Fiscal cliff deal increasingly unlikely
By MANU RAJU and JAKE SHERMAN | 12/26/12 7:50 PM EST
Nearly all the major players in the fiscal cliff negotiations are starting to agree on one thing: A deal is virtually impossible before the New Year.
Unlike the bank bailout in 2008, the tax deal in 2010 and the debt ceiling in 2011, the Senate almost certainly won’t swoop in and help sidestep a potential economic calamity, senior officials in both parties predicted on Wednesday.
Why States May Want to Fall off the ‘Cliff’
Falling off the “fiscal cliff” is a bad thing, right? Not necessarily for some state governments that could begin collecting more in estate taxes on wealth left to heirs if the United States goes over the “cliff,” allowing sharp tax increases and federal spending cuts to take effect in January.
In an example of federal and state tax law interaction that gets little notice on Capitol Hill, 30 states next year could collect $3 billion more in estate taxes if Congress and President Barack Obama do not act soon, estimated the Urban-Brookings Tax Policy Center, a Washington think tank.
The reason? The federal estate tax would return with a vengeance and so would a federal credit system that shares a portion of it with the 30 states. They had been getting their cut of this tax revenue stream until the early 2000s. That was when the credit system for payment of state estate tax went away due to tax cuts enacted under former President George W. Bush.
With the return of the credit system next year as part of the “cliff,” states such as Florida, Colorado and Texas — which have not collected estate tax since 2004 — could resume doing so. California Gov. Jerry Brown has already begun to add the anticipated estate tax revenue into his plans, including $45 million of it in his 2012-2013 revised budget.
Social Security Ran $47.8B Deficit in FY 2012; Disabled Workers Hit New Record in December: 8,827,795
By Terence P. Jeffrey
December 26, 2012
(CNSNews.com) – The Social Security program ran a $47.8 billion deficit in fiscal 2012 as the program brought in $725.429 billion in cash and paid $773.247 for benefits and overhead expenses, according to official data published by Social Security Administration.
The Social Security Administration also released new data revealing that the number of workers collecting disability benefits hit a record 8,827,795 in December–up from 8,805,353 in November.
The overall number of Social Security program beneficiaries—including retired workers, dependent family members and survivors and disabled workers and their dependent family members—also hit a record in December, climbing from 56,658,978 in November to 56,758,185 in December.
In 2011, according to the Bureau of Labor Statistics, there was an average of 112.556 million full-time workers in the United States, of whom 17.806 million worked full-time for local, state or federal government. That left an average of only 94.750 million full-time private sector workers in the country.
That means that for every 1.67 Americans who worked full-time in the private sector in 2011, there is now 1 person collecting benefits from the Social Security administration.
Photo By Boyd Loving
Hurricane Sandy Relief Bill: More Spending Than Disaster Aid
Patrick Louis Knudsen
December 17, 2012 at 3:20 pm
The Hurricane Sandy relief bill racing through the U.S. Senate is a perfect example of the spend-now-save-later practices that are driving the government deeper in debt. Lawmakers cannot seem to find $55 billion in offsets to prevent a devastating cut in national defense, but they can easily whip up $60.4 billion in new deficit spending ostensibly to aid Sandy’s victims.
Not surprisingly, the President and his congressional allies have chosen the current lame duck session to push through the excess spending, ensuring it will not receive ample deliberation.
Following the President’s lead, the Senate Appropriations Committee is exploiting the “disaster” and “emergency” loopholes in the Budget Control Act (BCA) to slide the new spending through. The BCA allows any funds so designated to be spent above the $1.047 trillion discretionary spending cap for fiscal year (FY) 2013, without offsets.
The legislation clearly needs more thorough analysis than it will get now. For example, as previously detailed by The Heritage Foundation’s Matt A. Mayer, fully $28 billion of the spending would go toward future disaster mitigation projects on the East Coast.
These projects, if worthwhile, should be included in the regular budget, not in a hasty emergency supplemental. Another $3 billion would go toward repairing or replacing federal assets, such as buildings and vehicles, damaged during the storm. This is not urgently needed aid to Sandy’s victims, and should not be tacked on to the supplemental. There is also a dubious $10.7 billion in emergency spending for public transportation projects.
Then there is the truly audacious $17 billion in Community Development Block Grant (CDBG) funds, an embarrassingly transparent slush fund—also included in previous emergency bills—that states can use as they wish. Of this amount, $2 billion to mitigate future risks, not existing damage. The Secretary of Housing and Urban Development is required, under the Senate bill, to ensure a “minimum award” of CDBG funds to all the states affected by the hurricane. Get the picture?
All this would be bad enough any time. It is worse now, with the federal government likely facing its fifth consecutive trillion-dollar deficit in fiscal year 2013, and publicly held debt exceeding three-fourths of the economy’s total resources. Debt held by the public is on course to be twice the size of the economy in 25 years.
More immediately, Congress and the President face the manufactured crisis of across-the-board spending cuts that will, among other things, decimate national defense. Lawmakers cannot agree on a way to resolve this problem—which they have known about for a year—but they can readily gin up reasons to burn through $60 billion more.
As Mayer concluded, much of the supplemental should be addressed in the regular budget. Given the government’s untenable fiscal condition, any amount truly needed should be offset with reductions elsewhere. That is called budgeting, a practice Congress and the President need to learn.
https://blog.heritage.org/2012/12/17/hurricane-sandy-relief-bill-more-spending-than-disaster-aid/
Report warned NJ Transit official of flood risk
A report on climate change completed for NJ Transit months before superstorm Sandy struck New Jersey urged the agency to begin planning for higher storm surges that could envelop rail yards, destroy track beds and corrode switches, gates and signals. Rouse, Record
https://www.northjersey.com/news/Report_warned_NJ_Transit_officials_of_flood_risk.html
NJT Full system wide cross-honoring in effect
NJT Full system wide cross-honoring in effect starting December 26th at 1 p..m. until the end of service day Thursday, December 27 due to expected winter weather conditions.
NEWARK, NJ — With more winter weather expected to move through the region starting Wednesday afternoon, December 26 and continuing into Thursday, December 27, NJ TRANSIT is mobilizing its operations, customer service and police personnel across the state to keep the system running smoothly and minimize delays. All customers are strongly advised to check njtransit.com before traveling for up-to-the-minute service information before starting their trip.
To give customers additional travel options during expected inclement weather conditions, NJ TRANSIT will offer full system wide cross-honoring starting at 1 p.m. on Wednesday, December 26, and continuing until the end of the service day Thursday, December 27, enabling NJ TRANSIT customers to use their ticket or pass on an alternate travel mode—rail, bus or light rail. For example, customers who normally take the bus from Rutherford to the Port Authority Bus Terminal may use their bus pass on the train from Rutherford to New York Penn Station. Similarly, customers who normally take the bus between Atlantic City and Lindenwold may use the train instead.
Customers are reminded that many NJ TRANSIT rail lines are on modified schedules because of Hurricane Sandy and are advised to check njtransit.com before traveling.
While NJ TRANSIT is preparing to minimize disruptions and delays to the extent possible, customers are advised of the following:
Systemwide: NJ TRANSIT plans to operate a regular weekday schedule today and tomorrow, December 26 and 27. Depending on the impact of the storm, it may be necessary for NJ TRANSIT to modify service as conditions change.
Bus Service: While every effort will be made to continue operating bus service throughout the state, customers may experience delays or detours on their routes in the event of extreme winter weather conditions. Customers are advised to plan accordingly and anticipate disruptions to bus service.
NJ TRANSIT is prepared to handle the impending winter weather:
Snow plows and salt spreaders are ready for service and snow-removal contracts are in place with outside vendors.
NJ TRANSIT is well-stocked with 16,000 bags of snow-melting supplies, and hundreds of shovels and snow blowers.
NJ TRANSIT has performed maintenance and testing on its two rail-mounted jet snow blowers in the event they are needed to help clear train tracks of snow and ice, particularly in rail yards.
More than 750 rail switches, switch heaters and overhead wires were inspected as part of NJ TRANSIT’s preventative maintenance program.
Onboard heating systems, thermostats, weather stripping and electronic components have been inspected on NJ TRANSIT railcars and locomotives.
Bus maintenance personnel have inspected and performed necessary maintenance on a fleet of nearly 2,200 buses – from the heating and airbrake systems, to the engine fluids, tires, windshield wipers and doors.
Travel Advice:
For the latest travel information, visit njtransit.com or access our Twitter feed at @NJ_TRANSIT prior to starting your trip. In the event of delays or service adjustments, NJ TRANSIT will provide the most current service information via the My Transit alert system, which delivers travel advisories for your specific trip to your cell phone, PDA or pager. (If you are not yet a My Transit subscriber, we encourage you to sign up at www.njtransit.com/mytransit) Service information is also available by calling (973) 275-5555 or from broadcast traffic reports.
Listen closely to public address announcements at stations for late-breaking service information.
Build additional travel time into your trip to a station, terminal or bus stop.
Stairs, flooring and platforms can be slippery, so please use caution when walking along wet surfaces or any outdoor surface exposed to the weather. Use extra care when boarding or exiting buses and trains.
Report slippery or unsafe conditions to bus operators, train crews or
NJ TRANSIT staff.
If you park, ensure your car is stocked with a snow brush and ice scraper so you can clear your car upon returning to the lot.
The internet is leaving children brain-dead
Inventor warns ‘Google generation who spend life in front of screens are losing creativity and skills’
By John Stevens
PUBLISHED: 17:30 EST, 25 December 2012 | UPDATED: 06:08 EST, 26 December 2012
One of Britain’s leading inventors has warned that a ‘Google generation’ who rely on the internet for everything are in danger of becoming ‘brain-dead’.
Trevor Baylis, who invented the wind-up radio, said children are losing creativity and practical skills because they spend too much time in front of screens.
The 75-year-old said he fears that the next generation of inventors is being lost, with young people often unable to make anything with their hands.
Here’s a chart, detailing how Obama’s plan would bring spending from $3.62 trillion in 2013 to $5.63 trillion in 2022:
Spending to Increase 55 Percent Under Obama’s Plan
2:25 PM, Dec 24, 2012 • By DANIEL HALPER
Spending will increase 55 percent over the next decade, if President Barack Obama’s budget plan goes into effect. The finding comes from the Republican-side of the Senate Budget Committee, which notes that Obama’s “Proposal Would Spend $880 Billion Over Already Projected Increases.”
https://www.weeklystandard.com/blogs/spending-increase-55-percent-under-obamas-plan_691133.html
Statistics on New Years Resolutions?
What are the top ten news years resolutions of 2012 ? What is the success rate for new years resolutions ?
Top 10 Resolutions
1Lose Weight
2-Getting Organized
3-Spend Less, Save More
4-Enjoy Life to the Fullest
5-Staying Fit and Healthy
6-Learn Something Exciting
7-Quit Smoking
8-Help Others in Their Dreams
9-Fall in Love
10-Spend More Time with Family
News Years Resolution Statistics Data
Percent of Americans who usually make New Year’s Resolutions 45%
Percent of Americans who infrequently make New Year’s Resolutions 17%
Percent of Americans who absolutlely never make New Year’s Resolutions 38%
Percent of people who are successful in achieving their resolution 8%
Percent who have infrequent success 49%
Percent who never succeed and fail on their resolution each year 24%
People who explicitly make resolutions are 10 times more likely to attain their goals than people who don’t explicitly make resolutions
Type of Resolutions (Percent above 100% because of multiple resolutions) Data
Self Improvement or education related resolutions 47%
Weight related resolutions 38%
Money related resolutions 34%
Relationship related resolutions 31%
Age Success Rates Data
Percent of people in their twenties who achieve their resolution each year 39%
Percent of people over 50 who achieve their resolution each year 14%
Length of Resolutions Data
Resolution maintained through first week 75%
Past two weeks 71%
Past one month 64%
Past six months 46%
https://www.statisticbrain.com/new-years-resolution-statistics/
Mark Cuban’s Novel Income Tax Proposal Is The Exact Opposite Of What Most Economists Would Endorse
Joe Weisenthal | Dec. 24, 2012, 1:04 PM
Typical economic policy is fairly straightforward: Spend more and cut taxes when the economy is weak. Hike taxes only when we’ve recovered.
During a Reddit Ask Me Anything session, billionaire Mark Cuban offered up a very contrarian take on taxes.
First, here was the question that keyed off his claim that taxes should rise on the rich, and that it wouldn’t be that harmful to the economy.
Could you further explain your stance on taxes for businesses? I’ve seen where you said that taxes essentially don’t matter for business. That entrepreneurs will still start a business because they don’t say, “Wow, I have a great idea but the tax rate is too high.” Still, wouldn’t it be helpful to have lower taxes because when those entrepreneurs sell their business, they have more money left to fund other businesses? If I sell my business for $1MM and capital gains is 5% higher than it is now, that’s $50K that I can’t invest in startups. That’s easily 5 less businesses that will have to find capital elsewhere.
And here’s Cuban’s answer (lightly edited for punctuation):
Like everyone else, I want taxes lower. More money = more choices. BUT, I believe in taking responsibility for the circumstances we find ourselves in. As a citizen I voted for a bunch of the idiots in office. When they were doing stupid shit, I stood by quietly. Even when I spoke up, it didn’t impact anything. So while I believe that lower taxes are good. I recognize that I was part of the problem. And given that we are in the middle of a big problem, what I believe is the optimal way doesn’t matter. What matters now is fixing the problem. Unfortunately the way to fix the problem is to have those who can pay more to pay more. I’ve been proactive individually, I’ve written checks to the City of Dallas. I’ve written big checks for disasters where I know that anything not financed privately is going to come from taxpayers. So its my small way of trying to help. I think all these politicians who ignore the current context/realities of where we are, hurt more than help If it were up to me, I would increase taxes and create metrics that triggered declines. If the unemployment rate falls to 6pct nationally and the Deb/t GDP ratio declines to a specified amount, we lower taxes. If it goes the other way, we increase them further on the wealthy. I could go on for days on ideas, but no one is listening to me. 🙂
Flu hits North Jersey
Tuesday, December 25, 2012
BY BARBARA WILLIAMS
STAFF WRITER
The Record
Keep your hands out of the party mix.
The flu is spreading rapidly in North Jersey, and tossing that fistful of snacks into your mouth just might give you more than some pretzels and nuts — like one of the handful of influenza strains circulating among youngsters, college students and the elderly.
Influenza activity is at a high level, according to the state health department, a vast difference from last year, when the flu season never really ramped up and few residents were infected with the virus.
“We are escalating to a kind of activity level considered by New Jersey standards as high,” said Dr. Gary Munk, director of clinical virology at Hackensack University Medical Center. “It’s remarkable — we went from seeing no cases to these heightened levels early in the season.”
During the first week of December, New Jersey physicians said they were starting to see the first cases of influenza, but two weeks later the number of patients complaining of flu-like symptoms jumped significantly. Doctors attributed the rise to the refusal of many residents to get vaccinated.
“It’s a willful ignorance — they believe the vaccine will make them sick,” said Dr. Thomas Birch, president of the medical staff at Holy Name Medical Center in Teaneck. “But if someone feels like they have a cold after getting the vaccine, it’s just a coincidence. The vaccine doesn’t cause illness.”
Despite the prevalence of the illness in several schools, Dr. Jeffrey Bienstock, director of pediatrics at The Valley Hospital in Ridgewood, said he’s seeing reluctance on the part of some parents to have their children vaccinated.
https://www.northjersey.com/news/184730821_Flu_hits_North_Jersey.html
Demarest plan could offer a guide to further police mergers
Monday, December 24, 2012 Last updated: Tuesday December 25, 2012, 2:10 PM
BY JOHN C. ENSSLIN AND DEENA YELLIN
STAFF WRITERS
The Record
The proposed contract to have the Bergen County police patrol Demarest for seven years contains 32 pages of what ifs, worst-case scenarios and nitty-gritty details.
Among the provisions detailed in the draft contract posted on Monday on the county’s website are:
— What would happen if the county police force was disbanded or merged into the sheriff’s office, as it nearly were just three months ago.
— What would happen if the average response time on calls for service increased more than 5 percent two straight months.
— Where school crossing guards would be stationed and what annual events in Demarest the county police would patrol.
County officials hope the contract provides a template for how other towns can save money by having the county provide equal or better police services at lower costs.
An Idea to Revive Ridgewood CBD : Shopping card pitched to aid property-tax payers, commerce in Pequannock
Tuesday, December 25, 2012
BY STEVE JANOSKI
STAFF WRITER
The Record
PEQUANNOCK — Shop local, save on property taxes.
That’s essentially the premise behind a new Economic Development Committee-sponsored program encouraging residents to direct their purchasing power toward boosting their hometown business community.
And the Township Council is interested in taking a look at it.
Run by the 2-year-old business solutions company Fincredit Inc., the program would seek to issue a “property tax card” to each of Pequannock’s 6,500 households that would be used like a typical store discount card, company representative Nick Campanella told the governing body this month.
Local participating merchants would honor the card, but instead of applying savings on purchases directly to the receipt, the discount would be added to the cardholder’s account.
At the end of the year, the savings would be tallied and the total amount paid to the local government by the company and deducted from the customer’s property taxes.
Public education stressed for new lightning detection system in Ridgewood
Monday December 24, 2012, 10:51 AM
BY DARIUS AMOS
STAFF WRITER
The Ridgewood News
Ridgewood safety officials are stressing public education and compliance as they plan upgrades and enhancements to the recently installed lightning detection system at municipal schools and parks.
A joint project between the village and the Ridgewood Board of Education (BOE), the installation of lightning detection equipment took place this summer at six locations in the village. Playing fields at Ridgewood High School, Benjamin Franklin Middle School, Hawes and Somerville elementary schools received the system, as did Veterans and Maple fields.
The system has been working well, but according to Ridgewood Police Sgt. Brian Pullman, equipment and hardware is not their concern.
“The interesting problem for us is the enforcement and relying heavily on the users of the fields, the coaches and the parents to make sure that they are listening to the system and obeying the rules,” Pullman said, speaking at a recent Village Council meeting.
When centrally located weather equipment detects a lightning strike within 10 miles, the system triggers several safety measures. Registered users will receive a text and/or email notification stating that a lightning emergency is in effect, while on-field equipment is activated.
Bergen mulls offering free dispatching?
–Will This News Signal (no pun intended) The Demise of Northwest Bergen Central Dispatch?
–Free? Not Free to the Tax Payers
Tuesday, December 25, 2012
BY JOHN C. ENSSLIN
STAFF WRITER
The Record
Bergen County officials want to make an offer they believe municipal officials would find tough to turn down — use of the county’s 911 dispatch center in Mahwah at no additional charge.
The proposal, which is still in the discussion stage, could dramatically alter the economics that the county’s 70 municipalities have weighed in deciding whether to keep their own police and fire dispatchers, share the cost and service with neighboring towns or sign up with the county.
Since opening the $12.4 million Public Safety Operation Center in 2010, the county has had a difficult time convincing municipal officials that it would be more cost-effective for them to pay an annual fee to use the service.
Twenty towns have signed up to have their 911 calls routed through the center, including 11 towns for which the county also dispatches local police officers, firefighters and ambulances.
The county currently generates about $1 million in revenue annually from the towns that contract for that service, County Administrator Ed Trawinski said.
https://www.northjersey.com/news/184730681_Bergen_mulls_offering_free_dispatching.html?scpromo=1
