Archive for December 15th, 2010

Memo to GOP: Watch out for the old reconciliation play.

December 15, 2010

As Yogi would say, “It’s not over until it’s over”.

Why do I think that the proposed tax scheme (oops, I meant “compromise”) may offer a Christmas surprise.

OK, the Senate passed a bill with all of the compromise provisions included.

What if the lame duck, Dem-controlled House passes a variant that, say for the sake of illustration, resets the death tax to 55% with a relatively low exclusion (say, $1 million)?

Won’t happen, right?

The modified law will get blocked in the Senate, right?

Not so fast.

Remember the devious reconciliation play that was used to ram ObamaCare through? Allowed a modified bill to be passed by a simple majority of Senators (all Dems).

What if the House passes a slightly modified tax bill, and the Dem majority in the Senate decides that a simple majority reconciliation process is appropriate?

Bingo.  The GOP “wins” vanish from the bill.

Check ! and Mate !

Remember, it happened on ObamaCare … one of the biggest pieces if legislation in the country’s history …. which was opposed – then and now – by a majority of voters.

The difference this time? A bunch of lame-duckers will be punching in their votes.

Don’t put it past them.

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What do these taxes have in common ?

December 15, 2010

OK, here’s the list:

Sales Tax
School Tax
Liquor Tax
Luxury Tax
Excise Taxes
Property Tax
Cigarette Tax
Medicare Tax
Inventory Tax
Real Estate Tax
Well Permit Tax
Fuel Permit Tax
Inheritance Tax
Road Usage Tax
CDL license Tax
Dog License Tax
State Income Tax
Food License Tax
Vehicle Sales Tax
Gross Receipts Tax
Social Security Tax
Service Charge Tax
Fishing License Tax
Federal Income Tax
Building Permit Tax
IRS Interest Charges
Hunting License Tax
Marriage License Tax
Corporate Income Tax
Personal Property Tax
Accounts Receivable Tax
Recreational Vehicle Tax
Workers Compensation Tax
Watercraft Registration Tax
Telephone Usage Charge Tax
Telephone Federal Excise Tax
Telephone State and Local Tax
IRS Penalties (tax on top of tax)
State Unemployment Tax (SUTA)
Federal Unemployment Tax (FUTA)
Telephone Minimum Usage Surcharge Tax
Telephone Federal Universal Service Fee Tax
Gasoline Tax (currently 44.75 cents per gallon)
Utility Taxes Vehicle License Registration Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Recurring and Nonrecurring Charges Tax

Answer: Not one of these taxes existed 100 years ago.

At the time, our nation was the most prosperous in the world, we had no national debt, and we had the largest middle class in the
world.

Hmmmm

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Old timers say: “What unemployment?”

December 15, 2010

A recent Fortune article — quoting Jason Levin, an MSB MBA alum — cites employment bright spots for college grads and and gray haired folks …

Punch line: The November unemployment rate for people 55 and older is lower than for any younger age group, welcome news for a group that often worries about being shut out of jobs by age bias.

Scratch the surface of November’s disappointing unemployment statistics, and you find yet more evidence that, while joblessness plagues almost every stratum of society, not everyone is affected in quite the same way.

With unemployment hovering around 5% for people with college degrees, about half the rate for the population as a whole, education is clearly a big factor.

Age is another.

Consider: The November unemployment rate for people 55 and older, at 7.3%, is lower than for any younger age group.

That’s all welcome news for a group that often worries about being shut out of jobs by age bias, or by what some call “the O word” (for “overqualified”).

Still, Russell points out, not all the numbers are cause for celebration. The average job hunter over 55, for instance, is still out of work for about 45 weeks, or three white-knuckle months longer than the average for those under 55.

Older people may take longer to find work for a variety of reasons, says Jason Levin, a senior account executive at career site Vault.com. “Bear in mind that these tend to be more experienced and more sophisticated candidates” than their wet-behind-the-ears counterparts, he notes, so “negotiations over salary and benefits may take longer. They may also have more savings to rely on while they look for exactly the right opportunity.”

Levin, for one, isn’t surprised that overall employment is rising for this group. “Companies that cut way back all through the recession are starting to realize that they need highly qualified people to get the work done,” he observes. “Older managers understand nuance and hierarchies. They have accumulated a lot of wisdom, and they know how to run projects.” He adds: “Experience matters. It will always matter.”

One subtle advantage that more mature job seekers have, adds Levin: “They know how to craft a well-thought-out handwritten note. At this time of year, that means holiday cards with actual stamps on them. If you want to make an impression, that’s worth 100 emails. The personal touch never gets old.”

Fortune, Over 55 and unemployed? Finally a bit of good news, December 8, 2010
http://management.fortune.cnn.com/2010/12/08/over-55-and-unemployed-finally-a-bit-of-good-news/

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