Just because you are a movie star who makes a lot of money, it does not mean that you can get away with not paying taxes. Apparently, this is something that Wesley Snipes forgot between the years of 1999 and 2004. Snipes has been accused of failing to pay taxes on $58 million of income that he earned during this time period. If convicted, he faces a prison term of up to 16 years.

Believe it or not, the Snipes case is one of the biggest in the history of the US tax service. Snipes, as well as two co-defendants, deny the eight charges that have been brought against them.

The one twist in this case is that Snipes’ lawyers have admitted that he was wrong. But with that being said, the lawyers have also stated that Snipes should only have to pay the money back. In other words, there is no need for a trial as attempted fraud was never his intention.

The prosecutor in the case, M. Scotland Morris said, “”Nobody likes paying taxes, but paying taxes is the price we pay to live in a civilized society.”

The jury in this case consists of five men and seven women. They have heard both sides of the case, and must now decide whether or not Snipes is guilty.

Within the next few days, Snipes will find out what his future holds. It will be interesting to see how the jury deciphers all of the information that has been presented. Stay tuned for the verdict!

There have been some debates as to whether the U.S. housing market is truly as bad as proclaimed, or whether it is largely perpetuated by the media. From reading local news reports, it does appear that the national picture of doom and gloom may be a tad overblown. Here are a few stories from the local fronts:

1. Glenwood Springs, Colorado

2. Charlotte, NC

3. Jefferson County/Mt. Vernon, Illinois

4. Albany, NY

5. Boston, Mass.

6. Clarksville, Tenn.

7. Syracuse, NY

8. Seattle, Wash.

9. Austin, Texas

10. Bismarck, ND

11. Salt Lake City, Utah

12. San Juan County, NM

And this little gem, Real Estate Not Deflating in Entire U.S. See? It’s not all doom and gloom! But if you live in one of the areas of the U.S. that are suffering (and they’re certainly out there), stay tuned to learn some innovative selling techniques.

The Federal Open Market Committee, FOMC, made further cuts Wednesday at the January meeting.  This action is following surprise rate reductions that were made last week, when the Fed made an aggressive cut of 75-basis-points.

According to the FOMC statement, the federal funds rate was reduced by another half percentage point, and a half percentage point was taken off the discount rate.  The current federal funds rate is now 3% and the discount rate is at 3.5%.  “Financial markets remain under considerable stress, and credit has tightened further for some businesses and households.  Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.”

The forecasts seem to get worse and worse.  Reports on the fourth quarter GDP indicated a staggering drop in the rate of growth, 0.6% which is a dramatic slow down from 4.9% in the third quarter.  The Fed continues to have inflationary worries, although it is seemingly not at the forefront of concern.  “The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.”

The hope of these actions, according to the FOMC is to promote moderate growth over time.  Stocks responded to the cut, but didn’t close well by the end of the day, Wednesday.  U.S. Treasury bonds rose and stock futures eased.  The open the morning was poised for a week open.  We will see how the stocks perform now that confidence in continued rate cuts is strengthening.

If symptoms of recession persist, it is more than likely that the Fed will continue to cut rates for the first half of the year.  The statement said, “…downside risks to growth remain.  The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.”

Usually, the action is to reduce rates.  Inflation is still not under wraps, but those problems take a back seat to the dramatically slowed GDP growth, and the ever tightening credit conditions.  The liquid injections through the newly instituted TAF program is yet another attempt to resuscitate the economy.  $30 billion was released to winning bidders for a 28-day credit early this week.  Hopefully the TAF program will improved overall bank liquidity and help their ability to lend.

The rate cuts and the TAF auctions will continue.  Together with a possible fiscal stimulus plan, yet to be fully approved, we will see some signs of positive economic performance.  It can’t all be heading downward, can it?