DIRS.INFO The most relevant business & tech news

☆ 9 ways rich real estate owners save big on taxes from putting mansions in trusts to donating rental property income
▼ + stars: | 2024-04-25 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +9 min

The richest 0.1% of Americans own $1.8 trillion in real estate, according to the Federal Reserve. Currently, individuals and married couples can gift or bequeath $13.61 million and $27.22 million, respectively, before a 40% federal estate tax kicks in. Here are nine little-known techniques that wealthy real estate owners use to pay less to Uncle Sam:Qualified personal residence trusts, better known as "QPRTs," effectively freeze the value of a real estate property for tax purposes. With an FLP, an individual — often a parent or two parents — pools their business assets, commonly real estate or stocks. The heirs don't own the trust assets, but rather have lifetime rights to the trust's income and real estate.

Persons: Uncle Sam, Trump, Sam Walton, Wrigley, Jeff Bezos, Rich, Ron Wyden, PPLI, Jackie O, I've, Edward Renn, remarries Organizations: Federal, Business, Walmart, Biden, Blackstone, Lombard, Taxpayers, IRS Locations: Trump, Florida, Wyoming, Plenty

☆ Op-ed: There's a potential tax increase coming. Here's what you need to know
▼ + stars: | 2024-04-15 | by ( Ivory Johnson | ) www.cnbc.com time to read: +5 min

Eva-katalin | E+ | Getty ImagesIt is common folklore, a fairy tale of sorts, that middle-class Americans received perpetual relief in the Tax Cuts and Jobs Act of 2017. First, property taxes generate 32% of state and local income, and U.S. median single-family home property taxes have risen by more than 25% since 2019. Congress will be motivated to etch all the tax cuts in stone, but it would only add fuel to the debt bonfire. watch nowThere is also the qualified business income deduction that offers a 20% tax break for small businesses provided they are below certain income thresholds. All of this is in addition to crippling cost-of-living challenges from excessive government spending, the well our Treasury would have to revisit to make these tax cuts permanent.

Persons: Eva, katalin, he's, Peter G, Uncle Sam, Roth, depreciate — Organizations: Taxation, Economic, Peterson Foundation, Chamber, Commerce, Treasury, Hope Congress, Real, IRS Locations: U.S, United States

☆ Here are some big money blind spots you need to avoid, advisors say
▼ + stars: | 2024-04-04 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Here are some of the biggest financial blind spots, according to several certified financial planners on CNBC's Digital Financial Advisor Council. 1. Credit scoresConsumers often don't understand the importance of their credit score, said Kamila Elliott, CFP, co-founder and CEO of Collective Wealth Partners based in Atlanta. The average person with a credit score between 760 and 850 would get a 6.5% interest rate, according to national FICO data as of April 1. The latter's monthly payment would cost $324 more relative to the person with a better credit score — amounting to an extra $116,000 over the life of the loan, according to FICO's loan calculator. "Ten out of 10 people couldn't explain how the tax withholding system works," said Ted Jenkin, CFP, CEO and founder of oXYGen Financial based in Atlanta.

Persons: Kamila Elliott, Wills, Barry Glassman, I'm, Glassman, Elliott, That's, Ted Jenkin, Uncle Sam, Jenkin Organizations: Getty, Digital Financial, CFP, Wealth Partners, Consumer Financial, Bureau, Wealth Services, Westend61, Collective Wealth Partners, Business, Employers, Workers Locations: Atlanta

☆ I was Michelle Obama's right-hand assistant, and she encouraged me to start my own business. Here are 6 tips for new entrepreneurs.
▼ + stars: | 2024-04-02 | by ( Jamishia J.J. Smith | ) www.businessinsider.com time to read: +7 min

I secured an internship during my senior year of college at the White House during the historical Obama administration in 2010. Clayton with Michelle Obama and colleagues in the Rose Garden before a 2016 College Signing Day event. Clayton assisting Michelle Obama backstage before a "When We All Vote" rally in 2018. Michelle Obama gave me the ultimate vote of confidence to start my businessMrs. Obama was the person who planted the seed for me to start my business. AdvertisementMy company focuses on business development, personnel development, and personal development.

Persons: —, Chynna Clayton, Michelle Obama, It's, I'm, Obama, Clayton, Chuck Kennedy, Michelle Obama's, Barack Obama's, who's, Uncle Sam, Linder Williams, Margaret Berry, Grandmother, Mildred King, Doris King Organizations: Service, Business, University of Florida, Greyhound, White, Invest Locations: Liberty , Florida, Liberty City , Florida, Kathleen , Georgia, Miami

☆ Powerball jackpot hits $1 billion. Here's how to pick between the lump sum or annuity if you win
▼ + stars: | 2024-04-01 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The Powerball jackpot is officially $1 billion — the fifth-largest prize in the game's history — without a winner from Saturday night's drawing. If you win the grand prize by matching all six numbers, you'll have two payout options: a lump sum of $483.8 Million or annuitized payments worth $1 billion. Both are pretax estimates. While the lump sum offers an upfront payout, the annuity includes one immediate sum followed by 29 annual payments with a 5% increase per year. "Between Uncle Sam and the winner's home state, that headline number could be cut in half by the time it reaches their hands."

Persons: There's, Landon Buzzerd, Sam Organizations: Finance, Mega, Asset Management Locations: NJ, Pittsburgh

☆ Mega Millions jackpot hits $1.1 billion — and the big winner could face these costly pitfalls
▼ + stars: | 2024-03-25 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

However, you must redeem the winning ticket in the state where you bought it, meaning an out-of-state purchase in a high-tax state could trigger a bigger bill. But the annuity payout could save on future state taxes, depending on where you choose to live, Stoltmann said. Otherwise, anyone who holds the winning ticket can file a claim to collect the proceeds. Avoid a 'legal catfight' on shared ticketsYou could also have winning ticket issues when pooling money with friends or co-workers, according to Stoltmann. "The nastiest legal catfights happen when a group of people buy a ticket together" and one person claims they bought the winning ticket alone, he said.

Persons: Justin Sullivan, Uncle Sam, Andrew Stoltmann, Stoltmann, Michael Whitty, Smith, Gambrell, Russell, there's Organizations: Getty Locations: Chicago, California, Florida , New Hampshire, South Dakota , Tennessee , Texas, Washington, Wyoming

☆ Opinion: How my homeland Haiti came to be such a troubled place
▼ + stars: | 2024-03-15 | by ( Opinion Garry Pierre-Pierre | ) edition.cnn.com time to read: +16 min

CNN —The last few weeks have brought unthinkable upheaval in Haiti, a country that is no stranger to tragedy and suffering. Nothing can compare to the current upheaval in Haiti though, and I would expect new waves of Haitians to seek refuge on foreign shores. Haiti needs help combating corruption and loosening the stranglehold that the country’s oligarchic masters have on its economy. He remains sequestered in Haiti however, because he knows that leaving would mean his business would be looted and pillaged. Although formidable challenges lie ahead, the path to peace and stability in Haiti is possible with help from Washington.

Persons: Garry Pierre, Pierre, Gary Pierre, Ariel Henry, Henry, —, ‘ Papa Doc ’, François “ Papa Doc ” Duvalier, Jean, Claude “ Baby Doc ” Duvalier, Claude Duvalier, Bertrand Aristide, Duvalier, — Aristide, ”, Jimmy, Giles Clarke, Jimmy Cherizier, Guy Philippe, Aristide, Philippe, Cherizier, Henry’s, Uncle Sam, strongmen, America sneezes Organizations: Haitian Times, New York Times, World Trade Center, City University Graduate School, Journalism‘s Center for Community, Ethnic Media, CNN, Haitian, ., UN, Haiti, US, Haiti —, Caribbean, Alcohol, Tobacco, Firearms, Drug, Agency, America Locations: New York, Haitian, Haiti, Puerto Rico, Caribbean, France, Canada, Washington, Kenya, Nairobi, Port, Haiti’s, Africa, Delmas, Prince, Jamaica, America, Maryland

I have many financial goals, so instead of one big savings account, I have one for each goal. Years ago, I heard some advice from a financial influencer that stuck with me: If you have numerous savings goals, set up different savings accounts and give each a name to correspond with their purpose. I opened up six new Capital One 360 Performance Savings accounts in the new year to help me achieve my financial goals. TaxesI'm embarrassed to say that I have never set aside money for taxes in all my years as a freelancer. While I usually had the funds available, peace of mind comes with having a separate savings account to cover taxes.

Persons: —, I've, It's, it's, I'd, haven't, Sam Organizations: Service Locations: homeownership

☆ Opinion: Why gangs hold so much power in Haiti
▼ + stars: | 2024-03-15 | by ( Opinion Garry Pierre-Pierre | ) edition.cnn.com time to read: +16 min

CNN —The last few weeks have brought unthinkable upheaval in Haiti, a country that is no stranger to tragedy and suffering. Nothing can compare to the current upheaval in Haiti though, and I would expect new waves of Haitians to seek refuge on foreign shores. After securing its independence, Haiti was subjected to neocolonialism and neglect by the global superpower on its doorstep, the US. Haiti needs help combating corruption and loosening the stranglehold that the country’s oligarchic masters have on its economy. He remains sequestered in Haiti however, because he knows that leaving would mean his business would be looted and pillaged.

Persons: Garry Pierre, Pierre, Ariel Henry, Henry, —, ‘ Papa Doc ’, François “ Papa Doc ” Duvalier, Jean, Claude “ Baby Doc ” Duvalier, Claude Duvalier, Bertrand Aristide, Duvalier, — Aristide, ”, Jimmy, Giles Clarke, Jimmy Cherizier, Guy Philippe, Aristide, Philippe, Cherizier, Henry’s, Uncle Sam, strongmen, America sneezes Organizations: Haitian Times, New York Times, World Trade Center, City University Graduate School, Journalism‘s Center for Community, Ethnic Media, CNN, Haitian, ., UN, Haiti, US, Haiti —, Caribbean, Alcohol, Tobacco, Firearms, Drug, Agency, America Locations: New York, Haitian, Haiti, Puerto Rico, Caribbean, France, Canada, Washington, Kenya, Nairobi, Port, Haiti’s, Africa, Delmas, Prince, Jamaica, America, Maryland

☆ Stocks hate this one weird trick from the calendar
▼ + stars: | 2024-02-29 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

New York CNN —Leap Day might seem like fun and games — until you consider Wall Street. To account for that gap, Julius Caesar in 45 BC decreed that an extra day be added every four years, leading to the Julian calendar. Pope Gregory XIII in 1582 AD created the Gregorian calendar, coined the term “leap year” and established February 29 as the official leap day. He adds that a leap day can also help marginally raise corporate earnings, since companies get an extra day in a fiscal quarter to operate. History shows that stocks tend to perform worse when an additional day is added to the calendar.

Persons: Julius Caesar, Pope Gregory XIII, Matt Weller, Weller, Dow, ”, “ Barbie ”, “ Oppenheimer, ’, Samantha Delouya, It’s, Read, Sam’s, Sam, Matt Egan, Banks Organizations: CNN Business, Bell, New York CNN, Dow Jones, Bulls, Research, AMC Entertainment, AMC, Treasury Department, CNN, Treasury Locations: New York, FOREX.com

☆ AI is Uncle Sam’s new secret weapon to fight fraud
▼ + stars: | 2024-02-28 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

Starting around late 2022, the Treasury Department began using enhanced fraud-detection methods powered by AI to spot fraud, CNN has learned. Treasury’s AI-powered fraud detection recovered $375 million in fiscal 2023 alone, Treasury officials tell CNN, marking the first time Treasury is publicly acknowledging it is using AI to detect fraud. Instead, Treasury officials say the type of AI they are using falls more into the bucket of machine learning and Big Data. The goal is to move with such speed that anomalies are flagged and banks are alerted before fraudulent checks are ever cashed, Treasury officials said. Catching fraud in millisecondsAmiram Shachar, co-founder and CEO of cloud security startup Upwind, told CNN the federal government should “absolutely” use AI to detect fraud.

Persons: Sam, Sam’s, Fraudsters, Wally Adeyemo, ”, ” Shachar, Steph Curry Organizations: New, New York CNN, Treasury Department, CNN, Treasury, Data, Washington, Office, Business Administration, Social, Internal Revenue Service, IRS, Google, Facebook, Penny Jar, NBA, Mastercard Locations: New York, Banks, Washington, Hong Kong

Our experts answer readers' tax questions and write unbiased product reviews (here's how we assess tax products). I always start tax prep at the end of December, but doing so felt especially important this year. Finally, I send tax forms to the people whom I subcontracted with. I like the idea that he’s spending a bit more time on my taxes during the quiet start to tax season. Starting my taxes early lets me plan and feel in control, which reduces my stress about my tax bill.

Persons: —, Uncle Sam, I’ve, He’s Organizations: Service, Disney

☆ Gen Z has discovered the ultimate anti-layoff hack: government jobs
▼ + stars: | 2024-02-13 | by ( Katie Notopoulos | ) www.businessinsider.com time to read: +3 min

Gen Zers and millennials are wary of layoffs — especially a recent wave hitting the tech sector. Job security, a pension, strong benefits, and student loan forgiveness. "People in private sector jobs are three times more likely to lose their jobs than people in federal government jobs," she said, adding that public sector workers can also expect to enjoy a "better work-life balance" with a lot more paid time off. It's no secret that Gen Z is looking to rethink their approach to work and careers. It may seem counterintuitive to want to work in the public sector, which typically has lower salaries than the private sector.

Persons: Gen Zers, —, Uncle Sam, Bonnie Dilber, They're Organizations: Service, Meta, Google, CIA, Big Tech

Filing your taxes early means you have more time to make last-minute retirement account contributions. Finishing your taxes early also gives you time to plan ahead for next year. But as a financial planner, I always recommend getting them done as early as possible. Even if you're not a freelancer, filing early can ensure you get your return early or have more time to pay your bill. Plus, evaluating my latest tax return early gives me a game plan for next year's liability.

Persons: —, I've, Uncle Sam, You'll, That's Organizations: Service, IRS

☆ Uncle Sam just overhauled the H-1B visa lottery, and that's good news for startups
▼ + stars: | 2024-02-05 | by ( Melia Russell | ) www.businessinsider.com time to read: +4 min

Read previewA new reform to the US H-1B visa program aims to ring out some of the uncertainty for migrant workers and employers. Each year, tens of thousands of foreign nationals wind up at venture-backed companies through the employment-based visa program. However, obtaining an H-1B visa remains challenging due to high demand. Data shows much of the increase was due to a record-breaking number of employers submitting multiple H-1B registrations for the same person. "This led to many individuals being entered into the lottery multiple times, through different companies, and ultimately decreasing the odds of being selected in the lottery," Finkelman said.

Persons: —, Jason Finkelman, Finkelman, USCIS, Sophie Alcorn, Alcorn Organizations: Service, Immigration Services, Business, Tech Locations: Austin, Hyderabad, Beijing, Silicon Valley

NEW YORK (AP) — Carl Weathers, a former NFL linebacker who became a Hollywood action movie and comedy star, playing nemesis-turned-ally Apollo Creed in the “Rocky” movies, facing-off against Arnold Schwarzenegger in “Predator” and teaching golf in “Happy Gilmore,” has died. Matt Luber, his manager, said Weathers died Thursday. Most recently, Weathers has starred in the Disney+ hit “The Mandalorian,” appearing in all three seasons. Photos You Should See View All 45 ImagesCreed, who appeared in the first four “Rocky” movies, memorably died in the ring of 1984’s “Rocky IV,” going toe-to-toe with the hulking, steroided-using Soviet Ivan Drago, played by Dolph Lundgren. “When I found football, it was a completely different outlet,” says Weathers told the Detroit News.

Persons: — Carl Weathers, Arnold Schwarzenegger, Happy Gilmore, ”, Matt Luber, Weathers, “, Jackson ”, ” Weathers, Creed, Sylvester Stallone, you’ve, Rocky, Ivan Drago, Dolph Lundgren, James Brown, showgirls, Sam, Drago, Michael B, Jordan’s Adonis, Schwarzenegger, Jesse Ventura, Jackson, Gilmore, Adam Sandler, Dick Wolf’s, Woody Strode, “ Spartacus ”, Sidney Poitier, Harry Belafonte, Jim Brown, Muhammad Ali, I’ve, San Diego State University —, ___ Mark Kennedy Organizations: NFL, Daily, Disney, Chicago, Detroit, San Diego State University, Oakland Raiders, Detroit News, Raiders, Canadian Football League, San Francisco State University Locations: Hollywood, America, ”, Disney’s, New Orleans, —

☆ How Long Does It Take to Get a Tax Refund?
▼ + stars: | 2024-01-15 | by ( E. Napoletano | ) www.wsj.com time to read: +6 min

By E. NapoletanoOver dinner with friends, you toast to having finished this year’s tax return: Everyone’s getting a tax refund! How you file your tax return greatly impacts how quickly your refund arrives. Four ways to get your tax refund fasterThere are a few basic situations where your refund can be delayed. E-fileIf you still put a stamp on your tax return, you may want to upgrade to e-filing. How to check your refund statusNo matter how you file, you can easily check your refund status using the IRS’s Where’s My Refund?

Persons: they’ve, Uncle Sam, Rob Burnette, haven’t, you’ll, “, you’re, Brian Eberle, it’s, Eberle, ” Organizations: Internal Revenue Service, IRS, Outlook Financial, Social Locations: Troy , Ohio, Minneapolis

☆ Every country needs an Inflation Reduction Act
▼ + stars: | 2023-11-23 | by ( Antony Currie | ) www.reuters.com time to read: +9 min

REUTERS/David Gray/File Photo Acquire Licensing RightsMELBOURNE, Nov 23 (Reuters Breakingviews) - Lawmakers in South Korea blasted the U.S. Inflation Reduction Act as a betrayal. Yet concerns about market distortion from the policy intended to stimulate investment in the energy transition and signed into law by President Joe Biden in August 2022 are easing. The Biden administration’s willingness to negotiate on its package of $370 billion of tax breaks and other measures has helped. Reuters GraphicsTrouble is, governments also need to show that they will be fiscally responsible stewards of the energy transition in the short term – especially with inflation still a threat and budgets under pressure. In a speech on Nov. 2 about enabling Australia’s energy transition, Treasurer Jim Chalmers said that “incentives like the type we’ve seen in the Inflation Reduction Act in the United States can be part of an answer but they’re not the whole answer”.

Persons: David Brockwell, David Gray, Australia’s Fortescue, FMG.AX, Joe Biden, Biden, –, Goldman Sachs reckons, ’, Uncle Sam, Fumio, Jim Chalmers, they’re, Chalmers, Una Galani, Thomas Shum Organizations: REUTERS, Rights MELBOURNE, Reuters, Australia, Washington, European, of America, Labor Energy Partnership, U.S, Canberra, Climate Energy Finance, Climate Capital Forum, Deloitte, National Australia Bank, quicken, Thomson Locations: Lake George, Canberra, South Korea, United States, Seoul, European Union, U.S, Japan, Washington, EU, Australia

☆ Why Treasury Bonds Are So Attractive Now
▼ + stars: | 2023-11-18 | by ( Wall Street Journal | ) www.wsj.com time to read: 1 min

My Bonds (Music Video) - Why Treasury Bonds Are So Attractive NowWith the U.S. national debt surpassing $33 trillion and the largest foreign buyers of Treasury bonds reducing their holdings, the government may need some help finding new buyers. We made a music video featuring Uncle Sam that could help. Illustration: Rami Abukalam

Persons: Uncle Sam, Rami Abukalam Organizations: U.S

☆ Uncle Sam cleverly goes long on short sellers
▼ + stars: | 2023-11-15 | by ( John Foley | ) www.reuters.com time to read: +4 min

The United States is a rare place where financial regulators hand out cash for information that leads to successful enforcement. Moreover, the rewards are not just for corporate insiders, but also short sellers. In 2019, the SEC doled out $60 million, a sum it has already exceeded nearly five-fold this year. Skeptical investors – notwithstanding their sleuthing skills – generally trade on information regulators could in theory find themselves. Short sellers aren’t always welcome, but some are undeniably being put to good use.

Persons: Julia Nikhinson, Carson Block, Kyle Bass, Waters, It’s, aren’t, ”, Jeffrey Goldfarb, Sharon Lam Organizations: U.S, Capitol, Congress, REUTERS, Reuters, U.S . Securities, Exchange Commission, Hayman Capital, SEC, Bloomberg, Futures Trading Commission, European, Harvard University, Workers, Thomson Locations: Washington , U.S, United States

☆ Workers are missing cog in US manufacturing gears
▼ + stars: | 2023-11-07 | by ( Jeffrey Goldfarb | ) www.reuters.com time to read: +7 min

NEW YORK, Nov 7 (Reuters Breakingviews) - There’s a spanner in the freshly restarted U.S. manufacturing machine. Based in part on the planned construction spending, Goldman Sachs analysts estimate that Biden’s initiatives could lead to as many as 250,000 new manufacturing jobs over the next two years. Pay growth is also cooling faster for production and manufacturing jobs, at 4.2% year-over-year in August, down from an 11% annual peak in December 2021 and compared to the national average of 4.5%, according to jobs website Indeed. By 2030, technological and cognitive skills in the manufacturing sector will be in far higher demand as the share of physical and manual tasks drops by more than a quarter from 2016, McKinsey says. The U.S. manufacturing engine may be humming along now, but employment-related complications threaten to throw sand in the gears.

Persons: Joe Biden’s, Biden, Goldman Sachs, There’s, it’s, Sam, Francesco Guererra, Sharon Lam Organizations: Reuters, Deal, Taiwan Semiconductor Manufacturing, Samsung Electronics, Intel, Bosch, Linde, Public, Ford, SK Innovation, Reuters Graphics Reuters, Department, Bureau of Labor Statistics, McKinsey, University of Massachusetts, Economy Research, of Labor Statistics, Thomson Locations: Arizona, U.S, United States, China, Europe, Asia, it’s, Germany, Amherst

☆ Slain Lebanese schoolgirl sisters are latest victims of Mideast war
▼ + stars: | 2023-11-06 | by ( Abdelaziz Boumzar | ) www.reuters.com time to read: +4 min

When they set off on Sunday, a missile Lebanon says Israel fired hit their car, killing all three and their grandmother, and leaving their mother wounded and confused. The Ayyoub sisters, aged 14, 12 and 10 respectively, are the latest victims of a Middle East war that began on Oct. 7 when Palestinian militant group Hamas attacked southern Israel, killing some 1,400 people, most of them civilians. Israeli strikes have killed some 60 Hezbollah fighters and at least 10 civilians, Lebanese security officials say. One of the girls’ aunts, Ahlam Ibrahim, said she did not expect this latest dark chapter for southern Lebanon to be the last. Among those killed in southern Lebanon in the current conflict is Reuters journalist Issam Abdallah.

Persons: Samir Ayoub, Lianne Ayyoub, Israel, Samir Ayyoub, Ahlam Ibrahim, “ It’s, we’ve, Issam Abdallah, Lebanon's, John Davison, Andrew Cawthorne Organizations: Reuters, United Nations, Palestinian, Hamas, Lebanese Hezbollah, Hezbollah, Thomson Locations: Israeli, Aytaroun, Lebanon, Israel, Beirut, Iran

☆ 3 things you can learn about taxes from San Francisco 49ers' Arik Armstead's paycheck
▼ + stars: | 2023-11-06 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Arik Armstead of the San Francisco 49ers at the NFC Championship game against the Philadelphia Eagles on Jan. 29, 2023. While the pay stub showed gross earnings of more than $4 million year to date, experts say it holds lessons for everyday taxpayers. While it's possible to withhold less than you'll owe, you could risk underpayment penalties on top of a sizable income tax bill in April. Max out your 401(k) to save on taxesIn addition to significant tax withholdings, Armstead also maxed out his workplace retirement plan for 2023. But you can reduce your adjusted gross income with pre-tax 401(k) contributions, experts say.

Persons: Arik Armstead, Kevin Sabitus, Sam, Armstead's, Albert Campo, Armstead, Tommy Lucas, Moisand Fitzgerald Tamayo, Lucas, Armstead's withholdings, John Loyd, Max Organizations: San Francisco 49ers, NFC, Philadelphia Eagles, Getty, Finance, Social Security, AJC Accounting Services, CFP Locations: Manalapan , New Jersey, California, Orlando , Florida, Florida, Texas, Fort Worth , Texas

☆ Rich countries are stumbling into a debt trap
▼ + stars: | 2023-11-03 | by ( Felix Martin | ) www.reuters.com time to read: +7 min

Unlike many corporations and households, the U.S. government did not lock in the low interest rates of the last decade by issuing long-dated debt, preferring instead to skew funding towards bills and short-term bonds. The second route out of the debt trap is to target the primary fiscal surplus, choosing a combination of spending cuts and tax hikes that will stabilise the public debt. That leaves the third route to debt sustainability – keeping real interest rates low. But in the short run, it allows a government to tame the debt ratio without fiscal austerity, and even if growth is sluggish. Governments are indeed stuck in a classic debt trap.

Persons: Joe Biden, Fumio Kishida, Volodymyr Zelenskiy, Kacper, Everett Dirksen, you’re, Dirksen’s, Stanley Druckenmiller, Joe Biden’s, Peter Thal Larsen, Thomas Shum Organizations: Japan's, NATO, REUTERS, Reuters, Congressional, Office, International Monetary Fund, U.S, Treasury, Reuters Graphics Reuters Graphics, Medicaid, Federal, Bank of Japan, Thomson Locations: Ukraine, Vilnius, Lithuania, Illinois, U.S, Britain

☆ Uncle Sam provides shaky base for Caterpillar
▼ + stars: | 2023-10-31 | by ( Ben Winck | ) www.reuters.com time to read: +3 min

The $500 billion U.S. infrastructure spending bill, passed in late 2021, helped lift the firm’s third-quarter profit 41% from a year ago. As with other sharp pullbacks after government-supported pandemic spending, Caterpillar will prove that counting on federal aid isn’t a viable business model. And the construction firms that order from Caterpillar appeared to step back, with the company's backlog of deliveries falling $2.6 billion in the third quarter. The U.S. CHIPS Act set aside $39 billion to help build semiconductor factories, leaving more money for construction firms and, in turn, Caterpillar. Umpleby may be benefitting from Uncle Sam now, but before long Caterpillar will have to fend for itself.

Persons: Michaela Rehle, James Umpleby, Joe Biden’s, EBITDA, Uncle Sam, Lauren Silva Laughlin, Sharon Lam Organizations: Construction Machinery, Machines, Mining Machines, Construction Vehicles, REUTERS, Rights, Reuters, Caterpillar, U.S . General Services Administration, Siemens, Cummins, LSEG, Thomson Locations: Munich, Germany, Texas, China, U.S

Search resuls for: "Uncle Sam"

25 mentions found