Category Archives: business news

business news, national news, political news

Estate tax is worth keeping on the books

Time for a confession, which some of you might already have suspected.

I used to write editorials for daily newspapers that ran counter to my own beliefs and principles. Why? Well, as a former colleague once told me: If you take the man’s money, you play by the man’s rules.

So, there you have it. I was getting paid to write editorials for newspapers that had different slants than mine, so I wrote the words, gritted my teeth on occasion — and then accepted the paycheck.

One issue with which I had a disagreement with our newspaper’s editorial policy was the estate tax, or “death tax,” as some have called it. My bosses wanted it repealed. My former publisher at the Amarillo Globe-News (not the guy who runs the place now, but his predecessor) was adamant that we repeal the estate tax. Why punish heirs to estates, he argued, when the person who built the wealth wants to be able to hand it down to his or her heirs?

I’m sure my ex-boss is happy with the U.S. House of Representatives voting this week to repeal the estate tax.

I am not.

http://www.washingtonpost.com/blogs/plum-line/wp/2015/04/17/why-are-republicans-pushing-estate-tax-repeal-its-their-nature/

As Paul Waldman writes in the Washington Post: “Republicans say that they aren’t really trying to help wealthy heirs; instead, this is motivated by their deep concern for the fate of family farms and small businesses. But today, the first $5.43 million of any estate is exempt from taxes. That’s the single most important fact to understand about this tax.”

Did you get that? Nearly $5.5 million of any estate is tax exempt!

My congressman, Mac Thornberry, R-Clarendon, Texas, has been at the forefront of the estate tax repeal effort since joining Congress in 1995. He’s got a dog in that hunt. His family owns a lot of ranch land in Donley County and he doesn’t want any of it taxed when the day comes to hand it over to his heirs. I understand Thornberry’s interest in repealing the estate tax.

Here’s a bit more from Waldman: “According to the Joint Committee on Taxation, ‘In 2013, the most recent year for which final numbers are available, there were 2.6 million deaths in the United States, and 4,700 estate tax returns reporting some tax liability were filed. Thus, taxable estate tax returns represented approximately one-fifth of one percent of deaths in 2013.’”

One-fifth of one percent!

Is that enough of a tax to call for its outright repeal? If yes, then who benefits from it? I reckon it’s the extremely wealthy who have estates valued at far more than $5.43 million, which already is exempt from taxes. Remember?

What will be the fate of this repeal effort? If the Senate approves it as well, President Obama will veto it.

 

business news, International news, political news

Iran nuke deal makes economic sense

Oil prices could drop by as much as $15 per barrel of crude if the Iran nuclear agreement becomes final.

Who knew this agreement could be beneficial to our pocketbooks?

This bit of news comes from the Energy Information Administration and it portends even greater savings for American motorists — such as yours truly — who are continually looking for more disposable income.

http://www.msn.com/en-us/money/markets/iran-nuclear-deal-seen-cutting-oil-prices-by-dollar15-a-barrel/ar-AAayCbt

“If a comprehensive agreement that results in the lifting of Iranian oil-related sanctions is reached, then this could significantly change the … forecast for oil supply, demand, and prices,” the EIA said in a report. “However, the timing and order that sanctions could be suspended is uncertain.”

The key, of course, is the sanctions issue. Iran has a good bit of oil. The sanctions imposed by much of the world have prevented Iran from pumping and selling oil around the world. Suppose the sanctions are lifted and Iran returns to the energy-producing community of nations, thus putting more oil on the market.

Whether the sanctions get lifted in a timely manner could have an impact on the price of crude oil worldwide. The lifting of those sanctions, of course, depend entirely on Iran’s ability to comply with the agreement announced April 2 by the United States and its negotiating partners.

The framework agreement reduces Iran’s nuclear production capability significantly, with the intent of prevent the rogue nation from producing a nuclear bomb — which it has all but threatened to use against Israel. The Israelis, naturally, take those threats quite seriously — and those threats have contributed to Israel’s outright opposition to any deal with Iran.

Let us not forget that delays could come from the U.S. Congress, which comprises members who act as though they’d rather bomb Iran than talk to it.

The deal needs a chance to work. If it does, then one leading energy agency thinks oil consumers all around the world are going to reap some benefit.

business news, national news

What about consumers of oil?

The media and others keep reporting about the impact that the collapsing price of oil is having on the oil industry and those who work in it.

I feel for them, with their jobs on the line. It’s getting less cost-effective to explore for oil and produce it when the price falls from $100-plus per barrel to less than $50.

http://www.msn.com/en-us/money/markets/oil-rally-seen-reversing-as-rising-us-supply-deepens-glut/ar-BBhHhF7

But what about the consumer? What about the family that is now spending considerably less for gasoline then it was a year or two ago? How about those folks who suddenly find themselves with more disposable income, money to spend on other essentials — such as, oh, food and clothing?

The recent uptick in fuel prices is now expected to revert to recent trends as the nation’s oil glut continues to grow. It’s been an amazing spectacle to watch as street-corner gasoline dealers drop prices as many as three times daily.

I’ve talked here about the “new normal” in gas pricing being elevated to heights none of us imagined when we were much younger and were spending about four bits for a gallon of gas. I remember my parents pulling up to the gas pump and telling the attendant, “I’ll take a dollar’s worth of regular.” We won’t return to those days, but we’re a lot closer to them today than we were in 2013.

It’s that result that prevents me from crying too heavily over the fortunes of those who work on the oil field pipelines or at the refineries that turn crude oil into gasoline or diesel.

My wife and I will keep driving our hybrid motor vehicle — just like millions of other Americans — and will keep working to build up that supply of fossil fuel that contributes to the plummeting price of gasoline.

 

business news, local news, political news, State news

What have you done for us lately, legislators?

Texas Panhandle Days is coming up.

An entourage of Texas Panhandle residents is going to travel to the state’s capital city, Austin, sit down with legislators and tell them what’s on their minds. They’re going to tell them what kind of legislation they want passed and they’ll inform our elected representatives of the results they expect to get from their efforts.

http://www.amarillo-chamber.org/wcevents/eventdetail.aspx?eventid=2539

The Amarillo Chamber of Commerce puts it on. The link kinda/sorta talks about Panhandle Days’ mission.

I’ve never attended one of these events. The only way I’d ever be invited would be as a journalist covering it for my employer. I’m out of the full-time journalism game now.

So I’ll pose a two-sided question: What really and truly gets accomplished at these events and how the folks who organize measure their success?

I’ve known many individuals — from business and industry, from government, civic leaders, professional do-gooders — who’ve attended these Panhandle Days functions in Austin. They all come back and say what a “great time” they had. By “great time,” I suppose that means fellowship, consuming adult beverages and nice meals — all of that kind of thing.

But they’re not the only regional group that goes to Austin to receive the royal treatment. The Metroplex sends a delegation, as does San Antonio; Houston sends its posse to Austin; same for the Piney Woods and the Golden Triangle (where I formerly lived and worked); Coastal Bend sends a team, along with El Paso and the Permian Basin.

They all get their “days” in Austin, their time to slap a few backs, tell each other proud they are of what they’re doing and schmooze a bit with key state government movers and shakers.

They all have specific needs and interests. They’re all competing for the same pool of money to hand out. They’re all trying to get their legislators to pull strings for their interests.

Who are the big winners — and the big losers?

 

business news, local news

Mixed bag with big Xcel Energy plans

The news about downtown Amarillo hasn’t been good of late, what with the master developer hired by the city vaporizing into thin air in the span of a 24-hour day.

But it’s not all bad.

Xcel Energy announced plans to build a $42 million office building, which is the first large-scale office construction project in more than three decades.

Good news, right?

Yes. But there’s a catch.

Xcel is going to vacate the several floors it occupies at the Chase Tower, that huge 31-story skyscraper that juts out of the downtown Amarillo skyline.

I ran into my old pal Wes Reeves recently at the coffee shop on the ground floor of the Chase Tower. He made some cheeky remark about the appearance of the new structure. Actually, it looks attractive — at least to my eyes. It’ll comprise four stories and 114,000 square feet at Seventh and Buchanan. Three floors of office space will sit atop a parking garage that will hold at least 500 vehicles.

Xcel plans to move in by the spring of 2017.

I’m glad to see the activity picking up downtown.

What about the floors that will be vacated at the Chase Tower? Developers there have done a great deal to improve the appearance of that skyscraper. It’s a bustling hub of activity now. However, West Texas A&M University is moving its Amarillo campus operation of out there eventually to a new site where the Commerce Building sits.

The exit of WT and now Xcel will vacate about a dozen floors of the Chase building.

That’s an unacceptable level of darkness in a building that towers so tall over our city.

 

business news, local news

David Wallace: All hat and no cattle?

David Wallace talked a good game when he came to visit us at the newspaper.

I think it was around 2011. He was a partner in this high-dollar development company. He brought his game to Amarillo and pitched it to local civic, government and business leaders. He and his partner, Costa Bajjali, would be the “lead developers” in the city’s effort to rebuild, revive, renovate and resuscitate downtown Amarillo.

He persuaded many of us that he had the goods. He could make it happen. I recall quite vividly the crux of his statement — which I cannot quote verbatim today — that Wallace Bajjali was not in the business of failure. He didn’t make all that money, Wallace implied, by putting the screws to communities that hired him and his company.

Well, guess what? Wallace Bajjali is now history. The firm’s relationship with the city has gone kaput. The Local Government Corporation has declared the firm to be in default. Wallace and Bajjali have had a serious falling out. Wallace has disappeared. So has Bajjali. The city is left holding the bag, so to speak, on a parking garage it still intends to build — despite the absence of Wallace Bajjali as the can’t-miss master developer.

I read in the paper today that Richard Brown, the current president of the LGC, said everyone — including the media should have done a better job of vetting Wallace Bajjali. I guess Brown is trying to shed some of the responsibility for this mess-up by suggesting the media deserve some of the blame for getting entangled with this company.

But the city did lay out some dough. I understand it totals about $1 million. For that kind of money, I think the public deserves an explanation on what in the world happened to this one-time supposedly fail-safe partnership.

I know we can’t force Wallace or Bajjali to spill the beans on each other. But as a taxpayer and as a one-time member of the media who was sold a bogus bill of goods, I’d like some answers to what went so terribly wrong.

business news, local news

What? Cities can't decide these things?

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Oklahoma Gov. Mary Fallin has signed a law that bans cities from enacting municipal minimum-wage standards for businesses within the city.

That’s strange. I have thought Republicans, such as Fallin, were categorically opposed to what they call “government overreach,” that local control should trump bigger-government control whenever possible?

http://www.huffingtonpost.com/2014/04/15/oklahoma-minimum-wage_n_5152496.html

Oklahoma cities, like cities in all the other states, do have this thing called “home rule charter” form government. I believe that enables cities to set the rules inside their corporate limits. Do I have that wrong?

Gov. Fallin’s signature on the bill now disallows cities from making that call.

It reminds me a bit of the Texas statute that used to prohibit cities from deploying red-light cameras if city officials perceived a problem with people running red lights, causing accidents and putting local residents in danger. That law has been amended and some cities — such as Amarillo — are using the cameras to catch those who run through red lights.

Those who support the Oklahoma minimum-wage ban say it “levels the playing field” for all cities. A GOP state representative said, “An artificial raise in the minimum wage could derail local economies in a matter of months. This is a fair measure for consumers, workers and small business owners.”

Sure thing. But if business owners agree that the $7.25 hourly wage is too low and are willing to pay more, don’t they have the right to do so if the city where they operate grants them permission?

Local control, man. Local control.

I thought that was preferable to patronizing Big Government.

 

business news, national news, political news

'Transfer of wealth' talk likely to surface

Can we now discuss one of President Obama’s key points in his State of the Union speech?

It’s about that tax cut for the middle class.

He took considerable pain Tuesday night to extol the virtues of middle-class Americans and the work they do to make our country strong economically. He wants to give middle classers — folks like my wife and me — a break on their taxes. To pay for it he wants to ask more of wealthy Americans. They need to pay more in taxes to finance the tax relief he’s planning for the rest of us.

http://www.msn.com/en-us/news/politics/republicans-have-one-word-for-president%e2%80%99s-proposals-and-veto-threats-%e2%80%98no%e2%80%99/ar-AA8pnAq

Those on the right and far right have a term for it. We’ll hear it. It’s called “transfer of wealth.”

Let’s try to set the record straight.

As I understand the meaning of the term “transfer of wealth,” what would have to occur is that the federal government would have to actually take money earned by rich folks and give it to not-so-rich folks. Legend has it that Robin Hood did that in medieval England when he “took from the rich and gave to the poor.”

That’s wealth transfer.

What I heard the president propose Tuesday night was nothing of the kind.

A tax cut for the middle class wouldn’t deprive rich Americans of their wealth. They’d still be rich. They’ll get to keep their yachts, fancy cars, summer/winter homes and all their bling.

The middle class would get to pocket a little more disposable income to spend on things they want or need.

All this being said, I do understand GOP criticism of the president for proposing something he knows won’t ever be enacted into legislation he can sign into law. On that score, Barack Obama has proved his political deftness, as his proposal was met in the congressional chamber with applause from Democrats and silence from Republicans. How do you suppose that looks to millions of middle-class Americans watching who actually favor a tax break?

I don’t intend to tolerate any demagoguery about wealth transfer in describing what the president has pitched.

How about debating the proposal on its merits: Do the folks who control Congress favor a tax break for middle-class Americans or not?

 

business news, national news, political news

Recovery bigger than presidency or Congress

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Barack Obama gets a lot of blame and takes a lot of credit.

The president deserves some of the blame and much of the credit.

He doesn’t deserve all of what he gets or what he takes.

Politico has published a fascinating analysis of the economic recovery that is under way and wonders whether the president is taking too much credit for it. Its answer is “yes.”

http://www.politico.com/story/2015/01/does-obama-deserve-credit-for-economy-114107.html?hp=t1_r

I’ve been generous in my praise of Barack Obama’s handling of the financial meltdown that was occurring when he took office. He was bold and brash when he launched efforts to stimulate the economy with cash and when he persuaded Congress to enact bailout legislation that helped the automobile and banking industries.

Those efforts have paid off. Indeed, the auto industry has paid back the money it got and the Treasury is fatter because of it.

The latest job-creation numbers continue to show improvement in the economy, but as Politico points out, an $18 trillion economic machine — which is what the U.S. Gross Domestic Product is — is too big for a mere president or Congress to control.

As Politico reports: “Republicans say the economy is finally – and only partially – shaking off the impact of Obama policies like the Affordable Care Act, tax hikes and financial reform, all of which they contend slowed down growth. And they point to paltry wage gains once again evident in the December jobs report. Democrats say that’s sour grapes from partisans whose warnings of a disastrous ‘Obama economy’ look increasingly ridiculous.”

Furthermore, writes Politico: “Economists – on the left and right and in the middle – say the facts suggest a vastly more complex middle ground. Obama deserves significant credit for some shrewd and politically difficult moves early on his presidency, economists say, including the stimulus and the automobile and Wall Street bailouts.”

Congressional Republicans are now trying wrestle some of the economic recovery credit away from the president. Some have joked that the GOP has taken control of the full Congress only since Monday, noting that Democrats have run the Senate while the House has been in GOP hands only since 2011.

I’ve also noted that credit for the recovery can be shared, just as blame can be found on both sides for the collapse that occurred in the final years of George W. Bush’s presidency.

https://highplainsblogger.com/2015/01/01/how-about-sharing-the-credit/

The bottom line is that the economy is too huge, too complicated and contains too many traps for a single set of policies to manipulate.

 

business news, International news, national news, political news

Economy now off the table for 2016 campaign?

Let’s allow this declaration: Barring an unexpected collapse that could occur at any moment, the state of the nation’s economy will not be an issue in the 2016 campaign for president of the United States.

The Labor Department released more job numbers today. They’re good.

The economy added 252,000 jobs in December; unemployment fell from 5.8 percent to 5.6 percent.

Is it a perfect score? No. Wages took a slight dip in December, compared to the substantial growth they showed the previous month.

Republican contenders for the White House, though, are going to have to look beyond our borders for issues to toss against Democrats — namely against Hillary Rodham Clinton. Those opportunities aren’t going to be that easy to exploit against the former secretary of state, former U.S. senator, former first lady and prohibitive frontrunner for the Democratic presidential nomination.

The economy? Well, I’ve noted before how the Obama administration took bold steps early on to stop the free fall it inherited when Barack Obama took the presidential oath on Jan. 20, 2009.

The economy is picking up considerable steam now.

The war on terror? It’s still going on. Yes, the president said the “war on terror is over.” He misspoke. The nation continues to hunt down killers, who continue to strike at innocent victims, such as those most recently in Paris.

Let’s face this cold, harsh fact: The war on terror is unlike any war we’ve ever fought. There will be no way to declare victory. The 9/11 attacks brought forward what intelligence analysts and deep-cover agents have known all along, that terrorists are out there plotting against us.

That fight will go on, and on, and on.

At home, though, the economy has recovered.