News links for 6 February 2013
The sequestration cuts and the state of the states | FT Alphaville
"Sequestration therefore poses a major budgetary problem for the states and it could be compounded by slower growth in income taxes in 2013 than 2012. This is because many taxpayers sold capital assets before the end of 2012 in anticipation of the imposition of higher rates of federal tax.Even so, state budgets are not so stretched that the loss of $255 mn in Build America Bonds subsidies in 2013 should cause any state to default on their upcoming coupon payments. We expect that will remain the case even though that number relates just to 2013 and sequestration will be a 10-year process, unless amended, and so naturally there is concern that a cash strapped federal government could look to s...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.