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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Saying sorry to the 1.5%

When the most interesting headline of the day regards shipping finance and the auditing thereof, you know its a slow news day. The sector is suffering from the slowing of world trade, says the Handelsblatt, and it’s massive capacity doesn’t help the matter. But thank God that any sector’s misfortune is a hedge funds lucky day. Alternative investors, including hedge funds as well as private equity firms, are starting to buy both distressed assets and loans of distressed shipping companies at low cost, anticipating that the world won’t always look so bad (2014 could be our lucky year). read article

And that’s kind of where the exciting stuff ends.

Some merged and acquired: Arab new network Al-Jazeera, which is owned by the Qatari government, acquired Al Gore’s Current TV to finally move into the US market, and Avis bought Zipcar for $500m.

And while the US is edging from fiscal cliff to debt ceiling (Obama signed the legislation dealing with the former this morning in Hawaii), John Boehner is saying sorry to the American 1.5%. Fair enough, after all Boehner wants today to mark his re-election as speaker of the Housenot his return to Ohio. All discussion about progressive taxation aside, it is true that the richest 1.5% of America’s citizens will be worse off. In fact, they will be worse off than they have been since 1979says the Atlantic:

[…] it looks like the top 1 percent could end up paying more overall in federal taxes next year than at any time since at least 1979 […] The country’s richest households will be paying a bit more than 36 percent of their income to Washington — higher than the most recent peak of 35.5 percent in 1995, or 35.1 percent in 1979.

Finally someone said sorry.

The beneficiary of the rich’ increased tax bill are really the banks (sort of). Because one thing that was left out of the fiscal cliff joke of a deal was the exemption of US income tax on foreign income of US banks. Better known(?) as “subpart F exception for active financing income” it is, of course, a loophole that is big enough to let billions of dollars disappear in it – $150bn if you want to believe the estimates quotes by the FT. Established as a temporary relief measure by Bill Clinton in 1998, it does what it’s designed to do: letting US institutions do business cheaper and be more competitive. This isn’t the time to change that, just as much as it’s not the time for anyone to raise their corporation taxes.

So long.

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2 Responses

  1. princess1960 says:

    you see we started .”.THIs IS TO MY MOTHER ”and this NOT .
    AL-GORE BILL CLINTON..they be come milioner ..they needed TAX
    al-jazeera
    i never follow ..
    thank you

  2. Lord Barrington says:

    How much money does Boehner spend for that spray on tan? Put that money towards the deficit.

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