Quotes of the Month

“We need to simplify a monstrous tax code that is far too complicated for most Americans to understand, but just complicated enough for the insiders who know how to game the system.” – President Barack Obama’s comments in Washington on April 15, 2009.

 “There is no justification for the countless billions that citizens will have to pony up this tax season to fund liberalism’s reckless abuse of the federal treasury.” – Statement issued by Americans for Tax Reform, during several anti-tax protests across the U.S.

 “We need to end the tax breaks for the wealthiest 2 percent of Americans, so that folks like me are paying the same rates that the wealthiest 2 percent of Americans paid when Bill Clinton was president.”  President Obama.

 See Bloomberg article, Obama Uses Tax Deadline Day to Vow Revamp of System, for full story.

More Quotes

“In these hard economic times, we need to make sure tax and regulatory policy encourages growth in philanthropy,” said Steve Gunderson, chief executive of the Council on Foundations, quoted in a New York Times article, Limiting Deductions on Charity Draws Ire. 

 "This proposal could have an adverse effect on a market that is already in trouble, and this is not the time to reduce incentives for buying or refinancing a home," Mortgage Bankers Association chief executive officer David G. Kittle as quoted in a Philadelphia Inquirer article, Plan to Limit Mortgage Deduction Draws Fire.

 "It's a no-brainer for economists.  Why have taxpayers been [in effect] subsidizing home payments for the highest income people in the country?"  Dean Baker, co-director of the Center for Economic and Policy Research, a D.C. think tank, in a CNN article, Mortgage Deductions: Wealthy on the Losing End, stating that he was impressed with this part of the budget plan.  This article indicates that the move would generate $318 billion in a 10 year period.

These quotes are in response to President Obama’s tax proposal to limit deductions on things like charitable donations, mortgage interest and investment expenses at 28%.

Quotable

“He’s being so generous at the lower-income level that making $200,000 is going to be like falling off a cliff.  Say what you want about the Bush tax cuts favoring the rich, but this is just becoming punitive.” - Dustin Stamper, an analyst at Grant Thornton LLP, on President Obama’s proposed tax increases.

Quotable

“Who is going to hire an 81-year-old man?” - Fred Dase, a recently laid off octogenarian, in a Wall Street Journal article, Elderly Emerge as a New Class of Workers – and the Jobless.  The reality is that many people, despite their age, are no longer able to retire from the workforce. I am seeing people coming out of retirement, and they are not professional athletes.

Quotable II

The current market environment is a “series of earthquakes with constantly changing epicenters.”  - Deutsche Bank Chairman Josef Ackermann in a recent Wall Street Journal article.  Comparing the economy to natural disasters does wonders for investors’ confidence.

Quotable

“This is the best prospecting list ever. You’ve got the names and addresses of a whole bunch of rich people who don’t demand much accountability.”  - Ken Phillips, RCG Capital Advisors, quoted in the Wall Street Journal article, Madoff Clients Exposed.  Such a comment is probably why some investors were upset with the release of the list.

Quote of the Month…So Far

“It was like riding a tiger, not knowing how to get off without being eaten.”  - B. Ramalinga Raju, founder and chairman of Satyam Computer Services Ltd. in his letter of resignation.  Mr. Raju, who received a master’s in business administration from Ohio University, admitted concocting false financial data for his company, including a non-existent cash balance of more than $1 billion (yes, that’s billion with a “b”).

Quote of the Day

“Our complaint alleges a stunning fraud that appears to be of epic proportions”

- Andrew M. Calamari, SEC associate director of enforcement, referring to a “Giant Ponzi Scheme” purportedly run by Bernard L. Madoff, a former chairman of the Nasdaq Stock Market. Mr. Madoff was arrested by federal agents yesterday for his alleged role in a $50 Billion Fraud (that's billion with a "B") as reported by The Wall Street Journal. The article notes that if the assertions are true, it would be five times larger than the WorldCom accounting scheme.

Quote of the Day

"You can't give what you haven't got"
- Maurice "Hank" Greenberg, former chief executive of AIG, explaining why charitable gifts from his foundation will be few and far between. Big Players Scale Back Charitable Donations, The Wall Street Journal Greenbergs family foundation's assets declined from $47.7 Million in February to about $4 Million in October.

Quote of the Day - Runner Up

"There's nobody on Capitol Hill who's been talking about rescuing the nonprofit sector."
- Paul Light, a professor at New York University's Wagner School of Public Service, speaking about the inevitable end of some U.S. charities.
Big Players Scale Back Charitable Donations, Wall Street Journal