Articles of Interest 10-26-07
377 Days until Election Day
MORNING UPDATE:
Turtle Fence with taxpayers dollars…come on? Where is the common sense? The “state” is looking at spending $318,000 to fence off part of US 31 to “save the turtle”…how about some chicken wire that prison work crews could put up???
Democrats are pushing for an increase in the Michigan Business Tax in exchange for getting rid of their previous expansion of the sales tax on services. Not much of a trade…as the Governor and Democrats refuse to support any real reforms and spending cuts. Why can’t government live within its means? $43,000,000,000 or so????
Democrat Congressman Charlie Rangel has proposed what is being called the “Mother of all Tax Hikes”. Look out America, the Democrats are here and they are determined to get their share of YOUR money. Talk about a job killer.
http://republicans.waysandmeans.house.gov/News/PRArticle.aspx?NewsID=133
CR Dennis Lennox continues to pound Gary Peters for using taxpayers dollars to run for Congress…Democrats continue to abuse our public trust…most press ignores it. You can find it on DRUDGE and here:
http://news.yahoo.com/s/ap/20071025/ap_on_re_us/professor_video_ambushes_2
Congressman McCotter on S-CHIP…a must see:
http://migop.blogs.com/blog/2007/10/mccotter-on-s-c.html
When Democrats run government…TAXES go up and up and up. Wasteful spending and government bureaucrats spend our tax dollars as if they are NOT theirs… which they are NOT.
Last night we held a “Skype” teleconference with the 7th Congressional District Executive Committee…a great tool to keep in touch and have an interactive discussion on the issues of the day. If you’re interested, just let me know. Thanks Wyck!
THE REST OF THE STORY:
- Americans for Tax Reform President Grover Norquist said:
“Charlie Rangel’s tax bill raises taxes on small businesses, middle-class families, pension funds, and Americans doing business overseas—you name it, and Rangel taxes it,” said ATR President Grover Norquist. “If Rangel wants to spend more money on non-taxpayers, that’s one thing; just don’t raise money on taxpayers to pay for it.”
Rangel’s Secret Spending Plan
Double the Earned Income Tax Credit (EITC) for Single People. The maximum EITC for childless adults would be 15.3% of earnings up to $10,900 per year (about 150% of the poverty line). This plan would give $29 billion over 10 years to these non-taxpayers
Increase the refundable portion of the Child Tax Credit (CTC). The child tax credit would be refundable up to 15% of the amount that adjusted gross income exceeds $8500. This amounts to a second EITC for some taxpayers. This plan would give $9 billion over 10 years to these non-taxpayers
- Recall efforts start & grow….see “Tax Hiker Portraits” by RightMichigan:
Robert Dean: http://www.rightmichigan.com/story/2007/10/2/105439/416
Steve Bieda: http://www.rightmichigan.com/story/2007/10/3/10332/0059
Mike Simpson: http://www.rightmichigan.com/story/2007/10/4/92924/1118
Marc Corriveau: http://www.rightmichigan.com/story/2007/10/8/93248/2721
Terry Brown: http://www.rightmichigan.com/story/2007/10/10/101539/45
Mary Valentine: http://www.rightmichigan.com/story/2007/10/9/6253/0133
Kate Ebli: http://www.rightmichigan.com/story/2007/10/11/55455/873
Marty Griffin: http://www.rightmichigan.com/story/2007/10/15/94238/961
Kathy Angerer: http://www.rightmichigan.com/story/2007/10/16/14040/296
Aldo Vagnozzi: http://www.rightmichigan.com/story/2007/10/17/103640/75
Matt Gillard: http://www.rightmichigan.com/story/2007/10/23/11954/974
Gary McDowell: http://www.rightmichigan.com/story/2007/10/24/11850/088
Saul Anuzis
STATE STORIES
http://www.mlive.com/news/chronicle/index.ssf?/base/news-1/119326590581340.xml&coll=8
Don't blame the governor for lack of tax answers
Muskegon Chronicle
Wednesday, October 24, 2007
Whatever anger is being focused right now on the budget agreement cobbled together late last month by a fractionalized Legislature, it is wrongly aimed at Gov. Jennifer Granholm. She put her comprehensive tax package on the table last February and did all the heavy lifting for the politicians, who couldn't -- or more accurately, wouldn't -- get it done. Understandable is the frustration being felt by business owners and executives who cannot plan for such new wrinkles as the services sales tax, which even now is in sort of limbo, with those who voted for it to cement the budget deal now apparently plotting to do away with it.
http://detnews.com/apps/pbcs.dll/article?AID=/20071026/POLITICS/710260375
Lansing makes budget headway
Deal reached on aid to schools, Medicaid, prisons, colleges; extra funding for DIA, zoo iffy.
Mark Hornbeck and Gary Heinlein
Detroit News Lansing Bureau
Friday, October 26, 2007
LANSING -- Spending pacts apparently have been struck on school aid, Medicaid spending, prisons and higher education, but it appeared increasingly likely Thursday that state budget talks will go right up to the midnight Halloween deadline. Sources familiar with closed-door negotiations reported advances Thursday, but no final deal on the outstanding sticking points, including privatizing foster care, slicing money from disease prevention programs and raising hunting and fishing license fees. The governor's office, the Democratic state House and the Republican Senate must agree to an additional $430 million in cuts to balance the state's books and avoid another partial shutdown of government services.
http://freep.com/apps/pbcs.dll/article?AID=/20071026/NEWS06/710260316/1008&theme=BUDGETCRISIS092007
Medicaid deal reached; other battles remain
Governor balks at grants for private college tuition
October 26, 2007
BY CHRIS CHRISTOFF
FREE PRESS LANSING BUREAU CHIEF
LANSING -- An estimated 60,000 people -- 19- and 20-year-olds and caretakers for poor children -- would keep their Medicaid eligibility under a tentative deal Thursday to solve one of the thorniest issues facing negotiators in finalizing Michigan's budget before Nov. 1. But even as Leslie Fritz, a spokeswoman for Gov. Jennifer Granholm, announced the breakthrough, legislators were chafing at the latest wrinkle, Granholm's announcement that she would veto $56 million in scholarship aid of up to $2,100 a year to 40,000 students at Michigan's private colleges. The Tuition Grant Program has long been a sore spot for Granholm, but lawmakers, including some Democrats, have fiercely defended it.
As budget deal nears, state departments brace for fallout
10/25/2007, 6:34 p.m. EDT
By TIM MARTIN
The Associated Press
LANSING, Mich. (AP) — As Michigan lawmakers work toward an agreement on a new spending plan, some state departments already are planning temporary layoffs and other cutbacks to make ends meet. About $430 million in cuts and spending limitations are needed to balance the new spending plan set to take effect Nov. 1. The state attorney general's office, for example, has planned three temporary, unpaid layoff days around Thanksgiving, Christmas and New Year's Day to help deal with what it expects could be a $2 million reduction. Employees said they'd rather have everyone take layoff days than have to cut more staff, as happened earlier this year.
http://www.battlecreekenquirer.com/apps/pbcs.dll/article?AID=/20071025/NEWS01/310250025
Michigan’s jobless rates rose slightly last month in 14 markets
The Associated Press
October 25, 2007
LANSING — Seasonally unadjusted unemployment rates rose slightly in 14 of Michigan’s 17 regional labor markets in September, state officials said today. Total employment dropped in 12 regions from August to September. The biggest drop came in Northwest Lower Michigan as the summer tourism season began to wind down. The monthly survey of employers by the state Department of Labor and Economic Growth showed that seasonally unadjusted payroll jobs in Michigan education rose in September as students returned to college and K-12 schools.
http://www.freep.com/apps/pbcs.dll/article?AID=/20071025/BUSINESS06/71025050
Economist: State's housing market 'six to nine months' from rock bottom
October 25, 2007
BY ALEJANDRO BODIPO-MEMBA
FREE PRESS BUSINESS WRITER
Michigan's slumping housing market likely has "six to nine months" before it hits rock bottom, according to one prominent bank economist. Carl Tannenbaum, Chief Economist with LaSalle Bank, suggested that Michigan isn't alone in suffering from harsh economic conditions that have led to a national housing correction. But he mentioned that Michigan is probably leading the way. "The data would suggest that Michigan is fairing worse than the nation," he said. "The average house prices have fallen 4% nationally. In Michigan, that figure is 10% and it's likely to continue."
http://blog.mlive.com/citpat_opinion/2007/10/mortgage_help_yes_a_bailout_no.html
Mortgage help? Yes. A bailout? No
Posted by Jackson Citizen Patriot
October 25, 2007 10:14AM
There's no arguing that Michigan is in a real-estate free fall. The distressed economy has sent home prices plunging, and the roughly 83,000 home foreclosures forecast for this year puts our state as fourth-highest in the nation. To some degree, predatory lending and subprime mortgages are to blame. The too-good-to-be-true pitches that turned many with questionable credit into homeowners now are proving to be just that: too good to be true. Many residents are abandoning their homes because they can't make the monthly payments. The rash of foreclosures has spurred Gov. Jennifer Granholm and Democratic lawmakers to offer 24 bills, many of which contain overdue proposals to crack down on questionable practices in the mortgage industry. Where lawmakers and the public should draw the line, however, is at the sort of bailout included in this plan for those who can't make their mortgage payments.
http://detnews.com/apps/pbcs.dll/article?AID=/20071026/OPINION03/710260308/1007/OPINION
State should end tax giveaways
Investing in public education creates more jobs than tax cuts or breaks
Friday, October 26, 2007
Iris Salters: Labor Voices
After months of negotiations and posturing, our legislators are closer to resolving this year's budget crisis. But among the things they haven't looked at reforming is our corporate welfare system. Scaling back tax giveaways to big business could allow our state to invest in public education -- and the future of our children and our state. Businesses receive corporate welfare, such as tax subsidies, incentives and abatements, usually with no strings attached. These incentives are supposed to attract and retain businesses, as well as jobs for Michigan workers. But what happens when promised jobs aren't delivered or kept in the state? Nothing. There are no penalties or fallbacks.
http://detnews.com/apps/pbcs.dll/article?AID=/20071026/POLITICS/710260356
State adds charities to tax form checkoff
Gary Heinlein
Detroit News Lansing Bureau
Friday, October 26, 2007
LANSING -- Michiganians can contribute to breast cancer research and two other new causes while paying their income taxes under legislation given final approval by the Senate his week and endorsed by Gov. Jennifer Granholm. Besides breast cancer research, a new law creates income tax checkoffs for prostate cancer and animal welfare. Granholm plans to sign the two-bill package, approved Wednesday. "The governor supports the breast cancer research checkoff and the rest of the checkoff package, which was negotiated with (Department of) Treasury officials," said Liz Boyd, Granholm's press secretary. "The process of completing the state income tax form will be easier because the checkoff boxes will be placed in one list," said Sen. Patricia Birkholz, R-Saugatuck, sponsor of the breast cancer portion of the package.
http://detnews.com/apps/pbcs.dll/article?AID=/20071026/OPINION03/710260307/1007/OPINION
Granholm's legacy lies with boosting knowledge economy
Friday, October 26, 2007
Amber Arellano
On a blustery night just before Christmas, Michigan's top Democratic elder statesmen gathered at Gov. Jennifer Granholm's mansion to teach her staff a thing or two. One by one, the invited leaders spoke as Granholm and husband Dan Mulhern facilitated an Oprah Winfrey-like discussion of what has made Michigan's best leaders great. Granholm's staffers sat among them, quietly listening. "What is your legacy?" one leader posed, adding: "Balancing the budget is not a legacy." That was two years into the governor's first term. Today, well into her second term, Granholm's legacy is still a question mark -- not only for what it will be, but whether she will leave one.
http://detnews.com/apps/pbcs.dll/article?AID=/20071026/OPINION01/710260306/1007/OPINION
Turtle fence shouldn't rank as Michigan highway priority
Emphasize projects on infrastructure that move people, commercial goods
U.S. Rep. Pete Hoekstra
Friday, October 26, 2007
Lansing cannot be serious. After Michigan endured budget negotiations in which Gov. Jennifer Granholm would not accept any compromise without a tax increase and that led to a temporary government shutdown, the Michigan Department of Transportation announced that it is spending $318,000 to create a 4-foot-tall fence to protect turtles in Muskegon. It is a tragedy that our governor, state lawmakers and bureaucrats cannot acknowledge the crisis in which Michigan finds itself.
Granholm turns down Hoekstra's offer in turtle crossing flap
10/25/2007, 4:49 p.m. EDT
By KATHY BARKS HOFFMAN
The Associated Press
LANSING, Mich. (AP) — Gov. Jennifer Granholm sent a letter Thursday rebuffing U.S. Rep. Pete Hoekstra's suggestion that she convene a state budget working group to study how the state can better spend its limited resources. The Holland congressman is upset with the state's decision to spend $318,000 in federal cash on a black chain-link fence along parts of U.S. 31 designed to prevent turtles from becoming roadkill. "It is not the concept of the project, rather it is the message sent by the state that concerns me," Hoekstra said in a letter to the governor earlier this week. He sent another letter Thursday to Michigan Department of Transportation officials asking how they had collected data on turtle deaths and whether any state money was spent on the study.
http://detnews.com/apps/pbcs.dll/article?AID=/20071026/POLITICS/710260370/1022
Bill may rain cash on Michigan crops
State's growers stand to gain from U.S. Senate measure that tilts funds to fruits and vegetables.
Gordon Trowbridge
Detroit News Washington Bureau
Friday, October 26, 2007
WASHINGTON -- Michigan fruit and vegetable growers could get millions of dollars in new federal aid under farm legislation approved Thursday by the Senate Agriculture Committee. The bill, which still must pass the Senate and be reconciled with a different version passed by the House in July, includes about $3 billion for programs going to so-called specialty crops, provisions for which Michigan Sen. Debbie Stabenow has pushed hard since getting a seat on the Agriculture Committee in January. Much of the money will go to growers of crops such as the cherries, asparagus, beans and other products that make up more than half of Michigan's agricultural income. Michigan is among the nation's biggest producers of fruits and vegetables.
http://detnews.com/apps/pbcs.dll/article?AID=/20071026/POLITICS/710260366/1022
Candidate ban lifted for Arab meetings
In a bow to the strength of Arab voters, Democratic Party leaders will allow presidential hopefuls to attend.
Gregg Krupa
The Detroit News
Friday, October 26, 2007
Hundreds of Arab-Americans and members of the Washington political establishment will meet in Dearborn this weekend for a national conference amid concerns that while Arab-Americans are increasingly courted for votes, attempts also are made to exclude them from the public discourse. The sessions are considered significant enough that the Democratic chairs of the party in Iowa, Nevada, New Hampshire and South Carolina extended a singular exemption from a ban on candidates campaigning in Michigan -- in a dispute over scheduling the primary -- so that candidates could attend the National Leadership Conference of the Arab American Institute, beginning today. But the concerns are signaled from the first panel at the conference, which will discuss: "United we stand? The use of civil liberties, immigrant rights and national security as wedge issues in the 2008 campaign."
Jealous, Carl? Levin's 'cockamamie' plan
New Hampshire Union Leader
October 26, 2007
Michigan Sen. Carl Levin has been one of the driving forces behind the Democratic Party's effort over the past three years to strip New Hampshire of its first-in-the-nation primary. His maneuvers have only solidified New Hampshire's status thus far, and he's not happy about that. Now he's pounding his fists on his high chair and demanding that New Hampshire be brought down. Levin wanted Michigan to hold its primary so early in January that New Hampshire's would be made irrelevant. Instead, more sensible Michigan lawmakers set their state's primary for Jan. 15. That's now state law, but Levin wants to evade it. On Wednesday he suggested holding Democratic caucuses on the same day as the New Hampshire primary. "No state should have that dominant a role," Levin whined. "New Hampshire has a hammerlock, folks."
http://detnews.com/apps/pbcs.dll/article?AID=/20071026/POLITICS/710260360/1022/POLITICS
GOP rep expected to face tough race
National campaign leader says voters are upset with incumbents, but he predicts Knollenberg will keep seat.
Charlie Cain / Detroit News Lansing Bureau
Friday, October 26, 2007
The head of the National Republican Congressional Committee conceded Thursday that veteran U.S. Rep. Joe Knollenberg of Bloomfield Hills faces a tough ride in his re-election bid next year, adding that voters are in an anti-Washington, anti-incumbent mood. But U.S. Rep. Tom Cole of Oklahoma, who heads the committee, believes Knollenberg will defeat his Democratic opponent, most likely Gary Peters, the former state lottery czar who is piling up cash and endorsements. The battle in Oakland County figures to be the most hotly contested of Michigan's 15 congressional races.
http://ap.google.com/article/ALeqM5hIOqMoBbkCKanaK4QzHd-7UWoqtg
Student Hounds Prof Running for Office
By DAVID EGGERT
October 25, 2007
MOUNT PLEASANT, Mich. (AP) — A politically conservative student armed with a video camera and a Web site is trying to force a Democratic congressional candidate out of his teaching job at Central Michigan University. Dennis Lennox, a 23-year-old junior, has posted videos on YouTube of himself questioning assistant professor Gary Peters about campaigning for office while holding a prestigious position at the university. Some say Lennox is persistent. Others accuse him of pandering for attention. "What I'm doing isn't about getting media attention," said Lennox, a political science major. "I'm speaking for the hundreds of students, alumni, taxpayers and even legislators who have complained because Gary Peters won't pick between Congress and campus."
http://www.battlecreekenquirer.com/apps/pbcs.dll/article?AID=/20071025/NEWS01/310250033
CMU student cited for handing out fliers at forum run by Peters
The Associated Press
October 25, 2007
LANSING — A Central Michigan Student University student trying to force a congressional candidate out of his university teaching job has been cited for handing out fliers at a public forum moderated by the professor. Dennis Lennox, spokesman for Students Against Gary Peters, said today he got a letter from the Mount Pleasant university saying he had violated policies against distributing printed materials inside a campus building. A disciplinary hearing will be held if Lennox does not meet with school officials. Lennox said he and another student handed out fliers critical of Peters on Oct. 8 at an event headlined by former U.S. Reps. Lou Frey, R-Fla., and Jim Lloyd, D-Calif.
Peters, a former state lottery commissioner and now the school’s Griffin Endowed Chair of American Government, is running as a Democrat for a seat in Oakland County.
http://www.hometownlife.com/apps/pbcs.dll/article?AID=/20071025/NEWS06/71025004/1023
Dwyer announces bid for state House
By Stacy Jenkins
October 25, 2007
Oakland County’s Republican leaders turned out Wednesday to show their support for Bill Dwyer in his bid for state House next November. Dwyer, Farmington Hills police chief for the past 22 years, also announced he will retire next summer after 45 years in law enforcement. Showing their support for Dwyer at the press conference, held at Ginopolis restaurant, were Oakland County Executive L. Brooks Patterson, Oakland County Sheriff Michael Bouchard, Oakland County Prosecutor Dave Gorcyca and several other law enforcement officials and community members. Dwyer said his decision to run for a seat in the state legislature comes after considering several factors. “When I was approached several times about running for the legislature, I weighed it very carefully,” he told a crowded room of supporters on Wednesday. “I truly care about our community and I have great respect for the people in this district.
http://detnews.com/apps/pbcs.dll/article?AID=/20071026/POLITICS/710260363/1022
NAACP to challenge voter law
Local chapter digs in its heels, calls Mich. ID requirements a 'poll tax.'
Santiago Esparza
The Detroit News
Friday, October 26, 2007
DETROIT -- The Detroit Branch of the NAACP announced Thursday that it will continue to fight a controversial new state law requiring Michigan voters to show photo identification or sign an affidavit in order to cast a ballot, while fighting a similar measure in Indiana. "We view this voter identification as another version of a poll tax," the Rev. Wendell Anthony, head of Detroit's NAACP, said Thursday. "It is just intimidation." Already, attorneys for the national NAACP and its Detroit branch have filed a challenge to the law with the state on the grounds the law was not properly implemented because there were no public hearings. They also have sent a letter to the Department of Justice outlining their concerns and reminding officials that election law for Clyde and Buena Vista townships can not be changed without federal approval under the Voting Rights Act.
http://www.petoskeynews.com/articles/2007/10/25/news/news03.txt
Michigan group advocates for stem cell research
By Louise Nelle News-Review Staff Writer
Story updated: Thursday, October 25, 2007 11:28 AM EDT
Because of strict state law, Michigan Citizens for Stem Cell Research & Cures said Michigan is losing out on the economic and medical benefits of stem cell research. Michigan is one of five states in the nation with the most restrictive laws, laws which are more strict than federal laws. Other states include North Dakota, South Dakota, Louisiana and Arkansas. During a Petoskey Rotary Club meeting Wednesday, organization representative Marc Shaberman presented the benefits of stem cell research and how proposed legislation may allow more research in Michigan.
http://detnews.com/apps/pbcs.dll/article?AID=/20071026/OPINION01/710260313/1007/OPINION
Mail consolidation plan makes sense
Sorting operations move will save $4.3 million a year
The Detroit News
Friday, October 26, 2007
The consolidation of government services is a necessity in today's economy and so it makes sense to move some U.S. mail sorting operations from Detroit to Pontiac. Doing so will save about $4.3 million a year and have no serious impact on mail delivery in Detroit or the surrounding area, says Nancy Rettinhouse, Detroit district manager of operations for the United States Postal Service. In addition, the five-story Detroit postal facility on West Fort Street will remain open and fully operational with other mail services. Some of the affected employees will be offered jobs in the same building, she says.
NATIONAL STORIES
http://www.opinionjournal.com/editorial/feature.html?id=110010781
Trillion-Dollar Baby
Charlie Rangel's very revealing tax increase.
Wall Street Journal
Friday, October 26, 2007 12:01 a.m. EDT
You can't say Charlie Rangel lacks for ambition. The House Ways and Means Chairman has been saying he wants to pass "the mother of all tax reforms," and even that doesn't do justice to the trillion-dollar tax baby he delivered unto Washington yesterday. No one thinks his plan has a chance of becoming law this year, but its beauty is as a signal of Democratic intentions for 2009. In proposing what would be the largest tax increase in history, Mr. Rangel is showing the world what he wants the tax code to look like if Democrats run the entire government. None of the Presidential candidates will admit this before November 2008, but give Mr. Rangel credit for having the courage of Hillary Clinton's convictions.
The 'Mother of All Tax Bills'
Democrat Charles Rangel proposes elimination of the alternative minimum tax and an overhaul of corporate taxes, pitting businesses against one another
Eamon Javers
October 25, 2007
It's being called the "Mother of All Tax Bills" on Capitol Hill, and it might just set off the mother of all battles within the business community next year. House Ways & Means Committee Chairman Charles Rangel (D-N.Y.) unveiled a long-awaited tax proposal on the morning of Oct. 25 that featured a two-pronged assault on the tax code. For companies, Rangel's plan would lower the top corporate tax rate from 35% to 30.5%. And for individuals, Rangel's plan would eliminate the alternative minimum tax (AMT), a levy that was put in place decades ago to make sure the wealthy paid their fair share of taxes but now impacts many workers in the upper middle class.
http://thehill.com/editorials/rangels-mother-2007-10-26.html
Rangel’s mother
By The Hill Editors
October 26, 2007
House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) pulled back the curtain on his “mother of all tax reforms” Thursday. And by doing so, he at least implicitly came up with another Democratic definition of what it means to be wealthy. In the presidential race, Sen. Hillary Rodham Clinton’s (D-N.Y.) tax policy suggests that she thinks an income of $250,000 a year makes someone wealthy. Her rival for the Democratic nomination, former Sen. John Edwards (N.C.), appears to put the figure at $200,000. On Capitol Hill, Sen. Charles Schumer (N.Y.) indicates $400,000, while over in the House, Speaker Nancy Pelosi (Calif.) looks somewhat higher and suggests $500,000.
http://thecaucus.blogs.nytimes.com/2007/10/25/you-say-tax-reform-i-say-tax-hike/
You Say ‘Tax Reform’, I Say ‘Tax Hike’
By David M. Herszenhorn
October 25, 2007, 6:37 pm
WASHINGTON, Oct. 25 — Republicans wasted no time on Thursday responding to a proposal to overhaul the tax code by Representative Charles B. Rangel, the New York Democrat and chairman of the House Ways and Means Committee. “Dead on arrival,” declared Senator Mitch McConnell of Kentucky, the Republican leader. “$3.2 trillion in tax hikes affecting millions and millions of Americans,” said Senator Jon Kyl of Arizona, the Republican conference chairman. “A gigantic job killer,” said Representative John A. Boehner of Ohio, the Republican leader. “At the worst possible time for American families.” “The mother of all tax hikes,” said Representative Roy Blount of Missouri, the Republican whip. “And given its scale, it might be the father, grandfather, nephew and second-cousin of them as well.”
http://www.finalternatives.com/node/2751
Democrat Proposes $48 Billion Tax Hike For Hedge Funds, Private Equity
October 25, 2007
A tax bill called by its author the “mother of all reforms” would seriously curb the alternative investments industry’s allowance.Rep. Charles Rangel (D-N.Y.) unveiled a tax overhaul that would protect individual taxpayers from the alternative minimum tax and significantly cut corporate taxes, but would increase the tax burden on hedge funds and private equity firms by almost $50 billion. Under the House Ways and Means Committee chairman’s proposal, introduced today, the carried-interest tax rate, under so much fire recently, would be more than doubled, from 15% to 35%. That tax hike would raise about $25.7 billion over 10 years.
UPDATE:Rangel Tax Plan's Centerpiece Is 30.5% Top Corp Rate
(Updates with source saying all industries included in proposal to tax financial managers' carried interest as regular income)
By John Godfrey
OF DOW JONES NEWSWIRES
October 25, 2007
WASHINGTON -(Dow Jones)- Corporations would see their top tax rate cut to 30.5% from 35% under a tax plan unveiled Wednesday by House Ways and Means Committee Chairman Charles Rangel, D-N.Y., to fellow committee members. Rangel plans to publicly announce the plan Thursday morning. To offset the cost of the lower tax rate, the plan would alter a number of business tax provisions, according to lawmakers, congressional staff and lobbyists familiar with the plan as outlined Wednesday night. The plan will repeal a tax deduction for domestic manufacturers. It will prevent companies from using an accounting method known as last-in, first-out, or LIFO, that can cut their taxes during times of rising prices.
http://www.forbes.com/business/2007/10/25/washington-taxes-congress-biz-beltway_cx_bw_1025taxes.html
AMT Repeal? Sorry, Charlie
Brian Wingfield,
10.25.07, 12:10 PM ET
Washington, D.C. - After months of anticipation, House Ways and Means Committee Chairman Charles Rangel, D-N.Y., unveiled a major tax overhaul Thursday, including a permanent repeal of the Alternative Minimum Tax, the decades-old levy on the rich that is ensnaring a growing portion of the middle class, and a reduction in corporate tax rates. Democrats say the plan will ease the tax burden on lower- and middle-class people. Ambitious, indeed. But will Rangel's proposal go anywhere this year, or even next? Not a chance. It's entirely too controversial to pass through either the House or the Senate this year--Rep. Jim McCrery, R-La., the top Republican on the Ways and Means Committee, has already called it "the mother of all tax hikes"--and the odds of a tax increase passing in 2008 during a presidential election campaign are less than slim.
http://online.wsj.com/article_print/SB119334663547971974.html
Tax Blueprint Mixes Pain, Gains
Rangel Proposal Is Seen as Shaping Long-Term Debate
By SARAH LUECK and JESSE DRUCKER
October 26, 2007; Page A5
WASHINGTON -- The broad attempt to revamp the tax code introduced yesterday by the House's top tax writer could hurt oil and technology companies, manufacturing firms and others in order to fund an across-the-board cut in tax rates long sought by many corporations. The effort by Rep. Charles Rangel (D., N.Y.), chairman of the House tax committee, is a pairing of pain and relief for companies. Retailers could benefit under the plan, as could other firms now paying high effective tax rates. Other companies, including some drug makers, wholesalers and distributors may lose access to long-held tax preferences. In one twist, one provision in the bill seems aimed at real-estate billionaire Sam Zell and his recent agreement to buy Tribune Co.
A Tax Plan as Trial Run for ’09 Law
By EDMUND L. ANDREWS
October 25, 2007
WASHINGTON, Oct. 24 — The House’s leading Democratic tax writer will propose a sweeping overhaul of the tax code on Thursday that would increase taxes on many people with incomes above $200,000 but cut them for most others. The bill, to be introduced by Representative Charles B. Rangel of New York, chairman of the Ways and Means Committee, would also overhaul corporate taxes by eliminating many major tax breaks and lowering overall tax rates. Mr. Rangel has acknowledged that he does not expect to enact such a bill this year, and President Bush would almost certainly veto legislation that raises taxes on the wealthy.
http://www.politico.com/blogs/thecrypt/1007/A_taxing_whopper.html
Rangel introduces 'mother of all reforms'
October 25, 2007
It was the “mother" of all pile-ons, as Republicans slammed House Ways and Means Chairman Charles Rangel’s long-awaited tax bill. The venerable New York Democrat finally introduced his $1 trillion legislation Thursday — affectionately called the “mother of all reforms,” since it’s said to be the largest reform of the tax code since 1986. As expected, Rangel’s proposal would eradicate the alternative minimum tax — a levee expected to hit 24 million middle- and upper-income Americans this year — and cut the top corporate tax rate from 35 percent to 30.5 percent. It would also expand the child tax credit, standard deduction and earned income-tax credit for low-income families. The costs will be offset by a 4 percent surtax on taxpayers earning more than $150,000 a year — $200,000 for couples — and by closing various corporate tax “loopholes.”
http://www.nysun.com/article/65136
Rangel on the Fringe
New York Sun Editorial
October 24, 2007
For the entire year House Ways and Means Committee Chairman Charles Rangel has promised a bill to repeal the Alternative Minimum Tax by raising $850 billion in other taxes. Now it appears we will finally see his handiwork this week. Mr. Rangel has enjoyed keeping the public guessing about the details, but what he intends is no surprise. He wants to raise taxes instead of simply repealing a tax that Congress never intended to levy on 23 million middle class taxpayers. Mr. Rangel would like to raise the tax on capital gains and dividends, perhaps by taxing all income at the high "ordinary income" rate instead of moving to a modern consumption-based system with flatter, lower rates.
http://thehill.com/leading-the-news/gopcalls-rangel-tax-plan-a-gift-2007-10-26.html
GOP calls Rangel tax plan a ‘gift’
By Jessica Holzer
October 26, 2007
House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) unveiled a sweeping tax overhaul on Thursday that he hailed as a fairer way to spread tax relief, but Republicans attacked the move as a blunder that could cost Democrats in the next election. The legislation would rearrange the tax code, granting tax relief to 90 million Americans and cutting the corporate tax rate while shifting the burden onto higher earners, including managers of private equity and hedge funds. It would also permanently shield taxpayers from the Alternative Minimum Tax (AMT).
Iowa Democrats Recommend Jan. 3 for the State’s Caucuses
October 26, 2007
By JEFF ZELENY
CHICAGO, Oct. 25 — The chairman of the Iowa Democratic Party is recommending holding the state’s presidential caucuses on Jan. 3, joining Iowa Republicans in opening the race for the White House at the earliest date in the history of the nominating contest. The state central committee of the Iowa Democratic Party will convene Sunday evening by telephone to set the official date of the party’s caucuses, Carrie Giddins, a party spokeswoman, said Thursday. Party officials are expected to endorse the recommendation of the chairman, Scott Brennan. With a little more than two months remaining before the nominating contest begins, the Republican and Democratic presidential primary calendar remains chaotic and uncertain as states have sought to change their dates to compete with the attention lavished on Iowa and New Hampshire.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/25/AR2007102502893.html?hpid=topnews
Giuliani's Policy Professor
At 'Simon University,' Conservative Thinkers Help School the Candidate
By Benjamin Wallace-Wells
Special to The Washington Post
Friday, October 26, 2007; Page A01
Late in March, Rudolph W. Giuliani, who was not at the time known as a zealous supply-sider, held a news conference in Midtown Manhattan to announce that the conservative activist and former presidential candidate Steve Forbes would become his campaign co-chairman. In the happy bluster of the event (Forbes declared that a Giuliani administration would launch "an assault" on the federal tax code), the former New York mayor was asked whether he would endorse Forbes's signature policy, the flat tax. A decade earlier, when Forbes made the flat tax part of the policy discussion, Giuliani dismissed it out of hand. Now, Giuliani was amenable. "The flat tax," he said, "would make a lot of sense."
http://www.politico.com/news/stories/1007/6535.html
Minding business pays off for Romney
By: Jeanne Cummings
Oct 25, 2007 06:06 AM EST
BOSTON, Mass. — Mitt Romney built a fortune by taking over troubled companies and making the tough business decisions and shrewd financial adjustments to turn them into winning investments for himself and investors in his firm, Bain Capital. In similar ways, Romney is applying the same tactics in his quest to win the 2008 Republican Party primary and the White House. And, as we enter the final push before primary votes are cast, Romney has accomplished a remarkable objective: He has gone from being a little-known governor of a liberal-leaning Democratic state to the leading Republican candidate in public opinion polls in both critical early-primary states, New Hampshire and Iowa.
http://apnews.myway.com/article/20071025/D8SGFH3O0.html
Romney Open to Iran 'Bombardment'
Oct 25, 4:09 PM (ET)
By GLEN JOHNSON
MANCHESTER, N.H. (AP) - Republican Mitt Romney said Thursday he would be willing to use a military blockade or "bombardment of some kind" to prevent Iran from gaining a nuclear weapon. The former Massachusetts governor's comments came as the Bush administration announced new sanctions designed to isolate the government in Tehran. Romney applauded the move, while several Democratic presidential contenders spoke out against it - and used it as an opportunity to criticize front-runner Hillary Rodham Clinton. Said former North Carolina Sen. John Edwards: "I learned a clear lesson from the lead-up to the Iraq War in 2002: If you give this president an inch, he will take a mile and launch a war. Senator Clinton apparently learned a different lesson."
http://opinionjournal.com/diary/?id=110010782
Another Man From Hope
Who is Mike Huckabee?
John Fund
Friday, October 26, 2007 12:01 a.m. EDT
Republicans have won five of the last seven presidential elections by running candidates who broadly fit the Ronald Reagan model--fiscally conservative, and firmly but not harshly conservative on social issues. The wide-open race for the 2008 GOP nomination has generated two new approaches. Rudy Giuliani, for example, isn't running away from his socially liberal views, although he has modified them. But he is campaigning as a staunch, even acerbic economic conservative. Should he win the nomination, conventional wisdom has it he may balance the ticket by picking former Arkansas Gov. Mike Huckabee as a running mate.
http://apnews.myway.com/article/20071025/D8SGHMUO0.html
Analysis: It's Clinton's Race to Lose...
Oct 25, 6:38 PM (ET)
By NEDRA PICKLER
WASHINGTON (AP) - Memo to the Democratic presidential candidates: You can still beat Hillary Rodham Clinton, but you better act fast. The former first lady looks more likely to win the nomination every day, showing strength in polling, fundraising and setting the campaign agenda. She's so strong, in fact, that the race has become about her. And Democratic operatives from presidential campaigns past and present say the only way for any other candidate to win the nomination is to make an even stronger case against her. "If this were a wedding, we'd be at the 'speak now or forever hold your peace' part," said Steve McMahon, who advised Howard Dean in 2004. "If you're a candidate hoping to get past her, the time for nuance and veiled references has passed."
http://www.realclearpolitics.com/articles/2007/10/obama_voters_at_the_crossroads.html
Trying Times for the Obama Faithful
By David Broder
October 25, 2007
CHICAGO -- These are difficult days for supporters of Barack Obama. This city is filled with people who have voted for, worked for, contributed to, and, in many cases, prayed for the success of the young senator from Illinois. The struggle he has had in trying to overtake Hillary Clinton for the Democratic presidential nomination is wearing on their morale. Last weekend, I heard them tell each other that while the race started months ago, it is still early going; that the crucial days in Iowa and New Hampshire are still ahead; and that there is time for Obama to close with a rush, as he did when he came from behind to capture the nomination for his Senate seat back in 2004.
http://news.yahoo.com/s/ap/20071025/ap_po/candidates_iran_6
Edwards raps Clinton, Romney on Iran
By AMY LORENTZEN,
Associated Press Writer
Thu Oct 25, 5:06 PM ET
CORNING, Iowa - Presidential contender John Edwards criticized Democratic and Republican rivals alike Thursday for threats and a vote against Iran, accusing Hillary Rodham Clinton of helping a GOP march to war. Earlier in the day, the Bush administration announced new sanctions against Iran and Republican candidate Mitt Romney said he would consider a military blockade or "bombardment of some kind" to prevent Iran from gaining a nuclear weapon. "You expect that from Republicans, but the Democrats don't need to be helping," Edwards told a group gathered in an Iowa high school. "We need to stand up to these people. We need to stop them and we need to be strong in our opposition."
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/25/AR2007102502245.html
Senate Panel Moves $288 Billion Farm Bill
Plan Offers Option of Revenue Guarantee Instead of Price Supports
By Dan Morgan
Special to The Washington Post
Friday, October 26, 2007; Page A04
The Senate Agriculture Committee, under pressure to make changes in decades-old subsidy programs, voted yesterday to offer farmers an alternative safety net that lawmakers said will provide better protection against falling incomes and will save as much as $4 billion over the next five years. Farmers who choose the plan would get a government payment on a portion of their acreage if average crop revenues in their state fall below a historic norm because of low prices or bad weather. But to get the coverage, farmers would have to forgo several supports that have been pillars of farm programs for years.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/25/AR2007102502421_pf.html
Mainstream Blogs Open Floodgates for Political Coverage
By Howard Kurtz
Washington Post Staff Writer
Friday, October 26, 2007; C01
Last spring, two hours after he used his Des Moines Register blog to ridicule a suggestion by a Hillary Clinton aide that she skip the Iowa caucuses, David Yepsen's phone rang. It was the former first lady. "Senator, why are you calling me?" the veteran political reporter asked. "I read your blog," said Clinton, who quoted from his posting while insisting that of course she wasn't going to skip Iowa. The mushrooming number of political blogs on newspaper and magazine Web sites has altered the terrain of the 2008 election. Campaign officials have learned to feed the bottomless pit of these constantly updated compilations, leaking favorable tidbits -- a new poll result or television ad -- and quickly disputing negative items.
President and Governor Strengthen Relationship
By SHERYL GAY STOLBERG
October 26, 2007
ESCONDID