Oil companies, manufacturers, advertisers and real estate investors warned that a proposal from Senate Finance Chairman Max Baucus to slow down deductions for capital assets could raise the cost of investment.
After 12 years of Mayor Michael Bloomberg boosting New York’s finance industry, Wall Street is adjusting to the almost inevitable election of Bill de Blasio, who is campaigning against income inequality and calling for higher taxes on the rich.
Republican lawmakers have played down the significance of hitting the debt limit, saying the U.S. can avoid default by putting aside funds to pay bond holders. Economists affiliated with the party aren’t so sanguine.
How is it government officials come to contradictory conclusions about what the U.S. Treasury can do in the event it lacks the money to pay all its bills? Can the Treasury prioritize and pay bondholders before everyone else?
Donald Marron, founder and chairman of Lightyear Capital LLC, said Standard & Poor’s cutting of the U.S. debt rating was a response to Washington politics, not an indication of the country’s economic condition.
Donald Marron, head of the Brookings-Urban Tax Policy Center and former director of the Congressional Budget Office, wrote a great post yesterday arguing for the platinum coin as a last resort in the deficit-ceiling standoff. He says something particularly important about the alternatives to the coin: