Posts Tagged ‘Obama Stimulus’

Obama’s Community Bank Lending Program May be a Slow Go

Friday, January 29th, 2010

Durping his State of the Union speech earlier this week, President Obama announced his plan to reallocate $30 billion of the money paid back by the large banks under the TARP plan to smaller community banks.

The plan is to re-direct these funds to small businesses in economically challenged regions.

Only stronger community banks will be allowed to access these funds, which will likely range from 3% to 5% of the bank’s capital.  Only banks with less than $10 billion in gross assets will be eligible for a slice of the $30 billion.

In addition to getting a green light from Congress, the additional challenge is whether the community banks and/ or the local small businesses will be financially sound enough to loan or borrow under this proposed program.

Read more in the following Wall Street Journal link:

Obama Jobs Summit – Real Results or More Smoke & Mirrors

Thursday, December 3rd, 2009

With trillion dollar deficits and national unemployment in excess of 10% (before factoring in employees forced into part-time positions and those terminally unemployed), President Obama is under significant pressure to create the jobs he promised during the campaign.

Interestingly the U.S. Chamber of Commerce was not invited to the Summit – even though the Chamber represents over 3,000,000 businesses throughout the U.S.

While various corporate tax incentives, including hiring credits are being considered as part of the Summit, there are already a myriad of federal and state tax incentives which provide annual hiring credits ranging from $500 to $15,000 per “qualified” employee hired.  Many of these programs are Location-Based Incentive Credits (LBICs), requiring the business to be located in specific economically disadvantaged regions (over 8,000).  In addition there are a number of programs which can generate hiring credits regardless of the business location.

Hopefully the Administration will explore and add additional hiring credits.   Congress and the states should also invest funds to improve the marketing and education of the existing federal and state hiring credit programs to make sure employers understand that they can dramatically reduce their labor costs on new hires – as well as some employees hired in prior years.  Read more about these valuable incentives @:


Former Speaker of the House Newt Gingrich held his own “Real” Jobs Summit today to highlight his proposed fixes.


Republican Congressman Boehner’s job creation/ retention letter to the President can be found at:


Rebuilding Global Prosperity – Wall Street Journal CEO Council Recommendations

Sunday, November 22nd, 2009

We all seem to enjoy second-guessing other people’s decisions – particularly if it involves any decision by Congress or Presidents Bush or Obama in the last few years.

Well now a group of CEOs, representing millions of workers and over $2 trillion of combined market capitalization, had that opportunity to make their opinions known to the business community, as well as the Obama Administration and Congress (assuming they are still open to input from us pesky voters).

Last week the Wall Street Journal gathered 100 CEO’s from a cross-section of large cap companies.  The purpose of this CEO Council was to develop a consensus on how the Obama Administration should prioritize their national and global agendas for the good of the economy and the good of the country.

According to “The CEOs divided into four task forces and debated priorities in the areas of health care, energy and the environment, finance and the U.S. economy, and education. Using an electronic ranking system devised by the Journal, they chose five top priorities in each subject area.”

The summarized priorities are accessible at the link below:


The full CEO Council reports and a list of CEO Council participant can be accessed at:

Federal Stimulus Spending – Real Job Creation or Government Smoke & Mirrors?

Sunday, November 1st, 2009

Last week the Administration announced their revised figure for jobs “created” and “saved” as a result of the $787 billion federal stimulus package approved earlier this year.

As reflected in the New York Times article linked below, over half of the 640,000 saved or created jobs cited by the government have been in the education sector.   Only 80,000 jobs are tied to construction – which was originally the centerpiece of the stimulus package – but that portion of the spending was ultimately whittled down to only about 15% of the total package – so the job output is in that same range.


The ongoing controversy is how the government is defining and measuring  “saved” and “created” jobs.  From the point in time that the Administration promised that the stimulus plan would save or create 3 million jobs, taxpayers and economists have asked for details as to how this will be measured.  For now it is a moving target with vague explanations.

California, New York and Washington had the highest number of jobs created or saved.  For additional details regarding the state-by-state and sector-by-sector job results thus far, check out the government website below:


On Monday November 2nd, President Obama attempted to temper the expectations regarding job growth by stating that job losses will continue for the next weeks and months and pressed the public and private sectors to become more creative to increase hiring.

Stay tuned……

2009 Stimulus Plan Filled With Eco/ Energy Tax Incentives

Sunday, March 22nd, 2009

One of the centerpieces of the 2009 American Recovery and Reinvestment Act of 2009 (Stimulus Bill) involves a variety of energy tax incentives and alternative fuels funding provisions focused on reducing America’s  dependency on carbon-based energy.

The energy related tax provisions total approximately $20 billion of tax incentives and the energy funding provisions represent approximately $45 billion of the spending provisions.

Attached are articles summarizing the variety of new and existing tax credits and other incentives available for businesses and individuals for 2008 and later years.


March AICPA Corporate Taxation Insider Newsletter:



Download AICPA March Corporate Taxation Insider Newsletter 3 16 09

PDF Version


Download Reduce Emissions article 12.2007  CA EZ Program Can Offset Regulatory Costs


Additional tax and economic articles can be accessed below and in the "Library" section of this site.





Obama Tax Hikes and California Freefall

Wednesday, February 25th, 2009

Obama National Health Care Plan – More Taxes / Less Medicare Funding

Following through on his campaign promise of raising taxes on the "wealthy", the Obama Administration will be rolling out their $318 BILLION tax hike including expiration of the Bush tax cuts and an increase in personal tax rates from 33% to 35% over the next few years.  In addition, a scale-back of home mortgage interest and contribution deductions are also anticipated under President Obama's proposal.   Not-for-Profit entities are suffering from the economy just like taxable businesses; therefore, this is an odd time to reduce the tax benefit for home mortgage deductions and reducing the incentive to support charitable organizations, which are typically very efficient in their operations. 

Another $316 BILLION of spending cuts tied to: i) reductions in government payments to private health-care providers supplying Medicare services and ii) other healthcare reductions are also planned.

These combined tax increases and spending cuts of $634 BILLION are designed to pay for President Obama's planned Single-Pay Medical Plan.

Download Obama Tax Hikes Feb 26 2009 WSJ


The Fall of California 

Dennis Prager insightfully summarizes the steady decline of the California economy and identifies the architects of its demise.

Download California Destroyed by Left – Dennis Prager

Download CA Tax Rates article 12.2007


Infrastructure Employment Stimulus, FDIC Insurance and Money Market Guarantees

Sunday, January 25th, 2009

Download Long Beach Press-Telegram 2009 Infrastructure Op-Ed 

Download 2008-dec-skyrocketing-unemployment-lbics-1

Download 2009 LB Magazine Investment Strategies

Download 2008 FDIC Insurance Coverage

Download 2008 SEC Money Market Guarantee

Infrastructure and Employment

Infrastructure projects are at the top of national, state and local agendas as the best way to stimulate the economy and reverse the spiraling unemployment trends.  There is a clear need for infrastructure investment; however,to maximize the stimulus effect and minimize the taxpayers' cost of these projects, legislators need to carefully allocate and monitor the underlying construction contracts. 

Bank Account Insurance and Money Market Guarantees

With the continuing banking and stock market uncertainties, businesses and personal investors are wise to exercise extreme caution and diversification of their investment and banking relationships.  Concentration of either interest-bearing or non-interest bearing accounts in any one bank – or even in multiple banks for taxpayers with large cash balances, may be regretted in coming months.

Money market funds and both corporate and tax-exempt bond portfolios should also be re-examined by a bond expert for both default risks and interest rate/ market  risks when rates increase in the future.

While municipal bonds may be viewed as reasonably safe by many experts, many state and local governments are also facing unprecedented revenue and cost challenges and higher cost of financing as a result of the faltering economy, which may add to risk on many outstanding bonds.  Therefore, extra care should be factored into the review of this part of your portfolio.

See other Blog entries below as well as a variety of articles in the "Library" section of this site.