LyrArc Article Gist
The tax plan offered by Jeb Bush in September 2014 is based on simplifying the tax code to three rates, lowering the corporate tax rate to stimulate business investment and growth. It will pay for this by limiting itemized deductions to 2% of adjusted gross income, removing state and local tax deductions, by generating higher growth of estimated 0.5% per year which translates into higher tax revenues, and by increasing the deficit by $1.2 trillion. In the last tax debate economists such as Martin Feldstein and other experts proposed removing or limiting the itemized deductions. Simplifying the code and lowering corporate tax rates has been favored as a method to jumpstart growth by many experts, but was not taken up during the deep recession following the 2008-2009 financial crisis when the stimulus added to the deficit. The 3 tax rates changes the current 7 brackets to 10 percent, 25 percent and 28%, with the coporate tax rate lowered to 20%. The plan removes the alternative minimum tax, the estate tax, marraige penalty tax, leaves charitable deductions as now. To help the people at the lower end in incomes and the middle class- the standard deduction is doubled, the earned income tax credit expanded. Companies would be allowed to deduct capital investments, and there would be a gradual phase out of taxation on income American companies earn overseas. Hedge funds will not have access to a loophole called "carried interest." The plan comes as the American economy is in recovery mode, making it more likely that increased growth would generate extra tax revenues....

LyrArc Article Gist
A crisis situation exists in state revenue and spending needs. According to a Census Bureau report overall state revenue in the US dropped 30.8%, to $1.1 trillion, between fiscal 2008 and 2009. The gap between the spending needed to provide services in the recession and revenues is very large. States fiscal problems along with housing losses, will be the two forces acting as a drag to the US recovery in 2011-2012. State payrolls will be cut back and contracts to private companies reduced to cut spending. Declining federal help in 2011-2012, with the new focus on reducing the federal deficit, will worsen the situation. According to the Center for Budget and Policy Priorities, even with large federal help 46 states had to raise taxes and make cuts to close a combined gap of $130 billion in their current budgets. And next year 40 states already have projected gaps totaling $113 billion. Even as revenues drop, the Census Bureau report says the state government expenditures went up by 3% to provide essential services, safety net programs and education. Illinois has a budget deficit of 45 percent of its overall budget, according to the Pew Center on the States. In California it is equal to 13% of te state's total budget, and in Arizona it is 15%. For 2009 tax collections fell by 8.5%, and were partially offset by a 12.9% increase in federal help, which was a total of $477.7 billion, according to te Census Bureau report....

LyrArc Article Gist
Women made large gains in the 2018 Mexico elections. WOmen won 49.2% of Mexico's 128 member Senate for a 50% increase. WOmen also won 47.8% of the lower house of Congress. In Mexico City, a city of 8.9 million people, the first female mayor was elected. In a country with macho politics this is a stunning change. A UN study shows only Belgium has a larger representation in the upper legislative chamber, and only Rwanda, Bolivia and Cuba have ahigher representation in the lower house of parliament. Not all the momentum for women comes from the election of Lopez Obrador. In 2014 the constitution of Mexico was changed requiring poltical parties to have male and female candidates in equal numbers at the federal, state and local levels. In fact of the more than 83,000 candidates seeking office nationwide, 50.4% were women. More than 89 million people registered to vote and female voters were 51.9% of the total. Mr. Lopez Obrador's encouragement added to the fervour for women to vote and women to fight for political office. It also helped Claudia Sheinbaum , a 56 year ol environmental engineer win the election for Mayor of Mexico City by a landslide. Sheinbaum was environmental chief under Mr. Obrador when he was Mayor 2000-2005. Her platform was to improve drinking water supplies and transportation services, expand free child care.  Some of Mr. Obrador's supporters say the agenda for reducing inequality by tackkling corruption, reducing government waste, increasing social spending on the poor helped rally women as candidates and voters. Obrador's conviction that women have a greater capacity for hard work also played a part. Sheinbaum was encouraged to run for office in 2015 and won as governor of Tlalpan, one of Mexico City's 16 boroughs. After the 2006 election loss of Obrador for the presidency she had returned to research work at the National Autonomous University. The entry of women is also seen as a way to bring new approaches to tackle the problems of inequality and corruption after the male dominated established parties from the Calderon-Pena era failed to address these problems. ...

LyrArc Article Gist
The BBC's Political Editor, Laura Kuenssberg, says there are significant hurdles to reaching an agreement in talks between Conservative Party leader Theresa May and Jeremy Corbyn of the Labour Party. Labour seeks some assurance on Britain remaining in the customs union. Ironically the very reason Brexiteers such as Mr. Davis and Mr. Rees-Moog oppose the Theresa May deal - the arrangement on the Irish backstop a way for keeping the borders open between the two Irelands - is the reason Labour could find a way to support an agreement with Theresa May. For the Brexiteers this is unacceptable because it would keep Britain indefinitely in the EU.  There are two other obstacles. Theresa May has promised to resign after negotiating a compromise with Labour Party. Would her successor including possibly a Brexiteer such as Mr. Boris Johnson, support the agreed to deal with Labour. This is highly unlikely. Another obstacle is that a majority of Labour party members of parliament favor a second referendum, a ratificatory referendum, or a confirmatory referendum whatever you call it.  A related article today on this issue in BBC News by Katya Adler describes the person on the other side, the person who heads Germany's ruling CDU Party, and who is likely the next chancellor. This is AKK, Anne-Margaret Kampbrauer. She wrote an article in The Times about a month earlier with other German leaders saying she would love to see Britain change her mind and stay in the EU. She is in favor of a second referendum. Parts of the Conservative Party also support a second referendum- those Conservative MP's who are boxed in between the extreme Brexiteers who care for nothing except their vision of Britain outside the EU as a Franco-German arrangement, and the MP's who left the Conservative Party or now support a second referendum.  Kuenssberg says that necessity is the mother of invention and something could come out of the talks between May and Corbyn- but the obstacles she mentions may not be overcome leading to a new popular vote as the best option. ...

LyrArc Article Gist
Ali Gomaa, the grand mufti of Egypt, gives his ideas on Articles 2 of the 1971 Constitution (which established Islam as the religion of the state), and Article 7 of the interim Constitution (which guarantees equal citizenship before the law, regardless of religion). As head of Egypt's agency of Islamic jurisprudence, he gives his assurance to the West and to Egyptians, that the religious establishment of Egypt and he personally, is committed to tolerance and popular sovereignty that respects the rights of all citizens. He points to Egypt's tradition of a moderate and tolerant view of Islam. He says that Egypt threw out the heavy hand of authoritarian rule after many years and is not about to replace this with another type of authoritarian rule based on Islam. Islam's place in Egypt he argues, will be similiar to state churches in Denmark, and England, and similiar to Islam as the national religion in secular states like Tunisia and Jordan. The kind of Islam he sees for Egypt, in his words, is that of freedom and tolerance....

LyrArc Article Gist
Laura Meckler describes the many experiences as First Lady in Arkansas and in the White House, the many political investigations that happened, that led to the more cautious style Hillary has taken since becoming Senator from New York. This combined with her intense longing for privacy have led to the strange situation where people do not the human person that is Hillary, when they are inundated with information about the Clintons as a couple. With the 2016 campaign that human person is what is coming out as her fighting spirit kicks in, for someone who has seen all sides over a long time. 

LyrArc Article Gist
Leonhardt points out a couple of problems with Paul Ryan's budget proposal for Medicare. He says Medicare recipients, with the exception of the very affluent, currently haven't paid enough for the benefits they receive. He cites a study that shows Medicare pays out several hundreds of thousands of dollars for the average retiree more than they ever paid in. Medicare funds go for hospital expenses, the rest for doctors bills come from general government revenues. Government borrowing increasing the national debt to unsustainable levels so that current retirees do not have to pay higher taxes, is simply shifting the burden to the next generation. He says the Ryan plan shields those who will retire in the next 10 years because they are a powerful voting bloc, making this more of a political calculation than a bold reform step, as this means younger people will have to bear a disproportionate share of the burden. The other part of Ryan's calculus is that it has proven extremely difficult to reduce the volume of medical care that is consumed in terms of tests, lack of preventive care leading to graver problems, and surgeries. Simply by shifting a larger share of the cost to future retirees this will have an effect on the volume of medical care consumed and put a lid on costs. This is something that needs to happen says Leonhardt, but at the same time all Americans need to share in the higher taxes that are necessary to fund Medicare, exempting 75 million Americans only creates an imbalance in contributions. The other problem with this is that the costs of this exempted group will postpone serious deficit reduction for ten years....

LyrArc Article Gist
Sara Ehrman describes the time when Hillary Clinton worked in Washington D.C. as a 26 year old lawyer working on the Watergate committee, and Bill Clinton was teaching law in Arkansas. In August 1974 Hillary was living for about 1 year with Mrs. Ehrman, a friend who was a congressional aide at the time. She is 97 today, and recalls that time when she tried to discourage Hillary from going to Arkansas to join her boyfriend. Ehrman felt not much would come out of Bill Clinton, though she thought him to be handsome, and later worked in his presidential campaign and Hillary's presidential campaign. Ehrman was 55 then, and describes Hillary Clinton as a bit sloppy in her habits, such as not making her bed and having a lot of stuff strewn about her room, but really intelligent and very hardworking. At the time both lived together. Ehrman describes a daily routine of seeing Hillary go to work with coffee in the morning and come back exhausted late at night, having yogurt and going to bed, day after day.  The two met for the first time in 1972 when Ehrman was co-director of issues and research in the McGovern campaign in Texas, and Hillary was helping with voter registration. This report describes in detail the road trip to Arkansas that the two made together, when Mrs. Ehrman drove Hillary to Arkansas in her old Buick. They stopped at small towns  in the 1200 mile journey, and this journey ends with Mrs Ehrman crying that she could not get Hillary to change her mind about Bill Clinton and Arkansas. About what she thought was a bright woman throwing her life away in the deep South of the seventies. Hillary she remembers insisted she loved Bill Clinton, and having passed the Arkansas Bar exam had firmly decided on settling in Arkansas. ...

LyrArc Article Gist
Janet Yellen Fed chairwoman, says many obstacles still exist for women in the workforce. Bringing more women into the workforce will increase the productive capacity of the American economy. The increasing participation of women in the workforce was factor in the growth and prosperity of America by the middle of the 20th century. In a speech sharing her personal narrative at Brown University, her alma mater, she described how other nations had passed the U.S. in women's participation in the workforce, and how it remains stalled at 75% for women either working or looking for work. Her speech was at a conference "125 Years of Women at Brown." The U.S. is now 17th among 22 developed nations in participation of women in workforce, mostly because of government and business policies that relate to paid maternity leave, affordable child care, and flexible work schedules.

LyrArc Article Gist
Consumer prices rose 0.4% in June 2013, in early signs that the policies of the Abe administration against deflation are working.

LyrArc Article Gist
Met with Robert Thomson after his talk at the Detroit Economic Club in the late 1990's and had a short conversation. He was managing Editor of the Financial Times (Pearson Group) at the time. He seemed friendly, open and very knowledgeable. It appears that Murdoch is bringing with him good people to oversee the Journal. Murdoch is expected to focus attention on Dow Jones Newswires, a business he "wants to aggressively develop."

LyrArc Article Gist
Hilsenrath gives an account of how U.S. Federal Reserve chairman Bernanke convinced his fellow governors to support QE III and achieved a rare consensus.

LyrArc Article Gist
A BP led consortium won the right to develop the giant Rumaila oil field. Efforts for seven other oil and gas fields did not result in striking deals with oil companies. The Iraqi government set aggressive pricing for 20 year technical service contracts in which companies were paid fees for boosting output, and set this at $2 abarrel. The sole award for the Rumaila field can boost Iraqi oil output from the current 2.4 million barrels a day to more than 4 million barrels aday which is the Iraqi oil ministry's goal. The BP led group includes the China Petroleum Company. It bid $3.99 but finally accepted the $2.00 a barrel payment.

LyrArc Article Gist
Political activism and grassroots efforts- other than street protests - are increasing in eurozone countries facing high unemployment and austerity cuts. The focus is on cleaning up the political system rife with cronyism, corruption and wasteful spending. Brat and Bjork describe one such effort in the town of Torrelodones, Spain, 18 miles from Madrid. Criminal investigations in many Spanish cities have increased public awareness and participation in local government. European Social Survey based in London, reports political activity of this kind in Spain jumped from 27% in 2008 to 39% in 2010. There is an increasing sense that the political elites of the two main parties, the Partido Popular and the Socialists have failed to bring clean government and transparency to Spain. As a result progressives are joining conservatives in an effort to clean up years of wasteful spending, cronyism and corruption in government. The Union for Progress and Democracy, representing an alliance of such groups would win 13% of the vote in a national election, and the ruling conservative Partido Popular would lose half of its support and get only 22.5%, according to independent Spanish polling firm Metroscopia. The new push for transparency is one of the welcome changes at a time of austerity cuts and 27% unemployment in Spain. Many of the perks of public officials such as chaeuffer driven cars and police escorts, contracts for favored few at higher prices, are out in many cities, and accounts made public for scrutiny and change. Transparency International's transparency index shows 33 out of 110 of Spain's biggest cities scoring top grades on the 2012 index, jumping from only one. Following the example of the regional government in Navarra, the central government is drafting the first open-records law. Castilla-La Mancha, the area around Toledo, run by a clean government advocate Maria Dolores de Cospedal from the Partido Popular has taken aggressive steps to clean up the local government and wasteful spending- see the link to Castilla La Mancha. Her long term approach is to clean up government spending and accounts with the idea of preserving spending where it is most needed, in education, healthcare and vital services hit by cuts, an approach being taken in other Spanish cities. ...

LyrArc Article Gist
What does transformational liberalism mean? What does fairness mean? What does it mean to have unemployment insurance, to have health care, to have jobs, to open the door to the middle class for a college education. Is this transformational liberalism? Or is this "transformational liberalism" a part of a vocabulary of cliches that have lost meaning as the nation confronts job losses of the magnitude of 500,000 a month, and this is only the beginning. Much of the increased debt the nation is occurring is going to provide government help to financial institutions like the $177 billion that has gone to AIG so far, just one company, and there are the Citigroups and other companies like AIG. What does it mean to have "burden sharing," when the rest of the country is frightened, scared, losing jobs, losing savings, and at this juncture cliches may have lost meaning, as its those who profited most and got us into this crisis like the investment bankers and senior management of companies in industries like the mortgage industry, auto industry who will be paying their larger share not because of redistribution, but because they may be the ones who can most bear this burden wihtout great sacrifices like cutting down on necessities and basics. See the link to Countrywide's Kurland who plans to profit both by overselling mortgages and creating the tinder that started this fire, and now to profit by buying distressed properties at pennies on the dollar, with $200 million from Black Rock as an investor, and $200 million on stock he sold before the crisis. Is a Kurland who has not been subject to any regulatory action, or management of AIG, or Citigroup or GM or the other companies receiving federal money by the hundreds of billions of dollars about to ask the half amillion of unemployed and the others threatened with job loss each month, for "burden sharing"? Nobody wants to see any of this happen, what has happened, including the debt, but it has happened, and it was not engineered in the new budget or in the few weeks since early January 2009....

LyrArc Article Gist
The PRI party defeated the ruling PAN (conservative nNational Action Party) of Presidetn Calderon in midterm elections. PRI won five of six governorships and won 237 seats to the PAN's 143. Mexico is facing its worst economic crisis since 1995 with the devaluation of the peso and American loan assistance. THis time it is aflow-through of the American economic crisis, adrop in exports, a collapse of the auto sector, and drop in remittances from Mexican workers in the USA as well as tourism. The GDP of Mexico dropped 5.9% in 1st qusrter 2009. Unemployment and underemployment have doubled leaving one in six Mexicans without ajob. Poverty also has risen in this situation. Meanwhile a stalemate in the legislature has led to stagnation in terms of addressing critical areas of education, investing in the petroleum sector. And monopolies and oligopolies in a range of industries from tecommunications to cement trim GDP growth by 1% according to Guillermo Ortiz, central bank governor. Oil revenues are dropping, and proven reserves now are equal only to 13 years of current output. And public spending on infrastructure is declining. Disillusionment with the political system is growing, so much so that 5.4% of the ballots were spoiled in response to a campaign by political activists fed up with corruption and paralysis in the political system....

LyrArc Article Gist
Sony's efforts to buy out Ericsson's 50% share of Sony-Ericsson joint venture in cell phone devices. Analysts estimate the value of Ericsson's stake at 1-1.25 billion euros. For Sony it is critical to become a major player in the smartphone business. Smartphones are carried by consumers everywhere and offer the opportunity to link smartphones to its online music, games and videos. The Sony-Ericsson venture failed to catch the smartphone trend early. After the launch of the Sony iPad, Sony sees significant opportunities in coming up with newer smartphone models and leveraging its technological strengths. This can only be done by having complete control over the smartphone business and having it in-house. Ericsson also sees it this way. Sony Ericsson Chief Bert Nordberg stated recently that the smartphone business has more in common with Sony than Ericsson. Ericsson's strengths are in heavy engineering and telecommunications, business to business, which are in contrast to the consumer emphasis at Sony. The Sony-Ericsson venture is barely profitable, with net profits of 90 millon euros for sales revenue of 6.3 billion euros in 2010. The strength of the Japanese yen, and the firmer valuation after the venture turned profitable in 2010- after two years of losses in 2008 and 2009- make a buyout of Ericsson's stake a good move for Sony....