In the News from my friend Dave.

This was sent to me by a good friend:

12/06/10

In the news:

Last week the Democrats in the House passed the extension of the tax cuts just for those with less than 250K of taxable income. Now it was the Senates turn to vote on it.

This weekend votes were taken in the US Senate on extension of tax cuts for those families with less than $250K of taxable income. 

For those of us that itemize on our tax returns, this break would have applied to most families with income below $300K.

For those making more than $250K, their first $250K would receive a tax break, and income above that would be taxed at the same rates that were in effect during Reagan’s’ 2^nd term, Bush1, and Clinton administrations. 

According to the non-partisan congressional budget office, failure to restore tax rates to previous levels (for the top 2% of tax payers) will result in an additional budget deficit of approximately 700 billion dollars over the next 10 years.

The vote to keep tax cuts for 98% of Americans ( but not the top 2%)  was defeated when all Republicans and 5 democrats (themselves millionaires) insisted that they would not vote for tax breaks for anyone unless the top 2 % were included.

A second vote was held. This vote extended tax breaks to the one million dollar threshold. The bill was also defeated. At the same time, a head count was taken as to whether there were enough votes to extend  unemployment benefits to approximately two million unemployed workers, of which one million Americans who are in danger of losing their homes. It was determined that all but 3 Republicans, as well as several Democrats were against continuing to pay unemployment benefits to recession strapped families. 

The New York Times reports that a frustrated Obama administration is now willing to make a deal to allow continued deficit funded tax breaks for millionaires, in order to get a vote on extending unemployment benefits to the poorest Americans, most of which were gainfully employed before the recesion.

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Also in the news:

On Sundays CBS 60 minutes, Federal Reserve Chairman Ben Bernanke discussed statistics that show that income disparity in the US, between the working/middle class and the top 2% is higher than any other first world country, and is similar to conditions found in some third world nations.

 

On a personal note;

I learned over the weekend that Citibank has dramatically raised the interest on my Master Card,

no explanation given (I pay on time and have a good credit score). I will no longer use the card.

This has also happened to many of my customers, and it has impacted my sales.

I will note that an effort to limit consumer credit interest rates is being filibustered in the Senate.

That’s today’s news. 

Best regards,

Dave