In a Wall Street Journal opinion article, economist Arthur Laffer discusses the tax hikes and the effect that they will have on our economy. Laffer illustrates how tax rates alter the timing of corporate profits and uses historical comparisons in his analysis. Laffer predicts an economic collapse in 2011 and a rise in deficits and unemployment.
To read the Laffer article, please click here:
Jim Sutliff
A recent Bloomberg Chart of the Day highlights a Debt Super Cycle that our economy is about to enter in the near future. The amount owed on our national debt will be greater than our 2012 GDP. One economist noted that interest rates on government debt will have to rise in the long term to attract investors.
To read the Bloomberg Chart of the Day, please click here:
http://www.bloomberg.com/apps/news?pid=20601109&sid=aa0cI64Gx.4E&pos=15
Jim Sutliff
Since declaring in late May, Dino Rossi has raised over $600,000 dollars. Rossi has quickly turned the Senate race in Washington into a competitive match. The Rossi entry could be the difference in control of the U.S. Senate after the 2010 elections. Rossi has a very good chance of winning and his campaign will force Democratic party resources to be spent in Washington instead of other competitive races. Without Rossi the Democrat would have easily won re-election.
To read a Congressional Quarterly article, please click here:
http://blogs.cqpolitics.com/eyeon2010/2010/06/rossis-riches.html
Jim Sutliff
The Gulf oil spill has led to discussions on relating to the rolling back of tax breaks for oil companies. The well is estimated to be leaking between 12,000 and 15,000 barrels a day. There is more than enough blame to go around in this catastrophe.
To read a related Bloomberg article, please click here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aAQ5__zufzTM&pos=9
Jim Sutliff
New York Democrat Charles Schumer is proposing legislation that would put a .25 cent excise tax on call center calls that are relayed to outside countries. There would also have to be notification to the caller of the country that there call will be forwarded. The purpose is to limit call center outsourcing and to bring some jobs back to America. It will also have the efeect of keeping data for American customers in domestic hands.
To read a related Newsmax article, please click here:
http://www.newsmax.com/US/NY-Call-Centers-Schumer/2010/05/30/id/360547
James Sutliff
After three days, the Top Kill method has failed and BP is already discussing alternative methods. The oil and natural gas leak is one of the worst in history and plugging the well at a depth of 5,000 is very difficult at best. A relief well is expected to be a permanent solution to the leak but it won’t be ready until August.
To read a Wall Street Journal article, please click here:
Jim Sutliff
Congress.org has an article on the top 5 political restaurants in Washington. The Capitol Hill Club is at the top of the list and Charlie Palmer’s Steakhouse also makes an appearance. Four are available to the publice but The Capitol Hill Club is only for members.
To read the Congress.org article, please click here:
http://www.congress.org/news/2010/05/26/dcs_top_five_political_restaurants
Jim Sutliff
The head of the Minerals Management Service has resigned from the post. There has also been a six month moratorium placed on deep water drilling permits. In addition, plans to drill off the Virginia coast have been cancelled and exploratory wells in the Artic off Alaska have been delayed.
To read a related Bloomberg article, please click here:
http://www.bloomberg.com/apps/news?pid=20601070&sid=aEaDm28FWf1M
Jim Sutliff
One of the best sources for political news and analysis is Roll Call. Roll Call has a recent article that provides an overview of the House elections. The article cites a Rothenberg political report which indicates that 68 Democratic seats are in play and only 11 Republican seats are at risk. It also discusses the possiblity of a Republican takeover of the House this year.
To read the Roll Call article, please click here:
http://www.rollcall.com/features/Election-Preview_May-2010/election/46199-1.html?page=2
Jim Sutliff
Djou cam in with almost 40% of the vote and won the special election in Hawaii. The race has received a great deal of coverage mainly due to it being the district that Obama called home. There were two Democrats in the race that split the Democratic vote so it may be a tougher fight in November for Djou. The special election results were announced after midnight eastern standard time.
To read a related article, please click here:
http://news.yahoo.com/s/ap/us_hawaii_congress
Jim Sutliff
Financial news coming out of DC has not been all that pretty for the most part. The FDIC problem bank list expanded to 775 which is 10% higher than the previous quarter. The FDIC insurance fund is also still in the red. In addition, the Home Affordable Modification Program has had its fair share of problems.
To read a related Forbes article, please click here:
Jim Sutliff
Democratic Senator Arlen Specter lost a primary battle to Joe Sestek in the election on Tuesday. Specter switched from the Republican party in an attempt to avoid a primary with Pat Toomey. If elected, it would have been the sixth term for the Senator.
To read a related article, please click here:
http://www.bloomberg.com/apps/news?pid=20601070&sid=a2D8QWSRHc2w
James Sutliff
A number of primaries are being held today and the outcome will have a great effect on the next Senate. Specter is facing a primary challenge from Sestak on the Democratic line. Specter switched parties and a loss in this primary will end his service in the Senate. Another race to watch is that of Democrat Blanche Lincoln in Arkansas. A victory in the race with less than 50% will lead to a June 8th run-off election.
To read a related Bloomberg article, please click here:
http://www.bloomberg.com/apps/news?pid=20601070&sid=ahHZNKwKzWm8
Jim Sutliff
Although it is still two years away from their elections, some 2012 Senate candidates are raising money like it’s an election year. Four Democrats are mentioned in a recent Congressional Quarterly article that discusses candidate fundraising. McCaskill, Feinstein, Kohl and Byrd all are holding sits that are likely Republican targets. Byrd and Kohl may retire which would set the stage for very competitive races.
To read the Congressional Quarterly article, please click here:
http://blogs.cqpolitics.com/eyeon2010/2010/05/raising-money—-30-months-bef.html
Jim Sutliff
The Republican convention in 2012 will be held in Tampa Florida. A Republican National Committee panel recommended Florida and it is the best possible choice for the Republicans. The move will help secure the 27 electoral votes for the Republican candidate and give them more roads to reach 270.
To read a related Associated Press article, please click here:
http://news.yahoo.com/s/ap/20100512/ap_on_el_pr/us_republicans2012
James Sutliff
