obama to Boehner: 'You Get Nothing
http://www.theblaze.com/stories/obama-to-boehner-you-get-nothing-i-get-that-for-free/
Republicans offered tax revenue.
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12:59 PM
Hopes to avoid the "fiscal cliff" went away as fast as Santa's sleigh at take-off last evening when House Speaker John Boehner announced that House Republicans could not come together for a vote to pass the "Plan B" bill. The vote was cancelled due to enough House GOP members being against a higher income tax.
The Dow Jones Industrial Average was about 150 points lower after taking the lead from overseas exchanges.
Boehner may have to take a lead from the House Democrats to get something through. President Obama had the upper hand in the negotiations and remains upbeat that a resolution will be forthcoming.
Some members of the Washington press corps have serious doubts that a plan will be reached. There seems to be too many factions in the process.
What House Failure Has Shown
Business and corporate leaders who have lobbied for a deal didn't seem to have much sway.
The Dow Jones Industrial Average was about 150 points lower after taking the lead from overseas exchanges.
Boehner may have to take a lead from the House Democrats to get something through. President Obama had the upper hand in the negotiations and remains upbeat that a resolution will be forthcoming.
Some members of the Washington press corps have serious doubts that a plan will be reached. There seems to be too many factions in the process.
What House Failure Has Shown
Business and corporate leaders who have lobbied for a deal didn't seem to have much sway.
3:11 PM
Negotiation. An art would you say? I would. Not to be taken lightly, especially when we're talking about the fiscal cliff. One item is the negotiations within the the two parties. If something slips out, it takes much discipline to keep from taking the bait. I said discipline. Put that with the U.S. House of Representatives and ..... well, you get it.
So there are external and internal negotiations. The internal conflicts have to be remedied. As far as the stories go, the Republicans are having more internal strife. That's what is reported anyway. The Democrats have internal problems too, but I doubt if they are getting reported.
Majorities have to be persuaded. Flexibility has to be present. Goals are diverse. Agreements can fall apart. Complication.
Link to the source story from TIME Ideas.
So there are external and internal negotiations. The internal conflicts have to be remedied. As far as the stories go, the Republicans are having more internal strife. That's what is reported anyway. The Democrats have internal problems too, but I doubt if they are getting reported.
Majorities have to be persuaded. Flexibility has to be present. Goals are diverse. Agreements can fall apart. Complication.
Link to the source story from TIME Ideas.
8:12 AM
A coalition has been formed to put an end to the fiscal cliff. This includes Henry Kissinger and Jame Baker. Both with Secretary of State credentials. Deficit reduction was a key in there message.
Link to the story:
15 Leaders Urge end to Fiscal Cliff
Leaders want spending under control.
Link to the story:
15 Leaders Urge end to Fiscal Cliff
Leaders want spending under control.
2:48 PM
Momentum toward a solution has broken down.
The Obama Administration has said no deal without a tax increase. The Capitol rank-and-file has been silent on avoiding the gridlock. Tax rates, spending reduction and farm policy still hang in the balance. Geithner and Boehner said the fiscal cliff fall off may be unavoidable.
Link to the story on Politico
Link to the story on Politico
9:59 AM
Sources: Moody's Analytics, Tax Policy Center. By Bonnie Berokowitz, Karen Yourish and Laura Stanton - The Washington Post.
Link to story.
9:23 PM
9:56 AM
After the election equity markets took a beating. The fiscal cliff on the horizon added to the negativity. Congress and the White House have helped to deflect the negative mood. If we go over the cliff, it will be a risk-on event.
For more details read the article from Seeking Alpha
In feeling that the cliff will be avoided there are two bullish ideas from the article I share with you.
SPDR S&P 500 Index Fund (SPY) - 109 billion dollars in assets.
SPDR Dow Jones Industrial Index Fund (DIA) - 10.32 billion dollars in assets.
Central bank intervention bolstered markets. The fiscal cliff issue will dictate market direction. Act according to your strategy and tactics. This article is for your consideration only.
For more details read the article from Seeking Alpha
In feeling that the cliff will be avoided there are two bullish ideas from the article I share with you.
SPDR S&P 500 Index Fund (SPY) - 109 billion dollars in assets.
SPDR Dow Jones Industrial Index Fund (DIA) - 10.32 billion dollars in assets.
Central bank intervention bolstered markets. The fiscal cliff issue will dictate market direction. Act according to your strategy and tactics. This article is for your consideration only.