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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (45115)	1/24/2006 7:29:22 PM
From: regli	Read Replies (3) \| Respond to of 116555

Excellent article Mish. I liked this part the best: American Enterprise Institute fellow Phillip L. Swagel, formerly chief of staff of Bush's Council of Economic Advisers, told my Post colleague Jonathan Weisman last August that "you might as well have taken a helicopter over 90210 [a Beverly Hills Zip code] and pushed the money out the door." That's a memorable quote -- and a dead-accurate observation. I suspect that when the Treasury finishes analyzing its corporate income-tax receipts for 2005, it will discover that a significant part of last year's surge in collections stems from this one-time tax break. Companies took advantage of it because they prefer paying a small tax today to possibly paying a higher tax tomorrow. It's the same kind of thing car companies do when they make car-loan terms longer. They add sales today but at the expense of sales tomorrow.