Illinois’ Debt Crisis Foreshadows America’s Financial Future

By Clint Siegner – Re-Blogged From http://www.Silver-Phoenix500.com

Those wanting a glimpse into the future of our federal government’s finances should have a gander at Illinois. The state recently “resolved” a high-profile battle over its budget. Taxpayers were clubbed with a 32% hike in income taxes in an effort to shore up massive underfunding in public employee pensions, among other deficiencies.

But, predictably, it isn’t working. People are leaving the state in droves.

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‘Nuclear Option’ to End Shutdown

By Associated Press – Re-Blogged From Newsmax

Feuding Democrats and Republicans in Congress are trying to dodge blame for a paralyzing standoff over immigration and showing few signs of progress on negotiations needed to end a government shutdown that stretched into a second day Sunday.

The finger-pointing played out in rare weekend proceedings in both the House and Senate, where lawmakers were eager to show voters they were actively working for a solution — or at least actively making their case why the other party was at fault. The scene highlighted the political stakes for both parties in an election-year shutdown whose consequences are far from clear.

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Fed’s Policy Likely Will Mute Positive Effects of Tax Cuts

By Rob Willams – Re-Blogged From Newsmax

President Donald Trump’s tax cuts that went into effect this year will have a muted positive effect on the economy as the Federal Reserve raises interest rates and reduces its debt holdings, Hoisington Investment Management Co. said.

“The full spectrum of monetary policy is aligned against stronger growth in 2018,” chief investment officer Van Hoisington and economist Lacy Hunt said in a Jan. 11 report. “This monetary environment coupled with a heavily indebted economy, a low-saving consumer and well-known existing conditions of poor demographics suggest 2018 will bring economic disappointments.”

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Corporate Earnings Repatriation

By Thomson Reuters – Re-Blogged From Newsmax

A loophole in the new U.S. tax law could allow multinational corporations like Apple Inc. to avoid paying billions of dollars in taxes on profits stashed overseas, according to experts.

Stemming from a Republican overhaul of international business taxes, the loophole involves the tax rates – 15.5 percent or 8 percent – that companies must pay on $2.6 trillion in profits they are holding abroad.

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Charity Gets Short-Lived Jolt From Tax Law

By Associated Press – Re-Blogged From Newsmax

In this season of giving, charity seems to be getting an extra jolt because next year the popular tax deduction for donations will lose a lot of its punch.

Traditionally generous Americans may have less incentive to give to charitable causes next year because of the newly minted tax law. The changes that will make it less advantageous for many people to donate to charity in 2018 may be sparking a year-end stream of fattened contributions in anticipation, charity executives and experts say.

Starting next year, the millions of relatively small donations from moderate-income people to mainstream charities could be sharply reduced, they say.

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Nearly 450K People Fled Blue States NY, Ill., Calif. in 2017

By Daily Caller News Foundation – Re-Blogged From Liberty Headlines

Debt crises, high taxes, increased crime driving residents away…

New York City photo

New York City/Photo by aurélien. (CC)

(Daily Caller News Foundation) Three Democratic-leaning states hemorrhaged hundreds of thousands of people in 2016 and 2017 as crime, high taxes and, in some cases, crummy weather had residents seeking greener pastures elsewhere.

The exodus of residents was most pronounced in New York, which saw about 190,000 people leave the state between July 1, 2016 and July 1, 2017, according to U.S. Census Bureau data released last week.

New York’s domestic out-migration during that time period was about the same as it was in the same time 2015 and 2016.

Since 2010, the state’s outflow of just over 1 million residents has exceeded that of every other state, both in absolute terms and as a share of population, according to the free-market think tank Empire Center.

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