Archive for December 20th, 2012

Background: Here’s a way to raise tax revenues & create jobs.

December 20, 2012

In the fiscal cliff talks, I think that the Feds – both Obama & Congress – are demonstrating “no brain” thinking – working ineffectively on the wrong stuff.

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Specifically, in the fiscal cliff talks, practically all of the focus has been on jacking up the marginal tax rates for millionaires and billionaires making more than $250,000.

Payroll taxes – for Social Security & Medicare – have been largely pushed off-stage.

That’s because both Dems & the GOP seem to agree that the 2% payroll “tax holiday” should be allowed to expire.

That may be true, but I think the payroll tax structure may be the key to hitting the seemingly conflicting objectives of raising tax revenues and creating jobs.

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Let’s lay out some basics:

What happens to whom if the current payroll tax holiday expires?

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Posted in Fiscal cliff, med, Medicare, Payroll taxes, Social Security, Tax reform, Taxes | 1 Comment »

Online: Covering your online tracks …

December 20, 2012

It’s no secret that there are no secrets on the internet.

Google an item and related ads start appearing on seemingly all websites you visit.

Post something on Facebook, and suddenly ads become a lot more personal.

Pick up the phone during election season and the caller mysteriously knows your’ political hot buttons.

As we posted before, if you think that you’re being followed around on the net … you’re right.

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So how do you avoid having your browsing linked to your real identity online?

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Posted in Computer hints & tricks, Online Behavior, Online privacy, Privacy issues, Technology | 3 Comments »

Sweetheart deal: Board member gets a premium priced buyback

December 20, 2012

In the private sector, this would be be grounds for a perp-walk.

But, not in government world, I guess.

The headline: GM to Buy Back Stock From Treasury

The story:

General Motors (aka. Government Motors) announced that it will purchase 200 million shares of stock held by the U.S. Treasury Department.

The auto maker will pay $5.5 billion for the shares.

The repurchase price of $27.50 a share represents a 7.9% premium over the closing price on Dec. 18.

After the repurchase, the U.S. Treasury will continue to own approximately 300 million shares of GM common stock, or approximately 19% of the outstanding shares on a fully-diluted basis.

GM expects to take a charge of approximately $400 million in the fourth quarter, which will be treated as a special item.

OK, let work through the pieces …

Even at the inflated price, since the Feds bought i at the $33 IPO   taxpayers will incur a trading loss of $5.50 per share … totaling to $1.1 billion.

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GM’s largesse in premium pricing the deal “saved” taxpayers about $400 million.

Keep in mind, this is hardly an arm’s length transaction.

And, we the people still own 300 million shares … representing a paper loss of another $2 billion.

Gentlemen start your engines …

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Posted in Autos - Travel, Bailouts, Gov't Waste & Inefficiency | Leave a Comment »