Experts on Jobless Claims, Philly Fed, and Taxes Aug 21, 2009
Policymakers face conflicting goals: avoid the severe fiscal drag that expiration of existing tax policies would impose, while putting the federal budget back onto a sustainable long-term path. While spending cuts may help to narrow the budget gap, tax increases seem likely to do the heavy lifting, as receipts over the last few years have been further out of line than spending with their long-term average share of GDP. The challenge is to identify practical ways to raise revenue. (BusinessWeek)
Meredith Whitney and the Debt "Tsunami" Jul 14, 2009
As talk of another dose of federal fiscal stimulus surfaces, the U.S. economy is bracing for a fiscal drag from state and local governments. are merely the most extreme example of a serious imbalance that pervades state capitols and city halls across the land. (BusinessWeek)
Recession shrinks UK top tax take Jun 4, 2009
Fiscal drag in reverse. The threshold for paying the 40% tax rate was pushed up again this year, from 34,800 of taxable income to 37,400. (BBC News -- Business)
Editorial: 'Uncity' exacerbates county fiscal crisis May 3, 2009
In the past, the county has performed some accounting magic to balance its budget despite the fiscal drag from the "uncity," including booking sales tax revenue before it arrived in county coffers, refinancing the jail and doing internal borrowing, among other things. But with the deepening of the recession, the county has run out of gimmicks. (Sacramento Bee -- Opinion)
I'm the man to lead Australia: Turnbull Mar 14, 2009
" Mr Turnbull took every opportunity to dress down Mr Rudd and his government, describing the Labor leader as a "quintessential bureaucrat" committed to putting government at the centre of the economy. The criticism extended to the Rudd government's economic stimulus package, "job-destroying" Fair Work Bill, and Emissions Trading Scheme (ETS). "Mr Rudd has failed to learn one of the major lessons of this current financial crisis: today's fiscal stimulus is tomorrow's fiscal drag," Mr Turnbull... (Sydney Morning Herald -- Australia)
Manuel beyond our means Feb 12, 2009
However, he cautions, personal tax cuts are likely to be somewhat disappointing, targeting the middle and lower income brackets and consisting mainly of bracket adjustments to account for 'fiscal drag', rather than reductions to individual income tax rates. Although not likely, Manuel could possibly announce some VAT relief on essential foods, Els notes. (iAfrica.com)
