Bush Loves Corporations!

In a shocking move, President Bush today signed yet another massive tax break for Corporations. I mean, we all know this President has proven to be fiscally responsible, but tax cuts like this seem a bit much. Perhaps he had too much coffee this morning. The even went without fanfare, unlike last week's renewal of the "middle class tax cut," I'm assuming because most people would find it a bit unfair that corporations are still getting tax cuts while our nation's financial situation is so poor. Here's the skinny from Yahoo!:

Without fanfare, President Bush signed into law on Friday a nearly $140 billion corporate tax cut bill derided by both Democratic presidential rival John Kerry (news - web sites) and Republican Sen. John McCain as a giveaway to special interests.

The new law aims to end a trade fight with the European Union by repealing U.S. export tax subsidies that violate global trade rules. But the EU has objected to some of the provisions and has yet to say whether it will remove its sanctions on $4 billion worth of U.S. goods.

Bush signed the measure into law aboard Air Force One en route to a campaign rally in Pennsylvania, forgoing a public signing ceremony that would have attracted attention to the tax cuts less than two weeks before Election Day.

The White House had marked the signing of Bush's other major tax bills with lavish public ceremonies. This one was marked with a one-paragraph statement by the press secretary.

Asked why there was no signing ceremony for the corporate tax bill, White House spokeswoman Claire Buchan said: "There are a variety of ways the president signs legislation."

The $140 billion in new business tax breaks included many special interest provisions sharply criticized by public interest groups and fiscal conservatives, which congressional aides said explained Bush's decision to sign it in private.

McCain of Arizona, who has been campaigning for Bush, called the measure "the worst example of the influence of special interests that I have ever seen."


Kerry campaign spokesman Phil Singer said: "George Bush filled the bill up with corporate giveaways and tax breaks for multinational companies that send jobs overseas."

He said the Massachusetts senator, if elected, would repeal of "all the unwarranted international tax breaks that George Bush included in this bill."

White House spokesman Scott McClellan defended the measure: "This is legislation that is good for America's workers because it will help create jobs here at home by promoting the competitiveness of our manufacturers and other job creators."

Bush campaign spokesman Scott Stanzel said the bill was supported by a majority of Democrats, but that Kerry "failed to show up" for the vote. "Once again John Kerry's rhetoric doesn't match his record," he said.

The legislation would repeal illegal export subsidies and lower tax rates for domestic manufacturers to 32 percent from the top corporate rate of 35 percent.

The bill includes a $10 billion industry-financed buyout for tobacco farmers.

The bill also includes tax breaks for U.S. multinational companies, some of which critics say will encourage companies to ship jobs overseas...

I've been wrong before, but I believe John Kerry might have chosen not to vote because he's running for President and not likely to vote on any measure he doesn't deem necessary. As well, his rhetoric doesn't match his record? Didn't he say he would fight to end any bill that would possibly encourage companies to send jobs overseas and end corporate giveaways as a whole? Analysts on the radio said this bill would at most lead to about 130,000 jobs a year. This for a country that requires 1.2 million jobs yearly just to keep up with the population growth. As well, it's interesting to note John McCain deriding the bill. I wish that a-hole would just own up and admit that he doesn't truly support George W. Bush for President. They have clashed on so many issues I've lost count. Yet he and Kerry have a history of working together in the Senate. Dissapointing, to say the least.

In other excellent financial news, the Dow Jones Industrials slid to a yearly low today, for a variety of reasons, including oil concerns:

he blue-chip Dow closed at its lowest point this year on Friday as oil prices climbed to another record and Microsoft Corp.'s revenue forecast lagged analysts' expectations.

Earlier in the session, U.S. light crude jumped to a new high of $55.50 a barrel on the New York Mercantile Exchange as traders fretted over supplies of heating fuel as winter approaches in the northern hemisphere. Crude futures settled at $55.17, up 70 cents on the day.

"Today is really about oil -- it's over $55 a barrel and it's pretty much that that's hitting the market," said David Chalupnik, head of equities at U.S. Bancorp Asset Management.

The Dow Jones industrial average ended down 107.95 points, or 1.09 percent, at 9,757.81. The Standard & Poor's 500 Index closed down 10.75 points, or 0.97 percent, at 1,095.74. The technology-laced Nasdaq Composite Index finished down 38.48 points, or 1.97 percent, at 1,915.14.

For the week, the Dow ended down 1.77 percent. The Nasdaq rose 0.19 percent, while the S&P 500 index fell 1.12 percent. The Dow closed at its lowest point since Nov. 24, 2003 while the S&P was at its lowest level since Aug. 23, 2004.

Trading was active, with 1.47 billion shares changing hands on the New York Stock Exchange, just above the 1.4 billion daily average for last year. About 1.72 billion shares were traded on Nasdaq, above the 1.69 billion daily average last year. Decliners outnumbered advancers on the NYSE by about 5-to-3, and about 2-to-1 on Nasdaq.

Uncertainty ahead of the Nov. 2 Presidential election also weighed, said Chalupnik.

"We're a little more than a week away from the election, and the tight race still concerns the market. Once its over I think it would be a positive for the market," he added.

Microsoft fell nearly 3 percent, or 82 cents to $27.74, and was the biggest drag on the S&P 500 and Nasdaq and fourth biggest drag on the Dow.

After the bell on Thursday, the software maker reported earnings but provided a revenue outlook that had some wondering about the company's growth rate.

The news shook the market and overshadowed better-than-expected figures from Web search company Google Inc., whose shares shot up more than 15 percent to $172.43, a day after it posted strong results in its first reported quarter as a public company. Prudential Equity Group forecast a $200 share price for Google

As they said, today is all about oil. Of course, if Bush hadn't started this war and caused all thhe unease in the Middle East (yes, I know there was UNEASE before, but none like this) perhaps we wouldn't be in this kind of shape. Of course, his people are raking in record profits; and by his people I mean the oil industries of Texas, who paid his salary (and probably still do) and that wonderful Saudi Royalty.

On a side note, while I see Google slipping eventually, Marketplace on NPR today said people were suggesting one of the reasons they might slip is Microsoft's plans to unleash their own search site this fall. I'm sorry folks, but that idea is just laughable. Microsoft hasn't unleashed an internet site yet that has competed with anyone. Here's another take on Google's eventual bubble bust.
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