Over the next 10 years, Americans will not receive nearly $750 billion in tax cuts sponsored by President Bush because the cuts will be offset by the alternative minimum tax, a new report by Congressional tax specialists shows. The report, prepared by the staff of the Congressional Joint Committee on Taxation, said that from 2006 to 2015, Americans would pay as much as $1.1 trillion more under the alternative minimum tax, partly as a result of the Bush tax cuts. The Bush tax cuts reduced the bill for millions of taxpayers to a level that will subject them to the alternative minimum tax instead of the standard tax rate. As a result, the report said, their tax savings would be reduced by a total of $739.2 billion over the 10 years. Congress has passed a modest adjustment to the alternative minimum tax to allow more taxpayers to take advantage of the Bush tax cuts, but that expires at the year-end. Even if it is extended, the report said, the alternative minimum tax would take away $628.5 million in tax savings, with $416.5 billion of that attributable to the Bush tax cuts over the 10 years. George K. Yin, the joint committee’s chief of staff, wrote that the Bush tax cuts of 2001 and 2003 account for just under two-thirds of the increase in collections under the alternative tax. The report was prepared in response to a request from John Buckley, chief tax lawyer for Democrats on the House Ways and Means Committee. Families with children who own their homes will be hit hardest by the increased alternative tax.
Yearly Archives: 2005
Skysails: Great Shipping Energy Saving Idea
Great application of a mix of old an new technologies in a way that makes sense. Kudos to the SkySails folks for bringing this to market. The Economist has more:
But the SkySails approach does away with masts and is much cheaper. The firm says it can outfit a ship with a kite system for between €400,000 and €2.5m, depending on the vessel’s size. Stephan Wrage, the boss of SkySails, says fuel savings will recoup these costs in just four or five years, assuming oil prices of $50 a barrel. Jesper Kanstrup, a senior naval architect at Knud E. Hansen, says the idea of pulling a ship with an inexpensive kite—attached to the structurally solid bow like a tugboat—had never occurred to him. “It’s a good idea,” he says.
Skysails reveals the essence of any successful (We’ll see) idea: economics, application, timing and luck!
Your Internet Provider as Big Brother
Via Bruce Schneier: “This seems like a really bad idea.
Stepping up the battle against entertainment piracy, Verizon Communications Co. have entered a long-term programming deal that calls for the phone company to send a warning to Internet users suspected of pirating Disney’s content on its broadband services.
Under the deal, one of the first of its kind in the television industry, Disney will contact Verizon when the company suspects a Verizon customer of illegally downloading content. Without divulging names or addresses to Disney, Verizon will then alert the customer that he or she might be violating the law. Disney will be able to identify suspicious customers through an Internet coding system.
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Trappist Monk Brews
The term Trappist describes the source of these ales rather than a particular brewing style. In fact, the beers vary considerably. Some are dark as chocolate stout and some are amber-gold, bordering on orange. They can be intensely sweet or dry enough to pucker. Sometimes they can be both, reaching a full, rich, complex sweetness as you turn the ale over in your mouth, yet turning dry and refreshing as you swallow. They can all be wonderfully fragrant, with aromas of spices, flowers and fruit, and they are always strong, ranging in alcohol from about 7 percent to 12 percent, as opposed to the 5 percent of a typical lager.
I’ve always enjoyed an occasional Chimay, available at Steve’s Liquor among other local stores.
Midwesterners are Less Entrepreneurial
Two especially surprising findings from the study are: (a) that the Latino rate of entrepreneurship increased from 0.38 percent in 1996 to 0.48 percent in 2004, which was higher than the white, non-Latino rate of 0.39 percent; and (b) that immigrants have substantially higher rates of entrepreneurship than native-born individuals. The average rate of entrepreneurship for immigrants was 0.46 percent compared to 0.35 percent for the native-born.
New entrepreneurship activity is highest in the West. Other regions have similar rates of entrepreneurship.
Destruction of Domestic Gas & Oil Production
The Eye Between the Storms
by Michael Vickerman, RENEW Wisconsin
Petroleum and Natural Gas Watch, Vol. 4, Number 1
September 21, 2005
On its way toward the Gulf Coast states of Louisiana and Mississippi, Hurricane Katrina cut a swath through a hydrocarbon-rich zone of the Gulf of Mexico, the largest domestic source of petroleum and natural gas. When fully operational, this offshore oil and natural gas complex accounts for about 30% of domestic oil supplies and 20% of domestic natural gas supplies.
Fueled by exceptionally warm waters, this Category 4 storm KO’ed nearly 50 production platforms and four drilling rigs. Extensive damage was reported at 20 platforms and nine drillings rigs. The force of the winds and the waves tore six rigs loose from their moorings and sent them adrift; one rig in Plaquemines Parish was found beached on Alabama’s Dauphin Island. At the storm’s peak, on August 29, more than 90% of the Gulf’s oil extraction capacity and nearly 90% of its natural gas extraction capacity was off-line.
Our Tax Dollars At Work for Hollywood: Anti-Copying Attaches
Commerce is making ready a team of intellectual property (IP) specialists to deploy to nations giving us fits on piracy. Sort of a WTO-enforcing SWAT team.
The lead experience here is China, and that is all fine and good. This is where our “conflict” with China should really be centered: in economics and in rules.
Other countries targeted are all either New Core (Russia, India, Brazil) like China, or key Seam States (Thailand) or places where we’re making a special trade effort to shrink the Gap (Big Bang-land Middle East).
Good move, I say. One the White House can point to in upcoming trade pact battled with Congress, which, in its infinite wisdom, is moving more and more toward protections as a catch-all answer for America’s economic woes. Bad, stupid, ahistorical choice, but there it is.
Regulation Destroys Competition
At the August 5, 2005 meeting of the FCC, following the Supreme Court’s decision that cable modem connectivity is an information service, the FCC leveled (lowered) the playing field by declaring that DSL, too, is an information service. These decisions remove the common carrier obligation of the line owner to share — non-carrier ISPs like Earthlink are left to twist slowly in the wind. The industry is, for all intents, re-verticalized.
The central idea of the Telecom Act of 1996 — that competition would replace regulation — is all but dead. Regulation has systematically fought competition since 1996. Regulation has won.
More worth reading on blocking useful network apps here.
Pew Internet: Technology & Media Use
The report argues that, while broadband adoption has grown quickly in recent years, there are reasons to believe that it is slowing. The report develops a model of broadband adoption that hypothesizes that the intensity of online use is the critical variable in understanding the home high-speed adoption decision and the trajectory of the adoption curve. Using national survey data from 2002 and 2005, the paper shows that the role of online experience in explaining intensity of internet use has vanished over this time frame; the explanatory effect of having a broadband connection has grown. This suggests that relative to 2002 there is not much pent-up demand for high-speed internet use at home.
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Jennifer Alexander on the Madison Common Council’s Updated Lobbying Ordinance
The Greater Madison Chamber of Commerce and its partners were successful last night in gaining the council’s approval of a fair and workable lobbying ordinance. With a vote of 15-4, a new lobbying ordinance was passed into law by the Madison Common Council. After months of hard work on this issue, the ordinance that passed was supported and endorsed by the GMCC and will have minimal impact on the business community’s access to local government. Thanks to all of our partners that worked so hard over the past months: Downtown Madison, Inc., the Small Business Advisory Council, Smart Growth Madison, and the Realtors Association.