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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Nadine Carroll who wrote (315016)	7/16/2009 8:01:04 AM
From: goldworldnet	Read Replies (1) \| Respond to of 793916

I can't buy into the economy is better, but more people are losing their jobs. Fed: Unemployment will top 10%, but economy looks stronger By Paul Davidson, USA TODAY usatoday.com WASHINGTON — The Federal Reserve raised its fourth-quarter unemployment forecast to as much as 10.1% and said the jobless rate would be higher than anticipated through 2011 but it also boosted its economic-growth projections, according to a report released Wednesday. And the central bank reiterated that it expects the recession to end this year. Noting that unemployment has risen more rapidly than expected in recent months, the Fed said the jobless rate would climb to 9.8% to 10.1% in the fourth quarter, up from the 9.2% to 9.6% projected in April, according to minutes of the Fed's June 23-24 meeting. The revision came as little surprise to economists, many of whom already have predicted unemployment would hit 10% this year before peaking slightly above that in mid-2010. The jobless rate was 9.5% in June, the Labor Department said this month. "They had to move it up," says analyst Brian Bethune of IHS Global Insight. The Fed now projects unemployment will fall to 9.5% to 9.8% late next year and to 8.4% to 8.8% in late 2011—both about 0.5% higher than its April forecast. At the same time, the Fed said the economy will be stronger in the fourth quarter and in 2010 than it previously expected. The central bank expects the economy to contract 1% to 1.5% this year, better than its April forecast of 1.3% to 2%. And it should grow 2.1% to 3.3% in 2010, the Fed said, slightly better than it previously forecast. The Fed cited a litany of factors for its improved outlook, including more stable consumer spending, the bottoming of home sales, higher household wealth and falling corporate bond rates. The more vibrant economy should help lower unemployment "significantly" by 2011 and 2012, the Fed said. The more vibrant growth forecast prompted the Fed to modestly increase its inflation forecast to about 1.2% this year and 1.5% in 2010, though that's still well below historical levels. "It's good news," says John Ryding of RDQ Economics. "Three, four months ago, it wasn't' clear that there was bottom in sight and now the debate has switched to what kind of recovery we're going to have." * * *

To: Nadine Carroll who wrote (315016)	7/16/2009 11:28:17 AM
From: MulhollandDrive	Respond to of 793916

It sounds like an incentive to start a new small business rather than expanding an existing one. yep, nadine... divide and conquer.... this proposal to soak the 'rich' to pay for healthcare is a joke...it will fail....and it is so obvious that it appears to me that it is by design...

To: Nadine Carroll who wrote (315016)	7/16/2009 12:23:35 PM
From: Neeka	Read Replies (2) \| Respond to of 793916

In a Subchapter S corp, profits are taxed as ordinary income to shareholders every year. The corp has to show -0- income on the books at tax filing. I'm not sure if the company (us) will be hit with this Top Earners "surcharge" twice? One time for corp income and then again as personal income? We shouldn't, but with this bunch, I wouldn't put it past them. I was thinking about all of the other fees, taxes, and costs to us (as a small business) this morning, and how staggering it all is. We match SS and Medicare deductions for employees. Our insurance bond cost averages $12,000. per yr (based on income) which will be greatly reduced now that we don't have much work. BTW, all subcontractors are required to carry the same amount, or more Liability coverage or we pick up the slack. (I'm sure this is govt mandated along with all the other insurance regs.) The checks we write for state sales tax is mind blowing. Course we add that tax in our invoices, and the client picks up that cost. Sales tax just boggles my mind every time I write out an invoice. If I were the person paying that fee to the state I'd be seriously questioning the reasoning behind its existence. We pay 410% of the employee cost of L&I to the Dept of Labor & Industries on labor, the client pays sales tax (9.5% in Seattle) on the goods. A small % to Wa State Employment Security Dept, a certain % of cost on capital expenditures are deductible and not sure what G&A is? (thank goodness for our CPA) the number doesn't include labor, cost of goods, capital expenditures or G&A, right?

To: Nadine Carroll who wrote (315016)	7/16/2009 12:44:26 PM
From: Whitebeard	5 Recommendations Respond to of 793916

That's exactly what will happen. Everybody who can will break up their business into parts, all of which will gross below the amount at which the tax penalties will begin. It'll be like it was before Regan and his tax redo, when you bought non-performing financial assets for the depreciation. Anybody remember partnerships in Houston? If this passes, there will be a lot of happy tax lawyers creating loopholes. Which only the very rich can afford. Really, this guy is death to the American dream.