Money Minute: Google Fiber Test Hits Speedy Start

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Google's test of a super-fast Internet connection in Kansas City is off to a speedy start.

A survey by analysts at Bernstein Research finds 42 percent of residents in Kansas City have signed up for Google Fiber at $70 a month. That's about $5 a month more than the much slower service offered by Time Warner Cable (TWC). Google (GOOG) previously identified 33 other cities for expansion of the fiber service, if the Kansas City test goes well.

Student loans are about to get more expensive. The rate on undergraduate loans is set to rise by nearly a percentage point, to 4.66 percent. For a freshman starting at a four-year college later this year, that could mean $2,100 in extra interest payments over a decade.

The Internal Revenue Service will conduct 100,000 fewer audits this year, mostly because of cuts to the agency's budget. As a result, the IRS Commissioner says the government will lose about $3 billion in uncollected tax revenue.

Here on Wall Street, the Dow Jones industrial average (^DJI) rose 117 points Wednesday and the Standard & Poor's 500 index (^GPSC) added 10, but the Nasdaq composite (^IXIC) fell 13 points. The Nasdaq has lost 6.5 percent since its recent peak in early March.

The hope of harnessing offshore winds for energy use is catching sail. The Energy Department will pay up to $47 million for each of three projects to corral the winds off the coasts of New Jersey, Virginia and Oregon. The long-delayed projects are expected to begin delivering energy by 2017.

The Navy has selected Sikorsky Aircraft and Lockheed Martin (LMT) to build new helicopters to replace the aging fleet of presidential choppers. No surprise there. They were the only bidders. The award of $1.2 billion is for six new helicopters.

Finally, here's hoping Bob Costas doesn't have another untimely bout of pink eye. NBC has locked up the rights to broadcast the Summer and Winter games through the year 2032. It agreed to pay $7.7 billion to extend the current deal, which had been set to expire in 2020.

-Produced by Drew Trachtenberg.


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cabo79

Am I doing this right. 100,000 less audits, will lose the US 3,000,000,000 or $30,000 per audit. Who in the world are they auditing? I guess they should keep their audits to all people who make over 100,000 a year or so.

May 08 2014 at 2:52 PM Report abuse rate up rate down Reply
Larry

The best thing we can do to reduce the overreach of government is to cut the size of the IRS.

May 08 2014 at 12:04 PM Report abuse rate up rate down Reply
1 reply to Larry's comment
cabo79

And put tax cheets in jail for minumum of 90 days.

May 08 2014 at 2:53 PM Report abuse +2 rate up rate down Reply
Iselin007

"Finally, here's hoping Bob Costas doesn't have another untimely bout of pink eye. NBC has locked up the rights to broadcast the Summer and Winter games through the year 2032. It agreed to pay $7.7 billion to extend the current deal, which had been set to expire in 2020"

I doubt is Costas or many of us will be around in 2032.

May 08 2014 at 12:04 PM Report abuse rate up rate down Reply
rwdrakepi

The IRS commissioner says that because of the 100,000 fewer audits we will lose 3 billion dollars. That's $30,000.00 per audit. I think we have found our problem, the IRS is run by idiots!

May 08 2014 at 12:03 PM Report abuse -1 rate up rate down Reply
1 reply to rwdrakepi's comment
art6111

Actually run by clueless political hacks.

May 08 2014 at 3:57 PM Report abuse rate up rate down Reply
jenny` news

It probally has a quota to meet, so it is aware that it won`t get its quota.

May 08 2014 at 11:35 AM Report abuse -1 rate up rate down Reply
1 reply to jenny` news's comment
Iselin007

Please if it is like the H1B quota were doomed!

May 08 2014 at 11:59 AM Report abuse -1 rate up rate down Reply
moretrorun

How does the IRS know how much money it "loses" even before it audits? They should pay more attention the first time around instead of getting its refunds out what apparently is too quickly for it to handle.

May 08 2014 at 10:12 AM Report abuse +1 rate up rate down Reply
2 replies to moretrorun's comment
sasha

Because of all the reports filtering in as to production and wages. If you are wondering why the IRS is coming under scrutiny by conservatives, the 503c is a smoke screen. This is more about letting charities do more political work and cutting taxes owed to the government. You might have noticed that Congress is NOT investigating just what constitutes a legitimate charity. I say ban all c4's.

May 08 2014 at 10:41 AM Report abuse rate up rate down Reply
Iselin007

Evidently they know the BLS data is corrupt so they see less people actually working. Poverty is growing and most homeless have no mailing address or Internet connection.

May 08 2014 at 11:56 AM Report abuse rate up rate down Reply