Cutting taxes by raising them

Obama to cut taxes by raising them

The Obama administration is about to unveil reforms to the nation's international tax code designed to close loopholes for overseas tax havens and end tax incentives for creating jobs overseas. The White House plans to raise $103.1 billion dollars by targeting companies that use loopholes in the law allowing them to legally avoid paying billions in taxes by removing tax advantages for investing overseas. It also hopes to raise $95.2 billion dollars from wealthy individuals by cracking down on overseas tax havens. The money will be used to help make a tax credit permanent, the officials said.

The administration expects these initiatives to raise at least $210 billion over the next 10 years "to cut taxes for American families, increase incentives for businesses to create jobs in America, and reduce the deficit." Notice how every new tax coming down the pipeline is described as being good for us? The trouble is that it all sounds excellent until the companies being taxed decide to either pass on the tax to us, or pick up their marbles and move overseas themselves. And frankly, when we're told that new taxes are to help us pay fewer taxes, we know we must be through the looking glass.

www.TexasHomesAndLoans.com and www.RealEstateMagician.net

Carlos Salinas
"Real Estate Magician"

Construction spending blips

Construction spending blips

The Commerce Department reported that construction spending increased 0.3 percent in March, the best showing since a similar rise last September, as strength in nonresidential projects and government building offset a further slide in housing. Economists surveyed by Thomson Reuters had expected spending to drop 1.5 percent. The rebound may be temporary, however, given that the severe financial crisis has made it hard for builders to obtain financing. Spending on private residential projects fell 4.2 percent in March, the latest in a series of declines that began three years ago when the housing bubble burst.

www.TexasHomesAndLoans.com and www.RealEstateMagician.net

Carlos Salinas
"Real Estate Magician"

Pending Home Sales Index rises

Pending Home Sales Index rises

The Pending Home Sales Index from the National Association of Realtors rose in March for the second consecutive month and is up 1.6% higher than a year ago, with a 3.2% gain to 84.6 from February, when it was 82. According to Lawrence Yun, NAR's chief economist, it may still take a while before the market gains enough momentum to firmly state that the downturn has been reversed, because the upturn may have been boosted by the first-time homebuyers tax credit, a temporary measure that will lapse in December.

As usual, the consensus forecast of industry experts polled by Briefing.com was wrong - they had predicted no increase in the index. The economists at Briefing.com aren't doing too well in the predicting department these days, are they? It seems like every other day I'm digging up news of how this or that expectation was off by a mile.

www.TexasHomesAndLoans.com and www.RealEstateMagician.net

Carlos Salinas
"Real Estate Magician"

TALF goes commercial & additional Mortgage loans

TALF goes commercial

The Federal Reserve announced on Friday that commercial mortgage-backed securities (CMBS) and securities backed by insurance premium finance loans as of June are eligible collateral for TALF participation. The additions are aimed at stimulating lending in the commercial real estate and small business sector by allowing private investors to purchase securities with a matching government investment. "The CMBS market came to a standstill in mid-2008," Fed officials said in a media statement. "The inclusion of CMBS as eligible collateral for TALF loans will help prevent defaults on economically viable commercial properties, increase the capacity of current holders of maturing mortgages to make additional loans, and facilitate the sale of distressed properties."

www.TexasHomesAndLoans.com and www.RealEstateMagician.net

Carlos Salinas
"Real Estate Magician"

Inflation cometh

Inflation cometh

On Saturday morning at the annual meeting of Berkshire Hathaway shareholders, Warren Buffett warned that the purchasing power of the dollar may fall as policymakers stretch to finance expensive rescue plans. He warned that efforts such as the Treasury's $700 billion Troubled Asset Relief Program and the $787 billion fiscal stimulus plan passed this year by Congress will have to be paid for, one way or another.

While this may seem obvious to most of us, it's not the problem of the moment so the media hasn't bothered talking about it much. As Buffett says, with political leaders showing little inclination to raise taxes, one sure way to pay for excess spending is to inflate the value of the currency. The biggest losers in a surge of inflation, he added, would include holders of bonds and other fixed-income assets. "I haven't had my taxes raised; my guess is the ultimate price will be paid by a shrinkage of the value of the dollar."

And the saga continues, is the end anywhere in sight?

Despite all this Right now is the best time to BUY and or Invest in Real Estate. Texas is one of the nation's strongest markets.

www.TexasHomesAndLoans.com and www.RealEstateMagician.net

Carlos Salinas
"Real Estate Magician"

Will BOA try to raise 10 Billion?

Will BOA try to raise 10 Billion?

Ahead of the stress test results, Bank of America and Citigroup are both launching last-ditch attempts to convince the U.S. government they don't need to bolster their balance sheets, but the Financial Times reported that Bank of America is working on plans to raise more than $10 billion in fresh capital (BOA denied the rumor this morning). Wells Fargo and PNC Financial will also need to raise more capital unless they can persuade the administration their findings were wrong, the paper reported, citing people close to the situation. Analysts believe the government will say all 19 banks are solvent when the results are announced on May 7, but that some banks need to raise more capital than others to cushion themselves if the recession worsens.

Prices are low & it's the best time to Buy and or Invest in Real Estate. www.TexasHomesAndLoans.com or RealEstateMagician.net

Carlos Salinas
"Real Estate Magician"