Finally, US incomes rise for the 99 percent, even as top 1 percent earn even more

30 Jun 2015 | Author: | No comments yet »

Finally, US incomes rise for the 99 percent, even as top 1 percent earn even more.

Incomes for the bottom 99 percent of American families rose 3.3 percent last year to $47,213, the biggest annual gain in the past 15 years, according to data compiled by economist Emmanuel Saez and released Monday by the Washington Center for Equitable Growth. “For the bottom 99 percent of income earners, this marks the first year of real recovery from the income losses sparked by the Great Recession,” Saez, a professor at the University of California-Berkeley, said in a summary of his findings. As of 2014, the top 1 percent of Americans have seen 58 percent of the gains in the economic recovery, while the average real income of the bottom 90 percent has grown just 1.6 percent since the recovery began in 2009.* These findings coincide with new data from the IRS showing that the top 0.01 percent received 5.6 percent of adjusted gross income in 2012.

Between 1981 and 1990, overall income grew 1 percent per year—not quickly but nonetheless a welcome change from the negative real income growth of the late 1970s. From 2001 to 2007, overall incomes continued to grow at the same rate as they did in the 1990s, but middle-class incomes grew at less than one-sixteenth of the overall rate. The share of income captured by the wealthiest top 10 percent is now higher than what it was in 1928, “the peak of stock market bubble in the ‘roaring’ 1920s,” as Saez notes. The economy could withstand far higher tax rates on the wealthiest, and a 90 percent rate would both reduce inequality and also boost government tax revenue. These developments have been a natural experiment in trickle-down economics—the theory that tax cuts, deregulation, and the destruction of basic labor protections would unleash a wave of economic growth.

Income certainly has shifted upward, but its benefits have failed to materialize for everyone else; middle-class incomes after 1980 only displayed strong positive growth in the late 1990s. Saez’s figures are compiled from IRS tax data, using pre-tax income that excludes government transfer payments, such as Social Security retirement income. The only period that boasted overall income growth above 1 percent without strong middle-class income growth was the 2000s, and this growth was the result of an unsustainable housing bubble that greatly reduced overall income when it could no longer continue. International organizations such as the International Monetary Fund and the Organisation for Economic Co-operation and Development, or OECD, have concluded that high levels of income inequality reduce economic growth. When the middle class has no money, businesses have no customers: As shown in a 2014 Center for American Progress report, more than two-thirds of retailers cited stagnant or shrinking disposable incomes as a risk factor for their stock prices.

The wealthy tend to save their money, which helps finance investment, but 0 percent interest rates prove that financial markets have more savings than they can invest. Healthy economic growth requires a healthy middle class, and a pro-growth policy agenda needs to focus squarely on everyday Americans. * Saez’s data use tax returns to measure “cash market income”—income received from wages, business, and capital. This definition of income is useful for evaluating how the market distributes rewards, though it does not reflect the total amount of resources available to tax units.

However, there are clear advantages to using Saez’s data to study and compare the current business cycle to past business cycles: They are more recent and go much further back, allowing comparison of post-1980 business cycles with other business cycles after World War II.

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UPDATE 1-Western Refining to buy rest of Northern Tier

20 Jan 2016 | Author: | No comments yet »

JPMorgan Chase & Co. Upgrades Northern Tier Energy LP (NTI) to “Neutral”.

Under the deal, Northern Tier unit holders would receive $15 a unit in cash and 0.2986 Western Refining share for each common unit held, or roughly $26.21 a unit based on Monday’s close. EL PASO, Texas and TEMPE, Ariz., Dec. 21, 2015 (GLOBE NEWSWIRE) — Western Refining, Inc. (NYSE:WNR) and Northern Tier Energy LP (NYSE:NTI) today jointly announced that they have entered into a merger agreement whereby Western will acquire all of NTI’s outstanding common units not already owned by Western. Northern Tier Chief Executive Dave Lamp in prepared remarks Monday said that the MLP model “has not been rewarded by the equity market, as evidenced by the historical disconnect between NTI’s high yield and low unit price.” “With a simplified corporate structure and diverse geographic base, the new Western will be well positioned to unlock additional value for shareholders,” Mr. As an alternative to the cash and stock consideration, each NTI unitholder may elect to receive, per NTI unit, either $26.06 in cash or 0.7036 of a share of WNR.

Assuming completion of the proposed transaction, NTI will become a wholly-owned subsidiary of WNR and NTI common units will cease to be publicly traded. Jeff Stevens, President and CEO of WNR said, “The merger of Western and NTI will result in the combined entity owning three of the most profitable independent refineries on a gross margin per barrel basis, with direct pipeline access to advantaged crude oil combined with an integrated retail and wholesale distribution network. The terms of the merger agreement were approved by the WNR Board of Directors and the Conflicts Committee of the Board of Directors of NTI’s general partner, which negotiated the terms on behalf of NTI. Four investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the stock.

The call and slide presentation can be accessed on the Investor Relations section of Western’s website, www.wnr.com, and on the Investor Relations section of Northern Tier’s website at www.northerntier.com. The Company has refining, retail and logistics operations that serve the Petroleum Administration for Defense District II (PADD II) region of the United States. Goldman Sachs & Co. acted as financial advisor to Western, and Vinson & Elkins, Davis Polk & Wardwell and Richards Layton & Finger acted as legal counsel to Western. This press release includes “forward-looking statements” by Western (which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995) and by NTI.

The Company’s retail segment operated 165 convenience stores under the SuperAmerica brand and also supported 89 franchised convenience stores, which are also operated under the SuperAmerica brand. These statements are subject to the risk that the merger is not consummated at all, including due to the inability of Western or NTI to obtain all approvals necessary or the failure of other closing conditions, as well as to the general risks inherent in Western’s and NTI’s businesses and the merged company’s ability to compete in a highly competitive industry.

If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. In addition, Western’s and Northern Tier’s business and operations involve numerous risks and uncertainties, many of which are beyond Western’s and NTI’s control, which could materially affect their respective financial condition, results of operations and cash flows and those of the merged company.

The forward-looking statements are only as of the date made, and neither Western nor NTI undertake any obligation to (and each expressly disclaims any obligation to) update any forward-looking statements to reflect events or circumstances after the date such statements were made, or to reflect the occurrence of unanticipated events. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval in any jurisdiction where such an offer or solicitation is unlawful. Any such offer will be made only by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, pursuant to a registration statement filed with the SEC. The retail segment includes retail service stations, convenience stores, and unmanned fleet fueling locations in Arizona, Colorado, New Mexico, and Texas. Beyersdorfer (602) 286-1530 Michelle Clemente (602) 286-1533 Northern Tier Investor and Analyst Contact: Paul Anderson (651) 458-6494 Alpha IR Group (651) 769-6700 nti@alpha-ir.com Media Contact: Gary Hanson (602) 286-1777

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