DailyFinance.comhttp://www.dailyfinance.comDailyFinance.com%http://www.blogsmithmedia.com/BlogURL%/media/feedlogo.gifDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/States, Feds to Announce Mortgage Settlementhttp://www.dailyfinance.com/2012/02/09/states-feds-to-announce-mortgage-settlement/http://www.dailyfinance.com/2012/02/09/states-feds-to-announce-mortgage-settlement/http://www.dailyfinance.com/2012/02/09/states-feds-to-announce-mortgage-settlement/#commentsFiled under: , , , ,

ForeclosureWASHINGTON (AP) - U.S. states have reached a $25 billion deal with the nation's biggest mortgage lenders over foreclosure abuses that occurred after the housing bubble burst.

Federal and state officials announced the deal Thursday. It is the biggest settlement involving a single industry since a 1998 multistate tobacco deal.

Under the agreement, five major banks - Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C) and Ally Financial - will reduce loans for nearly 1 million households. They will also send checks of $2,000 to about 750,000 Americans who were improperly foreclosed upon. The banks will have three years to fulfill the terms of the deal.

All but one of the 50 states agreed to the deal. Oklahoma, the lone holdout, will receive no money.

The conditions will be overseen by Joseph A. Smith Jr., North Carolina's banking commissioner. Lenders that violate the deal could face $1 million penalties per violation and up to $5 million for repeat violators.

The settlement ends a painful chapter that emerged from the financial crisis, when home values sank and millions edged toward foreclosure. Many companies processed foreclosures without verifying documents. Some employees signed papers they hadn't read or used fake signatures to speed foreclosures - an action known as robo-signing.

Under the deal, the 49 states have said they won't pursue civil charges related to these types of abuses. Homeowners can still sue lenders in civil court on their own, and federal and state authorities can pursue criminal charges.

"There were many small wrongs that were done here," said U.S. Housing and Urban Development Secretary Shaun Donovan. "This does not resolve everything. We will be aggressive about going after claims elsewhere."

Bank of America will pay the most to borrowers as part of the deal - nearly $8.6 billion. Wells Fargo will pay about $4.3 billion, JPMorgan Chase will pay roughly $4.2 billion, Citigroup will pay about $1.8 billion and Ally Financial will pay $200 million. This does not include $5.5 billion in federal and state payments.

The deal also ends a separate investigation into Bank of America and Countrywide for inflating appraisals of loans from 2003 through most of 2009. Bank of America acquired Countrywide in 2008.

The banks and U.S. state attorneys general agreed to the deal late Wednesday after 16 months of contentious negotiations.

New York and California came on board late Wednesday. California has more than 2 million "underwater" borrowers, whose homes are worth less than their mortgages. New York has some 118,000 homeowners who are underwater.

In addition to the payments and mortgage write-downs, the deal promises to reshape long-standing mortgage lending guidelines. It will make it easier for those at risk of foreclosure to make their payments and keep their homes.

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Those who lost their homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement.

The settlement would apply only to privately held mortgages issued from 2008 through 2011. Banks own about half of all U.S. mortgages - roughly 30 million loans.

Some critics say the proposed deal doesn't go far enough. They have argued for a thorough investigation of potentially illegal foreclosure practices before a settlement is hammered out.

Under the deal:

- Roughly $1.5 billion for direct payouts, in the form of $2,000 checks, for about 750,000 Americans who were unfairly or improperly foreclosed upon, another $3.5 billion will go directly to states.

- At least $10 billion for reducing mortgage amounts.

- Up to $7 billion for other state homeowner programs.

- At least $3 billion for refinancing loans for homeowners who are current on their mortgage payments but who are underwater.

___

Associated Press Writer Michael Virtanen contributed from Albany, NY to this report.


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]]>Beau BidenBeauBidenbig banksBigBanksforeclosure dealsforeclosure fraudforeclosure settlementForeclosureDealsForeclosureFraudForeclosureSettlementJ.P. MorganJ.p.Morganmortgage settlementMortgageSettlementstate attorney generalStateAttorneyGeneralThe Associated PressThu, 09 Feb 2012 10:51:00 ESTUnemployment Aid Applications Near a 4-Year Lowhttp://www.dailyfinance.com/2012/02/09/unemployment-aid-applications-near-a-4-year-low/http://www.dailyfinance.com/2012/02/09/unemployment-aid-applications-near-a-4-year-low/http://www.dailyfinance.com/2012/02/09/unemployment-aid-applications-near-a-4-year-low/#commentsFiled under:

Unemployment aid applications near a 4-year lowWASHINGTON (AP) - The number of people seeking unemployment aid neared a four-year low last week, a positive sign that strong hiring could continue in the coming months.

The Labor Department said Thursday that weekly applications for unemployment benefits fell 15,000 to a seasonally adjusted 358,000. That's the second-lowest level since April 2008.

The four-week average, a less volatile measure, fell to 366,250, the lowest since late April 2008.

"The encouraging U.S. employment news continues," Jennifer Lee, an economist at BMO Capital Markets, wrote in a note to clients. The "job market started February off on a sturdy footing."

When applications fall consistently below 375,000, it generally signals that hiring is strong enough to lower the unemployment rate.

Employers added a net gain of 243,000 jobs in January, the biggest gain in nine months. The unemployment rate fell for the fifth straight month to 8.3 percent, the lowest in nearly three years.

From November through January, the economy has added an average of 201,000 net jobs per month.

The increased hiring in part reflects faster economic growth. The economy expanded at an annual rate of 2.8 percent in the final three months of last year - a full percentage point higher than the previous quarter.

Applications are also falling because companies are laying off fewer workers. A separate report from the Labor Department, released earlier this week, showed that job cuts have fallen below pre-recession levels. Layoffs dropped last year to the lowest annual total in the 10 years the government has tracked the data.

With job cuts low, even a modest increase in hiring results in net job gains.

The number of people receiving benefits edged up in the week ending Jan. 21, the latest data available. About 7.6 million people received unemployment aid that week, a slight increase from the previous week. That figure includes about 3.5 million people receiving extended unemployment benefits under an emergency program set up during the recession.

That program is set to expire at the end of this month, unless Congress agrees to extend it through the end of the year. Lawmakers are wrangling over how to pay for an extension of benefits and for an extension of a Social Security tax cut that is also set to expire at the end of this month.

Most economists expect growth will slow a bit in the January-March quarter, because companies won't need to rebuild their stockpiles of goods as much as they did in the winter.

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But some economists are increasingly optimistic that the economy will steadily expand this year, given last month's unexpectedly large job gains and other positive signs.

U.S. manufacturing activity grew in January at the fastest pace in seven months. Americans are buying more cars and trucks. And consumers stepped up borrowing in November and December by the most in a decade, which could indicate they are growing more confident in the economy.

Still, the job market has a long way to go before it fully recovers from the damage of the Great Recession. Nearly 13 million people remain unemployed, and 8.3 percent unemployment is painfully high.

One reason the unemployment rate has fallen for five straight months is that many people have stopped looking for work. The government only counts people as unemployed if they are actively searching for a job.

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]]>jobless aidJoblessAidjoblessnessLabor Departmentlabor department statisticslabor marketLaborDepartmentLaborDepartmentStatisticsLaborMarketunemployment aidUnemploymentAidThe Associated PressThu, 09 Feb 2012 10:30:00 ESTVisa 1Q Profit Rises 16% as Card Use Riseshttp://www.dailyfinance.com/2012/02/08/visa-1q-profit-rises-16-as-card-use-rises/http://www.dailyfinance.com/2012/02/08/visa-1q-profit-rises-16-as-card-use-rises/http://www.dailyfinance.com/2012/02/08/visa-1q-profit-rises-16-as-card-use-rises/#commentsFiled under: , , ,

Visa first quarter profit rises 16 percent as card use risesNEW YORK (AP) - Visa Inc. (V) said Wednesday that its fiscal first-quarter profit rose 16 percent, as card use rose both in the U.S. and overseas.

The San Francisco-based payments processor posted a notable 10 percent increase in U.S. credit card use.

But debit card use rose just 6 percent. That's the slowest debit card growth rate in more than a year, and comes during the first three-month period that new rules were in place to limit the fees retailers pay to accept the cards.

The rules also require that starting in April, merchants get a choice on which network handles their debit transactions. In the last few months, Visa has been offering incentives to encourage stores to choose its network.

Debit growth has been slowing over the past few quarters.

"It didn't come totally out of the blue," said Edward Jones analyst Shannon Stemm. While it's still early to determine the impact of the new regulations, she noted that rival MasterCard Inc.'s (MA) results last week showed some apparent debit market share gains versus Visa, which still holds the bulk of the U.S. debit market.

Nevertheless, Visa's results for the quarter showed strong growth indicating consumers continue to shift away from cash and toward plastic and electronic payments.

Visa posted net income for the three months ended Dec. 31 of $1.03 billion, or $1.49 per share. That compares with $884 million, or $1.23 per share, in the year-earlier period. There were 4 percent fewer outstanding shares in the recent quarter due to buybacks, which increases per-share results.

Revenue for the quarter rose 14 percent to $2.55 billion, from $2.24 billion the prior year.

Analysts, on average, were expecting profit of $1.45 per share, on revenue of $2.47 billion.

Visa, the world's largest payment network, said the gains reflected higher card use, increased data processing revenue and a 19 percent boost in international transactions. It is aiming to increase its business overseas so that it eventually generates more than half of its revenue. For the quarter, international transaction revenue accounted for about 29 percent of total revenue.

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The company also said its board approved another $500 million share buyback program.

Visa now expects annual revenue growth in the low double digits, which removes the lower end of its prior forecast for high-single digit to low-double digit growth. It forecast earnings per share growth in the high teens, updating its prior projection for a high single-to low-double digit range.

The results buoyed the stock. In aftermarket electronic trading, Visa shares added $3.65 to $112. The stock closed the regular session up $1.37 at $108.35.


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]]>credit cardcredit card companiescredit card companycredit cardsCreditCardCreditCardCompaniesCreditCardCompanyCreditCardsmastercardmastercard incMastercardIncVisavisa profitVisaProfitThe Associated PressWed, 08 Feb 2012 17:16:00 ESTMcDonald's Key Revenue Figure Up 6.7% in Jan.http://www.dailyfinance.com/2012/02/08/mcdonalds-key-revenue-figure-up-6-7-in-jan/http://www.dailyfinance.com/2012/02/08/mcdonalds-key-revenue-figure-up-6-7-in-jan/http://www.dailyfinance.com/2012/02/08/mcdonalds-key-revenue-figure-up-6-7-in-jan/#commentsFiled under: , , ,

McDonaldsOAK BROOK, Ill. (AP) - McDonald's Corp. (MCD) said Wednesday that a key revenue figure climbed 6.7 percent in January as U.S. customers spent more on breakfast items, beverages and its new Chicken McBites.

The world's biggest hamburger chain's strongest January results were in the U.S., as revenue in restaurants open at least 13 months rose 7.8 percent there. The metric increased 7.3 percent in the region made up of Asia, the Middle East and Africa, and 4 percent in Europe.

The U.S. accounts for about 31 percent of McDonald's total revenue. Europe, which accounts for 40 percent of revenue, is McDonald's largest market.

McDonald's has fared well in the recession and its aftermath. It's added menu items like smoothies and oatmeal to try to draw in healthier eaters and pushed fancy coffee drinks to try to appeal to customers who might normally go to Starbucks. But it's still promoting itself as a cheap place to get a meal.

January's gain beat the 6.5 percent increase that analysts polled by FactSet expected. The company's stock gained 44 cents to $101.35 in premarket trading.

Revenue in restaurants open at least 13 months is a key measure of a restaurant chain's performance, because it excludes the impact of recently opened or closed stores. It does include the Oak Brook, Ill.-based company's temporarily closed restaurants.

The figures are a snapshot of money spent on food at both company-owned and franchised restaurants. They do not reflect corporate revenue.

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In the U.S., customers snapped up Chicken McBites. The menu item, which is only available for a limited time, is made with bite-size pieces of chicken breast that are smaller than Chicken McNuggets.

Restaurants in the U.K., Russia, Germany and France helped drive revenue in Europe, while the Chinese New Year and limited-time menu items gave a boost to the Asia, Middle East and Africa region.

McDonald's, which is based in Oak Brook, Ill., has more than 33,000 restaurants in 119 countries. The chain is also revving up growth by expanding in emerging markets. CEO Jim Skinner said last month that McDonald's plans to add a net of 900 new restaurants in the coming year, concentrated in Asia, the Middle East and Africa.


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]]>Chicken McBitesChickenMcbitesmcdonaldsMcDonalds CorpMcdonaldsCorpThe Associated PressWed, 08 Feb 2012 10:40:00 ESTVerizon-Redbox Deal Adds to Online Video Choiceshttp://www.dailyfinance.com/2012/02/07/verizon-redbox-deal-adds-to-online-video-choices/http://www.dailyfinance.com/2012/02/07/verizon-redbox-deal-adds-to-online-video-choices/http://www.dailyfinance.com/2012/02/07/verizon-redbox-deal-adds-to-online-video-choices/#commentsFiled under: , , , , , , , ,

Verizon-Redbox deal adds to online video choicesA new Internet streaming venture built around Redbox's DVD-rental kiosks adds to a crowded field of online video-viewing services dominated by Netflix (NFLX).

In announcing the new venture Monday, Verizon Communications Inc. (VZ) and Redbox's parent company, Coinstar Inc. (CSTR), did not say what types of content will be available or how much the service will cost when it starts in the second half of this year.

But executives did say the service will bundle streaming and DVDs, which Redbox currently rents through its ubiquitous red kiosks in supermarkets, drug stores and other places around the U.S.

It's likely that any plan from the new, still-unnamed venture will be cheaper than the minimum $16 a month that Netflix customers now pay to get both DVDs and online streaming access to a vast trove of movies, TV show episodes and original programming. It's also likely that the new venture won't have as extensive a selection as Netflix now does.

Companies such as Apple Inc. (AAPL) and Amazon.com Inc. (AMZN), as well as cable companies and TV stations themselves, already offer a variety of ways to catch TV show episodes and movies using Internet-connected devices.

Here are details on some of them:

- Amazon's Instant Video

Amazon's service offers thousands of movies and TV show episodes for online rental. Rental prices are generally $1 to $5. There is no monthly subscription plan, so this option is best if you're looking for an a la carte plan that lets you pick what you want to watch.

Amazon offers free streaming of some of its content to members of its $79-per-year Prime program, which also offers free two-day shipping and discounts on next-day shipping.

With Amazon, you can stream movies and shows on computers or on TV sets using a compatible, Internet-connected device such as a Blu-ray player or a set-top box from the likes of Sony (SNE), Panasonic (PC), TiVo (TIVO) or Logitech (LOGI).

- Apple iTunes

Renting movies through Apple's iTunes is another pay-per-view option to access the latest movies or TV shows. You can rent regular or high-definition flicks and watch them on an iPhone, iPad, computer or TV set using an Apple TV set-top box.

Apple lets you rent first-run, high-definition movies the day they come out on DVD for $5 each, though most movies cost $3 or $4. TV shows are generally $1. You can watch rentals for a day or two from when you start playing them.

As with Amazon, renting movies through Apple is a good option if you want the latest releases as soon as possible.

- Blockbuster

The on-demand service from this movie rental pioneer lets customers rent or buy movies and TV shows and watch them through their TV, Blu-ray player, digital video recorder, mobile phone or other gadget. There are no monthly fees.

Renting ranges from fee for a small amount of content to "$2.99 or less" and "$3 or higher" depending on the movie or show.

Separately, Blockbuster also offers access to its (at)Home service for customers who sign up for satellite-TV services from Dish Network Corp. (DISH), its parent company. The (at)Home service includes streaming movies as well as DVDs by mail. It is included for three months for new Dish customers who sign up for the service. After that, it's as low as $10 a month.

- Cable

Cable TV providers such as Comcast Corp. (CMCSA, CMCSK) and Time Warner Cable Inc. (TWC) offer on-demand options to their monthly subscribers. Time Warner charges $3 or less for older movies, more for new releases. Other cable TV companies have similar pricing. Movies are sometimes free, including those that come with a subscription to HBO or other premium channels.

Of course, you need monthly cable service, which generally runs about $70 per month.

- Hulu and Hulu Plus

The service owned by the parent companies of broadcasting networks ABC, NBC and Fox offers thousands of TV show episodes and movies to its viewers.

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Besides a free option, Hulu Plus subscribers can pay $8 per month for more content, high-definition viewing and access on the iPad and newer-model iPhones, as well as video game consoles and high-end TV sets from Samsung, Sony or others.

Hulu's content skews more toward TV shows than movies, though both are available. It's a good option for those looking to watch shows such as the "Daily Show," ''Family Guy" or "The Office."

Both Hulu and Hulu Plus show advertisements, though on Hulu Plus there are movies available without commercial interruption. Hulu is also delaying the availability of some TV episodes on its free service.

- Vudu, from Wal-Mart (WMT)

Walmart.com offers streaming movies and TV shows through the website Vudu.com, generally for $2 to $6. Many movies are available for streaming a la carte, the same day they come out on DVD. There are no monthly subscription plans.


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]]>coinstarCoinstar RedboxCoinstarRedboxNetflixstreaming videoStreamingVideoVerizonVerizon RedboxVerizonRedboxThe Associated PressTue, 07 Feb 2012 12:22:00 ESTWal-Mart Debuts 'Great for You' Sealhttp://www.dailyfinance.com/2012/02/07/wal-mart-debuts-great-for-you-seal/http://www.dailyfinance.com/2012/02/07/wal-mart-debuts-great-for-you-seal/http://www.dailyfinance.com/2012/02/07/wal-mart-debuts-great-for-you-seal/#commentsFiled under: ,

WalmartNEW YORK (AP) - You may like the food you buy, but is it "Great for You"?

Wal-Mart Stores Inc. (WMT) plans to help its customers figure that out by adding a new green icon that reads "Great for You" to packaging of some of its house-brand foods.

The green and white seal, which shows the stylized outline of a human figure with its arms spread toward the sky, is part of a multiyear campaign the world's largest retailer is undertaking to promote healthier products and fight childhood obesity.

Food makers and sellers have come under scrutiny in the past for adding nutritional seals to the fronts of packages. The Food and Drug Administration said in 2009 that some companies used them misleadingly.

The FDA is developing standards for what health claims can be made on food packages, but Wal-Mart says its customers want the information now.

Wal-Mart's new seal, which echoes the name of one of its key house brands, Great Value, won't impart any actual nutritional information when it starts appearing this spring. But the company says the seal will be affixed to in-house products with lower levels of fat, sugar and artificial additives.

The seal also will appear on signs near bins of fruits and vegetables and on some of Wal-Mart's in-house products under the Marketside brand. The company said 20 to 25 percent of its Great Value-brand foods meet the criteria for the new seal, though it didn't say how many products will carry it.



"It helps customers see very, very quickly what healthier choices are for them," Andrea Thomas, senior vice president of sustainability for Wal-Mart Stores, said Monday in a conference call with reporters.

The criteria will be outlined at www.walmartgreatforyou.com and allow all-natural foods, as well as foods without added sugar or too much fat, including fresh fruits and vegetables and items such as whole wheat pasta and low-fat dairy products.

Foods that have too many artificial additives, or too much fat, don't make the cut, Wal-Mart said. Regular pasta, white rice and yogurt with added sugar will not carry the seal.

Nutritional guidelines always have gray areas. Eggs were debated because of worries over their high cholesterol, for example, but Thomas said they earned the seal because they are a low-cost source of protein.

The FDA in 2009 said it would develop its own standards for health claims on food package fronts, but it has yet to do so. The agency said then that the proliferation of different labels created by different food companies could confuse consumers.

Wal-Mart officials say they consulted with the FDA as it developed the "Great For You" seal and would comply with whatever standards the agency eventually sets. But customers are looking for information now, they say.

Wal-Mart, which is based in Bentonville, Ark., says it determined the guidelines after a year of meeting with health organizations, customers, its suppliers and others.

___

AP Writer Mary Clare Jalonick in Washington contributed to this report.

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]]>childhood obesityChildhoodObesitywalmartwalmart storesWalmartStoresThe Associated PressTue, 07 Feb 2012 10:40:00 ESTTax Reform in This Election Year: It's Not Likelyhttp://www.dailyfinance.com/2012/02/06/tax-reform-in-this-election-year-its-not-likely/http://www.dailyfinance.com/2012/02/06/tax-reform-in-this-election-year-its-not-likely/http://www.dailyfinance.com/2012/02/06/tax-reform-in-this-election-year-its-not-likely/#commentsFiled under:

Tax Reform in this election year is unlikelyWASHINGTON (AP) - Tax reform sounds like a good idea to lots of people, but where to start? Eliminate the popular deduction for home mortgages? End the write-off for charitable contributions? How about expanding the Social Security payroll tax?

Not likely.

Politicians of all stripes in this presidential election year are clamoring for simplifying the tax code and closing loopholes. But that would mean Americans would lose some of their prized deductions.

Not that Congress actually is likely to end tax breaks for home loans or religious and charitable contributions anytime soon. President Barack Obama and his chief Republican challengers - Mitt Romney and Newt Gingrich - certainly aren't advocating that.

In fact, recommendations to trim the mortgage deduction made in 2005 by a tax-overhaul panel convened by then President George W. Bush and again in 2010 by a deficit-reduction committee set up by Obama were ignored by both those presidents.

Overhauling the complex U.S. tax code could mean that for everyone who would pay less someone else would pay more. And every existing provision in the code has its advocates.

"Tax reform is ferociously difficult. If you tackle it straight up, the likelihood of success is rather small," said Henry Aaron, a senior fellow in economic studies at the Brookings Institution. "Whenever you try to take money away from somebody, they will fight harder to keep it than will those who stand to gain."

And if deficit reduction is also a goal, it makes the job even harder.

Most recently, a bipartisan deficit-reduction congressional "supercommittee" failed to meet a Thanksgiving 2011 deadline and had to disband when it could not find common ground on tax changes.

None of the major tax overhaul proposals now on the table seems likely to be enacted given the current political rancor in Washington.

Of course, a lot could depend on the outcome of the November elections.

For now, the urgency for both parties is focused on the Bush-era tax cuts, scheduled to expire at year's end. Republicans generally want to make them permanent. Democrats would like to raise taxes on the wealthy but keep them at present levels for all others.

The income tax as we now know it has been around for nearly 100 years, and it's had only a few major overhauls.

The last major restructuring came in 1986, when Republican President Ronald Reagan and Democratic House Speaker Thomas P. O'Neill were able to put aside their political differences to strike a grand deal that both simplified the tax code and lowered rates on most individuals.

"To get comprehensive tax reform, you have to have tremendous presidential leadership. There's no way around that to be successful," said Douglas Holtz-Eakin, who was the director of the Congressional Budget Office from 2003 to 2005 and now heads the American Action Forum, a conservative public policy institute.

In addition to being a hot issue on the campaign trail, tax reform is also being closely studied by congressional leaders who oversee tax-writing, Holtz-Eakin said. "So with all the key players all saying 'Let's do it,' I think that's promising."

"Now the next issue is, what is 'it'?" There, we don't have a consensus," he added.

Obama has proposed ending tax breaks for U.S. companies moving jobs or profits to foreign countries. He also would create a minimum tax on their overseas earnings. And he has suggested new tax breaks for businesses that move jobs back to the U.S., for domestic manufacturing and for companies that invest in towns that have suffered major job losses. But getting most attention is his plan to tax personal incomes above $1 million - including investment income - at a rate of at least 30 percent.




"Washington should stop subsidizing millionaires," Obama said in his State of the Union address. "Send me these tax reforms, and I'll sign them right away."

Obama also wants to see corporate taxes lowered but hasn't said by how much. The White House has signaled he'll unveil details on Feb. 13 when he submits his budget for the fiscal year that begins Sept. 1.

The nominal corporate tax rate is 35 percent, the highest in the world after Japan. However, few companies pay that much after taking various deductions. Because of recent special deductions in the government's stimulus programs, including the ability to write off the full cost of purchases of new equipment, corporations last year paid just over 12 percent on average. That is expected to rise to about 26 percent this year, according to Congressional Budget Office calculations.

Romney would make permanent most Bush-era tax cuts and would eliminate taxes on interest, dividends and capital gains for those earning under $200,000. He would lower the corporate tax rate to 25 percent.

Jobs and tax reform have been leading issues in the GOP primaries so far. Most Americans believe that the tax system is unfair and would like to see it changed, recent polls suggest. The polls show a majority believe upper-income Americans pay less than their fair share, although far more Democrats believe this than Republicans. There is also a big political divide over whether to keep the current system of taxing investment income - such as dividends and capital gains - at lower rates than wages. Far fewer Democrats than Republicans want to keep things the way they are, polls show.

Romney, one of the richest presidential candidates ever, recently disclosed that he paid federal taxes at an effective rate of around 15 percent because most of his income came from investments that are taxed at that rate, compared to a top rate of 35 percent for wages. That disclosure has helped fuel the recent surge of interest in tax reform.

Gingrich would let people choose whether to file under the current system or pay a 15 percent "flat" tax while preserving the mortgage interest and charitable deductions. He would eliminate the capital gains and estate taxes and would cut the corporate tax rate to 12.5 percent.

Former Sen. Rick Santorum, R-Pa., would reduce the number of tax brackets to two - 10 percent and 28 percent, exempt domestic manufacturers from the corporate tax and halve the top rate for other businesses. He would triple the personal exemption for dependent children.

Rep. Ron Paul, R-Texas, would eliminate the federal income tax altogether. Also the Internal Revenue Service. He would vote for a national sales tax, and he supports certain excise taxes and certain tariffs.

The nonpartisan Tax Policy Center has said that the wealthy would be the biggest beneficiaries of the Romney, Gingrich and Santorum tax plans. The center did not evaluate Paul's plan

The Tax Reform Act of 1986 backed by Reagan and O'Neill reduced the number of tax brackets and lowered the top marginal tax rate to 28 percent from 50 percent (it's now 35 percent).

The reduction in individual taxes was in large part paid for by repeal of the investment tax credit, which effectively raised corporate tax payments to the Treasury by 25 percent, or about $100 billion a year in today's terms.

But the political climate was far difference in 1986. Reagan was a popular second-term president with a good working relationship with Congress. The deficit was under control and the economy was growing, not limping like now.

Economist Bruce Bartlett, author of "The Benefit and the Burden: Tax Reform - Why We Need It and What It Will Take," is not optimistic for major tax reform no matter who wins the election.

"I think the most we can hope for is a modest improvement to fix some glaring problems in the code," he said.

As to those calling for starting from scratch with a whole new tax system such as the so-called fair tax or flat tax, "I don't believe that's going to happen," Bartlett said. "I think that's just a political non-starter."

NEXT:

Gallery: Thanks Mitt and Newt: A Dozen Tax Tips for the Rest of Us

Tax-free InterestPoints on a Second HomeDonate Appreciated Assets to CharityWrite off Alimony PaymentsMake the Most of Worthless Stock






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]]>election yearElectionYeartax deductionstax deductions for homeownerstax reformTaxDeductionsTaxDeductionsForHomeownersTaxReformThe Associated PressMon, 06 Feb 2012 16:00:00 ESTUnemployment Rate Hits 8.3% After Hiring Bursthttp://www.dailyfinance.com/2012/02/03/unemployment-rate-hits-8-3-after-hiring-burst/http://www.dailyfinance.com/2012/02/03/unemployment-rate-hits-8-3-after-hiring-burst/http://www.dailyfinance.com/2012/02/03/unemployment-rate-hits-8-3-after-hiring-burst/#commentsFiled under:

Unemployment rate hits 8.3% after hiring burstWASHINGTON (AP) - In the most impressive surge for the job market since early last year, the United States added 243,000 jobs in January, far more than economists expected. The unemployment rate dropped to 8.3 percent, the lowest in three years.

Hiring accelerated across the economy and up and down the pay scale. The high-salary professional services industry added 70,000 jobs, the most in 10 months. Manufacturing added 50,000, the most in a year.

"This is a very positive employment report from almost any angle," said Brian Bethune, an economics professor at Amherst College.

The report seemed certain to shake up the presidential campaign, which is expected to turn on the economy. The unemployment rate is the lowest since February 2009, one month after President Barack Obama took office.

The report Friday from the Labor Department sent money pouring into the stock market, already off to its best start in 15 years because of improving confidence in the economy, and out of more conservative investments in bonds.

The Dow Jones industrial average shot 160 points higher to 12,865 in the first hour of trading. That is 55 points better than its highest close since the financial crisis struck in the fall of 2008.

It was the most jobs added since and March and April of last year, when 246,000 and 251,000 jobs were created. Before that, the last month with stronger hiring, excluding months skewed by temporary census jobs, was March 2006.

The government said hiring was stronger in November and December by 60,000 jobs than first estimated. It was also stronger over the past two years than previously thought. The economy added 1.82 million jobs last year, nearly twice as many as in 2010.

The unemployment rate was down two notches from the 8.5 percent reading last month. It was also the fifth consecutive month the rate has fallen, the first time that has happened since late 1994.

Employers have added an average of 201,000 jobs a month in the past three months. That's 50,000 more jobs per month than the economy averaged in each month last year.

The Labor Department's January jobs report was filled with other encouraging data and revisions. The economy added 200,000 more jobs in 2011 than first thought.

The unemployment rate is nearly a percentage point lower than over the summer, when many feared a recession was imminent.

Impressively, the job gains last month were spread across the economy. Even the beleaguered construction sector added 21,000 jobs, its second month of strong gains. That figure has probably been helped by unseasonably warm weather this winter.

The leisure and hospitality industry, which includes restaurants and hotels, added 44,000 jobs. Retailers added nearly 11,000.

The unemployment rate fell even as more people began looking for work. But a much larger number said they found work.

More jobs and higher incomes should help consumers boost spending and increase economic growth.

Even with the gains, the job market faces a long way back to full health. The nation has about 5.6 million fewer jobs than it did when the recession began in late 2007.

There are still 12.8 million people out of work, though that is the fewest since the recession ended. An additional 11 million are either working part-time but would prefer full-time work, or have stopped searching for jobs.

When all those groups are combined, nearly 24 million are considered "underemployed. The so-called "underemployment" rate ticked down in January to 15.1 percent, from 15.2 percent.

Several reports signaled this week that the economy is improving gradually. Manufacturers expanded at the fastest pace in seven months in January, a private survey showed.

And fewer people sought unemployment benefits last week, the Labor Department said. The four-week average of applications fell to its second-lowest level since June 2008. The drop shows that companies are cutting fewer jobs, which usually leads to more hiring.

Americans spent more at big chain retail stores last month compared with a year earlier. And automakers began 2012 with a strong sales gain in January. Healthier auto sales can boost a range of companies, from steel makers to parts suppliers to shippers.

The economy expanded at a 2.8 percent annual pace in the October-December quarter, a full percentage point higher than in the previous quarter.

Even so, economists expect slower growth this year. Much of the fourth quarter's expansion was due to companies ordering more goods to restock their warehouses. Restocking is likely to slow in the first three months of this year. That would drag on growth.

Europe's financial crisis could also slow demand for U.S. goods. And average wages failed to keep up with inflation last year. That leaves consumers with less spending power, which can hamper growth.

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]]>hiringjobless rateJoblessRatejobslabor department jobless rateslabor department jobslabor department statisticslabor marketLaborDepartmentJoblessRatesLaborDepartmentJobsLaborDepartmentStatisticsLaborMarketunemploymentunemployment rateUnemploymentRateThe Associated PressFri, 03 Feb 2012 09:25:00 ESTUS Auto Sales Rise in January, Led by Chrysler, VWhttp://www.dailyfinance.com/2012/02/01/us-auto-sales-rise-in-january-led-by-chrysler-vw/http://www.dailyfinance.com/2012/02/01/us-auto-sales-rise-in-january-led-by-chrysler-vw/http://www.dailyfinance.com/2012/02/01/us-auto-sales-rise-in-january-led-by-chrysler-vw/#commentsFiled under: ,

US auto sales rise in January, led by Chrysler, VWDETROIT (AP) - U.S. auto sales are off to a strong start this year, continuing the brisk pace from late 2011.

Chrysler had its best January in four years while Ford (F) got a boost from small cars and SUVs. Volkswagen, which wants to aggressively expand in the U.S., reported much higher sales. One sour note was GM (GM), where sales fell.

Analysts are expecting industrywide sales to rise around 7 percent to more than 870,000 for January, kicking off what is expected to be the strongest year for the industry since the recession. Jesse Toprak, vice president of industry trends for TrueCar.com, said U.S. demand continues to grow at a steady pace as the economy improves.

"For the first time in several years, we are starting the year off with a warm and fuzzy feeling," Toprak said.

For all of 2012, auto sales could reach 14 million new vehicles, analysts say, up from 12.8 million in 2011. While that forecast is below the 2000 peak of 17.3 million, it's better than the 10.4 million trough in 2009.

One reason car sales are improving is that buyers need to replace aging vehicles. The average age of a vehicle in America has reached a record 10.8 years. Low interest rates and greater loan availability also spurred demand in January.

Unseasonably warm weather may also have drawn buyers to dealerships, although Ford's U.S. sales chief Ken Czubay said that the weather effect was probably a wash. Frigid weather can also boost sales because older cars may not start during a cold snap, he said.

Chrysler's January sales jumped 44 percent, led by surge in demand for the Chrysler brand. Buyers flocked to the revamped 200 and 300 sedans. Chrysler sold 7,007 of the 200 midsize sedan last month, more than eight times the number it sold in January of 2011. Sales of the Chrysler 300 large sedan almost quadrupled from a year earlier.

Ford's overall sales rose 7 percent. Demand for the Ford Focus compact car rose 60 percent, while sales of the Escape small SUV rose 24 percent. Ford is replacing the Escape with a new version later this year, and sales have been strong for months as dealers offer big discounts to clear out the old models.

General Motors reported a 6 percent decline for the month, saying demand for its trucks and crossovers fell. GM also offered fewer discounts than it did last January. TrueCar estimated that GM's incentives were down 16 percent to $3,095 per vehicle.

Sales weakened for crossover SUVs like the Buick Enclave and GMC Acadia. Pickup sales fell 6 percent.

But GM's car sales rose 13 percent, led by the new subcompact Chevrolet Sonic and the Chevrolet Cruze. Sales of the Chevrolet Volt electric car nearly doubled to 603. GM announced early in January that it will retrofit existing Volts to make them less prone to fires after a severe crash.

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Analysts expect that new car and truck sales hit a seasonally adjusted annual rate of 13.5 million vehicles last month. That follows an annual rate of 13.56 million in December and 13.63 million in November.

The industry faces some challenges. Consumer confidence fell in January after two straight months of big gains as Americans worried about incomes, gas prices and business conditions. Unemployment is at its lowest level in nearly three years, but it's still 8.5 percent.

"Overall, the economy's not in a good place yet, but I think consumers are reacting to the conditions much more favorably than expected," said Jeff Schuster, senior vice president of forecasting for LMC Automotive, an industry consulting company in Troy, Michigan.

Other companies reporting sales Wednesday:

- Volkswagen of America reported a 48 percent rise in U.S. sales, led by the Jetta and Passat sedans.



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]]>auto salesautomobile industryautomobile salesAutomobileIndustryautomobilesAutomobileSalesAutoSalescar salesCarSalesChevroletchryslerfordgeneral motorsGeneralMotorsus auto salesUsAutoSalesvolkswagenThe Associated PressWed, 01 Feb 2012 14:00:00 ESTManufacturing Expands at Fastest Pace Since Junehttp://www.dailyfinance.com/2012/02/01/manufacturing-expands-at-fastest-pace-since-june/http://www.dailyfinance.com/2012/02/01/manufacturing-expands-at-fastest-pace-since-june/http://www.dailyfinance.com/2012/02/01/manufacturing-expands-at-fastest-pace-since-june/#commentsFiled under:

Manufacturing expands at fastest pace since JuneWASHINGTON (AP) - U.S. factories grew in January at the fastest pace in seven months, boosted by a rise in new orders. And builders ended a poor year for construction by spending more on homes and projects for the fifth straight month.

The reports bolster other data showing the U.S. economy started the year strong.

The Institute for Supply Management, a trade group of purchasing managers, said Wednesday that its manufacturing index rose last month to 54.1 from 53.1 in December. Readings above 50 indicate expansion.

Consumers are buying more cars and trucks, while businesses ordered more machinery and other equipment. That has driven factory output. The sector has expanded for 29 straight months, according to the index.

A measure of hiring dipped, indicating factories are still adding jobs but at a slower pace than in December. Export orders also rose, a sign that U.S. manufacturers haven't yet been affected by Europe's slowing economy.

Separately, the Commerce Department said spending on construction projects rose 1.5 percent in December, the fifth straight monthly gain. That pushed spending to a seasonally adjusted annual rate of $816.4 billion, the highest level in 20 months.

The gains coincide with other signs that show the troubled housing industry may be improving. Builders are more confident after seeing more interest in homes, and single-family home construction rose in the final three months of last year.

Still, the construction industry remains weak. Spending on all building projects in 2011 was just $787.4 billion. That's 2 percent lower than the previous year and roughly half the level economists consider healthy.

Manufacturing output has jumped in recent months. Auto sales have rebounded from the spring, when Japan's earthquake disrupted supply chains and fewer cars were available on dealer lots.

Businesses also ordered more big-ticket manufactured items in December, the government said last week. And orders for so-called core capital goods, which are a good measure of businesses' investment plans, reached an all-time high last month.

Factory output rose in December by the most in a year, according to the Federal Reserve. Production rose for goods used in the early stages of manufacturing, such as metals, wood products and construction materials. That suggests the output of finished goods will pick up.

Still, U.S. factories are vulnerable to economic shocks.

Exports are likely to decline if Europe suffers a recession, as many predict.

And the key reason the economy grew at an annual rate of 2.8 percent in the final three months of last year was that companies restocked their warehouses. That kept helped drive factory output at the end of last year.

Most economists say that restocking is certain to slow in the first quarter of this year.

Unless consumer spending picks up, businesses won't be able to sell off that extra inventory, and may have to cut back on future orders.

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Consumers increased their spending only 2 percent in the final three months of last year. Many have been weighed down by wages that haven't kept pace with inflation.

They need more jobs and higher pay. Hiring has picked up in recent months, but the unemployment rate is still high, at 8.5 percent.

Business spending on equipment and software rose in the final three months of last year, but at the slowest pace since the recession ended, the government said last week.

Most economists expected the combination of weaker inventory growth and tepid consumer spending will lead to slower growth in the January-March quarter. Many are predicting just 2 percent annualized growth in that stretch.

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]]>american manufacturingAmericanManufacturingeconomic growthEconomicGrowthfactory outputFactoryOutputu.s. economyU.S. factory sectorU.S. manufacturingU.S. manufacturing sectorU.s.EconomyU.s.FactorySectorU.s.ManufacturingU.s.ManufacturingSectorThe Associated PressWed, 01 Feb 2012 10:45:00 ESTSuper Bowl Advertisers Go After "Second Screens"http://www.dailyfinance.com/2012/02/01/super-bowl-advertisers-go-after-second-screens/http://www.dailyfinance.com/2012/02/01/super-bowl-advertisers-go-after-second-screens/http://www.dailyfinance.com/2012/02/01/super-bowl-advertisers-go-after-second-screens/#commentsFiled under: , , , , , ,

Super Bowl advertisers go after NEW YORK (AP) - Call it the "second-screen" Super Bowl.

About two-thirds of smartphone and tablet owners use their gadgets to do things like text or post on Twitter while watching TV, according to research firm Nielsen. So, for Sunday's game, companies from Coke (KO) to Chevy are trying to reach fans on all the "second screens" they have.

Chevrolet rolled out the first Super Bowl smartphone app that allows Big Game watchers to enter a contest to win everything from pizza to a new Camaro. Kia is the first company to show its Super Bowl ad ahead of the game in movie theaters. And Coca Cola set up a Facebook page and website so viewers can see its animated polar bears - one cheering for the New England Patriots and the other for the New York Giants - reacting to the game in real time.

"The world is changing," says Pio Schunker, Coca Cola's vice president for creative excellence. "We needed to come to the party with something new and different."

Advertisers have big incentives to stand out. With more than 111 million viewers expected to tune into the game, the Super Bowl is by far the biggest stage for marketers. It's also not cheap - NBC is charging an average of $3.5 million for a 30-second spot. And the competition is fierce: there will be more than 70 TV ads during the Super Bowl battling for attention.

To create buzz, it's no longer enough for marketers to simply get people talking at the water cooler the morning after the game. They also want to engage the people who like reacting to big events like the Super Bowl by posting on Twitter or Facebook or texting their friends, says David Berkowitz, vice president at digital marketing agency 360i.

"People are glued to their digital devices, sometimes sharing far more that way than they are with others in the same room," says Berkowitz, whose firm created Coke's online Super Bowl campaign. "Being social means something very different now."

About a dozen companies have put up their Super Bowl spots on video-sharing website YouTube this year, up from a handful last year. The amount companies have spent on sponsoring Youtube's Ad Blitz, a site for Super Bowl ads, has doubled compared with last year although it declined to say by how much.

And in another sign that marketers are trying to engage viewers over social media web sites: USA Today's Ad Meter, which ranks the popularity of ads, is for the first time allowing viewers to vote for their favorite spot on Facebook.

"This year, we're seeing a whole new level of social media activity for Super Bowl advertisers," said Tim Calkins, clinical professor of marketing at the Kellogg School of Management at Northwestern University.

This is the first year that advertisers have tapped into the growing number of users of iPhones and other smartphones during the Super Bowl. In its ads, domain-name hosting site Godaddy.com will feature a QR code, a black and white two-dimensional code that people can scan by putting their smartphones up to the TV so they can go to the company's website. This is a first for a Super Bowl ad.

Chevy's free smartphone app for the Super Bowl, called Chevy Game Time, allows people to enter a contest to win prizes from Chevy and other Super Bowl advertisers, including Bridgestone and Motorola. Users also will get a code. If the code matches the license plates in Chevy ads during the game, they win one of 20 cars being given away, including the Camaro, Silverado and Sonic. App users can also answer trivia questions or polls to win prizes.

Other advertisers are going after the laptop and tablet crowd. As part of Toyota (TM)'s Super Bowl campaign to showcase its "reinvented" Camry, the company is asking Twitter users to use the hashtag, or search term, "(hash)Reinvented," to post or "Tweet" about what other kinds of products should be reinvented. Some will get a response back with an illustration of the "reinvented" product.

Volkswagen released a teaser of its 60-second Super Bowl ad on YouTube.com. The ad, which shows dogs in "Star Wars" costumes barking the "Imperial March" song, was released on the site on Jan. 18 and has 10 million views. Volkswagen also created a dedicated Super Bowl on its Facebook page.

For all their attempts to reach people on their "second screens," Calkins, the marketing professor, says advertisers won't know what works until Game Day.

"The question is which of the advertisers will really manage to connect on the day of the Super Bowl," Calkins said. "It's never entirely clear which ones are going to stand out."

__

Follow AP retail coverage at http://www.twitter.com/AP_Retail and Mae Anderson at http://www.twitter.com/Maetron.


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]]>Super Bowl Adsuper bowl adssuper bowl advertisementsuper bowl advertisementssuper bowl advertisingsuper bowl commercialsuper bowl commercialsSuperBowlAdSuperBowlAdsSuperBowlAdvertisementSuperBowlAdvertisementsSuperBowlAdvertisingSuperBowlCommercialSuperBowlCommercialsThe Associated PressWed, 01 Feb 2012 10:30:00 ESTNYSE Merger with Germany's Deutsche Boerse Blocked by EUhttp://www.dailyfinance.com/2012/02/01/nyse-merger-with-germanys-deutsche-boerse-blocked-by-eu/http://www.dailyfinance.com/2012/02/01/nyse-merger-with-germanys-deutsche-boerse-blocked-by-eu/http://www.dailyfinance.com/2012/02/01/nyse-merger-with-germanys-deutsche-boerse-blocked-by-eu/#commentsFiled under: ,

BoerseBy GABRIELE STEINHAUSER, AP Business Writer

BRUSSELS -- The European Union on Wednesday blocked the Deutsche Boerse's (DBOEY.PK) planned merger with NYSE Euronext (NYX), a $10 billion deal that would have created the world's largest financial exchange operator.

The European Commission, the EU's executive body, said it was ruling against the merger because the combined exchange would have controlled more than 90% of the trading in European derivatives -- complex but highly profitable financial products that allow investors to bet on changes in interest rates or the price of oil.

It said that the combined company's dominance of that market would have made it almost impossible for competitors to offer rival trading systems.

"The merger between Deutsche Boerse and NYSE Euronext would have led to a near-monopoly in European financial derivatives worldwide," the EU's Competition Commissioner Joaquin Almunia said in a statement. "These markets are at the heart of the financial system and it is crucial for the whole European economy that they remain competitive."

The Commission's decision deals a blow to Deutsche Boerse AG and NYSE Euronext, which hoped combining their businesses would have allowed them to compete better with other large exchanges in the U.S. and Asia.

But it also underlines the profound transformation their businesses -- and financial markets as a whole -- have undergone over the past decade. Today, the value of outstanding derivatives contracts has surpassed by many times the value of traditional financial products like stocks and bonds.

Deutsche Boerse and NYSE Euronext both managed to build highly profitable businesses out of this trend and today own Europe's biggest derivatives exchanges. A push from regulators across the globe to push more derivative trades onto exchanges to make the market more transparent has opened even bigger opportunities for established players.

To make the merger acceptable, the Commission wanted the companies to sell either Deutsche Boerse's Eurex or NYSE Euronext's Liffe -- something they refused to do.

"This is a black day for Europe and its global competitiveness on financial markets," Deutsche Boerse Chief Executive Reto Francioni said in a news conference in Frankfurt, Germany.

Francioni added that the decision will prevent the creation of a "globally competitive" European exchange group that would have helped strengthen the Commission's push for transparent and stable financial markets.
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NYSE said in a statement that the two companies are now discussing terminating the merger agreement.

"While we are disappointed and strongly disagree with the EU decision, which is based on a fundamentally different understanding of the derivatives market, it is now time to move on," NYSE Euronext Chairman Jan-Michiel Hessels said.

The Commission's decision did not come as a surprise as last month a competition case team recommended the merger should be blocked, based on the combined company's dominance in the trading of some of the most popular and liquid European derivatives.

But the two exchanges argued that the vast majority of derivatives are traded directly between banks and other investors, or over-the-counter, rather than on exchanges, providing healthy competition in the overall market.

They also pointed to Chicago-based CME Group, which has a similar dominance over trading in key American derivatives.

But Almunia argued that neither the over-the-counter derivatives market nor CME Group could have been true competitors to a company owning both Eurex and Liffe.

He said derivatives based on U.S. indexes or interest rates traded on the CME were useless for investors trying to hedge against changes in their European equivalents. Over-the-counter trades, he argued, were riskier than exchange-based trades, eliminating then as an alternative to many companies.

Deutsche Boerse announced nearly a year ago that it was looking to buy NYSE Euronext for $10 billion. NYSE Euronext owns bourses in Paris, Lisbon, Brussels and Amsterdam, in addition to New York.

----

Juergen Baetz in Berlin and David McHugh in Fankfurt, Germany, contributed to this story.



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]]>BrusselsCME GroupderivativesDeutsche BörseEurexEuronextEuropeFinancefutures marketsFuturesMarketsJoaquín AlmuniaLiffeNew YorkNYSE Deutsche Boerse MergerNyseDeutscheBoerseMergerThe Associated PressWed, 01 Feb 2012 10:03:00 ESTColbert's Super PAC Has Raised Over $1 Millionhttp://www.dailyfinance.com/2012/01/31/colberts-super-pac-has-raised-over-1-million/http://www.dailyfinance.com/2012/01/31/colberts-super-pac-has-raised-over-1-million/http://www.dailyfinance.com/2012/01/31/colberts-super-pac-has-raised-over-1-million/#commentsFiled under: ,

Colbert's Super PAC has raised over $1 millionNEW YORK (AP) - Stephen Colbert's "super" PAC has raised a staggering $1 million.

Political action committees were required to submit their financial reports to the Federal Election Commission on Tuesday. Colbert disclosed that as of Monday, his Americans for a Better Tomorrow PAC has raised more than $1.02 million.

In a letter to the commission, Colbert was quoted as saying "How you like me now, FEC?"

When Colbert recently flirted with running for president, he legally transferred control of his PAC to Jon Stewart of "The Daily Show." On Monday's "The Colbert Report," he hunted down Stewart to regain his PAC presidency.

Colbert raised the money by asking for donations from his viewers. He hasn't yet said what he intends to do with it.



3 Reasons Not to Get Worked Up Over Super PACs

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]]>campaign financeCampaignFinancecolbert super pacColbertSuperPaccomedy centralComedyCentraljon stewartJonStewartmoney in politicsMoneyInPoliticspolitical action committeePolitical action Committeespolitical fundraisingPoliticalActionCommitteePoliticalActionCommitteesPoliticalFundraisingstephen colbertStephenColbertThe Colbert ReportTheColbertReportThe Associated PressTue, 31 Jan 2012 12:30:00 ESTObama Wants Small-Business Bill This Yearhttp://www.dailyfinance.com/2012/01/31/obama-wants-small-business-bill-this-year/http://www.dailyfinance.com/2012/01/31/obama-wants-small-business-bill-this-year/http://www.dailyfinance.com/2012/01/31/obama-wants-small-business-bill-this-year/#commentsFiled under:

Obama wants small-business bill this yearWASHINGTON (AP) - Seeking cooperation in a polarized climate, President Barack Obama called on Congress Tuesday to act quickly on bipartisan measures that would extend tax breaks for small businesses and help startup companies raise money. He said he would sign the legislation "right away."

Obama plans to include a series of business measures that have been percolating in Congress in his 2013 budget proposal later this month to flesh out a year-old initiative to give entrepreneurs incentives to expand their businesses or start new ones.

Obama made his remarks during a Cabinet meeting at the White House. He noted that for the first time, the head of the Small Business Administration, Karen Mills, was participating as a full member of the Cabinet.

"It is a symbol of how important it is for us to spur entrepreneurship, to help startups, to move aggressively so that we can assure more companies that create the most jobs in our economy are getting a leg up from various programs that we have in our government," Obama said.

The White House legislative agenda for small businesses includes permanently eliminating tax rates on capital gains for investments in small businesses and a one-year extension on the ability of all businesses to immediately deduct all of the costs of equipment and software purchases.

The Obama administration also is seeking a new 10 percent tax credit for small businesses that add jobs or increase wages in 2012. In addition, the legislation would make it easier for new startup companies to raise money and to go public. It also would expand a government small business investment program from $3 billion to $4 billion.

"The president has made small businesses and particularly startups a key aspect of his economic growth agenda because he understands how much the newest and fastest-growing small businesses drive job growth in our economy," said Gene Sperling, director of the White House National Economic Council.

Obama said the Department of Homeland Security also is seeking ways to change the visa process to attract foreign-born entrepreneurs and high-skilled immigrants to invest in the United States or start new businesses.

The measures are modest by comparison to Obama's 2009 economic stimulus or to last year's jobs bill. But they borrow from past Obama initiatives and from bipartisan legislation that has either already passed in the House or is being proposed in the Senate.

Obama's package includes proposals offered in the Senate by Democrat Chris Coons of Delaware and Republican Marco Rubio of Florida, and another plan by Republican Jerry Moran of Kansas and Democrat Mark Warner of Virginia.

White House officials would not disclose the total cost of the president's package, but Sperling said it would be more than covered by proposals to reduce tax expenditures and by closed loopholes the administration will call for in its 2013 budget.

With the presidential election set to become the main political preoccupation of 2012, the White House initiative is designed to take advantage of cooperative attempts by Republicans and Democrats to find modest remedies to spur the economy. Most of those efforts have been overshadowed by congressional bickering, the Republican presidential primary and Obama's growing attention to his re-election.

The proposals come a year after the administration launched a consolidated effort to spur new startup businesses with a high-profile White House event featuring scores of entrepreneurs, some of whom offered testimonials to the job creation possibilities that new businesses can bring to the economy.

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Besides the tax breaks, a central element of the Obama package is to assist new entrepreneurs by making it easier for them to raise money, reducing taxes on their startup expenses and removing securities barriers for new companies that have gone public.

"Our small business agenda has a specific focus on removing the barriers that have for too long blocked startups and entrepreneurs from getting the financing they need to accelerate their growth and hiring," Sperling said.

One of the Obama provisions would increase the amount of money that can be raised through small public offerings that don't require companies to undergo an extensive Securities and Exchange Commission registration process. The limit for such "mini public offerings" would increase from $5 million a year to $50 million. The House passed similar legislation last year.

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]]>Barack ObamaBarackObamaeconomic policyEconomicPolicylegislationObama AdministrationObama economic policyObamaAdministrationObamaEconomicPolicypresident obamaPresidentObamasmall businesssmall business billsmall businessesSmallBusinessSmallBusinessBillSmallBusinessesThe Associated PressTue, 31 Jan 2012 12:15:00 ESTHome Prices Dropped in November in Most US Citieshttp://www.dailyfinance.com/2012/01/31/home-prices-dropped-in-november-in-most-us-cities/http://www.dailyfinance.com/2012/01/31/home-prices-dropped-in-november-in-most-us-cities/http://www.dailyfinance.com/2012/01/31/home-prices-dropped-in-november-in-most-us-cities/#commentsFiled under:

Home prices dropped in November in most U.S. citiesWASHINGTON (AP) - U.S. home prices fell for a third straight month in nearly all cities tracked by a major index. The declines show that most homeowners are not reaping the benefits from some signs of an improving housing market.

Prices dropped in November from October in 19 of the 20 cities tracked, according to the Standard & Poor's/Case-Shiller home-price index released Tuesday.

The biggest declines were in Atlanta, Chicago and Detroit. Phoenix was the only city to show an increase.

The decline partly reflects the typical fall slowdown after the peak buying season.

Still, prices declined in 18 of the 20 cities in November compared to the same month in 2010. Only Washington and Detroit posted year-over-year increases. Prices in Atlanta, Las Vegas, Seattle and Tampa fell to their lowest points since the housing crisis began. And prices have fallen 33 percent nationwide since the housing bust, to 2003 levels.

"The trend is down and there are few, if any, signs in the numbers that a turning point is close at hand," said David M. Blitzer, chairman of the S&P's index committee.

The Case-Shiller index covers half of all U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The November data are the latest available.

Home values remain depressed despite some hopeful signs at the end of last year.

Sales of previously occupied homes rose in the last three months. Homebuilders are more optimistic after seeing more people express interest in buying this year. And home construction picked up in the final quarter of last year, which helped housing contribute to broader economic growth.

Home prices tend to follow sales, which are still below healthy levels. And a large number of vacant homes are sitting idle on the market, which means prices will likely stay unchanged for several years, said Paul Dales, senior U.S. economist at Capital Economics.

"The most likely scenario in the U.S. is that in 2012 prices will bob around a bit, with one month's gain being reversed the next month," Dales said. "But in general, over the next couple of years, house prices will do nothing more than remain broadly stable." Dales said prices might not rise consistently until 2015.

Economists say home prices are likely begin rising first in hard-hit cities in Arizona, California, Florida and Nevada.

Conditions are also improving for those in position to buy a home. Job growth is up, prices are down, mortgage rates are at record lows and rental prices have risen sharply since the housing bust.

Still, many people can't afford to buy or are unable to qualify for mortgage. Some people in position to buy are holding off, worried that prices could fall even further.

A full housing recovery could take years, economists say.

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Many economists say the U.S. could be experiencing what similarly occurred in Britain in the 1990s, when it took four years for home prices to rise again after falling prices left homeowners with little financial equity in their homes.

Prices could also fall further once banks resume millions of foreclosures. They have been delayed because of a government investigation into mortgage lending practices that has dragged on for more than a year. Foreclosures and short sales - when a lender accepts less for a home than what is owed on a mortgage - are selling at an average discount of 20 percent.

A deeper recession in Europe could also cause U.S. banks to tighten their lending standards, causing home sales and prices to drop.

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]]>Case-ShillerCase-Shiller Home Price IndexCase-Shiller IndexCase-shillerHomePriceIndexCase-shillerIndexhome priceshome prices declinehome prices fallHomePricesHomePricesDeclineHomePricesFallhouse priceshouse prices fallHousePricesHousePricesFallhousing marketHousing Market IndexHousingMarketHousingMarketIndexreal estate marketRealEstateMarketThe Associated PressTue, 31 Jan 2012 10:00:00 ESTTech Companies Team Up to Combat Email Scamshttp://www.dailyfinance.com/2012/01/30/tech-companies-team-up-to-combat-email-scams/http://www.dailyfinance.com/2012/01/30/tech-companies-team-up-to-combat-email-scams/http://www.dailyfinance.com/2012/01/30/tech-companies-team-up-to-combat-email-scams/#commentsFiled under: , , , , , , ,

phishingNEW YORK (AP) - Google (GOOG), Facebook and other big tech companies are jointly designing a system for combating email scams known as phishing.

Such scams try to trick people into giving away passwords and other personal information by sending emails that look as if they come from a legitimate bank, retailer or other business. When Bank of America (BAC) customers see emails that appear to come from the bank, they might click on a link that takes them to a fake site mimicking the real Bank of America's. There, they might enter personal details, which scam artists can capture and use for fraud.

To combat that, 15 major technology and financial companies have formed an organization to design a system for authenticating emails from legitimate senders and weeding out fakes. The new system is called DMARC - short for Domain-based Message Authentication, Reporting and Conformance.

DMARC builds upon existing techniques used to combat spam. Those techniques are designed to verify that an email actually came from the sender in question. The problem is there are multiple approaches for doing that and no standard way of dealing with emails believed to be fake.

The new system addresses that by asking email senders and the companies that provide email services to share information about the email messages they send and receive. In addition to authenticating their legitimate emails using the existing systems, companies can receive alerts from email providers every time their domain name is used in a fake message. They can then ask the email providers to move such messages to spam folder or block them outright.

According to Google, about 15 percent of non-spam messages in Gmail come from domains that are protected by DMARC. This means Gmail users "don't need to worry about spoofed messages from these senders," Adam Dawes, a product manager at Google, said in a blog post.

"With DMARC, large email senders can ensure that the email they send is being recognized by mail providers like Gmail as legitimate, as well as set policies so that mail providers can reject messages that try to spoof the senders' addresses," Dawes wrote.

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Work on DMARC started about 18 months ago. Beginning Monday, other companies can sign up with the organization, whether they send emails or provide email services. For email users, the group hopes DMARC will mean fewer fraudulent messages and scams reaching their inbox.

The group's founders are email providers Microsoft (MSFT), Yahoo (YHOO), AOL (AOL) and Google; financial service providers Bank of America, Fidelity Investments and eBay (EBAY)'s PayPal; online service companies Facebook, LinkedIn (LNKD) and American Greetings Corp. (AM) and security companies Agari, Cloudmark, eCert, Return Path and the Trusted Domain Project.

Google uses it already, both in its email sender and email provider capacities. The heft of the companies that have already signed on to the project certainly helps, and its founders are hoping it will be more broadly adopted to become an industry standard.


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]]>email scamEmail scamsemail securityEmailScamEmailScamsEmailSecurityphishingphishing attacksphishing emailsphishing scamphishing scamsPhishing-ScamsPhishingAttacksPhishingEmailsPhishingScamPhishingScamstech companiesTechCompaniesThe Associated PressMon, 30 Jan 2012 14:10:00 ESTIncomes Up Strong 0.5%, Consumer Spending Flathttp://www.dailyfinance.com/2012/01/30/incomes-up-strong-0-5-consumer-spending-flat/http://www.dailyfinance.com/2012/01/30/incomes-up-strong-0-5-consumer-spending-flat/http://www.dailyfinance.com/2012/01/30/incomes-up-strong-0-5-consumer-spending-flat/#commentsFiled under:

Incomes up strong 0.5 percent, consumer spending flatWASHINGTON (AP) - Americans' incomes rose last month by the most in nine months, a hopeful sign for the economy after a year of weak wage gains. But consumer spending was flat.

Incomes rose 0.5 percent, the Commerce Department said Monday. It was the strongest increase since a similar gain in March.

Consumer spending was unchanged. That followed weak gains of 0.1 percent in both October and November.

The report underscored the challenge facing the economy in 2012. Unless incomes grow more rapidly, consumers will be forced to cut back further on spending. That would slow growth and result in less hiring.

After-tax incomes adjusted for inflation rose 0.3 percent in December. For the year, inflation-adjusted incomes rose 0.9 percent, just half the modest 1.8 percent rise in 2010.

The government reported Friday that the economy grew at an annual rate of 1.7 percent last year - roughly half the growth of 2010. It was the weakest showing since the economy contracted 3.5 percent in 2009.

Consumer spending for the year rose a modest 2.2 percent, only slightly higher than the 2 percent gain in 2010. But Americans dipped into their savings last year to finance some of the growth in spending last year.

Consumer spending is closely watched because it accounts for 70 percent of economic activity.

Unemployment stands at 8.5 percent - its lowest level in nearly three years after a sixth straight month of solid hiring.

For the final three months of 2011, Americans spent more on vehicles, and companies restocked their supplies at a robust pace.

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Still, overall growth last quarter - and for all of last year - was slowed by the sharpest cuts in annual government spending in four decades. And many people are reluctant to spend more or buy homes, and many employers remain hesitant to hire, even though job growth has strengthened.

The outlook for 2012 is slightly better. The Federal Reserve has estimated economic growth of roughly 2.5 percent for the year, despite abundant risk factors: federal spending cuts, weak pay increases, cautious consumers and the risk of a European recession.

Economists say the big question going forward is whether incomes will gain enough strength to support stronger spending, thus helping the economy to grow at a faster rate. Many analysts believe the economy will continue to muddle along with low growth in 2012.

Nigel Gault, chief U.S. economist at IHS Global Insight, said he expected the overall economy would grow 2 percent this year, only slightly better than 2011 with consumer spending rising 2 percent as well.

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]]>consumer spendingConsumerSpendingEconomic IndicatorsEconomicIndicatorsincomeincomesThe Associated PressMon, 30 Jan 2012 09:15:00 ESTCongress Tries to Police Itself on Insider Tradinghttp://www.dailyfinance.com/2012/01/30/congress-tries-to-police-itself-on-insider-trading/http://www.dailyfinance.com/2012/01/30/congress-tries-to-police-itself-on-insider-trading/http://www.dailyfinance.com/2012/01/30/congress-tries-to-police-itself-on-insider-trading/#commentsFiled under:

CongressWASHINGTON (AP) - Aware that most Americans would like to dump them all, members of Congress hope to regain some sense of trust by subjecting themselves to tougher penalties for insider trading and requiring they disclose stock transactions within 30 days.

A procedural vote Monday would allow the Senate later this week to pass a bill prohibiting members of Congress from using nonpublic information for their own personal benefit or "tipping" others to inside information that they could trade on.

Insider trading laws apply to all Americans, but CBS' "60 Minutes" in November said members of Congress get a pass, citing investment transactions by party leaders and a committee chairman in businesses about to be affected by pending legislation.

The broadcast report raised questions about trades of House Speaker John Boehner, R-Ohio; the husband of Democratic leader and former Speaker Nancy Pelosi of California; and Rep. Spencer Bachus, R-Ala., chairman of the House Financial Services Committee.

All three denied using any insider information to make stock trades, but the broadcast set off a flurry of efforts in Washington to deal with the public perception.

A recent Wall Street Journal/NBC News poll of registered voters found 56 percent of them favor replacing the entire 535-member Congress. Other polls this year have given Congress an approval rating between 11 percent and 13 percent, while disapproval percentages have ranged from 79 percent to 86 percent.

House Majority Leader Eric Cantor, R-Va., said he's working on an expanded bill that would go beyond stock transactions and ban lawmakers from making land deals and other investments based on what they learned as members of Congress.

The Senate version of the Stop Trading on Congressional Knowledge (STOCK) Act would subject any member of Congress who violates the ban on insider trading to investigation and prosecution by regulatory agencies and the Justice Department. It also directs the House and Senate ethics committees to write rules that would make violators subject to additional congressional penalties.

"We can start restoring some of the faith that's been lost in our government by taking this common sense step of making members of Congress play by the exact same rules as everyone else," said Sen. Kirsten Gillibrand, D-N.Y., who with Sen. Scott Brown, R-Mass., wrote the bill "We must make it unambiguous that this kind of behavior is illegal."

President Barack Obama endorsed the bill in in State of the Union speech last week, saying he would "sign it tomorrow." Brown used that opening to briefly speak with the president as he was exiting the House chamber after Tuesday's address.

"The insider trading bill's on Harry's desk right now," Brown told Obama, referring to Senate Majority Leader Harry Reid. "Tell him to get it out, it's already there."

"I'm gonna tell him," answered Obama. "I'm gonna tell him, I'm gonna tell him to get it done."

Obama raised the issue again in his radio and Internet address on Saturday.

"The House and Senate should send me a bill that bans insider trading by members of Congress, and I will sign it immediately. They should limit any elected official from owning stocks in industries they impact," he said.

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]]>Abuse of PowerAbuseOfPowercongresscongressmengovernmentinsider tradinginsider trading in CongressInsiderTradingInsiderTradingInCongressinvestmentsSenatorsThe Associated PressMon, 30 Jan 2012 09:00:00 ESTObama Decries Rising Cost of College Educationhttp://www.dailyfinance.com/2012/01/27/obama-decries-rising-cost-of-college-education/http://www.dailyfinance.com/2012/01/27/obama-decries-rising-cost-of-college-education/http://www.dailyfinance.com/2012/01/27/obama-decries-rising-cost-of-college-education/#commentsFiled under:

Obama decries rising cost of college educationANN ARBOR, Mich. (AP) - President Barack Obama called Friday for an overhaul of the higher education financial aid system, warning that colleges and universities that fail to control spiraling tuition costs could lose federal funds.

The election year proposal was also a political appeal to young people and working families, two important voting blocs for Obama. But the initiative faces long odds in Congress, which must approve nearly all aspects of the president's plan.

Speaking to students at the University of Michigan, Obama said he was "putting colleges on notice" that the era of unabated tuition hikes is over.

"You can't assume that you'll just jack up tuition every single year. If you can't stop tuition from going up, then the funding you get from taxpayers each year will go down," Obama said on the final stop of a three-day post-State of the Union trip to promote components of his economic agenda.

Obama told the largely supportive student audience that the nation's economic future depended on making sure every American can afford a world-class education.

"In the coming decade, 60 percent of new jobs will require more than a high school diploma," he said. "Higher education is not a luxury. It's an economic imperative that every family in America should be able to afford."

The president first announced the outlines of the financial aid proposal during Tuesday's State of the Union address. His plan targets what is known as "campus based" aid given to colleges to distribute in areas such as Perkins loans or in work study programs. Of the $142 billion in federal grants and loans distributed in the last school year, about $3 billion went to these programs. His plan calls for increasing that type of aid to $10 billion annually.

He also wants to create a "Race to the Top" competition in higher education similar to the one his administration used on K-12 to encourage states to better use higher education dollars in exchange for $1 billion in prize dollars. A second competition called "First in the World" would encourage innovation to boost productivity on campuses.

Obama is also pushing for the creation of new tools to allow students to determine which colleges and universities have the best value.

Some in the higher education community are nervous that the Obama administration could be setting a new precedent in the federal government's role in controlling the rising costs of college. Following the speech, Molly Corbett Broad, president of the American Council on Education, issued a statement saying there's concern that the proposal would "move decision-making in higher education from college campuses to Washington, D.C."

Sen. Lamar Alexander, R-Tenn., a former education secretary, said the autonomy of U.S. higher education is what makes it the best in the world, and he's questioned whether Obama can enforce any plan that shifts federal aid away from colleges and universities without hurting students.

"It's hard to do without hurting students, and it's not appropriate to do," Alexander said. "The federal government has no business doing this."

But Obama education secretary, Arne Duncan, said Friday that institutions of higher learning should get federal dollars based in part on their performance.

"Historically, we've funded universities whether or not they've done a good job of graduating people, whether or not they've done a good job of keeping down tuition," Duncan said on MSNBC's "Morning Joe."

Rep. George Miller, D-Calif., the ranking member of the House Education and Workforce Committee, said there is bipartisan concern in Congress about the rising costs of college, and he's hopeful the president's plan will open up a dialogue about the problem. Some Republicans in the past, including Rep. Buck McKeon, R-Calif., have offered proposals similar to the president's.
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The administration has already taken a series of steps to expand the availability of grants and loans and to make loans easier to pay back. During the State of the Union, Obama spelled out other proposals to make college more affordable, such as extending a tuition tax break and asking Congress to keep loan interest rates from doubling in July.

His administration has also targeted career college programs - primarily at for-profit institutions - with high loan default rates among graduates over multiple years by taking away their ability to participate in such programs.

But until now, the administration has done little to turn its attention to the rising cost of tuition at traditional colleges and universities.

The average in-state tuition and fees at four-year public colleges last fall rose 8.3 percent and, with room and board, now exceed $17,000 a year, according to the College Board. Rising tuition costs have been blamed on a variety of factors, including a decline in state dollars, an over-reliance on federal student loan dollars and competition for the best facilities and professors.

___

Hefling reported from Washington.

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]]>Barack ObamaBarackObamacollege fundingcollege tuitionCollegeFundingCollegeTuitioncost of collegeCostOfCollegefederal fundsFederalFundsrising tuitionrising tuition costsRisingTuitionRisingTuitionCostsuniversity tuition feesUniversityTuitionFeesThe Associated PressFri, 27 Jan 2012 14:50:00 ESTEconomy Grew Modest 2.8% in Q4, Best in 2011http://www.dailyfinance.com/2012/01/27/economy-grew-modest-2-8-in-q4-best-in-2011/http://www.dailyfinance.com/2012/01/27/economy-grew-modest-2-8-in-q4-best-in-2011/http://www.dailyfinance.com/2012/01/27/economy-grew-modest-2-8-in-q4-best-in-2011/#commentsFiled under:

Economy growthWASHINGTON (AP) - The U.S. economy grew at a 2.8 percent annual rate in the final three months of last year, the fastest growth in 2011.

Americans spent more on cars and trucks, and companies restocked their shelves at the strongest pace in nearly two years. But growth in the October-December quarter - and all of last year - was held back by the biggest annual government spending cuts in four decades.

The Commerce Department said Friday that the economy grew just 1.7 percent last year, roughly half of the growth in 2010 and the worst since the recession.

Most economists expect businesses to ease up on restocking in the first three months of the year. That should slow first-quarter growth. And consumers may cut back on spending if their wages continue to lag inflation.

In the final three months of last year, consumer spending grew at a 2 percent annual rate. That's up modestly from the third quarter.

Much of the growth was powered by a 14.8 percent surge in sales of autos and other long-lasting manufactured goods.

Incomes, which have been weak all year because of high unemployment, grew at a modest 0.8 percent annual rate. That followed two straight quarters of declining incomes.

Consumer spending is important because it makes up 70 percent of economic activity.

Business restocking, which can vary widely from quarter to quarter, was the greatest contributor to growth in the October-December period. It added nearly 2 percentage points to the gross domestic product, or GDP.

Government spending at all levels fell at an annual rate of 4.6 percent in the fourth quarter and 2.1 percent for the year - the biggest decline since 1971. Sweeping federal defense cuts at the beginning and end of 2011 were a major factor.

The economy is measured by GDP, which covers everything from haircuts to hotel bookings to jet fighter planes. Friday's estimate was the first of three for the fourth quarter.

Paul Ashworth, an economist at Capital Economics, said growth is likely to slow in the first three months of this year to below 2 percent. That's largely because businesses will ease up on restocking.

"Overall, the pickup in growth doesn't look half as good when you realize that most of it was due to inventory accumulation," Ashworth said.

But not all economists agree that the first quarter of this year will be weak.

Ian Shepherdson, an economist at High Frequency Economics, said business investment in capital goods should be stronger, consumer spending firmer and government activity less of a drag.

Other data show the economy ended 2011 on a strong note. Companies invested more in equipment and machinery in December. The unemployment rate fell to 8.5 percent last month - the lowest level in nearly three years - after the sixth straight month of solid hiring.

People are buying more cars, and consumer confidence is rising. Even the depressed housing market has shown enough improvement to make some economists predict a turnaround has begun.

Still, many economists worry that a recession in Europe could dampen demand for U.S. manufactured goods, which would slow growth. And without more jobs and better pay, consumer spending is likely to stagnate.

The Federal Reserve signaled this week that a full recovery could take at least three more years. In response, it said it would probably not increase its benchmark interest rate until late 2014 at the earliest - a year and a half later than it had previously said.

The central bank also slightly reduced its outlook for growth this year, from as much as 2.9 percent forecast in November down to 2.7 percent. The Fed sees unemployment falling as low as 8.2 percent this year.

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]]>auto salesAutoSaleseconomic growthEconomicGrowtheconomyFourth QuarterFourth Quarter 2008 U.S. Gross Domestic Product reportFourthQuarterFourthQuarter2008U.s.GrossDomesticProductReportmanufacturingmanufacturing sectorManufacturingSectorThe Associated PressFri, 27 Jan 2012 11:00:00 EST