As a classically trained economist with reverence for John Maynard Keynes - the father of Macroeconomics - it pains me to write this. On second thought it's not Keynesian theory that's flawed but its application by President Obama and the Democratic Congressional "leadership." Keynes theorized that in a robust economy fiscal policy ought to promote [...]
A Senate panel's recently adopted budget resolution would reinstate the federal estate tax at 2009 levels for two years. The resolution is non-binding. The House has not yet approved a budget resolution. However, it previously passed HR 4154 ("Permanent Estate Tax Relief for Families, Farmers and Small Businesses Act of 2009") that repeals provisions of [...]
On Feb 23rd Senator Ron Wyden (D - Oregon) and Senator Judd Gregg (R - New Hampshire) introduced the "Bipartisan Tax Fairness and Simplification Act of 2010" to overhaul what they dubbed a "broken" tax system. Among other provisions the bill would preclude the issuance of tax-exempt (i.e. muni) bonds beginning in 2011 while changing [...]
On November 5th The House passed The Worker, Homeownership and Business Assistance Act. A day earlier it cleared The Senate by a vote of 98 to 0. The proposed legislation now heads to President Obama where quick signature is expected. Among other things The Act extends the First-Time Homebuyer Tax Credit through 04/30/10. The refundable [...]
Today The White House said it believed the $787 billion stimulus package (or the "Un-stimulating Stimulus" package as we dubbed it in our 2/16/09 analysis) saved or created 650,000 jobs. This "belief" is based upon review of state and local projects and activities paid for by the stimulus such as education funding, highway repairs and [...]
The Labor Department reported CPI fell 1.3% over the past 12 months. So much for worrying about inflation! As a result the IRS announced in Revenue Procedure 2009-50 that tax rate brackets and various tax benefits will remain unchanged or change only slightly for tax year 2010. Highlights include the following: The value of each [...]