Just Explain It: What is the Strategic Petroleum Reserve?

Eliminating America's dependency on foreign oil has been a policy goal for at least the last two U.S. Presidents.  According to the International Energy Agency, by 2020,  the U.S. will overtake Saudi Arabia as the world's number one oil producer.
However, there's still some work to do.  The United States Energy Information Administration reported that 45% of the petroleum consumed by the U.S. in 2011 was from foreign countries.   Even though the country is well on its way to becoming self reliant, there's always a chance we could hit a major bump in the road.  The good thing is we have protection.  It's called the Strategic Petroleum Reserve or S.P.R.
So here's how the S.P.R. works:
The reserve was created after the 1973 energy crisis when an Arab oil embargo halted exports to the United States.  As a result, fuel shortages caused disruptions in the U.S. economy.
The reserves are located underground in four man-made salt domes in Texas and Louisiana.  All four locations combined hold a total of 727 million barrels of oil.  The inventory is currently at 695 million barrels.  That's around 80 days of import protection.  It's the largest emergency oil supply in the world -- it's worth about $63 billion.
Only the President has the ability to tap the reserves in case of severe energy supply interruption.  It's happened three times.  Twice within the last decade.  In 2005, President Bush ordered the emergency sale of 11 million barrels when Hurricane Katrina shutdown 25 percent of domestic production.  In 2011, President Obama ordered the release of 30 million barrels to help offset disruptions caused by political upheaval in the Middle East.
Following the release order, the reserve issues a notice of sale to solicit competitive offers.  In the most recent sale involving the Obama administration, the offers resulted in contracts with 15 companies for delivery of 30.6 million barrels of oil.  To put that in context, last year the U.S. consumed almost seven billion barrels of oil — that's 19 million per day -- or about 22% of the world's consumption.
Related Link: Using the Strategic Petroleum Reserve Like a Spigot
The release in 2011 had little effect on the price of gas at the pump.  Consumers paid about 2% less for a week before the prices began to climb again.
Related link: Just Explain It: Why Social Security is Running Out of Money
Did you learn something? Do you have a topic you'd like explained?  Give us your feedback in the comments below or on Twitter using #justexplainit.

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Apple to produce line of Macs in the US next year

NEW YORK (AP) -- Apple CEO Tim Cook says the company will move production of one of its existing lines of Mac computers from China to the United States next year.
Industry watchers said the announcement is both a cunning public-relations move and a harbinger of more manufacturing jobs moving back to the U.S. as wages rise in China.
Cook made the comments in part of an interview taped for NBC's "Rock Center," but aired Thursday morning on "Today" and posted on the network's website.
In a separate interview with Bloomberg Businessweek, he said that the company will spend $100 million in 2013 to move production of the line to the U.S. from China.
"This doesn't mean that Apple will do it ourselves, but we'll be working with people and we'll be investing our money," Cook told Bloomberg.
That suggests the company could be helping one of its Taiwanese manufacturing partners, which run factories in China, to set up production lines in the U.S. devoted to Apple products. Research firm IHS iSuppli noted that both Foxconn Technology Group, which assembles iPhones, and Quanta Computer Inc., which does the same for MacBooks, already have small operations in the U.S.
Apple representatives had no comment Thursday beyond Cook's remarks.
Like most consumer electronics companies, Apple forges agreements with contract manufacturers to assemble its products overseas. However, the assembly accounts for a fraction of the cost of making a PC or smartphone. Most of the cost lies in buying chips, and many of those are made in the U.S., Cook noted in his interview with NBC.
The company and Foxconn have faced significant criticism this year over working conditions at the Chinese facilities where Apple products are assembled. The attention prompted Foxconn to raise salaries.
Cook didn't say which line of computers would be produced in the U.S. or where in the country they would be made. But he told Bloomberg that the production would include more than just final assembly. That suggests that machining of cases and printing of circuit boards could take place in the U.S.
The simplest Macs to assemble are the Mac Pro and Mac Mini desktop computers. Since they lack the built-in screens of the MacBooks and iMacs, they would likely be easier to separate from the Asian display supply chain.
Analyst Jeffrey Wu at IHS iSuppli said it's not uncommon for PC makers to build their bulkier products close to their customers to cut down on delivery times and shipping costs.
Regardless, the U.S. manufacturing line is expected to represent just a tiny piece of Apple's overall production, with sales of iPhones and iPads now dwarfing those of its computers.
Apple is latching on to a trend that could see many jobs move back to the U.S., said Hal Sirkin, a partner with The Boston Consulting Group. He noted that Lenovo Group, the Chinese company that's neck-and-neck with Hewlett-Packard Co. for the title of world's largest PC maker, announced in October that it will start making PCs and tablets in the U.S.
Chinese wages are raising 15 to 20 percent per year, Sirkin said. U.S. wages are rising much more slowly, and the country is a cheap place to hire compared to other developed countries like Germany, France and Japan, he said.
"Across a lot of industries, companies are rethinking their strategy of where the manufacturing takes place," Sirkin said.
Carl Howe, an analyst with Yankee Group, likened Apple's move to Henry Ford's famous 1914 decision to double his workers' pay, helping to build a middle class that could afford to buy cars. But Cook's goal is probably more limited: to buy goodwill from U.S. consumers, Howe said.
"Say it's State of the Union 2014. President Obama wants to talk about manufacturing. Who is he going to point to in the audience? Tim Cook, the guy who brought manufacturing back from China. And that scene is going replay over and over," Howe said. "And yeah, it may be only (public relations), but it's a lot of high-value PR."
Cook said in his interview with NBC that companies like Apple chose to produce their products in places like China, not because of the lower costs associated with it, but because the manufacturing skills required just aren't present in the U.S. anymore.
He added that the consumer electronics world has never really had a big production presence in the U.S. As a result, it's really more about starting production in the U.S. than bringing it back, he said.
But for nearly three decades Apple made its computers in the U.S. It started outsourcing production in the mid-90s, first by selling some plants to contract manufacturers, then by hiring manufacturers overseas. It assembled iMacs in Elk Grove, Calif., until 2004.
Some Macs already say they're "Assembled in USA." That's because Apple has for years performed final assembly of some units in the U.S. Those machines are usually the product of special orders placed at its online store. The last step of production may consist of mounting hard drives, memory chips and graphics cards into computer cases that are manufactured elsewhere. With Cook's announcement Thursday, the company is set to go much further in the amount of work done in the U.S.
The news comes a day after Apple posted its worst stock drop in four years, erasing $35 billion in market capitalization. Apple's stock rose $8.45, or 1.6 percent, to close at $547.24 Thursday.

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US economy adds 146K jobs, rate falls to 7.7 pct.

WASHINGTON (AP) -- The pace of U.S. hiring remained steady in November despite disruptions from Superstorm Sandy and employers' concerns about impending tax increases from the year-end "fiscal cliff."
Companies added 146,000 jobs, and the unemployment rate fell to 7.7 percent — the lowest in nearly four years — from 7.9 percent in October. The rate declined mainly because more people stopped looking for work and weren't counted as unemployed.
The government said Superstorm Sandy had only a minimal effect on the figures.
The Labor Department's report Friday was a mixed one. But on balance, it suggested that the job market is gradually improving.
November's job gains were roughly the same as the average monthly increase this year of about 150,000. Most economists are encouraged by the job growth because it's occurred even as companies have reduced investment in heavy machinery and other equipment.
"The good news is not that the labor market is improving rapidly — it isn't — but that employment growth is holding up despite all the fears over the fiscal cliff," said Nigel Gault, an economist at IHS Global Insight.
Still, Friday's report included some discouraging signs. Employers added 49,000 fewer jobs in October and September combined than the government had initially estimated.
And economists noted that the unemployment rate would have risen if the number of people working or looking for work hadn't dropped by 350,000.
The government asks about 60,000 households each month whether the adults have jobs and whether those who don't are looking for one. Those without a job who are looking for one are counted as unemployed. Those who aren't looking aren't counted as unemployed.
A separate monthly survey seeks information from 140,000 companies and government agencies that together employ about one in three nonfarm workers in the United States.
Many analysts thought Sandy would hold back job growth significantly in November because the storm forced restaurants, retailers and other businesses to close in late October and early November.
It didn't. The government noted that as long as employees worked at least one day during a pay period — two weeks for most people — its survey would have counted them as employed.
Yet there were signs that the storm disrupted economic activity in November. Construction employment dropped 20,000. And weather prevented 369,000 people from getting to work — the most for any month in nearly two years. These workers were still counted as employed.
All told, 12 million people were unemployed in November, about 230,000 fewer than the previous month. That's still many more than the 7.6 million who were out of work when the recession officially began in December 2007.
Investors appeared pleased with the report, though the market gave up some early gains. The Dow Jones industrial average was up 53 points in mid-day trading.
The number of Americans who were working part time in November but wanted full-time work declined. And a measure of discouraged workers — those who wanted a job but hadn't searched for one in the past month — rose slightly.
Those two groups, plus the 12 million unemployed, make up a broader measure that the government calls "underemployment." The underemployment rate fell to 14.4 percent in November from 14.6 percent in October. It's the lowest such rate since January 2009.
Since July, the economy has added an average of 158,000 jobs a month. That's a modest pickup from an average of 146,000 in the first six months of the year.
In November, retailers added 53,000 positions. Temporary-help companies added 18,000. Education and health care also gained 18,000.
Auto manufacturers added nearly 10,000 jobs. Still, overall manufacturing jobs fell 7,000. That was pushed down by a loss of 12,000 jobs in food manufacturing that likely reflects the layoff of workers at Hostess.
Paul Ashworth, an economist at Capital Economics, noted that hiring by private companies was actually better in October than the government first thought. The overall job figures were revised down for October because governments themselves cut about 38,000 more jobs than was first estimated.
The U.S. economy grew at a solid 2.7 percent annual rate in the July-September quarter. But many economists say growth is slowing to a 1.5 percent rate in the October-December quarter, largely because of the storm and threat of the fiscal cliff.
The storm held back consumer spending and income, which drive economic growth. Consumer spending declined in October, the government said. And work interruptions caused by Sandy reduced wages and salaries that month by about $18 billion at an annual rate.
Still, many say economic growth could accelerate next year if the fiscal cliff is avoided. The economy is also expected to get a boost from efforts to rebuild in the Northeast after the storm.

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Maine lobster catch up, value down; glut cited

PORTLAND, Maine (AP) — The state's lobster catch surged 18 percent last year for another record, but a marketplace glut depressed the value of its signature seafood, causing financial hardship for lobstermen, processing plants and dealers up and down the East Coast, officials said Friday.
The lobster catch topped 100 million pounds for the first time in 2011, and the numbers grew again in 2012 with a preliminary total suggesting a catch of more than 123 million pounds, according to the Maine Department of Marine Resources. Final numbers will be released next month.
Tensions boiled over in August when the huge lobster haul caused a crash in wholesale prices.
Canadian lobstermen blocked truckloads of Maine's lobster from being delivered across the border to processing plants that create lobster products for supermarkets and restaurants, blaming Maine for low prices.
New figures tell the story: The value of the catch was nearly $331 million, a decrease of $3.7 million from the previous year, despite the greater size. The average price was $2.68 per pound, the lowest in 18 years, the Department of Marine Resources said.
Clive Farrin, who fishes from Boothbay Harbor, said the depressed prices made it difficult for lobstermen to cover diesel fuel and bait costs, causing some to put their boats up for sale. Without strong demand and consumer confidence, he said, the boat price paid to lobstermen will continue to be too low.
"I don't think you're going to see the price change appreciably until the economy gets straightened out," he said. "If people can't make their house payments and their car payments and keep groceries on the table, then they're not going to be buying luxury items, things like lobster."
Marine Resources Commissioner Patrick Keliher said Friday that the department and industry officials will hold a series of meetings over the winter to seek potential remedies for those times when supply exceeds demand, as it did during the summer.
"This unprecedented preliminary landings report provides us with both an opportunity and a challenge," Keliher said in a statement.
The catch has continued to grow even though there are fewer lobster license holders and traps. In 2005, Maine lobstermen caught far less lobster, about 70 million pounds, but the value was $320 million, similar to the current level, Keliher said.
In recent years, the abundance of lobster made it possible for lobstermen to make up for the lower value, but that changed last summer.
With the marketplace flooded, fishermen reeled from the low prices and talked about tying up their boats.
Farrin said lobstermen aren't feeling optimistic about next season. He said those with boat payments and house payments will have trouble making ends meet if things don't improve.
"The ones who have their financial house in order will able to ride it out for a while," he said.

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Rebuilt Dodge Transmissions for Intrepid Cars Now Sold Online at GotTransmissions.com

Rebuilt Dodge transmissions for Intrepid cars are now sold online at the GotTransmissions.com website. This company has added these Chrysler based gearboxes to the growing online inventory to help car owners and B2B companies that purchase reconditioned units for direct replacement.

Beaumont, Texas (PRWEB) January 05, 2013
The GotTransmissions.com company has added a line of rebuilt transmissions for Intrepid cars for sale online. This used and rebuilt dealer has upgraded its Dodge inventory to create an online marketplace for buyers or installers of late model and classic gearboxes. The new Intrepid editions are expected to provide an additional resource online to help buyers save time and money when performing a transmission swap. More information can be found online at http://www.gottransmissions.com/blog/dodge-transmissions-caravan/dodge-intrepid-42le-transmission.
The 42LE series is based on the Ultradrive technology that was created by Chrysler. This series was based on the LH brand vehicles and the Intrepid uses this popular body style. As one of the best sellers of the 1990s, the Intrepid is still in use in the U.S. and Canada. Vehicle owners and mechanics that still use this vehicle can now benefit from the rebuilt editions that are now for sale online.
Apart from an automobile engine, the transmission is one of the integral parts of vehicle operation. The manual and automatic editions that are used help regulate the speed of vehicles. While all transmissions require service for proper functionality, some might require a total rebuild to ensure accuracy. The Got Transmissions company is one of the largest operating online that rebuilds domestic and foreign units for sale. These are offered as OEM replacements for cars, trucks and SUVs.
The addition of the Dodge Ultradrive is part of a larger expansion that has taken place for online and offline sales. The Chevrolet and Ford brands have been increased in stock to provide more variety for buyers. Both the passenger car and pickup truck lines have been increased for buyers. The recent addition of the Ford F-Series units marked the start of these new upgrades. The announcement for recent Ford additions can be found online at http://www.prweb.com/releases/ford-transmissions-sale/rebuilt-transmissions/prweb10243800.htm.
About Got Transmissions
The Got Transmissions company started selling online in 2007 and has built one of the largest inventories for foreign and domestic units online. The purchasing department at this company locates and inspects used automobile, truck and SUV gearboxes and brings these in for rebuilding work. The assemblies that are rebuilt are offered for reduced pricing to help vehicle owners and B2B companies find reliable replacements for a low price. The Got Transmissions company has expanded its services online and now offers shipping of in stock units for no cost. This incentive as well as recent upgrades have helped this company increase its 2012 sales.

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Voice Activated PDA for Blind and Low Vision Users from LS&S Now Offered by Rehabmart

One of their popular devices for blindness and low vision is the TapMemo Voice Activated PDA, a cutting-edge, handheld, voice activated personal assistant. Battery powered, the TapMemo features only one multi-functional button and two volume buttons, making it easier for most users to operate.

Elberton, GA (PRWEB) January 05, 2013
Rehabmart.com, an online e-commerce company that sells rehabilitation and medical supplies, has joined into a distribution collaboration with LS&S, LLC, to offer their TapMemo Voice Activated PDA to a wider consumer marketplace. Specializing in daily living aids and assistive technology for blindness, low vision, deafness and hearing issues, LS&S (Learning, Sight and Sound Made Easier) offers a wide variety of innovative and easy-to-use products to help the disabled to participate more fully in their day to day life experiences. This professional, family owned business realizes how important a resource they are for those with low vision or hearing loss, as these issues have touched this family personally with the founder's own father developing macular degeneration.
One of their popular devices for blindness and low vision is the TapMemo Voice Activated PDA, a cutting-edge, handheld, voice activated personal assistant. Battery powered, the TapMemo features only one multi-functional button and two volume buttons, making it easier for most users to operate. Since all of the verbal commands are 'speaker independent', the user does not need to 'train' the unit, it will simply work right out of the box. This special PDA comes complete with a charging jack, earphone jack, belt clip, and a hidden reset button in case the user needs to perform a hard or soft reset.
The TapMemo is profuse with features that set it way above the competition because it is powered with a very strong Lithium-Ion based battery that can be fully charged in less than four hours and will supply more than ten working hours and more than eleven months in 'standby' mode between each charging cycle. The main features of this voice activated device include a memo pad, phone book, calendar, and alarm clock. Other capabilities include a locking command to protect against unwanted use and to safeguard personal data, a unit locator that responds to the users' whistling and emits a high volume short phrase that helps the user to find the unit, talking time and date, and an ability to check the battery level along with an alert when it is low.
“We are so pleased to introduce the TapMemo Voice Activated PDA from LS&S to more consumers,” said Hulet Smith, OTR/L, MBA and CEO of Rehabmart. “This feature-rich personal assistant is perfect for those who have blindness or low vision disabilities, helping them to more easily participate, communicate and function in today's modern world. You can even place the unit next to a regular telephone handset and the unit will emit DTMF tones that correspond to the number, and the phone will dial them without having to push any buttons. We are very proud to offer this, and all of the great assistive devices for blindness, low vision, deafness and hard of hearing issues from LS&S to our customers at Rehabmart.com.”
About Rehabmart.com:
As an Occupational Therapist, the founder of Rehabmart, Hulet Smith, has the breadth of knowledge and experience necessary to match the needs of his customers with the very latest innovative products in the field of medical supplies and rehabilitation equipment. As a parent of special needs children, he has a personal interest in finding the best products to improve the lives of those who are disabled and medically challenged. Rehabmart.com is committed to provide superior customer service, competitive pricing and exceptional product offerings.

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Oregon governor says Nike plans to hire thousands

 Sporting goods giant Nike plans to expand its operations in Oregon and hire as many as 12,000 new workers by 2020 but wants the government to promise it won't change the state tax code, prompting a special session of the Legislature.
Gov. John Kitzhaber said he'll call lawmakers together Friday in Salem to create a new law authorizing him to grant Nike's wish.
The governor did not release information about the company's expansion plans but the $440 million project would create 2,900 construction jobs with an annual economic impact of $2 billion a year.
Nike Inc. has its headquarters in Beaverton. Company officials could not immediately be reached.
The Legislature is due to meet in its regular annual session beginning Jan. 14, but Kitzhaber said Nike needed certainty sooner. The company was being wooed by other states, he said.
"Getting Oregonians back to work is my top priority," Kitzhaber said in a news conference.
Either the governor or the Legislature itself can call lawmakers into session at times other than the state Constitution specifies.
For much of the state's history, the Legislature's regular sessions have been held every other year, at the beginning of odd-numbered years. That's the kind of session the Legislature is scheduled to begin early next year.
In recent years, the Legislature has moved to meet annually, running test sessions of briefer sessions in even-numbered years. Those led to voter approval of a constitutional amendment in 2010 that called for annual sessions.
Records list 38 special sessions since Oregon's statehood, ranging from one day on eight occasions to 37 days in 1982.

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Oregon governor says Nike plans expansion

SALEM, Ore. (AP) — Nike wants to expand its Oregon operations and hire hundreds of workers but is asking the government to promise it won't change the state tax code.
Gov. John Kitzhaber (KIHTS'-hah-bur) says he'll call the Legislature into session Friday to create a law to give Nike its wish.
The company has not specified its expansion plans except to say it would create at least 500 jobs and $150 million in capital investment over five years.
Nike Inc. has its headquarters in Beaverton, outside Portland. Company officials could not immediately be reached for comment.
It employs 44,000 people globally, including 8,000 in Washington County.
Nike has been selling off brands and making other moves to focus on its most profitable businesses, which include its namesake Nike brand, Jordan, Converse and Hurley.

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Report: Most Pakistani lawmakers do not file taxes

The majority of Pakistani lawmakers do not file tax returns despite a legal requirement to do, a report said Wednesday, reinforcing concerns about the low level of tax revenue in the country.
Pakistan has one of the lowest tax-to-GDP rates in the world because payment is not well enforced, and major areas of the economy, such as the agriculture sector, are either taxed at very low rates or not at all.
Around two-thirds of the country's 446 lawmakers failed to file tax returns in 2011, the latest data available, said the report, co-published by the Center for Investigative Reporting in Pakistan and the Centre for Peace and Development Initiatives.
A similar percentage of the government's 55 Cabinet members also failed to file returns, said the report, titled "Representation Without Taxation." Among those politicians who failed to file a return was Pakistani President Asif Ali Zardari.
Even lawmakers who filed returns often paid very low amounts of tax on outside income. The lowest-paying lawmaker who filed a return, Senator Mushahid Hussain, paid less than $1 in taxes, said the report.
The figures do not take into account the tax paid by lawmakers on their official salaries, which is automatically deducted. It instead focuses on declarations of supplemental income from land, businesses and other sources of revenue.
Analysts have said that the country's effective tax rate is so low because a small elite, comprised of the military, land owners and the rising urban upper and middle classes is reluctant to give up any of its wealth. These groups either put pressure on lawmakers or are the lawmakers themselves.
"End result is the erosion of public trust in the government that is frequently blamed for serving the interests of the rich and powerful at the expense of the poor and low-income groups," the report said.

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Pennies over patriotism: Look at tax-averse stars

PARIS (AP) — France's Socialist government is introducing a 75-percent income tax on those earning over €1 million ($1.3 million), forcing some of the country's rich and famous to set up residency in less fiscally-demanding countries.
Here's a look at some big stars in France and elsewhere who have, over the years, put their pennies above their patriotism.
DEPARTING DEPARDIEU
The French prime minister has accused actor Gerard Depardieu of being "pathetic" and "unpatriotic" for setting up residence in a small village just across the border in neighboring Belgium to avoid paying taxes in France.
The office of the mayor in Depardieu's new haunts at Nechin, also known as the "millionaire's village" for its appeal to high-earning Frenchmen, said that for people with high income, like Depardieu, the Belgian tax system, capped at 50 percent, is more attractive.
Depardieu, who has played in more than 100 films, including "Green Card" and "Cyrano de Bergerac," has not commented publicly on the matter.
BEATLE TAX
In 2005, the Beatles' Ringo Starr took up residency in Monaco, where he gets to keep a higher percentage of royalties than he would in Britain or Los Angeles. France's tiny neighbor Monaco, with zero percent income tax for most people, has obvious appeal for the 72-year-old drummer and his estimated $240 million fortune.
The Beatles' resentment of high taxes goes back to their 1960s song "Taxman." George Harrison penned it in protest of the British government's 95 percent supertax on the rich, evoked by the lyrics: "There's one for you, nineteen for me."
Harrison reportedly said later, "'Taxman' was when I first realized that even though we had started earning money, we were actually giving most of it away in taxes."
LICENSE TO DODGE
Former "James Bond" star Sean Connery left the U.K. in the 1970s, reportedly for tax exile in Spain, and then the Bahamas — another spot with zero income tax and one of the richest countries per capita in the Americas. His successor to the 007 mantle, Roger Moore, also opted for exile in the 1970s — this time in Monaco — ensuring his millions were neither shaken nor stirred.
EXILE ON MAIN ST.
In 1972, The Rolling Stones controversially moved to the south of France to escape onerous British taxes. Though it caused a stink at the time, it spawned one of the group's most seminal albums, "Exile on Main St." The title is a reference to their tax-dodging. In 2006, British media branded them the "Stingy Stones" with reports that they'd paid just 1.6 percent tax on their earnings of $389 million over the previous two decades.
FISCAL HEALING
In 1980, U.S. singer Marvin Gaye moved to Hawaii from L.A. to avoid problems with the Internal Revenue Service, the American tax agency. Later that year, Gaye relocated to London after a tour in Europe. Gaye, whose hits include "Sexual Healing" and "I Heard it Through the Grapevine" settled in Belgium in 1981. He was shot to death in 1984.

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Pennies over patriotism? Stars move to tax havens

PARIS (AP) — France's Socialist government is introducing a 75-percent income tax on those earning over €1 million ($1.3 million), leading some of the country's rich and famous to set up residency in less fiscally demanding countries.
Here's a look at some big names in France and elsewhere whose changes of address over the years have meant lighter taxes.
DEPARTING DEPARDIEU
The French prime minister has accused actor Gerard Depardieu of being "pathetic" and "unpatriotic," saying he set up residence in a small village just across the border in neighboring Belgium to avoid paying taxes in France.
The office of the mayor in Depardieu's new haunts at Nechin, also known as the "millionaire's village" for its appeal to high-earning Frenchmen, said that for people with high income, like Depardieu, the Belgian tax system, capped at 50 percent, is more attractive.
Depardieu, who has played in more than 100 films, including "Green Card" and "Cyrano de Bergerac," has not commented publicly on the matter.
BEATLE TAX
In 2005, the Beatles' Ringo Starr took up residency in Monaco, where he gets to keep a higher percentage of royalties than he would in Britain or Los Angeles. France's tiny neighbor Monaco, with zero percent income tax for most people, has obvious appeal for the 72-year-old drummer and his estimated $240 million fortune.
The Beatles' resentment of high taxes goes back to their 1960s song "Taxman." George Harrison penned it in protest of the British government's 95 percent supertax on the rich, evoked by the lyrics: "There's one for you, nineteen for me."
Harrison reportedly said later, "'Taxman' was when I first realized that even though we had started earning money, we were actually giving most of it away in taxes."
LICENSE TO DODGE?
Former "James Bond" star Sean Connery left the U.K. in the 1970s, reportedly for tax exile in Spain, and then the Bahamas — another spot with zero income tax and one of the richest countries per capita in the Americas. His successor to the 007 mantle, Roger Moore, also opted for exile in the 1970s — this time in Monaco — ensuring his millions were neither shaken nor stirred.
EXILE ON MAIN ST.
In 1972, The Rolling Stones controversially moved to the south of France to escape onerous British taxes. Though it caused a stink at the time, it spawned one of the group's most seminal albums, "Exile on Main St." The title is a reference to their tax-dodging. In 2006, British media branded them the "Stingy Stones" with reports that they'd paid just 1.6 percent tax on their earnings of $389 million over the previous two decades.
FISCAL HEALING
In 1980, U.S. singer Marvin Gaye moved to Hawaii from L.A. to avoid problems with the Internal Revenue Service, the American tax agency. Later that year, Gaye relocated to London after a tour in Europe. Gaye, whose hits include "Sexual Healing" and "I Heard it Through the Grapevine" settled in Belgium in 1981. He was shot to death in 1984.

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Italy's lower house approves Monti's budget plans

 Italy's lower house of parliament on Thursday approved a package of budget measures including a sales tax hike and a cut in some payroll taxes, aimed at helping the government reach its deficit-cutting targets.
Approval was expected after Prime Minister Mario Monti's government won three confidence votes on Wednesday that it had called to speed up passage of the budget.
The measures will now move to the Senate for approval, which is expected before Christmas.
The Chamber of Deputies approved the plans by 372 votes against 73.
The budget, enshrined in a so-called Stability Law, is central to Monti's efforts to lower Italy's public deficit to 1.8 percent of output next year from a targeted 2.6 percent in 2012.
Monti agreed at the end of October to overhaul the first draft of the budget legislation by replacing a planned income tax cut with a reduction in payroll taxes paid by employers.
The package still includes a one percentage point rise in the highest value-added tax (VAT) rate, which will go into effect next July, bringing it to 22 percent. The lower 10 percent rate will not be increased as previously planned.
The Stability Law is expected to be one of the final pieces of major legislation approved under Monti before Italy gears up for a national election.

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Kan. agency posting tax guidance ahead of new law

The Kansas Department of Revenue is posting guidance regarding two provisions of the state income tax law ahead of changes that take effect in January.
Spokeswoman Jeannine Koranda said Tuesday that the guidance lets accountants, tax attorneys and residents know how the agency will be interpreting inconsistencies within the law. One of the items deals with how the taxpayers will be able to use itemized deductions to reduce their tax liability.
The state also sent out mailers earlier this year to 146,000 businesses to inform them about the new tax law and how it could apply to them.
"The reason for that is that they are the ones who really have to take any action before Jan. 1," Koranda said, such as changing how the business is organized for tax purposes. "Most people won't have to deal with the new law before next year when we send out the tax forms."
Koranda says the revenue department will ask the 2013 Legislature to make changes to the law to codify the guidance.
The state will reduce individual income tax rates, drop the top tax rate to 4.9 percent from 6.45 percent and increase the standard deductions claimed by married couples and heads-of-household. The state also will exempt the owners of 191,000 partnerships, sole proprietorships and other businesses from taxes.
Koranda said the impact will vary depending on each individual taxpayer and how they file their return, including marital status, number of children and how many other deductions or exemptions that are claimed. For example, a married head-of-household tax filer earning $52,000 a year should see about $12 more in a biweekly paycheck.
"One of the other places that people will see is the change in 2014 when they get the higher standard deduction that doubles to $9,000 for married and single head-of-household payers," she said.
Legislative researchers have estimated that the cuts will be worth $4.5 billion over the next six years. But the researchers also project that the cuts will create collective budget shortfalls approaching $2.5 billion during the same period. A group of state officials and economists estimate legislators will have to close a projected shortfall of more than $327 million next spring when they draft the state budget for fiscal year 2014.
Koranda didn't know how many existing businesses might be changing their classification to take advantage of the tax changes.
"Honestly, we won't know if businesses were changing their structures until they file their taxes in 2014 more than a year from now," she said.

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Harbinger Group returns to profit in 4th quarter

 Harbinger Group it returned to a profit in its fiscal fourth quarter, buoyed by a large income tax benefit and improved revenue for both its consumer products business and its financial services and insurance segment.
For the three months ended Sept. 30, the New York-based holding company earned $159.1 million, or 78 cents per share. That compares with a loss of $107.1 million, or 77 cents per share, a year ago.
The quarter included an income tax benefit of $135.9 million compared with gain of $13.4 million in the prior-year period.
Revenue shot up 35 percent to $1.2 billion from $888.5 million.
Revenue climbed for the consumer products unit, which includes Spectrum Brands, the company behind products ranging from Rayovac Batteries to George Foreman grills, edged up less than 1 percent to $832.6 million. Revenue for its insurance and financial services segment rose nearly sixfold, to $364.3 million.
Harbinger Group Inc., which is run by hedge fund manager Philip Falcone, said Tuesday said its full fiscal year net income climbed 35 percent to $29.9 million, or 15 cents per share, from $22.2 million, or 9 cents per share, in the previous year.
Annual revenue increased 29 percent to $4.48 billion from $3.48 billion, helped by a full-year of results from Fidelity & Guaranty Life Holdings Inc. Fidelity & Guaranty was acquired in April 2011. In addition, revenue for the consumer products unit, climbed 2 percent.
Fiscal 2012 results included an $85 million income tax benefit and a $41 million gain related to the reduced contingent purchase price of Fidelity & Guaranty. This was somewhat offset by a charge tied to its preferred stock.
Harbinger shares closed Monday at $8.70, and has more than doubled since the start of the year.

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NH health agency seeks $321M more in next budget

 New Hampshire's biggest agency asked Tuesday for $321 million more from state tax sources in the two-year state budget Gov.-elect Maggie Hassan must present to lawmakers in February.
Health and Human Services Commissioner Nicholas Toumpas testified at a hearing on the request that one of the biggest increases is due to a change in how the state pays nursing homes for Medicaid care. He said the state now must pay nursing homes based on rates, not on what lawmakers budget to spend.
Toumpas is requesting a 25 percent increase in the portion of the agency's budget that's supported by state tax sources. It would increase the funding to $1.6 billion from the current two-year appropriation of $1.3 billion.
The agency's current total budget is $3.7 billion, most of which from federal funds.
"The department — like all state agencies — is in the middle of a storm," Toumpas said.
He said people continue to seek help from the state as a result of the recession, but the numbers have leveled off in all but those needing food stamps. About 25 percent of those who apply for the federal food help are rejected, but the state must provide the staff to make the determination regardless whether they are denied, he said.
Overall, the number of caseloads has risen 15 percent since July 2009. At the same time, the number of filled jobs at his agency dropped 15 percent, he said. In addition, key members of the staff will be eligible for retirement soon, he said. That has caused stress on the staff, he said.
Toumpas said he knows the state has limited funds to provide services to everyone who is in need and promised to continue to try to find savings.
He said he included money cut from the current budget to boost payments to hospitals caring for the poorest residents. Ten hospitals sued over the budget cut in a case still pending in federal court.
Toumpas said a managed care program for Medicaid that was supposed to save $15 million in the current budget still is not operating due to slow negotiations between contractors and the health care providers needed to build a network.
On Monday, Hassan opened the budget hearings with a caution that agency requests are unrealistic. Agencies requested $3.3 billion in spending from state tax sources — a 26 percent increase over the current budget — and $11.9 billion from all funding sources or a 19 percent increase.

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First cracks in GOP resolve on tax rates

 The first cracks are developing among Republicans over whether to accept a quick deal with President Barack Obama on allowing the top two income tax rates to expire, even as an administration official said the White House was stepping up behind-the-scenes negotiations.
Conservative Oklahoma GOP Rep. Tom Cole told GOP colleagues in a private meeting Tuesday that it's better to make sure that tax cuts for the 98 percent of taxpayers who make less than $200,000 or $250,000 a year are extended than to battle it out with Obama and risk increasing taxes on everyone.
Cole's remarks are noteworthy because he's a longtime GOP loyalist and a confidant of House Speaker John Boehner, R-Ohio. They were made in a meeting of the House GOP Republican whip team, which is a sounding board for GOP leaders.
"If we don't believe taxes should go up on anybody, why can't we accept a deal that takes 98 percent out and still leaves us free to fight on the other grounds," Cole said in an interview on Wednesday. "I'm not for using the American people for leverage or as a hostage."
Meanwhile, an administration official speaking on grounds of anonymity told The Associated Press that two of Obama's top negotiators on the fiscal issues will meet separately Thursday with leading lawmakers.
The sessions are seen as an important step in determining how the government will avoid a year-end package of tax increases and spending cuts that could throw the economy into recession.
Treasury Secretary Timothy Geithner and White House legislative chief Rob Nabors will meet with House Speaker John Boehner of Ohio, Senate Republican leader Mitch McConnell of Kentucky, Senate Majority Leader Harry Reid of Nevada and House Democratic leader Nancy Pelosi of California, said the official, who said he could not speak on the record because the meetings had not yet been publicly announced.
Some Republicans on the Hill have been worried that the GOP would lose a bargaining advantage by separating tax cuts for the highest earners from everyone else, but Cole said he believes the reverse is true. "I think we have the winning argument," he said. "Most Americans intuitively understand that raising taxes on small business is costing them jobs."
Cole's comments drew a rebuke from Boehner, who is standing firm against Obama's demand that tax rates go up for top earners.
"He's a wonderful friend of mine and a great supporter of mine, but raising taxes on the so-called top 2 percent — half of those taxpayers are small business owners," Boehner said. "You're not going to grow the economy if you raise the top two rates. It'll hurt small business. It'll hurt our economy."
Reaction was mixed to his idea at a Wednesday morning meeting of House Republicans, Cole said. Conservative Rep. Raul Labrador, R-Idaho, who said he opposed Cole's idea, said he believed a majority of House Republicans also opposed it.
Cole said he expects to support whatever deficit-cutting deal Boehner is eventually able to negotiate with the White House as the two sides wrangle over how to avoid the "fiscal cliff" mix of tax increases and spending cuts that will occur automatically in January unless lawmakers avert them.
"This is a tactical argument, this is not a theological argument," Cole said. "We don't disagree on what we're trying to do."
Cole's comments were first reported by Politico.
There has been little evident progress between Obama and Boehner in talks aimed at striking a deal to avoid the fiscal train wreck. Republicans are worried that Democrats seem to be taking a harder line on cutting popular benefit programs like Medicare and Medicaid.
"We have not seen any good faith effort on the part of this administration to talk about the real problem that we're trying to fix," House Majority Leader Eric Cantor, R-Va., told reporters.
But House Democratic Leader Nancy Pelosi, D-Calif., said Wednesday that the starting point for talks should be a framework discussed by Obama and Boehner in the summer of 2011. Then, Democrats were willing to consider curbing the inflation adjustment for Social Security and lifting the eligibility age for Medicare — ideas that other top Democrats have taken off the table.
"We can all be there and start with that and go from there to reach an agreement," Pelosi said.
Pelosi made her remarks as she met with prominent business executives and Erskine Bowles, the chairman of Obama's 2010 deficit commission. Bowles and the executives also met with House GOP leaders.
Asked if he sensed Democrats could be more flexible on curbing so-called entitlement programs like Medicare, Bowles said: "I think we will see give in all areas if we're going to get a deal done. If not, we're going to go over this cliff, and I think everybody realizes that would be a disaster."
Obama said Wednesday he still believes that members of both parties can reach a framework agreement on a debt-cutting deal before Christmas.
He made a public statement, joined by about a dozen middle-class Americans who have raised concerns about their taxes going up at the end of the year. He said lawmakers face important deadlines in the coming weeks but the voices of the American people need to be a part of the debate.
The president said that officials need to "approach this problem with the middle-class in mind."
Obama could be in position to blame Republicans if an impasse results in the government going over the so-called fiscal cliff, an economy-rattling set of automatic spending cuts and tax increases from the expiration of longstanding tax cuts made in 2001 and 2003 during the Bush administration.
Democrats already are portraying GOP lawmakers as hostage-takers willing to let tax rates rise on everyone if lower Bush-era tax rates are not extended for the top 2 percent to 3 percent of earners — those with incomes above $200,000 for individuals and $250,000 for joint filers.
"Right now, as we speak, Congress can pass a law that would prevent a tax hike on the first $250,000 of everybody's income. Everybody's," Obama said. "And that means that 98 percent of Americans and 97 percent of small businesses wouldn't see their income taxes go up by a single dime."

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Canada economy ekes out 0.1 percent growth in October

OTTAWA (Reuters) - The Canadian economy grew by just 0.1 percent in October from September, indicating a very slow start to the fourth quarter amid foreign and domestic economic woes, Statistics Canada data indicated on Friday.
The figure matched analysts' expectations. The Bank of Canada says fourth quarter growth will be 2.5 percent annualized but the October data confirm market suspicions the real figure will be much less impressive.
Overall, output rose in 12 of 18 sectors. Service industries grew by 0.1 percent on strength in wholesale and retail trade while goods production was unchanged.
Mining and oil and gas extraction advanced by 0.3 percent while support activities for the mining industry grew by 1.3 percent, reflecting higher drilling and rigging services. Canada is the single biggest exporter of energy to the United States.
Manufacturing output fell by 0.4 percent. Canadian firms are struggling to cope with weak markets in the United States and Europe as well as the challenges posed by a strong dollar.

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Ugandan shilling steady, seen weaker after Christmas holiday

KAMPALA (Reuters) - The Ugandan shilling was unchanged against the dollar on Friday but traders said they expected it to weaken once more active trading resumed next year.
At 1238 GMT commercial banks in Kampala quoted the currency of east Africa's third-largest economy at 2,645/2,655, unchanged from Thursday's close.
"The market is pretty flat because (dollar) demand is not there but going into 2013 we anticipate some small depreciation for the shilling," said Shahzad Kamaluddin, trader at Crane Bank.
"Considering the negative factors like a growing current account deficit, aid cuts and the central bank's loose policy stance I reckon the shilling will weaken when business resumes."
The shilling has lost 6.4 percent against the dollar this year but it has been strengthening since late November, lifted by decreased demand for the hard currency ahead of the year-end festivities.
Traders say the central bank's cuts to its key lending rate will keep yields on Ugandan government securities low and possibly erode the interest of offshore investors - whose dollar flows partly support the shilling's exchange rate.
At the last auction on November 29, the yield on the benchmark 91-day Treasury bill was unchanged from the previous auction at 9.8 percent.
Bank of Uganda is due to sell 110 billion shillings' worth of Treasury bills of all maturities on December 27.
The bank cut its key lending rate by 50 basis points to 12 percent this month, extending its policy easing cycle aimed at resuscitating economic growth.
"Because of low demand, market sentiment favours limited shilling appreciation for the remaining trading sessions of this year beyond which it (shilling) will come under pressure," said a trader at a leading commercial bank.
The central bank says Uganda's projected growth rate of about 4.3 percent for the 2012/13 (July-June) fiscal year is below the country's potential growth rate of around 7 percent.

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Instant View: November personal income, durable goods up

NEW YORK (Reuters) - Consumer spending rose in November by the most in three years as incomes climbed, suggesting fourth-quarter economic growth might be stronger than currently expected.
The Commerce Department said on Friday inflation-adjusted consumer spending rose 0.6 percent, and after-tax income climbed 0.8 percent when adjusting for inflation.
A gauge of planned U.S. business spending rose much more than expected in November, a hint that worries over tighter fiscal policy may not be holding back the factory sector as much as feared.
The Commerce Department said on Friday that non-defense capital goods orders excluding aircraft, a closely watched proxy for investment plans, jumped 2.7 percent last month, the second straight month of solid gains.
Economists had expected so-called core capital goods orders to rise just 0.3 percent. The reading for October was upwardly revised to a 3.2 percent gain from a previously reported 2.9 percent increase.
COMMENTS
DAVID ADER, SENIOR GOVERNMENT BOND STRATEGIST, CRT CAPITAL GROUP, STAMFORD, CONNECTICUT:
"These are generally very good figures for the economy and stock market as the gains we see here are real and inflation clearly less of a threat."
TIM GHRISKEY, CHIEF INVESTMENT OFFICER OF SOLARIS GROUP IN BEDFORD HILLS, NEW YORK
"Durable goods orders (was) a strong number for the second month in a row. That flies in the face of the weakness we have seen in the manufacturing sector."
"This definitely shows economic strength above expectations. It's not a roaring recovery by any means, we all know that, but this really shows some momentum here."
TOM DI GALOMA, MANAGING DIRECTOR, NAVIGATE ADVISORS LLC, STAMFORD, CONNECTICUT
"This morning's economic data is better across the board however the overwhelming factor remains the fiscal cliff which keeping Treasuries well bid."
OMER ESINER, CHIEF MARKET ANALYST, COMMONWEALTH FOREIGN EXCHANGE, WASHINGTON D.C.
"The numbers look good across the board and while durable goods is notoriously a volatile indicator the sharp upside surprises top November figures as well as upward revisions suggest that capital spending was on stronger footing than previously expected.
"Overall these were strong figures, but they will likely not impact trading as all eyes are on Washington D.C. and fiscal cliff discussion."
GARY THAYER, CHIEF MACRO STRATEGIST, WELLS FARGO ADVISORS, ST. LOUIS, MISSOURI
"The data were better than expected. It shows the economy is holding in here at the end of the year despite the concerns about the fiscal cliff.
"The durable goods orders figures show businesses are holding back on new spending, but not cutting spending. It looks like the economy still has some underlying strength that may help us get through the uncertainty of the fiscal cliff.
"The personal spending data was decent. It suggests that consumers, though they are still dealing with relatively high unemployment, are spending cautiously and that continues a trend we've seen much of this past year. We probably need to see better employment numbers to see stronger spending numbers."
WAYNE KAUFMAN, CHIEF MARKET ANALYST AT JOHN THOMAS FINANCIAL IN NEW YORK
"Data looks good. Personal income has been one of the things we were worried about, so this looks really good. Durable goods were also better than expected. These are signs of an improving economy."
FOREX: The dollar trimmed losses versus yen, the euro cut losses versus dollar
GRAPHICS
Consumer spending rose by 0.6 percent in November - the largest jump in three years - suggesting fourth-quarter economic growth might be stronger than expected. http://link.reuters.com/hed44t
U.S. durable goods: New orders for durable goods rose by 0.7 percent in November. Excluding transportation and defense, new orders increased by 1.8 percent. http://link.reuters.com/xyk34t
(Americas Economics and Markets Desk; +1-646 223-6300)

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US durable goods orders up 0.7 percent

WASHINGTON (AP) — U.S. companies boosted their orders in November for long-lasting manufactured goods that reflect investment plans. It was the second straight such increase, an encouraging sign for the economy.
The Commerce Department said Friday that overall orders for durable goods rose a seasonally adjusted 0.7 percent in November over October.
But a more closely watched category of orders that tracks business investment surged 2.7 percent. That followed an upwardly revised 3.2 percent jump in October, the biggest in 10 months.
Those back-to-back increases followed a period of weakness in so-called core capital goods that had raised concerns about business investment, a driving force in the economic rebound.
The overall increases in orders for durable goods were widespread in November. Only demand for commercial aircraft showed a big decline.
The surge in orders in the business investment category defied concerns that businesses might be reducing investment because of uncertainty about how the debate over the "fiscal cliff" will be resolved. The fiscal cliff refers to the set of automatic tax increases and spending cuts that will take effect in January if Congress and the Obama administration don't reach a budget deal first.
In addition, Europe's debt crisis and slower growth overseas have cut into U.S. exports and corporate profits and raised further concern.
Total orders for transportation equipment dropped 1.1 percent. The decline reflected a 13.9 percent fall in commercial aircraft orders, which offset a 3.5 percent gain in orders for motor vehicles and parts.
Excluding transportation, orders for nondurable goods, items expected to last at least three years, rose to $220.9 billion. For the year, they're up 7.3 percent.
Orders rose 3.3 percent for machinery rose, 2.4 percent for primary metals such as steel and 3.1 percent for computers.
A separate survey by the Institute for Supply Management showed that U.S. manufacturing shrank in November to its weakest level since July 2009. The institute's manufacturing index dropped to 49.5, down from 51.7 in October. Readings above 50 signal growth in manufacturing; readings below 50 indicate contraction.
The government said Thursday that the overall economy grew at an annual rate of 3.1 percent in the July-September quarter. The increase occurred even though business spending on equipment and software fell at an annual rate of 2.6 percent, the first such decline since the spring of 2009, when the economy was in recession.
Many economists are concerned that further cutbacks in business investment and cautious consumer spending could help dampen growth in the current quarter to an annual rate of around 1.5 percent.
But most think the economy will gradually pick up in 2013 if Congress and the administration can achieve a budget deal that removes uncertainty over changes in taxes and government spending.

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