Author Archives: Gregg D. Killoren

Bank Closures in Illinois and Indiana Raise 2012 Total FDIC-Insured Institution Failures to 9 (Feb. 10, 2012)

Posted on February 11, 2012 | Leave a comment

The Federal Deposit Insurance Corporation has announced the failures of two more banks—one in Illinois and one in Indiana—insured under its Deposit Insurance Fund.  Information on the bank closures follows with links to the FDIC website for more information.

Charter National Bank and Trust, Hoffman Estates, IL, was closed by the Office of the Comptroller of the Currency.

SCB Bank, Shelbyville, IN, was closed by the Office of the Comptroller of the Currency.

FDIC Failed Bank List (Since Oct. 1, 2000).

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Posted in Banking, Federal Deposit Insurance Corporation

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Consumer Prices in China Jump 1.5% in January 2012, Led By Sharply Higher Food Prices

Posted on February 9, 2012 | Leave a comment

China’s National Bureau of Statistics has reported that the consumer price index rose by 1.5 percent month-over-month in January 2012 to an annual rate of 4.5 percent.  The annual rate of inflation had dipped to 4.1 percent in December 2011, as tighter monetary policy had brought the rate down from as high as 6.5 percent last summer. The sudden rise in inflation was led by yet another lurch higher in food prices, which increased 4.2 percent month-over-month.  Non-food prices rose just 0.2 percent.

The full press release follows:

Consumer Prices for January 2012
National Bureau of Statistics of China　2012-02-09 14:45:02

In January, the consumer price index (CPI) went up by 4.5 percent year-on-year. The prices grew by 4.5 percent in cities areas, and 4.6 percent in rural areas. The food prices went up by 10.5 percent while the non-food prices increased by 1.8 percent. The prices of consumer goods went up by 5.5 percent and the prices of services grew by 2.2 percent. In January, the month-on-month change of consumer prices was up by 1.5 percent. Of which, prices in cities and rural went up by 1.5 percent simultaneously. The food prices grew by 4.2 percent, the non-food prices increased by 0.2 percent. The prices of consumer goods rose by 1.8 percent, and the prices of services went up by 0.8 percent.

I. Year-on-Year Changes of Prices of Different Categories

 

Food Prices went up by 10.5 percent year-on-year, contributing nearly 3.29 percentage points to the overall growth. Of which, the prices of grain rose by 6.1 percent, meaning 0.17 percentage points growth in the overall price level; meat, poultry and related products, surged 18.7 percent, contributing 1.28 percentage points (price of pork was up by 25.0 percent, contributing 0.75 percentage points); fresh eggs, down by 2.0 percent, contributing 0.02 percentage points; the prices of aquatic products, up 13.2 percent, meaning 0.31 percentage points growth in the overall price level, fresh vegetables, up 23.0 percent, contributing 0.67 percentage points; and fresh fruits, up 2.3 percent, contributing 0.05 percentage points, grease, increased 6.1 percent, contributing 0.07 percentage points.

Prices for tobacco and liquor went up by 3.7 percent year-on-year, of which, that of tobacco was up by 0.3 percent and liquor was up by 8.8 percent.

Prices for clothing rose by 3.3 percent year-on-year. The prices for clothes went up by 3.4 percent while the prices for shoes increased 2.8 percent.

Prices for household facilities, articles and maintenance services went up by 2.6 percent year-on-year, of which, prices for durable consumer goods was up by 0.6 percent, and household services and processing, maintenance services, up by 12.3 percent.

Prices for health care and personal articles grew by 2.6 percent year-on-year. Of which, prices for medical apparatus and supplies increased 3.4 percent; traditional Chinese herbal medicines and proprietary Chinese medicines, up 9.0 percent; western medicine went down by 0.5 percent; and health care services, up 0.5 percent.

Prices for transportation and communication rose by 0.2 percent year-on-year. Of which, prices for transportation facilities dropped by 0.5 percent; fuels and parts for vehicles, up 5.9 percent; vehicles use and maintenance, up 5.0 percent; intercity traffic fares, up 3.3 percent; incity traffic fares, up 1.7 percent; and communication facilities, down by 14.0 percent.

Prices for recreation, education, culture articles and services grew by 0.7 percent year-on-year. Of which, education went up by 1.0 percent; recreation and culture, up 1.5 percent; touring and outing, up 6.6 percent; and durable consumer goods for recreational and cultural use and services, down by 6.4 percent.

Prices for residence went up by 1.9 percent year-on-year. Of which, prices for water, electricity and fuel rose by 0.9 percent; building and building decoration materials, up 2.4 percent; and house renting, up 2.6 percent.

According to estimation, in the 4.5 percent growth in January, the carryover effect of last year’s prices rising accounted for 3.0 percentage points, while new prices rising factors in this year accounted for 1.5 percentage points.

II. Month-on-Month Changes of Prices of Different Categories

 

In January, food prices rose by 4.2 percent month-on-month, contributing 1.34 percentage points to the month-on-month growth of consumer prices. In January, prices for fresh vegetables, fresh fruits, and aquatic products continued to increased 26.1, 5.6 and 7.2 percent month-on-month, prices growth of the above mentioned three items affecting 1.0 percentage points increase in the overall price level, prices for meat, poultry and related products climbed 0.24 percent (the prices of pork rose by 3.9 percent, meaning 0.14 percentage points growth in the overall price level), price for gain, increased 0.3 percent, contributing 0.01 percentage points growth in the overall price level, price for eggs, declined 0.8 percent, contributing 0.01 percentage points decreased in the overall price level

Non-food prices increased 0.2 percent in January, affecting 0.15 percentage points increase in the overall price level. Of this total, prices for recreation, education, culture articles and services, increased 1.1 percent, contributing 0.12 percentage points increased in the overall price level, which mainly due to the holiday impacts of 6.7 percent increase of travel prices. In addition, prices for tobacco and liquor, household facilities, articles and maintenance services, health care and personal articles, transportation and communication, and residence went up by 0.1, 0.4, 0.1, 0.4, and 0.2 percent respectively, while that of clothing decreased 1.0 percent.

Consumer Prices in January

Item

January

M/M (%)

Y/Y (%)
 
Consumer Prices

1.5

4.5

　Of which: Urban

1.5

4.5
　　　　 Rural

1.5

4.6
　Of which: Food

4.2

10.5
　　　　 Non food

0.2

1.8
　Of which: Consumer Goods

1.8

5.5
　　　　 Services

0.8

2.2
By Commodity Categories
　I. Food

4.2

10.5

　　Grain

0.3

6.1

　　Grease

0.2

6.1

　　Meat, Poultry and Related Products

3.2

18.7

　　　　Of which: Pork

3.9

25.0

　　Eggs

-0.8

-2.0

　　Aquatic Products

7.2

13.2

　　Fresh Vegetables

26.1

23.0

　　Fresh Fruits

5.6

2.3

　　Milk and dairy Products

0.3

3.2
　II. Tobacco, Liquor and Articles

0.1

3.7

　　Tobacco

0.0

0.3

　　Liquor

0.2

8.8
　III. Clothing

-1.0

3.3

　　Clothing

-1.1

3.4

　　Shoes

-0.9

2.8
　IV. Household Facilities, Articles and Maintenance Services

0.4

2.6

　　Durable Consumers

0.0

0.6

　　Household Services and Processing, Maintenance Service

4.7

12.3
　V. Health Care and Personal Articles

0.1

2.6

　　Chinese Herbal Medicines and Proprietary Chinese Medicines

0.0

9.0

　　Western Medicines

0.0

-0.5

　　Health Care Services

0.2

0.5
　VI. Transportation and Communication

0.4

0.2

　　Transportation Facilities

0.1

-0.5

　　Fuels and Parts for Vehicles

0.0

5.9

　　Communication Facilities

-0.8

-14.0

　　Communication Services

0.0

-0.3
　VII. Recreation, Education, Culture Articles and Services

1.1

0.7

　　Education Services

0.1

1.0

　　Tourism

6.7

6.6
　VIII. Residence

0.2

1.9

　　Building and its Decoration Materials

0.2

2.4

　　House Renting

0.3

2.6

　　Water, Electricity, and Fuel

0.5

0.9

http://www.stats.gov.cn/english/newsandcomingevents/W020120209532335661148.jpg

Annotations:

 

1. Explanatory Notes

 

Consumer Price Index (CPI) is an index measuring changes over time in the price level of consumer goods and services purchased by residents, which comprehensively reflects the changes of price level.

 

2. Statistical Coverage

 

Consumer Price Index (CPI) covers the prices of goods and services of eight categories and 262 basic divisions which cover the living consumption of urban and rural residents, including food; tobacco, liquor and articles; clothing; household facilities, articles and maintenance services; health care and personal articles; transportation and communication; recreation, education, culture articles and services and residence. Data are collected from 63,000 prices collection units in 500 cities and counties of the 31 provinces (autonomous regions and municipalities), which cover grocery stores, department stores, supermarkets, convenience stores, professional markets, franchise houses, shopping centers, open fairs and service consumption units etc.

 

3. Survey Methods

 

Original data of consumer prices are collected by specific person in fixed place at fixed time.

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Posted in China, Consumer Price Index, Economy

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Preparing Your Income Tax Return? The IRS Has Listed Several 2011 Tax Law Changes You Need to Be Aware Of

Posted on February 9, 2012 | Leave a comment

Tax Law Changes for 2011 Federal Tax Returns 

Before you file your 2011 federal income tax return in 2012, you should be aware of a few important tax changes that took effect in 2011. Check www.IRS.gov before you file for updates on any new legislation that may affect your tax return.

Due date of return. File your federal tax return by April 17, 2012. The due date is April 17, instead of April 15, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia.

New forms. In most cases, you must report your capital gains and losses on the new Form 8949, Sales and Other Dispositions of Capital Assets. Then, you report certain totals from that form on Schedule D (Form 1040). If you had foreign financial assets in 2011, you may have to file the new Form 8938, Statement of Foreign Financial Assets, with your return.

Standard mileage rates. The 2011 rates for mileage are different for January 1 through June 30 than for July 1 through December 31. For business use of your car, you can deduct 51 cents a mile for miles driven the first half of the year and 55 ½ cents for the second half. Medical and moving mileage are both 19 cents per mile for the early half of the year and 23 ½ cents in the latter half.

Standard deduction and exemptions increased.

  • The standard deduction increased for some taxpayers who do not itemize deductions on IRS Schedule A (Form 1040). The amount depends on your filing status.
  • The amount you can deduct for each exemption has increased $50 to $3,700 for 2011.

Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.

Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).

Health savings accounts (HSAs) and Archer MSAs. The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses increased to 20 percent. Beginning in 2011, only prescribed drugs or insulin are qualified medical expenses.

Roth IRAs. If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.

Alternative motor vehicle credit. You can claim the alternative motor vehicle credit for a 2011 purchase only if the vehicle is a new fuel cell motor vehicle.

First-time homebuyer credit. The credit expired for most taxpayers for 2011. Some military personnel and members of the intelligence community can still claim the credit in 2011 for qualified purchases.

Health coverage tax credit. Recent legislation changed the amount of this credit, which pays qualified health insurance premiums for eligible individuals and their families. Participants who received the 65 percent tax credit in any month from March to December 2011 may claim an additional 7.5 percent retroactive credit when they file their 2011 tax return.

Mailing a return. The IRS changed the filing location for several areas. If you’re mailing a paper return, see the Form 1040 instructions for the correct address.

Detailed information on these changes can be found on the IRS website – www.irs.gov.
Links:

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Posted in Personal Finance, Taxes

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IRS Releases Guidance on Claiming Expanded Tax Credit for Hiring Veterans; Certification Requirements Streamlined

Posted on February 9, 2012 | Leave a comment

The Internal Revenue Service has released guidance and forms that employers can use to claim the newly-expanded tax credit for hiring veterans. The IRS also announced that employers will have more time to file the required certification form for employees hired on or after Nov. 22, 2011, and before May 22, 2012. The VOW to Hire Heroes Act of 2011, enacted Nov. 21, 2011, provides an expanded Work Opportunity Tax Credit (WOTC) to businesses that hire eligible unemployed veterans and for the first time also makes the credit available to certain tax-exempt organizations.

The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 for tax-exempt organizations. The amount of the credit depends on a number of factors, including the length of the veteran’s unemployment before hire, hours a veteran works and the amount of first-year wages paid. Employers who hire veterans with service-related disabilities may be eligible for the maximum credit.

Normally, an eligible employer must file Form 8850 with the state workforce agency within 28 days after the eligible worker begins work. But according to today’s guidance, employers have until June 19, 2012, to complete and file this newly-revised form for veterans hired on or after Nov. 22, 2011, and before May 22, 2012. The 28-day rule will again apply to eligible veterans hired on or after May 22, 2012.

In an effort to streamline the certification requirements, the IRS has clarified and expanded upon 2002 guidance to facilitate employers’ use of electronic signatures when gathering the Form 8850 for transmission to state workforce agencies. The guidance confirms that employers can transmit the Form 8850 electronically, and also allows employers to transmit the Form 8850 via fax, subject to the ability of the state workforce agencies to accept submissions in those formats. The IRS expects the Department of Labor to issue further guidance to the state workforce agencies providing further clarification.

Notice 2012-13, has been posted on the IRS website, www.IRS.gov, and the instructions  for Form 8850 provide further details.

Businesses claim the credit on their income tax return. The credit is first figured on Form 5884 and then becomes a part of the general business credit claimed on Form 3800.

This credit is also available to certain tax-exempt organizations by filing Form 5884-C.  The guidance released today also provides instructions and a new set of forms for tax-exempt organizations to claim the credit.  For more information, including how to claim the credit, go to IRS.gov.

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Posted in Taxes

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