Obama Budget: Suprise! That Small Business Tax Cut on capital gains doesn’t kick in until …2014!!

Good Grief. This was the centerpiece of the last Presidential debate, a broken promise by Team Obama..

Ben Smith:

Obama’s budget plan closes the deficit in part by postponing a promised tax cut well into his second term. (MiM here: getting ahead of yourself there Ben!)

The focus on tax cuts was central to Obama’s campaign against John McCain, and his surprising strength in polls on the question of taxes.

One of those promised cuts — the second bullet point in his campaign economic planwas a pledge to “eliminate all capital gains taxes on startup and small businesses to encourage innovation and job creation.”

That cut has been deferred, a Republican source notes: The elimination only begins phasing in, according to the budget overview (page 122) in 2014, well into Obama’s second term.

February 26, 2009. Tags: , , , , , , , . Economy, Finance, Music, Obama Administration, Politics, Uncategorized. 1 comment.

Breaking: Lewis throws Thain overboard…Thain ‘resigns by mutual agreement’ from Merrill/BoA…

…But can Ken Lewis survive the kerfuffle?? Full Disclosure, I am a Merrill, now BofA shareholder. So Thain helped Merrill survive in one sense and did his full fiduciary duty to Merrill *perhaps* by keeping it alive through the BofA merger…but did Ken Lewis do his FD by BofA shareholders? And what about due diligence on the deal in mid December when the losses started mounting?

Bank Of America Personnel

In this Sept. 15, 2008 file photo, Merrill Lynch Chairman and CEO John Thain, left, smiles as Bank of America Chairman and CEO Ken Lewis, speaks at a news conference in New York. Thain will remain with Bank of America after it completes its acquisition of his investment bank, and serve in a role similar to the job he's held at Merrill. He will oversee global corporate and investment banking and most of BofA's global wealth and investment management operations. (AP Craig Ruttle)

And no one will cover this, but I want to know, did BofA’s refusal to voluntarily modify mortgages under FDIC outline by Sheila Bair, ultimately cause it’s own continued losses and pain in the Merrill MBS losses? Cause if so, isn’t that ironic? ( if no less painful to me as a shareholder or homeowner, very Alanis Morrisette) !!! I betcha the answer to that is a great big YES. Harakiri by stupidity and refusal to help the little guy eh? IT’S THE HOUSING STOOPID!!!!

On another note, this Thain/Lewis melodrama is an ongoing conflict we will see repeated b/w commercial banking and Wall St corporate cultures….yep…notice how CITI never got past that in its ginormous amalgamation of diverse corporate cultures…(For those keeping track the BofA/Merrill group combined has 25 Billion in TARP funds at last count)

CNBC reports:

Thain’s resignation comes less than a week after Bank of America was forced to seek $20 billion in government bailout money to absorb Merrill, which it agreed to buy last September amid the credit crisis.

The extra government money was needed because of an unexpected $15.31 billion loss by Merrill in the fourth quarter. The government also agreed to share in losses on about $118 billion in Merrill debt.

The relationship between Lewis and Thain has been strained because of Merrill’s unexpectedly large loss.

Merrill, meanwhile, decided to move up its year-end bonuses, doling out cash just days before it was officially acquired by Bank of America, it was reported earlier Thursday.

Expect LOTS more on those bonuses Merrill paid out….

WOTS is that Ken went to Treasury mid-December to say the merger was in jeopardy when the Merrill losses kept mounting as the market continued downward….Lewis has indicated Treasury told him ‘do the deal we have your back’!

So, Ken apparently feels this is sufficient to cover HIS fiduciary duty to the BofA shareholders since he never told them/us about the pending Merrill losses prior to the BofA shareholder vote on the merger…

Someone… Ken clearly, has the long knives out for Thain, Charlie Gasparino is on CNBC Live releasing the details of the million dollar makeover Thain gave his exec suite at Merrill…I was burned by Thain as a New York Stock Exchange shareholder also, that tanked on his watch too…but how much is what was happening on the street at the time?

Will we BofA shareholders in the common stock live to see another year as a free company of capitalism? How much farther can our common share equity be diluted by capital injections by the government? Inquiring minds, and my mom’s pension fund, want to know!!!

More as it continues to develop….

January 22, 2009. Tags: , , , , , , , , , , , , , , . CITI, citigroup, Economy, Finance, Foreclosures, Housing, Music, Politics, Popular Culture, TARP, Wall St. 9 comments.

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