Glendale News Press, Pasadena Sun, Burbank Leader, La Canada Online will all be up for possible SALE! As the Tribune Co, parent of the local newspapers, emerges from bankruptcy, Lance Vitanza, managing director at CRT Capital Group, LLC said in an interview, as reported in Bloomberg, that “Its all for sale, If they reorganize around anything it will be the TV assets, but we wouldn’t be surprised if they sell those too.” In addition to eight daily newspapers, Tribune Co. owns 23 television stations and stakes in more than 50 websites. The continuing global recession, and a slump in print advertising devastated the newspaper industry. The growth of website Online advertising had a play on the newspaper situation, along with the emerging ethnic language media in Los Angeles County. The new company’s owners have been seeking an advisor for a possible sale of at least some of its newspapers, people familiar with the situation said. It is said that Rupert Murdoch, chairman and CEO of News Corp, plans to take a close look at Tribune Co’s assets.
Right on Target: Newly elected Chris Holden for the 41st Assembly District did not waste anytime in introducing his inaugural bill to promote economic development. “Jobs Here, Jobs Now”. AB 9 notes that California workers and businesses face the harshest economic conditions since the Great Depression Unemployment in California remains in double digits. “We need jobs here and we need jobs now. AB 9 represents the first stein in my commitment to creating jobs here3 in the 451sd District and in the State of California,” said Assembly Member Holden. “I am honored to begin my service in the Assembly and will leverage all of my resources as a Member of the Speaker’s Leadership Team work to improve California’s economy.” AB 9 provides the platform to develop, evaluate, and negotiate economic development policy.
Morning Bell: Taxes to Rise on Most American Workers: Representative Nancy Pelosi (D-CA) called it “a happy start to a new year.” That probably tells you all you need to know about the fiscal cliff deal that passed the House. The bill—which President Obama has promised to sign, though he took off for Hawaii again after the vote—has a 10 to 1 ratio of tax increases to spending cuts. This is the President’s version of a “balanced” approach. In addition to tax increases on Americans making more than $250,000 a year, the bipartisan deal will actually raise taxes on the vast majority of AmerPelosiPican workers. How? The payroll tax “holiday” has ended.
The Wall Street Journal calculates that the “typical U.S. family earning $50,000 a year” will lose “an annual income boost of $1,000.” Meanwhile, the higher tax rates will hit small businesses and investors—which is grim news for a country in need of new jobs. “It is the small businesses that employ the most workers who will pay the higher rates,” explains Heritage’s Curtis Dubay. “These tax hikes on investment will further dampen investment and result in even less job creation. This is more bad news for the 12 million unemployed Americans.” While the President touted a “balance” of tax hikes and spending cuts, the truth is that the bill increases government spending by about $330 billion. Though Congress and the President have known for two years that they would have to do something about all the expiring tax rates, they waited until after the deadline had passed. This resulted in lawmaking for which “irresponsible” is not a strong enough word.
The Senate voted without knowing the cost of the bill—the Congressional Budget Office had not even had time to go through it. The legislation passed both chambers of Congress within a 24-hour period on a holiday, which meant that Members of Congress—much less the American people—did not have time to find out what was in the 157-page bill. Business Insider notes that all of the new tax rates are “‘permanent ” meaning that Congress would have to agree to change them. This is a big deal. Almost every fiscal agreement reached by Congress since the Bush tax cuts of 2001 has been scheduled to phase out at a future date.” It will also face the U.S. debt limit. President Obama said prior to his flight to Hawaii, that he is in no mood to get into another debt limit fight—even though that is inevitable.
But that debate is coming. This time, rather than grandstanding, Obama must deliver on his promise of a “balanced approach,” now that he has locked in his class warfare tax hikes. That means reforms to rein in entitlement spending in particular. The $650 billion fiscal cliff distracted from the $48 trillion looming fiscal crisis the long-term funding obligations of Social Security and Medicare.
Source: Reprinted Heritage Foundation, Jan. 2, 2013.