Daily Archives: June 22, 2015

Sen. Rand Paul’s radical tax bill would eliminate all deductions, except mortgages

Housingwire:

Here is part of Paul’s plan, in his own words, from the Wall Street Journal:

“So on Thursday I am announcing an over $2 trillion tax cut that would repeal the entire IRS tax code—more than 70,000 pages—and replace it with a low, broad-based tax of 14.5% on individuals and businesses,” Paul writes.

“I would eliminate nearly every special-interest loophole. The plan also eliminates the payroll tax on workers and several federal taxes outright, including gift and estate taxes, telephone taxes, and all duties and tariffs,” Paul continues.

Paul calls his plan the “The Fair and Flat Tax.”

Paul says that his plan will eliminate payroll taxes and create a system that’s fair for all taxpayers, may they be people or businesses.

Paul argues that the IRS is a “rogue agency,” which “routinely abused its auditing power to build an enemies list and harass anyone who might be adversarial to President Obama’s policies.”

Paul states that this plan is to “blow up the tax code” and start from scratch.

“My tax plan would blow up the tax code and start over,” Paul writes. “In consultation with some of the top tax experts in the country, including the Heritage Foundation’s Stephen Moore, former presidential candidate Steve Forbes and Reagan economist Arthur Laffer, I devised a 21st-century tax code that would establish a 14.5% flat-rate tax applied equally to all personal income, including wages, salaries, dividends, capital gains, rents and interest.”

In Paul’s plan, one vestige of the current tax plan that would remain is the mortgage deduction. In fact, in Paul’s plan, only two current deductions would survive his overhaul – mortgages and charities.

Opponents of a flat tax, in Paul’s words, argue that the plan could “blow a massive hole” in the budget deficit. Paul writes that it’s just the opposite actually.

Wingspan, JP Morgan Chase’s former mortgage operations, closing Florida office, laying off 150 employees

Housingwire:

When Wingspan Portfolio Advisors purchasedJPMorgan Chase’s (JPM) mortgage servicing operations center in Melbourne, Florida in February 2013, the company gave 400 Chase employees who staffed the Melbourne office the opportunity to continue their employment.

Wingspan laid off dozens of employees from the Melbourne location last year after a servicing contract ended, but now the company plans to close the Melbourne office and lay off the remaining 150 employees, according to a report from Florida Today.

According to the Florida Today report, Wingspan sent a letter to the location’s workers, notifying them that Chase ended its contract with Wingspan.

UBS Gave Out ‘Instruction Manual on Fixing Libor,’ Hayes Said

Bloomberg:

Thomas Hayes, a former trader on trial over charges he manipulated benchmark rates, told prosecutors in 2013 that UBS Group AG distributed “an instruction manual on fixing Libor” to suit their trading positions.

The Swiss bank’s e-mailed “Guide to Publishing Libor Rates,” which was shown to jurors by prosecutors in London Thursday, included an instruction for traders to adjust their submissions depending on their “delta/fixing position.”

“If 3m Libor” exposure “is 4,125 this means we are receiving” and “therefore we want to increase the fixing by 25 basis points,” according to the internal UBS guide. “If the number is negative then vice-versa.”

NATIONSTAR SHAREHOLDER ALERT BY FORMER LOUISIANA ATTORNEY GENERAL: Kahn Swick & Foti, LLC Reminds Investors with Losses in Excess of $100,000 of Lead Plaintiff Deadline in Class Action Lawsuit Against Nationstar Mortgage Holdings Inc. – NSM

Marketwatch:

NEW ORLEANS, June 19, 2015 /PRNewswire/ — Kahn Swick & Foti, LLC (“KSF”) and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have untilAugust 3, 2015 to file lead plaintiff applications in a securities class action lawsuit against Nationstar Mortgage Holdings Inc. NSM, -1.55% if they purchased the Company’s securities between February 27, 2014 and May 4, 2015, inclusive (the “Class Period”). This action is pending in the United States District Court for the Southern District of Florida.

Jamie Dimon is poisoning the economy: Why too-big-to-fail bankers are hazardous to our health

Ed Kane, a professor of finance at Boston College and grantee at the Institute for New Economic Thinking, studies the dangerous risk-taking of giant banks. He sees the cultures of Wall Street and regulators coming together to turn taxpayers into victims of theft and great harm. Like extreme drunk drivers before MADD or smokers on airplanes prior to the 1980s ban, megabankers currently get away with endangering others with little fear of repercussions. Kane discusses how changes in corporate law and culture must make it legally and socially unacceptable for bankers to blow their toxic fumes at the rest of us.

Read on.