18. May 2012 by Jim Sutliff.

Fitch Ratings downgraded Greece one notch from B- to CCC.  A lower grade would place Greece in default.  The Greece downgrade was partially due to the risks associated with a possible exit from the European Union.  Greek elections are expected to be held in mid-June and could produce a government that does not support the austerity plan.

To read a related Businessweek article, please click here:

http://www.businessweek.com/ap/2012-05/D9UQLLJO1.htm

James Sutliff

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7. May 2012 by Jim Sutliff.

Francois Hollande won the French Presidential election on Sunday.  Hollande defeated Nicolas Sarkozy and became the first Socialist candidate to win the Presidency since 1985.  Francois Mitterand was the last Socialist French President from 1981-1995.  Hollande is expected to raise taxes and increase government spending.

To read a related Fox News article, please click here:

http://www.foxnews.com/world/2012/05/06/sarkozy-expected-to-be-defeated-as-polls-open-across-france-in-presidential/

James Sutliff

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1. May 2012 by Jim Sutliff.

Standard & Poor’s cut the credit rating for Spain to BBB+ from A.  The two notch downgrade came with a negative outlook and a cut to the gross domestic product growth forecast.  Standard & Poor’s has a projected forecast of a 1.5% contraction for Spain GDP.  The previous forecast projected GDP growth of .3%.

To read a related Fox Business article, please click here:

http://www.foxbusiness.com/markets/2012/04/26/sp-downgrades-spain-to-bbb-on-debt-concerns/

Jim Sutliff

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30. March 2012 by Jim Sutliff.

Congress passed a stopgap 90 day bill that will provide funds for Federal highway projects.  The measure passed the House on Thursday with 266 votes supporting the bill.  The U.S. Senate passed the bill with a voice vote.  The President is expected to sign the stopgap bill on Saturday.

To read a related Fox News article, please click here:

http://www.foxnews.com/politics/2012/03/29/jobs-construction-projects-on-line-as-congress-tries-to-break-impasse-by/

James Sutliff

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19. February 2012 by Jim Sutliff.

Congress passed a measure to extend the payroll tax cut for the remainder of 2012.  The measure passed the House 293-132 and the Senate 60 -36.  In the Senate, 14 Republicans voted for the measure and 5 Democrats and 1 Independent were opposed.  The bill will lower payroll taxes for 160 million workers.

To read a related Roll Call article, please click here:

http://www.rollcall.com/news/congress_seals_the_deal_sends_payroll_tax_bill_to_obama-212521-1.html?pos=hbtxt

Jim Sutliff

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16. February 2012 by Jim Sutliff.

The House and Senate could vote on the payroll tax deal as early as Friday.  Four Democratic Senators and all 13 House Representatives at the payroll tax conference signed the agreement.  Republic Senators did not sign the agreement but that should not prevent passage of the tax cut measure.  The payroll tax cut agreement resolves an issue early in the election year.

To read a related Roll Call article, please click here:

http://www.rollcall.com/news/conferees_sign_payroll_tax_deal-212503-1.html?pos=hftxt

James Sutliff

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13. February 2012 by Jim Sutliff.

Republican leaders in the House are supporting the extension of the payroll tax cut without reductions in spending.  This clears a major hurdle in negotiations to extend the payroll tax cut which applies to 160 million workers.  The payroll tax cut is set to expire at the end of February.  The payroll tax cut extension may reach the House floor by the end of the week.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/02/13/usa-taxes-payroll-idUSL2E8DDC0D20120213

Jim Sutliff

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13. January 2012 by Jim Sutliff.

According to the Commerce Department, the U.S. trade deficit increased by 10.4% to 47.8 billion in November.  The increase was larger than economists had expected and was the widest trade deficit since June.  Petroleum products accounted for a significant amount of the increase in imports.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-13/u-s-trade-deficit-widened-more-than-forecast-to-47-8-billion.html

Jim Sutliff

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22. December 2011 by Jim Sutliff.

House Republicans are set to approve a two month extension of the payroll tax cut.  House Republican John Boehner has come to an agreement with Democratic Senator Harry Reid.  The agreement would extend the tax cut for two months and begin negotiations to work out a deal for a full year extension. The payroll tax cut lowers the rate from 6.2% to 4.2%.

To read a related Roll Call article, please click here:

http://www.rollcall.com/news/john_boehner_harry_reid_reach_deal_payroll_tax_holiday-211247-1.html?pos=hftxt

Jim Sutliff

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21. December 2011 by Jim Sutliff.

Italian third quarter Gross Domestic Product has fallen 0.2% from the second quarter.  This may mark the fifth recession for the Italian economy since 2001.  Although exports grew 1.6%, consumer spending declined 0.2% and investment contracted 0.6%.  In addition, Italy has taken steps to lower spending that could slow economic growth in the near term.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-12-21/italian-gdp-shrinks-in-third-quarter-signaling-fifth-recession-since-2001.html

James Sutliff

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17. December 2011 by Jim Sutliff.

The Senate passed a two month extension of the payroll tax cut.  On Saturday, the measure passed the Senate with a vote of 89-10.  The payroll tax cut amounts to a two percent drop from 6.2% to 4.2%.   An increase in fees for new mortgages backed by Fannie Mae and Freddie Mac will cover the cost of the tax cut.

To read a related MSNBC article, please click here:

http://www.msnbc.msn.com/id/45707185/ns/politics/

James Sutliff

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14. December 2011 by Jim Sutliff.

The Euro fell below $1.30 in afternoon trading on Wednesday.  The Euro has not traded below $1.30 since mid-January of this year.  Traders are watching Standard & Poor’s for any indications of sovereign debt downgrades.  France is one of the nations that could lose triple-A status.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052970203893404577097810020345818.html?mod=WSJ_hp_LEFTTopStories

Jim Sutliff

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12. December 2011 by Jim Sutliff.

Republican and Democratic officials have agreed on a spending bill through October 1st 2012.  Specific details of the agreement are expected to be released on Tuesday.  The measure still requires approval of the Senate and the House of Representatives.  The current spending bill is set to expire this Friday.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/12/13/us-usa-budget-idUSTRE7B72MK20111213

James Sutliff

Posted in Infrastructure, Congress, Economy, 2012, Budget, Tax, Republican, Business, Democrat, General, Politics, Administrative | No Comments »

8. December 2011 by Jim Sutliff.

A measure supported by the Democrats that would cut the payroll tax was blocked in the Senate.  The bill only received 50 votes and needed 60 votes to move forward.  The payroll tax on the first $110,100 would have fallen to 3.1% from 4.2% in 2012.  An agreement on some form of a payroll tax cut or extension is likely in the next few weeks.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-12-08/senate-blocks-dem-bill-to-expand-payroll-tax-cut.html

James Sutliff

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27. November 2011 by Jim Sutliff.

The integration of fiscal policy is an important step for Euro zone countries in solving their debt crisis.  A recent plan would utilize bilateral agreements instead of changing European Union treaties.  Bilateral agreements could make implemention of fiscal policy changes faster than the time consuming process of changing treaties.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052970204630904577062592535969680.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsThird

Jim Sutliff

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