It is nice to hear Arnie say it how it is.
“It is only the politicians who draw lines and say this is a republican thing or a democrat thing”
It is nice to hear Arnie say it how it is.
“It is only the politicians who draw lines and say this is a republican thing or a democrat thing”
SC priest: No communion for Obama supporters – Yahoo News
A South Carolina Roman Catholic priest has told his parishioners that they should refrain from receiving Holy Communion if they voted for Barack Obama because the Democratic president-elect supports abortion, and supporting him “constitutes material cooperation with intrinsic evil.”
The Rev. Jay Scott Newman said in a letter distributed Sunday to parishioners at St. Mary’s Catholic Church in Greenville that they are putting their souls at risk if they take Holy Communion before doing penance for their vote.
Churches are becoming too involved in politics. It is this sort of coersion that should see a church lose its non-profit status. Non-profits are not supposed to get involved in politics in this way. As such, this church should lose its status as a non-profit.
It is fine for the priest to say “this politician is wrong to espouse pro-choice with regard to abortion – abortion is wrong.” But this priest has crossed the line saying a parishioner is going to hell for voting for that person and should not receive the sacraments of the church. He might as well said, vote for John McCain or don’t bother coming to this church any longer. That is the effect of his position.
In addition, it is small-minded and ignores all of the other reasons someone may vote for a candidate. Abortion is just one issue in a haystack of issues. What about all of the other social causes that the Catholic Church and Catholics care about? It would seem to me that Obama aligns himself with a greater number of those causes.
Furthermore, at a time the Catholic church is losing relevance and parishioners (except in immigrant communities), this does nothing to help its cause.
I gave a presentation in my tax policy seminar today, scratchy throat and all, based on the topic of a paper I am writing for the class. The U.S. Treasury Department intrigued and scared me with some of the moves it made in September and October so I ended up writing my paper on the actions it is taking. In particular, I focus on one notice of guidance issued by the I.R.S. that essentially waives application of a section of the code – 26 U.S.C. 382(h) – for banks only. This waiver is credited with Wells Fargo snatching up Wachovia, which had already agreed to a sale to Citibank. The drama of it all. I estimate Wells Fargo will save about $26 billion in taxes and enlarge itself to boot.
The slides below are followed by my notes, including for the missing slide. Keep in mind that this presentation greatly simplifies one of the most complex sections of the code. Comments are welcome. Enjoy!
We will quickly cover …
The treasury department has been active in identifying trouble spots and issing guidance to corporations to help deflect some of the market turmoil.
NOL:
Loss Corporation is entitled to use the loss
382(b) â?? places annual limits on NOLs after ownership change
Change in ownership is complex
Annual limit
NOLs expire after 20 years.
NUBIL: net unrealized built-in losses
Burden on the new loss corp. to establish that a loss recognized during the recognition period is not a RBIL.
IRS Notice 2008-83
Immediately after the merger is complete
Wells expects to eventually write down $74 Billion in value from Wachovia’s loan portfolio – NUBIL.
Possible scenario for carryback:
Similarly situated taxpayers can include both small and large corporations and span across different industries because the corporations follow the same tax laws and regulations. It can also be used more narrowly to only apply to companies large or small or only companies within a particular industry. I think it should apply broadly and inclusively.
argument for providing the banks (under 581) a bypass around 382(h).
distortions are pushing non-bank financial servicers to become banks or bank holding companies
Moral Hazard â?? taxpayer behavior distorted by removing some risk of failure
Missing slide:
Start by asking what is this regulation intended to correct? Does it actually accomplish that goal or are there other intended or unintended consequences
Direct capitalization
Bankruptcy or receivership?
Creates super bank
[no notes]
Poor tax policy to give only one industry a waiver to 382(h) requirements.
Better choice?
I think it would have also been better for Treasury to insert this into the discussions of the big bailout package since Notice 2008-83 came out while Congress was debating the bailout.
… now for me to finish writing the paper.
Update (12/18/08): I finished the paper. Sources for the information given above is identified in the paper. 🙂
Schwarzenegger: $4.4B in tax hikes to end deficit – Yahoo! News.
SACRAMENTO, Calif. â?? Gov. Arnold Schwarzenegger on Thursday proposed $4.4 billion in new taxes and a similar amount in spending cuts to deal with California’s worsening fiscal crisis, saying, “We must stop the bleeding.”
Much of the new revenue would come from a 1.5-percentage-point increase in the sales tax; the Republican governor described the hike as temporary but did not say how long it would last.
“We have a dramatic situation here and it takes dramatic solutions … and immediate action,” Schwarzenegger said as he called the Legislature back into session to deal with the budget shortfall.
The governor said $4.5 billion in cuts will be necessary across all state programs, including education, social services, health care and prisons.
If this goes through, sales taxes in San Jose will be 9.75% (8.25% currently + 1.5%). That might be a bit too much to handle for a lot of people, especially when one of the issues is lower consumption. This also just gives people more incentive to avoid taxes by purchasing through mail order. I think the state government will eventually need to ask for broad pay cuts – yikes – in addition to cuts to services and lay offs.
I found this bit from the Economist interesting.
Total tax revenue | The Economist.
Tax revenues have risen as a share of GDP across the OECD over the past 30 years. In 2007 Denmarkâ??s government collected nearly half its GDP as taxes, making it the most heavily taxed among all the rich countries. … France, Norway and Italy also have tax revenues of more than 40% of GDP. At the other end of the spectrum, America and South Korea are relatively lightly taxed, with ratios of under 30%
Regardless of who wins the White House tomorrow, we will all pay higher taxes. How else can we afford two wars, bail outs, the Bush tax cuts, and everything under the sun politicians in all levels of government decide on to satisfy their/our fancies.
I should note that the national debt has risen $500 billion dollars since October 2 when it hit $10 trillion. Today, total outstanding public debt is at: $10,574,094,462,968.23.
Calif. to cut water deliveries to cities, farms – Yahoo News.
The Department of Water Resources projects that it will deliver just 15 percent of the amount that local water agencies throughout California request every year.
This is horrible news. Rationing should have started with the drought, followed the snow level, and definitely followed the drier pumps. We had better all pray for a wetter than usual winter.
BTW: Agriculture accounts for about 80% of water used in California.
Pop Culture: 1
John McCain: 0
This is based on the Rick Rolling meme.
BTW: The video in the background is the following:
GOOD Sheet – It’s the Economy, Stupid!
Interesting visual take on the economy – for you visual folks out there.
Wall Street bankers in line for $70bn payout | Business | The Guardian.
Financial workers at Wall Street’s top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year – despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned.
Staff at six banks including Goldman Sachs and Citigroup are in line to pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted criticism. The government’s cash has been poured in on the condition that excessive executive pay would be curbed.
I’m sorry, but you did not need to be a clairvoyant to know this would happen. Continued wasteful pay practices were to be expected and could be seen from the other side of the globe. Businesses that can pay this kind of money do not need bail outs. Or, better put, this bail out should not be directed to financial institutions whose pay packages are unreasonable. Leave it to Congress to not put greater controls on our money. I wonder aloud: would this qualify as a moral hazard, or a symptom of the moral hazard that exists with this bail out?
My feeling, if it isn’t already clear, is that it is irresponsible for businesses to pay such big bonuses, particulalry when those same businesses are at such high risk of collapse and losing gobs of money. It is likewise irresponsible for our government to prop companies up that have such irresponsible pay practices.
SF Chronicle: Panel issues dire warning on Delta
A task force appointed by the governor warns that California must build new dams, canals and desalination plants and amend its laws or face economic and ecological disaster.
The state must elevate environmental needs for water to a standing equal to that of human needs to restore the state’s ailing water network, a report by the Delta Vision Blue Ribbon Task Force said.
…
In addition to new dams and reservoirs, the plan calls for other measures, including: designating the estuary a National Heritage Area by 2010, increasing the amount of recycled water in the state to 1.5 million acre feet annually and cutting California’s water use 20 percent by 2020.
The goals of this report are laudable. One major problem with the plan is that there is only one truly suitable dam site left in the state – Temperance Flat. We will end up relying on desalination and toilet-to-tap plants, like the one Singapore operates. Although I wonder if such projects will provide enough water for agriculture, which uses 80% of the water in the state.