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Just don't pull out the noisemakers quite yet. The segment of the market that's reviving is very narrow. In May, some 29% of sales were to first-time home buyers. The federal government's $8,000 first-time home buyer tax credit provided a lot of the boost. That means if you're trying to sell a house that a first-time home buyer probably wouldn't purchase - anything that's not priced as a starter home - you're not likely to feel the benefit of a faster moving inventory. And if you're trying to sell...

Author: /time Magazine | Title: Home Sales Perk Up, but Expensive Houses Languish | 7/1/2009 | See Source »

Instead of taking this route, Democrats plan to raise the income tax from a flat 5 percent to 6 percent for couples making $500,000 per year, 6.5 percent for couples making $600,000 per year, and 7.5 percent for couples making $750,000 per year. Businesses would bear a temporary 25 percent surcharge. Democrats think these hikes are fair. A couple making $600,000 per year would pay only $1000 more in income taxes...

Author: By Brian J. Bolduc | Title: Fuzzy Math | 7/1/2009 | See Source »

Republicans, however, fear the rich will skedaddle. “The wealthy can move their tax home easily,” said State Representative Pam Sawyer, a Republican. Democrats are skeptical. “No one is going to move out of the state because we have an income tax of 6.5 percent. New Jersey is almost 9 percent or more. Massachusetts has a capital gains tax; we got rid of that,” said Barry. He has a point. Few people will move from Connecticut because of these changes...

Author: By Brian J. Bolduc | Title: Fuzzy Math | 7/1/2009 | See Source »

They begin with the 1978 property tax revolt and the victory of Proposition 13. As California experienced a dramatic escalation in home values, property tax assessments skyrocketed. Especially vulnerable were seniors on fixed incomes. When then Gov. Jerry Brown and the legislature dithered, conservative activists led by Howard Jarvis put a seductively simple sounding proposition on the ballot. Under Proposition 13, the annual real estate tax on a parcel of property would be limited to 1% of its assessed value and this assessed value would only increase by a maximum of 2% per year, until a change in ownership. Voters...

Author: /time Magazine | Title: How California's Fiscal Woes Began: A Crisis 30 Years in the Making | 7/1/2009 | See Source »

...expect government intervention on the demand side - through education campaigns, tax incentives or targeted subsidies - to rein in our cravings. But in the energy arena, several states have already proved that rationalizing incentives on the supply side can transform the landscape. In most of the country, per capita electricity use has increased about 50% during the past three decades - despite conservation programs, efficiency incentives and the general rise of green. But in California and the Pacific Northwest, where state legislatures decoupled utility profits from sales volumes, electricity use has been flat. Instead of an incentive to sell more power...

Author: /time Magazine | Title: The Key to Fixing Health Care and Energy: Use Less | 6/29/2009 | See Source »

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