Friday Financial Five–June 21st, 2013
Friday, June 21, 2013
Historic tax credits part of Rhode Island’s $8 billion budget
The recently approved state budget kicks the can down the road regarding the current spending deficit, but does revive the historic tax credit on a limited basis. The Division of Taxation recently estimated the reintroduction of nearly $35 million in abandoned tax credits would generate over $100 million in economic activity. To diversify exposure, there’s a $5 million cap on any one project. Some may argue that government’s role isn’t to create jobs through preferential tax treatment, but this program saw positive results before the financial crisis of 2008.
The “Innovate Rhode Island Small Business Program”
Another article of the budget encourages investment in bioscience and engineering. The “Innovate Rhode Island Small Business Program” will be overseen by the RI Science and Technology Advisory Council (STAC). Basically, small businesses working and researching in Rhode Island can apply for funds to offset federal grant application costs and receive matching grants up to $300,000. It also establishes an internship program in bioscience and engineering.
Ben Bernanke’s term ending in January
The recent implication is that Fed Chairman Ben Bernanke will be leaving at the end of his current term, fueling speculation on his replacement. Whoever it is, from an economic perspective, the position of Federal Reserve chairman needs to become less important. The Fed was created to create stability in employment, pricing, and long term interest rates. Instead, the world waits to hear from one man. Instead of watching the game, we’re following the referee, and the market’s dependence on him is not a good thing. The economy will be better off when the training wheels are removed and investment and hiring isn’t simply predicated on interpreting Fed policy.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTStatus of the internet sales tax
The “Marketplace Fairness Act”, or internet tax, is getting discussed in the House of Representatives this week. A group of GOP reps and anti-tax crusaders oppose the bill, believing the tax represents an unfair burden on small businesses. While the Senate passed the bill pretty convincingly last month, there’s no time table for the House to vote on it.
Calculating the college “Return on Investment”
Huge tuitions, high student debt at graduation and limited job opportunities have people questioning the cost of college more than ever. There is now a website, CollegeMeasures, which attempts to provide guidance on the return on school “investment”. Quickly searching the Rhode Island schools provides information on graduation rates, freshman retention, and the cost per degree. Salary data is currently limited but is expected to grow as more states provide information.
Dan Forbes is a regular contributor on financial issues. He is a CFP Board Ambassador. He leads the firm Forbes Financial Planning, Inc in Providence, RI and can be reached at [email protected].
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