Posted by: in Business News
Filed under: Business, World wide web, News
You know how if you live in most says in the US you don’t have to pay sales tax on items bought online? Yeah, that’s about to change for about 19 million residents of New York Say. Legislators have approved a bill that requires huge online stores to collect sales tax for anything shipped to New York.
Technically, the tax isn’t new. Consumers were supposed to be reporting these purchases on their tax returns all along, but nobody really does. The law just passes the burden from consumers to retailers.
While the bill doesn’t become a law until Governor David Paterson signs it, he’s expected to do so soon, as the measure is expected to raise $50 million and help balance the say budget.
Companies that collect less than $10,000 per year from sales to New Yorkers will be exempt. But something tells us that means you’ll be paying taxes on purchase from huge stores like Amazon.
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Posted by: in Latest News
Filed under: Deals, General Electric (GE), Citigroup Inc. (C)
Citigroup (NYSE: C) has a set of loans to music firm EMI. It had hoped to sell them as part of a $12 billion package of debt that it is unloading to several private equity firms including using Apollo and TPG. But, things at EMI have gotten so bad that buyers want the debt held out of the mix.
According to The Wall Street Journal (subscription required), “The fact that EMI’s debt was pulled from the proposed sale advocates it would have attracted prices well below the upper-80s range the other loans command.” The total value of the loan to EMI, made by Citi and several other banks, was $4.9 billion.
For Citi, the news has no silver lining. It will probably have to write-down a large portion of its piece of the debt in its first quarter. One of the lessons form the General Electric (NYSE: GE) earnings catastrophe is that March was a terrible month in the credit markets and many financial companies didn’t see it coming. Earnings for Citi and other banks and brokerages could be worse that expected, as they were at GE’s financial groups.
No one should be surprised of Cit has to raise more money.
Douglas A. McIntyre is an editor at 247wallst.com.
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