Filed under: Other issues, Products and services, Law, Consumer experience, Money and Finance Today, Economic data

For millions of people, one of the most anticipated treats of any year is getting that tax refund check in the mail from Uncle Sam. Folks file their taxes early in hopes of getting back their tax refunds as early as possible, but this year may prove to be a bit frustrating, as around 3 million taxpayers could see delays in their refunds.

Why? The main reason for the upcoming delays is a current law change by Congress relating to the nation’s alternative minimum tax. Delays pushed the changes to the end of the year, and with the action coming so close to tax season, the IRS is now struggling to reprogram its computers to deal with the changes.

For those of you unfamiliar with the substitute minimum tax (or AMT), it was instituted in 1970 as a way to ensure that upper-income families couldn’t avoid paying taxes through their legal deductions. At the time that it was established, the AMT was aimed at only the top 155 families in America, who had so many tax deductions that they could effectively avoid paying Uncle Sam all together… and we all know how much Uncle Sam likes to get paid!

However, through the years there has been one major problem with the alternative minimum tax: inflation, or more specifically, the fact that the tax law has not been adjusted to deal with inflation. As a result, instead of a couple hundred people falling into the minimum substitute tax bracket, there are now millions. It is estimated that by the year 2010, one out of every five households would fall into the AMT bracket if changes are not permanently made to the current system.

So for millions of taxpayers, the delays in their refunds should be a welcome treat, since it is after all due to the fact that they will be able to avoid falling into the substitute minimum tax bracket. For now it looks like the moves by Congress will only affect the 2007 tax year, but lawmakers have also said that Congress will look at a permanent fix to the problem next month when they reconvene after the holiday break.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor’s Observer.

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Filed under: International markets, SEC filings, Products and services, Management, Middle East, Oil, Headline news

Dubai World, a state owned investment company, announced that it has increased its ownership in MGM Mirage (NYSE: MGM) to 6.5% by purchasing an additional five million shares of stock in the company.

Following the announced purchase, Lawrence Klatzkin of Jefferies & Co. told his clients that MGM is one of his top three picks and maintains a “buy” rating. According to Klatzkin, investors can expect to see Dubai World continue to add to its MGM holdings. This will continue to help keep the stock strong and definitely minimize any sort of downside risk.

Dubai, which has been swimming in money since the oil boom brought billions into the economy, has been moving fast over the past decade to branch out in its revenue streams. Seeing the end of the country’s oil reserves in the near future, the country has been working hard to become one of the world’s top tourist destinations, and moving into Las Vegas gaming is just one more step in the country’s strategy to remain a relevant world player once the oil runs dry.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the on the internet investment advisory service Investor’s Observer.

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