Deal reached on national economic stimulus plan
Democratic and Republican congressional leaders reached a tentative deal last week on a national economic stimulus plan. The plan includes tax rebates of $300 to $1,200 per household and business tax cuts to jolt the slumping U.S. economy.
The Bush administration has also been pushing for an economic stimulus package as many economists fear the U.S. economy may be heading into a recession. Bush has supported larger rebates of $800-$1,600, but his plan would have left out 30 million working households who earn paychecks but don’t make enough to pay income tax, according to calculations by the Urban Institute-Brookings Institution Tax Policy Center. An additional 19 million households would receive only partial rebates under Bush’s initial proposal.
Under the tentative congressional plan, families with children would receive an additional $300 per child, subject to an overall cap of perhaps $1,200. Rebates would go to people earning below a certain income cap, likely individuals earning $75,000 or less and couples with incomes of $150,000 or less.
Workers would have to have earned at least $3,000 in 2007 to receive the rebates, according to the reports.
Another element of the plan is a package of tax breaks for businesses that could cost $70 billion. The tax breaks would give businesses incentives to invest in plants and equipment, give small businesses more generous expensing rules and allow businesses suffering losses now to reclaim taxes previously paid.
To address the mortgage crisis, the congressional stimulus plan also allows Fannie Mae and Freddie Mac – government-sponsored companies that are the two biggest U.S. financers and guarantors of home loans – to buy home mortgages much larger than the current $417,000 limit.
Madison tech firm raises equity capital
TrafficCast International, Inc., a Madison-based provider of digital traffic data and software for next-generation traffic information services, recently raised about $3.5 million in equity. TrafficCast also has operations in Shanghai, China.
The company previously raised $2 million in capital but the Board of Directors extended the round to accommodate additional investor interest and to facilitate growth in a rapidly expanding market for mobile and interactive travel information.
Chicago-based Ceres Venture Fund, LP, led the extension. They were joined by NEW Capital Fund LP of Appleton, Phenomenelle Angels Fund I, LP of Madison, and Women Angels, of Milwaukee and Florida.
The funds are primarily earmarked for marketing expansion and ongoing technology development.
MGIC announces quarterly dividend
Milwaukee-based MGIC Investment Corporation’s Board of Directors recently announced a quarterly cash dividend of $0.025 per share. The dividend is payable March 3, 2008, to shareholders of record on February 8, 2008.
Northwestern Mutual reports record dividend
Milwaukee-based Northwestern Mutual Life Insurance Co. recently announced financial results for 2007, including a record $5 billion in dividends approved for payment to participating policyowners in 2008.
The company reported $1 billion in net income in 2007, up from $829 million in 2006 and total revenue of $21.35 billion in 2007, up from $19.73 billion in 2006.The company also reported premium revenue of $13.2 billion in 2007, an increase of 9 percent from 2006.
