Posted on 11/21/2012 1:52:04 PM PST by Starman417
An article in the Wall St. Journal paints a gloomy picture for the future
U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.Half of the nation's 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.
Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009. Corporate investment in new buildings has declined.
At the same time, exports are slowing or falling to such critical markets as China and the euro zone as the global economy downshifts, creating another drag on firms' expansion plans.
Uncertainty
Corporate executives say they are slowing or delaying big projects to protect profits amid easing demand and rising uncertainty. Uncertainty around the U.S. elections and federal budget policies also appear among the factors driving the investment pullback since midyear. It is unclear whether Washington will avert the so-called fiscal cliff, tax increases and spending cuts scheduled to begin Jan. 2.
Nancy Pelosi has stated there will no agreement on the fiscal cliff unless there is a tax increase on the so-called rich.
House Democratic leader Nancy Pelosi says she's hopeful lawmakers can come to a deal to avoid a year-end "fiscal cliff" but any agreement has to include tax rate increases for the wealthy.She tells ABC's "This Week" that she can't accept a deal that caps deductions and closes some loopholes but does not alter current tax rates for the wealthy.
The California Democrat says "just to close loopholes is far too little money" and other ideas have to be considered. Republicans have suggested they are open House Democratic leader Nancy Pelosi says she's hopeful lawmakers can come to a deal to avoid a year-end "fiscal cliff" but any agreement has to include tax rate increases for the wealthy.
She tells ABC's "This Week" that she can't accept a deal that caps deductions and closes some loopholes but does not alter current tax rates for the wealthy.
The California Democrat says "just to close loopholes is far too little money" and other ideas have to be considered. Republicans have suggested they are open to finding more revenues.
As we've noted previously, increasing taxes on the "wealthy" would net only about $70 billion per year against a deficit of $1.25 trillion.
Additionally, it is estimated that increasing the taxes on the "wealthy" would have a serious and negative effect on the economy:
(excerpt) Read more at floppingaces.net...
“just to close loopholes is far too little money”
Yes, dear, we’ll have to shut down all of your vote buying programs and confiscate your ill-gotten gains....and your husbands, as well.
Isn't this fight between the House, Senate and Barry?
I don't see where the minority leader fits in, and who she is to say "she can't accept"...
Go sit in the corner, Pelosi, and when we want your opinion, we'll give it to you.
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