Are We Destined to Become Greece??

Yesterday voters in HARDI's home state of Ohio voted to overturn a key piece of our governor's budget that had erased a staggering $8 billion state deficit created by massive overspending and erosion of the state's tax base over the last several years.  While the headlines will focus on yesterday's vote being a big win for big labor since the vote preserved collective bargaining rights for state employees, what I fear will be overlooked is the broader issue of exactly how committed ALL Ohioans are to fixing our financial woes.  Further, while the Constitutionally-questionable "Super Committee" deliberates in an attempt to trim less than a tenth of the absolutely obscene nearly $15 TRILLION federal deficit, the apparent lack of seriousness here in Ohio to address a state deficit that's less than what the federal government currently spends EVERY DAY hardly instills confidence that we will be able to prevent a Greece-like financial meltdown.  As representatives of a segment of our industry that perhaps relies on credit availability and affordability more so than anyone else, it is certainly troubling to watch our state choose short-term benefits (yet again) over long-term viability.  Keep an eye out, you may start seeing HARDI materials coming from more fiscally sound states like Texas or even our next-door neighbor Indiana...

President releases deficit reduction plan, LIFO included

This morning President Obama released a proposal for $3 Trillion in deficit reduction, which includes $1.5 Trillion in tax increases. This proposal marks President Obama's first entree to the Congressional Joint Select Committee ("Super Committee"). Included in President Obama's proposal is the repeal of LIFO, which the Obama Administration estimates will raise nearly $60 Billion.

Other proposals in President Obama's plan include:

• Allowing the "Bush tax-cuts" for the top tax bracket to expire.
• Limiting charitable deductions for individuals in the top tax bracket.
• Saving $1 Trillion, by winding down U.S. involvement in Iraq and Afghanistan.
• Cutting $248 Billion from Medicare and $72 Billion from Medicaid.

Additionally, President Obama has stated that he will veto any plan for entitlement reform that does not include tax increases. Congressional Republicans have stated that they will not pass tax increases, but would like to pass a complete overhaul of both the corporate and personal tax code.