Category / bonds

by Hoosier Econ

Cost of Caring for Illegal Immigrant Children

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One of the ealry known costs in caring for illegal immigrant children placed in adoptive homes is $192 Million. The Washington Times is reporting the placement agency who won the contract bid is in charge of 66,000 illegal children.

The 150-page request for transportation proposals, posted online at government contractor website fbo.gov, was issued by U.S. Immigration and Customs Enforcement to MVM Inc., a large security contractor founded by a former Secret Service agent and based in Ashburn, Virginia.

MVM Vice President Christopher McHale confirmed in an email that his company did win the contract, which the website says is worth $192 million, but he declined to talk about any of the details.

Here are the requirements in the contract when harboring the children:

Want to bid for a contract to care for the illegal immigrant children coming across the border? Make sure your staff members get Hepatitis vaccines and regular TB tests and can speak foreign languages — probably Spanish but maybe Mandarin, suggesting a surprising number of the children are coming from China.

The federal government guarantees the children three meals a day, and they must take account of health, religious observance or vegetarian diets. The children also have a right to second helpings, according to contract documents issued last month seeking a transportation company to ferry the children within Texas.

This does not account for the costs local taxpayers of school districts have occurred since the federal mandated taking in the illegals since their arrival.

by Hoosier Econ

Indiana Gets “AA+” Grade From Fitch Ratings

Fitch Ratings assigns an ‘AAA’ implied GO rating to the state of Indiana and affirms the ‘AA+’ rating on outstanding Indiana appropriation-backed debt issued by the Indiana Finance Authority (IFA), the Indiana State Office Building Commission, and the Indiana Transportation Finance Authority.

The IFA was established in 2005. The state’s debt structure formerly was diffuse with state appropriation-backed debt issued through several commissions and authorities. The IFA is the successor agency to the former agencies.

The Rating Outlook is Stable.

Read the rest at HeraldOnline.com

by Hoosier Econ

Michael Jackson Still Owes Taxes

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The King of Pop may be gone but his estate is still being hounded by the IRS. According to Forbes, they are going for more blood:

In a previously unreported court filing, the government says that IRS auditors originally thought the King of Pop owned only 50% of certain master recordings at his death in June 2009, when he really owned 100% of them. That 100% interest was worth $91 million by the IRS’ figuring, compared to the $11 million reported on the Jackson estate tax return.

The change brings the IRS’ valuation of Jackson’s estate and lifetime taxable gifts up to $1.178 billion, compared to the $7 million the estate reported. The IRS now wants a total of $525.6 million in tax and $205.1 million in gross valuation misstatement and negligence penalties. (Any interest owed will be on top of that.) Of course both the IRS and the estate’s values are best regarded as opening bids in what could be a long negotiation. A trial, if there is one, is far off.

by Hoosier Econ

United States Goverment YTD Interest on Debt Payments

The final 2014 fiscal year interest on debt payment was tallied.
September Interest on Debt payment $19,594,265,555.11
Fiscal YTD payments & total for 2014 $430,812,121,372.05
2014 total is $15 Billion higher then 2013 total and $70 Billion higher then 2012 interest on debt payments. 

by Hoosier Econ

Majority of $159 Billion of Owed IRS Taxes Will Go Unpaid

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JustFactsDaily.com released some new IRS data showing in 2013 there was $159 Billion in unpaid federal taxes. Here is what they found:

Per the IRS’s Fiscal Year 2013 Financial Statement, 78% of unpaid taxes that taxpayers have agreed they owe or courts have ruled they owe are “estimated to be uncollectible due primarily because of the economic situations of the taxpayers.”

by Hoosier Econ

Cost of One Tomahawk Cruise Missile

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In the past few weeks the United States military launched action against ISIS in the middle east. Part of the strategy in killing the Jihadist group was launching Tomahawk cruise missiles on them. The fully burdened cost of a new Tomahawk cruise missile is roughly $1.6 million.

by Hoosier Econ

2015 Fiscal Year For U.S. Government Starts Today

The United States federal government starts a new fiscal year today. The President proposed a budget in March but has not worked with the Senate or House in finalizing an actual budget. U.S. federal government spending will occur through later appropriations legislation that is signed into law.

Here’s a snapshot of 2015 proposed spending and tax revenues from the President. Deficits and debt still accumulate at an historical rate.
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by Hoosier Econ

US Public Pensions Are In Trouble

Data is coming in for public pensions carried by local and state governments in reference to debt held.

The 25 largest U.S. public pension systems face about $2 trillion in unfunded liabilities, showing that investment returns can’t keep up with ballooning obligations, according to Moody’s Investors Service.

The 25 biggest systems by assets averaged a 7.45 percent return from 2004 to 2013, close to the expected 7.65 percent rate, Moody’s said in a report released Thursday. Yet the New York-based credit rater’s calculation of liabilities tripled in the eight years through 2012, according to the report.

Public supporters of government pensions have always maintained the workers have properly foot the bill but the report says otherwise.

“Despite the robust investment returns since 2004, annual growth in unfunded pension liabilities has outstripped these returns,” Moody’s said. “This growth is due to inadequate pension contributions, stemming from a variety of actuarial and funding practices, as well as the sheer growth of pension liabilities as benefit accruals accelerate with the passage of time, salary increases and additional years of service.”

Read the rest here at Money News

by Hoosier Econ

IRS Now Taxing Business Meals

The government is broke and with that the IRS will go searching for any revenue possible. Unfortunately it will probably cost more then what it actually brings in. This will stretch out to many industries and not just tech firms listed in the article. The first people to lose any benefits should be the politicians and government employees who are allowed up to $20/day bought for them.

Here is the tax news out of Silicon Valley Business Journal:

The Internal Revenue Service wants to tax the free food that tech companies like Facebook and Google give to employees, potentially putting one of Silicon Valley’s most famous perks in jeopardy.

The IRS argues that the employer-provided food is a taxable fringe benefit and has sought back taxes that may amount to a third of the meals’ fair-market value

In another move that shows more focus on complimentary fare, the IRS and U.S. Treasury Department said their top tax priorities list for the current tax year that ends next June will include taxing “employer-provided meals,” the Journal reported. The agencies plan to issue new instructions on the matter as well, though specifics and details were not provided.

by Hoosier Econ

Indiana Toll Road Company Bankrupt

Per Chicago Tribune and read the rest here:

The private operator of the Indiana Toll Road, facing possible bankruptcy due to $6 billion in debt, said it expects to submit a restructuring plan in court by Monday.

ITR Concession Co. LLC, created by a Spanish-Australian partnership, said over the weekend that its strategy involves either selling its assets or recapitalizing the company by cutting debt, without a sale.

The company issued a statement saying it has “received overwhelming support from its lenders and equity sponsors.”

The current toll-increase schedule would remain locked in and drivers would not notice any differences if new buyers take over the operation and maintenance of the 157-mile toll road that extends between the Chicago Skyway and the Ohio Turnpike, the company said.

It said any new operator would be subject to the terms of the 75-year lease agreement with the Indiana Finance Authority. The authority last week said the company has until late November to demonstrate it can meet its obligations.