New York City should hike taxes on big business-comptroller

New York City's top financial officer and possible contender for mayor in 2013, John Liu, proposed on Thursday tax hikes for big businesses and an end to Madison Square Garden's $15 million annual property tax exemption.
The proposals by New York City Comptroller John Liu include tax hikes on private equity firms, which would help offset his plan for $500 million in tax breaks and lowered fines for 90 percent of the city's small businesses.
Liu is expected to vie for the Democratic mayoral nomination for the election in November 2013.
The city could end tax breaks for big companies - more than $250 million of which were handed out last year, Liu said.
The city could also eliminate its $15 million annual property tax exemption for Madison Square Garden, the indoor arena in midtown Manhattan that's home to the New York Knicks basketball team. Madison Square Garden has been exempt from paying taxes on real property since 1982 under New York state law.
The arena is owned by The Madison Square Garden Co, which also owns the Knicks and other professional sports teams. The company also owns Radio City Music Hall, the Beacon Theatre and others venues, as well as television networks.
Liu also proposed examining tax breaks for special interests. Insurance companies, for instance, have not paid the general corporation tax since 1974, at a cost of $300 million annually to the city, he said.
Private equity firms could also start paying the unincorporated business tax for carried interest or gains from assets being held for investment. The exemption costs New York City about $200 million a year, Liu said.
Liu's package would use the revenue generated by those measures to offset his plan to ease the tax burden for small businesses.
He proposed ending the city's general corporation tax for all businesses with liabilities under $5,000 -- about 240,000 business in the city, or 85 percent of those that currently pay the tax.
His plan would also reduce some fines, as well as exempt businesses that make less than $250,000 in annual income from the city's unincorporated business tax.
The proposals would have to be approved by the governor and state legislature after a request by the city council.
The city is facing a possible $2.7 billion gap in fiscal 2014 that could grow to $3.8 billion the following year, Liu said.

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Republicans push own "fiscal cliff" plan; talks frozen

WASHINGTON (Reuters) - Republicans in the Congress pushed ahead on Thursday with a "fiscal cliff" plan that stands no chance of becoming law as time runs short to reach a deal with President Barack Obama to avert a Washington-induced economic recession.
House of Representatives Speaker John Boehner's "Plan B" to limit income-tax increases to the wealthiest sliver of the population appeared likely to pass the House on Thursday evening after it narrowly cleared a procedural hurdle in the afternoon.
However, Obama has vowed to veto the plan, and Senate Majority Leader Harry Reid said he will not bring it up for a vote in the Democratic-controlled chamber. White House spokesman Jay Carney called it a "multi-day exercise in futility."
Still, passage of Plan B could give Boehner the political cover he needs to strike a deal that would break with decades of Republican anti-tax orthodoxy.
"Time's running short. I'm going to do everything I can to protect as many Americans from an increase in taxes as I can," Boehner told a news conference.
Though it does not raise taxes on as many affluent Americans as Obama wants, the bill would put Republicans on record as supporting a tax increase on those who earn more than $1 million per year - a position the party opposed only weeks ago.
That could make it easier eventually to split the difference with Obama, who wants to lower the threshold to households that earn more than $400,000 annually. Obama also faces resistance on his left flank from liberals who oppose cuts to popular benefit programs, which Republicans say must be part of any deal.
Obama and Boehner will need to engage in more political theater to get lawmakers in both parties to sign on to the painful concessions that will have to be part of any deal to avert the cliff and rein in the national debt, analysts say.
"They are now in the mode where they have to demonstrate how hard they're trying to get everything they can," said Joe Minarik, a former Democratic budget official now with the Committee For Economic Development, a centrist think tank.
Even as he pressured Obama and the Democratic Senate to approve his plan, Boehner indicated that he was not willing to walk away from the bargaining table.
"The country faces challenges, and the president and I, in our respective roles, have a responsibility to work together to get them a result," Boehner said.
TIME RUNNING OUT
Obama and Boehner aim to reach a deal before the end of the year, when taxes will automatically rise for nearly all Americans and the government will have to scale back spending on domestic and military programs. The $600 billion hit to the economy could push the U.S. economy into recession, economists say.
Investors so far have assumed the two sides will reach a deal, but concerns over the fiscal cliff have weighed on markets in recent weeks. The S&P 500 index of U.S. stocks was up 0.4 percent in Thursday trading, despite a round of strong data on economic growth and housing.
"The closer we get to the end of the year without a deal, the more optimism is going to evaporate," said Todd Schoenberger, managing partner at LandColt Capital in New York.
Shares crept up after Boehner said he was prepared to work with Obama to prevent the fiscal cliff from kicking in.
Lawmakers are eager to wrap up their work and return home for the Christmas holiday, but congressional leaders kept the door open for last-minute action.
The Senate was expected to leave town on Thursday or Friday, but Reid said it could return next week to vote on any deal.
Boehner indicated the House would stay in session after Thursday's vote, scheduled for 7:45 p.m. EST (0045 GMT on Friday).
Several influential conservative groups have condemned Plan B, and some Republicans are expected to vote against it. But passage appeared likely after the House narrowly voted by 219 to 197 to bring the bill to the floor for debate.
The U.S. Chamber of Commerce, an influential business group that has often tangled with the Obama administration, offered grudging support.
"We are not comfortable allowing tax increases on anyone in this environment. However, we understand that, at times, politics requires compromise," the Chamber's top lobbyist, Bruce Josten, wrote in a letter to lawmakers.
To placate conservatives, Boehner also scheduled a vote on legislation that would shift $55 billion in scheduled defense cuts to cuts in food and health benefits for the poor and other domestic programs.
That measure also would roll back some of the Dodd-Frank financial regulation reforms of 2010. It is not expected to become law.

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Canada's seven-month budget gap narrows to C$10.6 billion

OTTAWA (Reuters) - Canada's federal budget deficit narrowed in the first seven months of the fiscal year to C$10.57 billion ($10.68 billion) from C$13.90 billion in the same period last year as personal and corporate income tax revenues rose and debt charges were lower.
The monthly shortfall in October was C$1.68 billion, compared with a gap of C$2.13 billion a year earlier, the Department of Finance said in a report on Friday.
The Conservative government in October pushed back by one year, to 2016-17, the date it expects to eliminate the deficit. Most economists believe that if the economy continues to grow, the books could be balanced sooner.
Ottawa has estimated a 2012-13 deficit of C$26 billion, including a C$1 billion cushion for risk.
In the April-October period, revenues increased by 3.6 percent, or C$4.9 billion, from the same period in 2011, pushed up by personal income tax and corporate income tax. Program expenses rose by 2 percent, or C$2.7 billion, on increases in elderly benefits and direct program expenses.
Public debt charges decreased 6.1 percent, or C$1.1 billion, on a lower effective interest rate.

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Bill Howe Family of Companies Named Finalist in Better Business Bureau Torch Awards for Marketplace Ethics for Second Year in a Row

Esteemed San Diego plumber, Bill Howe, and his wife Tina Howe, proudly accept recognition of their continued efforts towards ethical marketplace practices

San Diego, CA (PRWEB) December 18, 2012
For the second consecutive year, the Bill Howe Family of Companies has been named a finalist of the Better Business Bureau’s Torch Award for Marketplace Ethics. The award winners were announced during an award ceremony on December 4, 2012 at the Town & Country Resort in Mission Valley in San Diego. Plumber and businessman Bill Howe and his wife, Tina Howe, accepted the award for 2nd place finalist in the “100-249 employees” category.
In its 15th year, the BBB Torch Awards honor companies that have made a commitment to ethical excellence, integrity and support of the San Diego marketplace, despite any adversities. To be considered for the award, companies must compile a nomination that outlines and proves their commitment to ethics in categories including management practices, community and stakeholder relations, communications and marketing practices, and industry reputation. A panel of judges reviews the submissions and grades each category on a scale of 1-10. While many of the businesses that are nominated for the award are in the San Diego heating and air conditioning or plumbing business, the award is open to businesses in any industry.
“We are here to honor companies that epitomize ethics and integrity, and present them with a coveted Torch Award. But today’s gathering is about much more than that,” said Sheryl Bilbrey, San Diego BBB President and CEO, during the ceremony’s opening remarks. “Today, we honor one another for our steadfast commitment to doing the right thing for consumers in a time when so many others struggle to remain accountable.”
The Bill Howe Family of Companies started with Bill Howe Plumbing, Inc. in 1980 and now offers services in San Diego heating and air conditioning, as well as restoration and flood services. Since its inception, the company upholds their philosophy that to be successful they focus on ensuring the happiness of their employees, their customers and their community. Recently, the Bill Howe Family of Companies proved their philosophy has been a success when they moved to an office more than twice the size of the previous office, to accommodate their growing workforce.
“The Torch Award nomination process has been an incredibly rewarding experience as we looked at every aspect of our company and put all of our efforts on paper,” said Tina Howe, Vice President of the Bill Howe Family of Companies. “When you are doing business, it is not always easy to know the most ethical decision to make; sometimes it means more money, or sometimes it means we need to seek outside counsel. Whatever it takes, we strive to build our company on honest and ethical practices.

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"Fiscal cliff" creates waiting game for payrolls firms

WASHINGTON/NEW YORK (Reuters) - At payroll processing businesses across the United States, the "fiscal cliff" stalemate in Washington means uncertainty over tax-withholding tables just days before the start of 2013.
The U.S. Internal Revenue Service still has not issued the tables for next year that show how much money employers should hold back from workers' paychecks to cover federal income taxes.
Payroll processors need the tables to get their systems geared up for the new year. The tables are set by many factors, including tax rates and annual inflation adjustments.
In anticipation of late-breaking developments, Rochester, New York-based Paychex Inc will be serving Buffalo chicken wings for staffers working late on New Year's Eve, said Frank Fiorille, an executive at the payroll processing giant.
"Our systems are flexible enough that we can wait almost up until the last minute and still make changes," he said.
The IRS appreciates of the impact of Congress' inaction.
"Since Congress is still considering changes to the tax law, we continue to closely monitor the situation," IRS spokesman Terry Lemons said in a statement. "We intend to issue guidance by the end of the year on appropriate withholding for 2013."
Tax rates are slated to rise sharply for most Americans if Congress and President Barack Obama fail to reach an agreement that averts the "fiscal cliff" approaching at year-end.
"The political process will determine one way or the other what" the IRS must do, said Scott Hodge, president of the Tax Foundation, a business-oriented tax research group.
For now, he said, from the tax-collection agency's viewpoint, "doing nothing is probably the best course." This would be because withholding tables distributed now might only have to be revised if Congress acts in the next few days.
Some payroll servicers are not waiting for formal IRS guidance. The American Payroll Association, which represents about 23,000 payroll professionals, told members on Friday to rely on 2012 withholding tables until the IRS releases the new forms for 2013.
The association said its decision was based on a statement earlier this month from an IRS official.
The agency would not confirm that policy on Friday.
Tax preparer H&R Block Inc said it will use 2012 tax-withholding tables if the 2013 tables are not issued.
Executives said they were frustrated with the uncertainty in Washington, but were doing their best to cope.
"We are not doctors or surgeons and this is not life threatening," said Rob Basso with Advantaged Payroll Services, an Auburn, Maine-based payroll processor that serves 30,000 businesses. "It is annoying and disruptive to people's lives, but we will get through it."

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Vatican says pope beats Justin Bieber on re-tweets

VATICAN CITY (Reuters) - Pope Benedict, white-haired, 85, and a neophyte to social media site Twitter, has beaten out 18-year old heartthrob Justin Bieber to set a percentage record for re-tweeting by his followers, the Vatican said on Thursday. The Vatican newspaper said that as of noon Italian time on Thursday the pope had 2.1 million followers on Twitter, eight days after his first tweet was sent. While Canadian singer-songwriter Bieber has roughly 15 times as many followers - 31.7 million - the Vatican newspaper said Benedict had beaten Bieber on re-tweets. It said about 50 percent of the pope's followers had re-tweeted his first tweet on December 12 while only 0.7 percent of Bieber's followers had re-tweeted one of the singer's most popular tweets on September 26, when he commented on the death by cancer of a six-year-old fan. The Vatican said this was part of a wider trend in which people were looking for more spiritual content. The pope already tweets in English, German, Italian, French, Spanish, Portuguese, Polish and Arabic. The newspaper said he will start tweeting in Latin and Chinese soon.

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Saudi website editor could face death for apostasy-rights group

The editor of a Saudi Arabian website could be sentenced to death after a judge cited him for apostasy and moved his case to a higher court, the monitoring group Human Rights Watch said on Saturday. Raif Badawi, who started the Free Saudi Liberals website to discuss the role of religion in Saudi Arabia, was arrested in June, Human Rights Watch said. Badawi had initially been charged with the less serious offence of insulting Islam through electronic channels, but at a December 17 hearing a judge referred him to a more senior court and recommended he be tried for apostasy, the monitoring group said. Apostasy, the act of changing religious affiliation, carries an automatic death sentence in Saudi Arabia, along with crimes including blasphemy. Badawi's website included articles that were critical of senior religious figures, the monitoring group said. A spokesman for Saudi Arabia's Justice Ministry was not available to comment. The world's top oil exporter follows the strict Wahhabi school of Islam and applies Islamic law, or sharia. Judges base their decisions on their own interpretation of religious law rather than on a written legal code or on precedent. King Abdullah, Saudi Arabia's ruler, has pushed for reforms to the legal system, including improved training for judges and the introduction of precedent to standardize verdicts and make courts more transparent.

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Sri Lanka arrests 100 Chinese for cyber fraud, police say

Sri Lanka on Saturday arrested at least 100 Chinese nationals accused of an internet fraud scheme targeting people in their home country, a police spokesman said. The accused, all in Sri Lanka on tourist visas, are suspected of hacking into computers in China and then demanding their owners transfer them money, police spokesman Prishantha Jayakodi told Reuters. Chinese police requested help from Sri Lanka, he said. Officials at the Chinese embassy in Colombo were not available for comment. China has been the top lender to Sri Lanka since the end of a 25-year war in May 2009 and thousands of Chinese are working in the country on Chinese-funded infrastructure projects.

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British retailers start online sales early

British retailers have brought forward their Christmas clearance sales online in the hope that shoppers will log on to buy bargains and offset lackluster spending in stores. Marks & Spencer launched its sale online at midday on Monday, it said on its website, while department store John Lewis said it would cut online prices when its stores close at 1700 GMT. Debenhams has already started its online sale. Retailers in recent years have started sales online on Christmas Day, ahead of the clearances in stores from Boxing Day, but are increasingly launching their online offers before Christmas after delivery deadlines for the day have passed. Hard-pressed shoppers have been leaving it later to buy presents in the hope that retailers would slash prices, the British Retail Consortium said. It was forecasting that 5 billion pounds ($8.1 billion) would be spent in the shops on Saturday and Sunday combined, the last weekend before Christmas. Richard Dodd, the BRC's head of Media and Campaigns, said weekend trading had met expectations. "Christmas, ultimately once all the final sums are done, will turn out to be acceptable but not exceptional," he said. He said the sector expected a modest increase in cash spending against a year go, but not necessarily any significant increase in real terms once inflation was stripped out. Many British families' budgets are stretched, according to a survey from Markit that showed the biggest deterioration in household finances for seven months. Analyst Howard Archer at IHS Global Insight said the weakening in household finances could not come at a worse time for retailers, and it highlighted why many people appeared to have been careful in their Christmas shopping this year. "The suspicion has to be that consumers will be especially keen to take advantage of genuine major bargains in the sales to acquire items that they cannot otherwise afford or are reluctant to make at the moment," he said. "However, we suspect that people will likely to be more careful in buying - or reluctant to buy - items that they don't really want or need in the sales."

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China may require real name registration for internet access

China may require internet users to register with their real names when signing up to network providers, state media said on Tuesday, extending a policy already in force with microblogs in a bid to curb what officials call rumors and vulgarity. A law being discussed this week would mean people would have to present their government-issued identity cards when signing contracts for fixed line and mobile internet access, state-run newspapers said. "The law should escort the development of the internet to protect people's interest," Communist Party mouthpiece the People's Daily said in a front page commentary, echoing similar calls carried in state media over the past week. "Only that way can our internet be healthier, more cultured and safer." Many users say the restrictions are clearly aimed at further muzzling the often scathing, raucous - and perhaps most significantly, anonymous - online chatter in a country where the Internet offers a rare opportunity for open debate. It could also prevent people from exposing corruption online if they fear retribution from officials, said some users. It was unclear how the rules would be different from existing regulations as state media has provided only vague details and in practice customers have long had to present identity papers when signing contracts with internet providers. Earlier this year, the government began forcing users of Sina Corp's wildly successful Weibo microblogging platform to register their real names. The government says such a system is needed to prevent people making malicious and anonymous accusations online and that many other countries already have such rules. "It would also be the biggest step backwards since 1989," wrote one indignant Weibo user, in apparent reference to the 1989 pro-democracy protests bloodily suppressed by the army. Chinese internet users have long had to cope with extensive censorship, especially over politically sensitive topics like human rights, and popular foreign sites Facebook, Twitter and Google-owned YouTube are blocked. Despite periodic calls for political reform, the ruling Communist Party has shown no sign of loosening its grip on power and brooks no dissent to its authority.

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