Breaking the Small Business Code

The Brick Walls Keeping Education from Improving

    US News & World Report's Education Blog has a GREAT blog article on how the eduation "community" received President Obama's proposals for improving education. The differing opinions on what he said and what needs to be done is sadly another example of why it will be so difficult to improve education in America.

    To refresh your recollection, President Obama said he wants the United States to have the highest proportion of college graduates in the world by 2020 and asked every American to complete a year or more of college or career training. He talked about the need for more reform in education and said he wants to reward teacher performance and grow the number of charter schools. He also talked about providing ore financial support from pre-school through college.

    Sadly, as usual, the "education community" was NOT pulling together. As usual the entrenched interests looked at their position and as the comments of the various "experts" show - they are all going in different directions.

    I am becoming so frustrated that I voiced my opinion in the comments section!  To read the article AND my comments, go to the On Education Blog Comment Section.  Then add your own comments there or here!

New Stimulus Bill 's Housing Related Benefits & College

     We don't know all the details yet but the recently passed Stimulus Package looks to have three potential benefits for families thinking about buying or refinancing a home. I wanted to share how these items can have possible benefits for college planning:

• In 2008, the conforming loan limits were increased to $729,750.  The American Recovery and Reinvestment Act of 2009 (ARRA 09) reinstates the $729,750 conforming loan limits until December 31, 2009.  This means lower interest rates for loans up to this amount. Higher rates come with "jumbo loans" that exceed this amount.  If your home still has equity, this could be a good thing to take advantage of lower interest rates for college planning!

• The 2009 bill will offer first-time home buyers a tax credit in the amount of $8,000 providing you purchase a home between January 1, 2009 to December 31, 2009.  The credit does NOT have to be paid back to the government unless the buyers sell their home within 3 years after the date of close of escrow on the home.  If you have the means, this could be a great time to help your student(s) buy their first home in lieu of a dorm. 

• The American Recovery and Reinvestment Act of 2009 offers incentives to existing home owners for going Green.  A tax credit of up to $1500 is given to home owners who make some “Green” home improvements.  These Green home improvements include, but not limited to, energy efficient windows, doors, and furnaces.  So doing something to save energy costs could help reduce taxes both of which can improve tax flow for college.

     As I learn more about ARRA 09, my team and I will look for ways to help college-bound families use the benefits to help pay for college!

Taxes and College Support

                  

                         I am seeing serious BIG time feedback on many blogs about taxation, patriotism and "critical" services!  With the  melt-down in the financial market combined with the higher taxes that will come with the "bailout" with the losses in home equity with [pick your own financial problem], we have ANGER coming from many taxpayers!  And it is growing. . .

     One of the items in today's Inside Higher Education is a little tidbit about the income tax ballot item in Massachussetts and how the state universities are reacting.  The article was predictable with university officials warning about cut-backs and higher tuition to make up the tax losses. But what I find the most interesting is the responses. Here's one from ProfessorMojo, SUNY-Plattsburgh (I've added bolding for emphasis):

     "As usual, the academics focus on their own livelihoods as opposed to examining the larger issue at hand. Certainly, some taxation is necessary, and few would argue against funding a state university system. However, the issue is the state government’s constant desire to suck more money from the taxpayer as opposed to being responsible stewards of the public treasury.

     We’re facing budget cuts here at SUNY, and it is noteworthy that my co-worker’s first reactions are to increase taxes and tuition as opposed to reforming the union-driven state spending practices that got us in this mess in the first place."

      I made no secret of my anger at the PORK inside the so-called bailout bill for the financial markets.  That pork will cost ALL of us more tax dollars and redirect them to places we as taxpayers have no say over!  I am ANGRY enough to support a ballot issue just like this for my home state of California AND for the nation over all!!!

      I think this brings up the reason for taxes.

     As I write this, there is a large brush fire in Northern L.A. County where the 118 and 210 freeways meet.  I listened to the City of LA officials point out that there are 1,000 firefighters on the line and that THIS IS WHAT TAXPAYER want from their government - protection of the people.

    I agree that colleges and universities are critical to the well-being of America as are many other essential services like roads and water. But where does the definition of "essential" that stop?

   This question comes from an article in Education Week that talks about the complaints about changes inside the Department of Education combining the Title I and Title III programs for English as a second language programs.  Obviously there are savings in combining the programs as well as oversight issues. But predictably, there are screams that "their" issues are so important that they "deserve" a separate agency.

    Just how many things can we afford to make "special"?  How many tax dollars can we afford to spend on what?

    I appreciate that everyone wants their special needs handled.  I understand it's easy to say mine's more important than yours.  But in TOUGH ECONOMIC times, you make priorities.  You cut back on things that are "nice" and things that might even be "important" and focus on what is essential.  But we need COMMON SENSE.   

   What do YOU think we should pay for?  Where should we say, yes, I know it's important but NOT as important as firefighters or colleges or ????

 

       

Pork Barrel Bill and Transparency by Blog

     You may or may NOT have heard about some of the shennanigans burried in the new "Relief" aka BAILOUT bill passed last night by "our" Senate from the "mainstream" media.  But no one else said anything including NPR other than "this was an important bipartisan bill" or showed the self-congratulating senators pushing to get to the microphone.  I saw just ONE outside expert commentator on Fox plop down a telephone book-sized bill that had evolved from Paulson's 3 page outline but he gave no details!  And the eMail alert I got from US News today also only summarized the high points that related to the crisis. 

       I was clueless about the bill's REAL details and contents until I started reading my morning blogs like "Don't Mess with Taxes".

     Thank you blogosphere!  Thank you "Don't Mess With Taxes!" and the 20 or so other blogs I subscribe to each day.  Yes, I know there are kooks and way-out-there blogs but there seems to be no where else to learn what is REALLY going on in our congress.  Blogs by citizens like me who share what they have learned seems to be the best place to learn what is really going on out there!

     Here's what got me so angry:  Did you hear about the arrow tax break provision? This little add-in waives the tax on child's practice arrows and costs taxpayers about $200,000 a year (enough to send 8 kids to UCLA free every year).  Granted, this is a very teeny tiny part of the NEW ADDITIONAL $108 billion (!) in businesses and individual taxpayer "sweeteners" that were added to make the bill pass.  BUT IT SHOWS how our politicians can't help but pork out everything -- something even as critical as this bailout bill!

    Politico lists some of the various "sweeteners" and their costs. While an kid's arrow tax may soon become great fodder for Saturday Night Live or Jay Leno, it is the poster child for PORK BARREL POLITICS.  The Senate sounding so serious about how critical their efforts were was nauseating this morning on the AM news.  They were all patting themselves on the back for a bi-partisan effort.  Yeah, bi-partisan means they both were equally adding pork!

    My client families and the members of the College Leadership Foundation's College eCoaching Club have been flooding us with questions on how to afford college with their savings and home equity cut or gone.  They want to know what they can do to pay for college while waiting on the "financial rescue" AKA "bailout" bill. Most think it will someone help them personally.

     My recommendation to these families is to call the House of Representatives and tell them to scrub out every ounce of pork.  Focus only on what Congress SAID was important to stabilize the financial industry if that is STILL as important as they make it sound.

    In my opinion, if this was soooo critical, they wouldn't have taken the time to stuff it like a goose full of special favors and little unknown tax breaks! 

     SO what are your feeling on this mess?  Mine can't be printed because it would scorch the screen I am so angry.  Pass this blog along so Google will pick up all your comments and maybe we can get the idiots  we elected to come to their financial senses!  STOP THE PORK BARREL POLITICS disguised as crisis!