President Obama will announce this week a proposed tax which is projected to raise $1.5 trillion in taxes, according to the Associated Press. Obama refers to the tax as the Buffett Tax based upon an editorial written by Warren Buffett, founder of Berkshire Hathaway. Buffett indicated that he and his billionaire friends should be paying higher taxes. The tax will allegedly only impact 450,000 households.
UBS subject to intensive scrutiny UK and Swiss regulators have indicated that UBS will be subject to an intensive review of its procedures after a trader from its London Delta desk was charged with a $2 billion fraud. The trader, involved in UBS' derivative trading, placed fraudulent trades as early as 2008. Standard and Poors and Moodys are allegedly set to downgrade UBS for poor compliance practices.
Geithner speech fails to impress The Financial Times indicates that a speech given by Treasury Secretary, Timothy Geithner, to leaders of European countries meeting to settle the debt crisis, was not taken well by the attendees. In the speech, Geithner impressed upon the leaders the importance of acting together and speaking as one voice to avoid disrupting the markets. Geithner criticized countries who indicated that returning to previous currencies may be a better alternative for some. The European leaders indicated that it really wasn't Geithner's business and that the US has its own debt crisis to address.
Livestock industry struggles due to high corn prices USA Today indicates that 20% of the chicken industry has moved to foreign owned companies in the last few years due to US bankruptcies caused by the increasing price of grain. This week, livestock producers will appeal to the USDA to review the ethanol subsidies given to corn producers due to the detrimental impact on the livestock industry. According to the USDA, approximately 12 million bushels of corn will be harvested with slightly less than half going to feed livestock. Corn producers prefer to grow their corn for ethanol production because the government insures the crop should there be a bad year. The increasing price of corn for livestock producers is devastating their industry, in conjunction with bad weather and drought. This will continue to lead to higher prices for meat products for consumers.
UK to hire tax inspectors to squeeze the rich The UK, according to the Financial Times, is set to hire 2,000 additional tax inspectors to focus on only the richest households. The UK indicates that its existing "Affluent Team" of 100 has already brought in an additional 3 billion in taxes and the new inspectors will allow them to increase that amount to 7 billion pounds. These inspectors will focus on the 350,000 households that have more than 2.5 million pounds ($3.95 million).