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الأحد، 16 أكتوبر 2011

Perry energy jobs may take years to create

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"I believe one of the quickest ways to create jobs and restore investor confidence in America is to expand energy production in America," the Republican presidential contender, who plans to roll out other parts of his economic plan in coming days, said in his proposal.
But there's at least one big problem with Perry's plan ... it could take years for these jobs to materialize, energy and labor experts say.
"It's not going to be overnight," said David Dismukes, associate executive director for the Center for Energy Studies at Louisiana State University. "These are big capital-oriented investments. People don't turn on a dime with these investments."

Perry plan: More drilling, more jobs

The heart of Perry's plan is to open oil and gas fields for exploration that are currently off limits. This includes drilling in the Gulf of Mexico, Alaska, the mid-Atlantic and the American West.
He estimates opening up Alaska alone could create 120,000 jobs, while ramping up production in the Gulf could result in another 230,000 positions.
Perry stressed that he would speed the process because he could largely cut Congress out of the system. He would accomplish much of his goals through executive orders and by "getting the EPA out of the way."
"It can be done without being mired in Washington gridlock, because a president has all the authority he needs to roll back intrusive regulations, create energy jobs and make our nation more secure," he said.
But his proposal also acknowledges that creating the bulk of these jobs will not be so speedy. For instance, Marcellus shale development in Pennsylvania could create up to 250,000 jobs. But it would take until 2020 to hit that number. Same goes for the 500,000 jobs in the American West.
Other jobs could materialize sooner. Approving the Keystone XL pipeline project could create 20,000 jobs immediately, while the Gulf could add 230,000 jobs next year if more permits are granted.
Perry's job figures are backed up by the American Petroleum Institute, which last month released a report that showed the industry could create as many as 1 million jobs. These include direct energy jobs, as well as indirect jobs, such as trucking and suppliers.
The trade association estimates it would take until 2018 to do so, because it takes time to arrange the leases for the development area and get a drilling project up and running.
Another concern is that many of these positions are short-term construction jobs.
"Once the well is drilled, the demand for labor goes away," said Robert Kaufmann, chair of the Boston University Department of Geography and Environment. "Overall, it's relatively few jobs."
Energy companies, however, often develop one well after another, so the jobs would transfer to the new location, said Rayola Dougher, an institute spokeswoman. And if the regulations are loosened, it could stimulate even more production.
"I don't know any other industry that can bring this quantity of jobs to the market," she said. "We have the potential that's not being realized and it could be."
Energy producers would also likely ramp up activity if the threat of higher taxes and stiffer environmental and permitting regulations were removed by a president sympathetic to the industry, Dismukes said. Getting rid of the uncertainty would go a long way to creating more jobs.
It's not surprising that Perry is linking the country's economic fortunes to the energy industry. It's been a big contributor to the success of his state, which is the nation's largest producer of oil and gas.
Since November 2009, the oil and gas extraction industry has created 48,500 jobs, or 12.6%, in the Lone Star State, according to the Dallas Federal Reserve. It's enjoyed the fastest growth rate of any industry by far.
In coming days, Perry said he will unveil a "complete economic growth package" that will address tax and entitlement reform, as well as spending reductions

Breast cancer entrepreneurs

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Patricia Brett lost three aunts to breast cancer; her two younger sisters were diagnosed with it; and six first cousins all have the disease.
In 2002, Brett, an architect by training, was diagnosed with the BRCA1 gene, meaning there was an 85% chance that she would get breast cancer in her lifetime.
A year later, Brett underwent a preventive bilateral mastectomy and reconstructive surgery at age 39. Her changed body, however, made her realize how difficult it is for women who undergo mastectomies to find lingerie and swimsuits that are fashionable and fit properly.
This feeling was reinforced during a road trip in 2007 with her sister and niece. "My niece who was 29 at the time was getting ready to do the same surgery that I had," said Brett. "She was venting that afterwards she wouldn't be able to wear cute bras and swimsuits."
That's when a light bulb went off in her head. "I have a Masters in architecture from Yale. If I could design beautiful buildings, why couldn't I design fashionable swimsuits?"
So she launched Veronica Brett, a line of fashionable swimsuits for women with breast cancer in 2010, named after her aunt who passed away from the disease.
Today, her swimsuits, which are all made in America and priced between $68 to over $200, are sold in boutiques in the United States and in Canada. Next year, she expects to double her sales and cross the $1-million-in-revenue mark.
"I just had my first runway show in Phoenix," said Brett. "The models I used don't have breast cancer. This shows that my swimsuits can be worn by all women."

7 hot startup incubators


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A lack of high paid jobs has created a wellspring of entrepreneurs in New Mexico.
"Entrepreneurship for a long time has been key to this area," said Agnes Noonan, president of WESST, a statewide small business development and training organization.
Consequently, New Mexico has become a rich financial ecosystem that offers startups access to private capital, both through venture capitalist and angel investors.
WESST was founded in 1988 by three women to help women start their own businesses. Six years later, the organization expanded to five centers across the state with 75% of its clientele being women. Two and a half years ago, WESST also opened its first incubator in downtown Albuquerque.
"Because of our unique collaboration with the city of Albuquerque, it's all about job creation," said Noonan. WESST both physically houses young startups at its business incubator and also provides "virtual" incubation to entrepreneurs through training programs at its five other centers.
Over the past two years, Noonan said WESST Enterprise Center has created 136 new jobs in the Albuquerque area and generated $14.3 million in revenue.
Medical Practice Solutions, a women-owned medical billing and patient advocacy company has been in the program for about two years, and has grown to 13 employees.
Nouveau, a women-owned cosmetics company, was acquired by a larger Dallas cosmetics company one year after joining the program. And IntelliCyt, a biotech company that's not women-owned, but is graduating from the WESST incubator next month, has doubled in size and selling its products overseas.

Buffett Rule could hit 25% of the very rich


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The Buffett Rule is a guiding principle for tax reform to ensure that millionaires pay a higher percentage of their income in federal taxes than those who make less.
The CRS found that 94,500 millionaires pay an effective federal tax rate that is less than that paid by 10.4 million moderate-income taxpayers.
That is, 25% of those with adjusted gross incomes over $1 million pay a smaller portion of their income in federal taxes -- income, payroll and corporate -- than 10% of those with AGIs below $100,000.
There are two key reasons why a millionaire or billionaire may end up paying a lower percentage of his income than the average American: A lot of his money may come from investments, which are taxed at a lower rate than wages, and he may not pay very much in payroll taxes since they are only assessed on wage income, which could be a small share of his total income.
The CRS report also analyzed arguments that critics of the Buffett Rule make.
Critics of higher taxes, for instance, often assert that small businesses are the source of the greatest job creation, and so raising rates on small business owners would be bad for the economy.
The report notes, however, that recent studies have found that "small businesses contribute only slightly more jobs than larger businesses relative to their employment share." And that difference is attributable to hiring by startups, which also end up destroying about 40% of the new jobs they create within five years when the businesses flame out.
Furthermore, the CRS report said, "most small business owners of startup firms are not in the top income categories and would not be affected by tax policies that observe the Buffett Rule."

Buffett Rule: Not so simple

More broadly, the report noted that only about 1% of all federal tax returns that report business income have AGIs over $1 million. And of those, only a quarter appear to pay tax rates that would violate the Buffett Rule.
"[That] suggests that tax reform policies designed to ensure adherence to the Buffett Rule will affect few small businesses," the CRS report said.
The debate over how much to tax millionaires and billionaires is far from over, as Congress faces the prospect of having to reduce deficits by trillions of dollars in the coming years.
Buffett this week tried to advance his campaign to get lawmakers to "stop coddling" the super-rich as they contemplate the sacrifices Americans should make in the quest to put the country on a more sustainable path.
In a letter to Republican Rep. Tim Huelskamp Tuesday, Buffett revealed new details about his income and tax burden, and reiterated his promise to release his federal tax return if his ultra-rich peers did the same

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