I bet every on-the-ropes corporate borrower would like to get the tax bennie that the Treasury extended to the GSEs today, namely, giving them what amounts to a private waiver for their net operating loss carryforwards. As much as one can argue that the Frannie and Freddie salvage operation is a unique situation, the notion […]
Read more...Princeton economics professor Alan Blinder’s article in today’s New York Times provides a useful summary of a new book by a Princeton colleague, Larry Bartels, which finds consistent differences in economic performance and income inequality trends between Democratic and Republican administrations. From the New York Times: Many Americans know that there are characteristic policy differences […]
Read more...One of the shifts in leading edge conventional wisdom is the “cities are cool” sentiment. It’s a lagging indicator, so lagging as to set for a near-term reversal. Mind you, I like cities and particularly like not owning a car, which limits me to particularly densely populated and/or enlightened metropolises. The logic of the new-found […]
Read more...It would be nice if Fannie and Freddie would have the good taste to stay out of the spotlight, particularly since bad news is a sign of higher odds that Things Are Not Going Well, Especially for Bagholders Taxpayers. However, it looks like we may not be so lucky. Bloomberg’s Jonathan Weil did some digging […]
Read more...There are some interesting cross currents in the day’s offerings on oil. What a difference a year makes. Not so long ago, the peak oil crowd was seen in much the same light as the discredited Club of Rome: worrywarts about a bad future that would probably take a long time to arrive. Now everyone […]
Read more...An odd set of voices is beginning to question the wisdom of America’s extraordinarily generous subsidies to homeowners. Paul Krugman once remarked that American like to consume houses, while the French prefer to consume vacations, but we shouldn’t overlook the role of incentives in those choices. At the Milken Institute Global Conference, a true disciple […]
Read more...The rebate checks haven’t yet arrived, and they are already being deemed likely to have little impact on the economy. That isn’t surprising. What is perplexing it that they were successfully portrayed for a short while as likely to do anything other than increase the Federal deficit. Readers may recall at the time the idea […]
Read more...I nearly fell off my chair. Ben Stein’s column this week, “What McCain Could Do About Taxes,” is sensible and vastly more tightly written and argued than his previous work. No free association or gratuitous name-dropping, no leaps of logic, no wishful thinking. More shocking, not only does he take issue with the Republican party […]
Read more...The Fortune article by Allan Sloan, “BofA’s awesome Countrywide tax break‘ was more blunt, pointing out that we taxpayers are helping subsidize Bank of America’s purchase and Mozilo’s payout. The tax savings are reported to be worth a half a billion over the first five years after the deal close, due to Bank of America […]
Read more...In the Financial Times, former Treasury Secretary Larry Summers calls for the implementation of a fiscal stimulus package in the US in the first half of 2008. He argues that the question is not whether to prop up the economy, but how, that is, whether via monetary or budgetary actions. His view is that a […]
Read more...Menzie Chin at Ecnobrowser supplied this chart from the Congressional Budget Office November Budget Review: The red line is receipts, and if you are an optimistic sort, you might persuade yourself that the gap has gotten smaller and therefore will continue to shrink. The fly in the ointment, however, is obvious. Receipts are a function […]
Read more...The IRS is turning up the spotlight on hedge funds and private equity firms. It appears that some may have been taken what might politely be called overly aggressive tax positions. It’s going to be pretty hard for these captains of capitalism to convince the public that they need to keep their favorable tax treatment […]
Read more...A very good item at the Huffington Post by Al Norman, “Wal-Mart: America’s Tax Deadbeat,” which describes the lengths the Bentonville company goes to in order to cut its local property tax assessments. This story in essence elaborates on a piece that appeared in the New York Times earlier in the week. The issue here […]
Read more...In a March post, “Private Equity’s Image Problem,” we expressed considerable reservations about Blackstone’e effort to form a lobbying group (the Private Equity Council) to among other things, press for the continued favorable tax treatment of carried interest, and specifically, the approach taken by its leader. From that post: So the industry could use some […]
Read more...Does anyone on Wall Street have any sense? If you are designing transactions that are solely or primarily about tax avoidance, you don’t leave a mile-wide paper trail, particularly documents with titles like “Tax Efficiency” for the IRS to find. From “IRS Probes Tax Goal of Derivatives” in the Wall Street Journal: Federal tax authorities […]
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