President Obama will announce a $1.5 trillion tax this week on the wealthiest Americans. The tax, which he calls the Buffett Tax, will tax those with an annual income exceeding $1 million annually. The name of the tax is based on an article written by Warren Buffett, of Bershire Hathaway fame, who indicated that he and his wealthy friends do not pay enough in taxes. According to the Associated Press,the tax will impact about 450,000 households.
UBS to face significant scrutiny
Regulators in the UK and in Switzerland indicate that UBS will be subject to intensive investigative scrutiny after a trader was charged with over $2 billion of fraudulent activity. The trader, located in their London Delta desk, which was responsible for derivative trading, began placing the fraudulent trades as early as 2008. The Financial Times indicates that both Moodys and Standard and Poors are considering a downgrade for UBS due to its lack of supervisory capabilities.
European leaders not impressed by Geithner
Treasury Secretary, Timothy Geithner, spoke Friday to a group of European leaders set to discuss the debt crisis in Europe, especially the issue of a Greek default. Geithner criticized the leaders for allowing individual countries to push for other countries to leave the EU and assume their previous currency. Geithner pushed for the countries to act and speak as one. According to the Financial Times, the European leaders were offended by Geithner's speech and questioned why they should be listening to him when the US had an even larger debt crisis of their own.
Livestock industry suffers due to rising corn prices
According to the USA Today, about 20% of the chicken producers in the US have been purchased by foreign owned entities in the past few years due to bankruptcies caused by the rising price of feed. This week the livestock owners will press the USDA to reconsider subsidies given to corn producers for production of ethanol. This year it is anticipated that 12 million bushels of corn will be produced in the US. Less than half of that amount will go to feed animals. The remainder will go to ethanol producers. Farmers prefer to raise their crop for ethanol because the government insures the crop in case of a bad year. Yet livestock producers are being pressed with higher and higher prices causing the cost of beef and chicken to increase.
UK to hire tax inspectors for the wealthiest
The UK, according to the Financial Times, is set to hire an additional 2,000 tax inspectors to focus on the 350,000 households with net worth exceeding 2.5 million pounds ($3.95 million). In the past few years their "affluence team" has collected an additional 3 billion in taxes. It is anticipated that the new hires will increase the additional tax income to 7 billion