Browsing all articles tagged with revenue

Budget Cuts Mean Furlough Friday at Four Federal Agencies

Across the board budget cuts have shaped Furlough Friday in Washington and somewhere else because the one day closing of four federal agencies forced an unpaid day off for 115,000 workers.

Employees at the Environmental Protection Agency, the Department of Urban Development and Housing, the office of Management and the Internal Revenue Service and Budget stayed home on Friday.

According to Cory Bythrow, communications director at the National Federation of Federal Employees, a union representing government workers. The unemployment affects about 5 percent of the federal workforce. Bythrow tracks workplace fallout from the budget cuts that are known as sequestration.

Bythrow said eighty-five percent of the workers who were furloughed on Friday are based outside Washington. They include union and non-union employees, depending largely on where they are.

The layoff come as the United States heads into a holiday weekend, with Memorial Day celebrated on Monday, when government offices will be closed.

A Washington Post poll released on Friday found 37 percent of Americans feel confiscation has hurt them personally, up from 25 percent in March. Almost half of those affected say the harm to them has been major.


Bank of America Profit Misses Estimate as Revenue Collapse

Bank of America Corp reported a lower than expected first quarter profit and its revenue knock down, sending the No. 2 US bank’s shares down 3 percent earlier than the bell on Wednesday.

Net income quadrupled to $2.62 billion or 20 cents per share from $653 million or 3 cents per share a year earlier as expenses fall and the bank set aside less money to cover bad loans.

However total adjusted revenue knock down 8.4 percent to $23.85 billion, partly due to lower revenue from trading in fixed mortgages and income securities.

Revenue from the fixed income, commodities and currency markets knock down $829 million to $3.3 billion.

BofA shares slump 3 percent before the bell to $11.90.

Income in the year earlier period were affected by a host of one-time items including a $4.8 billion charge related to the value of its debt.

Net income in the Global Banking division chop down to $1.34 billion from $1.57 billion because net income in the Global Markets arm dropped to $1.4 billion excluding items from $1.7 billion.

Brian Moynihan, Chief Executive has made progress in building capital and settling mortgage related lawsuits since taking over in January 2010. The bank stated on Wednesday it had settled a mortgage backed securities class action lawsuit related to its nationwide unit for $500 million.

However Moynihan is under pressure to show that the bank can create higher earnings at a time of low interest rates, volatile economic conditions and stricter regulations.

BofA, the last of the big four US banks to report outcome has vowed to cut $8 billion in expenses by mid 2015 and has stated it could reduce expenses in its division that handles delinquent mortgages by $1 billion by the end of 2013.

The bank stated on Wednesday it expects to save almost $1.5 billion in costs per quarter, by the fourth quarter of 2013, representing 75 percent of the quarterly target. Total expenses knock down 5.2 percent to $18.15 billion in the first quarter.


President Barack Obama Budget Targets Millionaires, Replaces Sequester Cuts

The White House on Wednesday proposed a budget that harshly trims the US deficit over three years by forcing millionaires to pay more in taxes and pass spending cuts that replace the sequester reductions that went into place previous month.

President Barack Obama’s fiscal 2014 budget blueprint guarantee that those making $1 million a year or more would have to pay at least 30 percent of their income following gifts to charity, in taxes.

Senior administration officials told that boost, along with spending cuts and a 28 percent cap on tax deductions for lofty earners, would bring the US budget deficit down to 2.8 percent of GDP by 2016. The unbiased Congressional Budget Office in February projected the US deficit to be 5.3 pct of GDP this year.

The president’s budget placed little chance of being pass into law. However senior administration officials said that in spite of Republican leaders’ confrontation to tax increases, they hoped it could lead to a deficit reduction.

They carry on to be people who are on the Republican side in the Senate at least, who are saying things that would give you some expectation that there is a course to a deal.

President is breaking from the tradition of using the mostly symbolic budget release to outline his ideal spending and tax proposals. Instead he is annoying to relaunch talks to resolve a long-running fiscal battle with his Capitol Hill adversaries.

To do so Obama is offering a acknowledgment that has enraged many of his supporters, adopting a less generous determine of inflation to calculate cost of living raise for the beneficiaries of many federal programs. One result would be reduce benefits for most recipients of the popular Social Security retirement program.

While Obama has vowed to shield some of the most vulnerable beneficiaries, the proposal has drawn strong opposition from Democrats and groups representing elderly and the labor.

At the same time his budget suggestion faces seemingly insuperable opposition from Republican leaders, who refuse any new tax revenues.

Obama’s expectation is to build a coalition of lawmakers willing to compromise, while most observers see that as unlikely. He has invited 12 Republicans to dinner at the White House on Wednesday in an effort to make softer resistance.


Republican Senator Perceive President Barack Obama budget offer as positive

Lindsey Graham, South Carolina senator on Sunday turn into the first prominent Republican to publicly praise but lukewarmly, the budget proposal the White House outlined previous week.

Graham stated that as he believes President Barack Obama’s plan is overall bad for the economy, there are piece of his budget that he think are optimistic, and that could set the stage for a broad negotiate to put the nation’s finances on a stronger footing. He was talking on NBC’s Meet the Press program.

Graham, a conventional who has deviated from party positions in the past, and has stated he would consider lifting up to $600 billion in new tax revenue if Democrats accept important changes to Medicare, the government health program for elderly Americans, and Medicaid the health safety net for low income people.

The White House on Friday stated the president would suggest a budget that would offer cuts to supposed entitlement programs such as Social Security, a Medicare, and retirement program in exchange for augmented tax revenues and a commitment to spend money on education and infrastructure repair.

Obama’s proposal, which will officially be made public on Wednesday is a symbolic document, and both the House of Representatives and Senate have already passed their own budget resolutions.

The president’s adviser have said that he hopes to use the offer to appeal to sufficient middle of the road lawmakers of both parties to pass a broad deal to cut the budget deficit.

Obama also expect to reverse the deep spending cuts that automatically kicked in March 1 as a consequence of the failure of the Congress and White House to reach an agreement on replacing them.

John Boehner, House Speaker stated previous week the president was ignoring Republicans staunch opposition to any tax hikes. And independent Senator Bernie Sanders stated he would resist any efforts to lower payments to Social Security beneficiaries.

Graham further said that the president is showing a little bit of support here, this is somewhat encouraging, his overall budget’s not going to make it however he has sort of made a step forward in the privilege reform process that would allow a guy like me to begin to talk regarding flattening the tax code and generating more revenue.


President Barack Obama Orders Cuts That Will Be Sluggish Grind on Economy

Obama ordered the begin of $85 billion in government spending cuts, opening a potentially decade long wave of belt tightening that risks limitation US economic development this year.

The White House released the order previous night, the deadline set by a law passed two years before to prevent a debt default, and the Office of Management and Budget sent Congress a thorough files of program cuts. The cutbacks impact will become clear over the coming several weeks, since agencies notify affected government contractors and inform employees regarding furloughs, most of which would not start for at least a month.

Obama said at the White House earlier yesterday said that what’s significant to understand is that not everybody will feel the pain of these cuts right away following meeting with the top four leaders of Congress.

The across the board cuts which is known as sequestration, were proposed to be so onerous that Congress and the president would not let them happen and would come up with a plan to return them. As an alternative, Republicans and Democrats deadlocked on an options. Obama insists that any plan must contain new tax revenue and Republicans lead by House Speaker John Boehner reject that approach.

Boehner and Obama and an Ohio Republican, specify that they would avoid another argument when spending agreement for government operations expires March 27. Following they met at the White House, Boehner stated the House would vote on funding legislation so Congress won’t required to deal with the threat of a government shutdown as discussing an agreement on cutting the deficit.


Cuts Doubtful To Deliver Assure US budget Savings

On paper there is one thing to similar to regarding the ugly spending cuts due to kick in on Friday $85 billion in budget savings at a time when Washington persist to bleed red ink.

In part, that has to do with the complex way the government hold its money. However it also replicate the likelihood that the spending cuts will hurt the economy, which in turn will decrease tax revenue and compel up the costs of social safety net programs like unemployment insurance. In addition the definite savings could be a lot less than budget hawks prediction.

Steve Bell, a former Republican congressional aide now with the Bipartisan Policy Center said that there is a likelihood that we had save almost nothing in expends.

Comparatively small turn down in spending would be exaggerated over the coming years as it would decrease debt servicing costs.

However the requisition would do little to hold back federal debt over the long term as it fails to tackle health costs, which are projected to get bigger as the population ages. If the requisition were not to take effect, federal debt would equal the size of the economy by 2031.

The requisition was not supposed to happen, Democrats and Republicans in 2011 set up the deep cuts to military and domestic spending as a worst case scenario that would force them to attain tough decisions on spending and taxes in order to set US finances on a sustainable course.

Although they have been not capable to reach an agreement. Missing a last minute deal, spending cuts of almost 13 percent for defense programs and 9 percent for domestic programs will kick in just before Friday night.