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US Wealthy To Face Higher Income Taxes

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It’s probably never a bad time to be rich. But the good times for America’s wealthy could soon be a little less so.

President Barack Obama wants to boost income taxes for the wealthy to pay for tax cuts for everybody else. He wants to limit the deductions that high-income families take for mortgage interest and charity contributions to help pay for providing more people with health insurance.

House Democrats are planning to hit the wealthy with even higher income taxes to pay for their version of a health care overhaul.

Between the plans, a family of four with an income of $5 million a year would see its annual income taxes skyrocket by more than $440,000. A similar family making $800,000 a year would get a tax increase of $30,000, according to an analysis by the financial services firm Deloitte Tax.

“I still think being wealthy is better than being poor,” Clint Stretch, who heads tax policy at Deloitte Tax, said with a touch of understatement. “But this is a pretty high proposed tax burden.”

Taxing the rich to pay for health insurance would represent a significant departure from the way Americans have financed safety net programmes in the past.

Both Social Security and Medicare are supported by broad based payroll taxes. Although the rich pay more — they have bigger incomes — the burden is shared by the middle class and even the working poor.

By contrast, the health care plan working its way through the House would impose $544 billion in new taxes over the next decade on just 1.2 percent of households — joint filers making more than $350,000 a year.

The bill would impose a new 5.4 percent income surtax on couples making more than $1 million a year, starting in 2011. Couples making more than $350,000 would have to pay a surtax of 1 percent tax and those making more than $500,000 would pay a 1.5 percent surtax.

If certain savings in the health care system are not achieved by 2013, the surtax would rise to 2 percent for families making more than $350,000 and to 3 percent for those making more than $500,000.

For a family of four making $450,000 a year, the initial tax increase would be $1,000, according to the Deloitte analysis. But for the super rich, like a single filer making $5 million a year, the tax increase would be $452,000. The analysis assumes a typical mix of earned income, capital gains and itemised deductions for each income level.

Democrats said that for most of the affected taxpayers, the surtax would be far smaller.

“What we’re talking about is frankly very, very small amounts for the overwhelming majority of people who will pay it,” said Rep. Artur Davis, D-Ala.

The top marginal income tax rate now is 35 percent, on income above $372,950. Obama wants to boost the top rate to 39.6 percent in 2011 by allowing some of the tax cuts enacted under former President George W. Bush to expire.

The House Democrats’ proposed health care surtax would increase the top rate to 45 percent, making it the highest top rate since 1986, when it was 50 percent.

Republicans complain that some taxpayers would face marginal tax rates above 50 percent, when federal and state taxes are combined. They also say that tax increases on the wealthy hurt small business owners who typically pay their business taxes on their individual returns.

Democrats say the tax increases would affect only 4.1 percent of tax filers who report small business income. Those small businesses, however, tend to be the ones that employ the most workers, according to data from the National Federation of Independent Business.

“We shouldn’t have to resurrect the 1970s to remember that when tax rates go too high, people lose the incentive to build new businesses and create jobs,” said Rep. Wally Herger, R-Calif. “These massive tax increases are no substitute for real fiscal responsibility.”

Obama has tried to make the rich a popular target for tax increases as Democrats struggle to find ways to pay for his plan, intended to assure that virtually everyone gets health care. He regularly portrays the wealthy as big winners under Bush, noting that their taxes dropped and incomes soared during Bush’s eight years in office.

“I think the best way to fund (health care) is for people like myself who have been very lucky, to pay a little bit more,” Obama said recently.

The argument, however, omits the fact that Bush also cut taxes for middle- and low-income people. Their incomes didn’t jump as much as they did for the wealthy, but effective federal tax rates for middle-income and low-wage workers are at or near 30-year lows.

This year, 47 percent of filers won’t owe any federal income taxes — including some families making as much as $50,000 a year, according to separate projections by the Tax Policy Centre and Deloitte Tax.

“Right now, if you are middle class or below, you are not expected to help pay to solve these problems,” said Stretch, the tax policy adviser.

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Food Security: NDDC Pays Counterpart Fund  For LIFE-ND Project

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The Managing Director of the Niger Delta Development Commission (NDDC), Samuel Ogbuku, says the commission has paid its counterpart fund for the Livelihood Improvement Family Enterprise Project to ensure food security in the region.
The LIFE-ND project is an agriculture intervention project sponsored by the Federal Government, the International Fund for Agricultural Development, and the NDDC to boost food security in the region.
Mr. Ogbuku disclosed this while fielding questions at the commission’s 25th anniversary world press briefing  in Asaba, Delta State.
He stated that the commission has equipped and trained farmers in the region on best practices, adding that it has also established Niger Delta Chambers of Commerce with a commitment of N30 billion, but has released N5 billion to encourage commerce and entrepreneurship in the area.
According to him, agriculture is among the next phase of the commission’s programmes aimed at addressing food security in the region.
“Our target is to use agriculture to fight criminalities in the Niger Delta region”, he said.
The NDDC boss said the commission would hold a retreat to marshal plans to enhance the cultivation of rice, oil palm, cassava, and maize for industrialisation.
He also disclosed that its fund allocation from the Federal Government has improved, adding that funding from International Oil Companies has also increased, with greater compliance.
Ogbuku revealed that although its revenue has improved, the commission had thought it wise not to borrow but to deploy the surplus to execute more projects.
According to him, the commission has gone digital in its documentation and data generation to address its human capital development projects, ensuring the even deployment of resources, which allows people to take turns being trained in their chosen profession.
He stated that the NDDC was committed to addressing environmental challenges in erosion-prone areas in Edo, Delta, and other states, contingent upon the availability of funds.
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Replace Nipa Palms With Mangroove In Ogoni, Group Urges FG, HYPREP

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A concerned group of stakeholders under the auspices of Khana Coastal Communities has made a passionate appeal to the Federal Ministry of Environment and the Hydrocarbon Remediation Restoration Project (HYPREP) to include the removal of Nipa palms which has taken over the positions of mangroves in the area as part of the ongoing Ogoni Clean Up Exercise.
The group, which decried the invasive and destructive effects of Nypa fructicans, commonly known as Nipa palms, on the ecosystem of the affected communities, made their appeal in a Press Statement issued shortly after the  inspection and survey of the creeks and coastlines of  affected communities.
The communities are Kwiri, Kereken, Kaa, Gwara, Sii, Kpean, Tehnnama, Bane, Kalaoku, and Opuoku, all in Khana Local Government Area of Ogoni, Rivers State.
Signed on behalf of the affected communities by comrades Emmanuel Goteh Bie, Raymond Nwibani, and Chief Barineka Tonwe, the statement emphasized the need for urgent intervention to clear the Nypa fructicans and replace them with mangroves which provided sustainable habitat for aquatic species in the affected communities.
The group commended the Federal Ministry of Environment and HYPREP for their commitment to the Ogoni cleanup process and urged all stakeholders involved in the process not to renege on their complementary roles.
The statement read in part: “As you have seen, the Nypa fructicans has taken over our creeks, displacing native mangroves and aquatic life. The impact on our communities has been severe, with many of our people struggling to make a living due to the depletion of fish and other aquatic resources.
“We commend the Hydrocarbon Pollution Remediation Project (HYPREP) for its efforts in restoring native mangroves in Ogoni, particularly in the Bomu Community. However, we are alarmed by the unintended consequences of removing invasive Nypa fructicans, which has led to the disappearance of fish and aquatic life, threatening the livelihoods of our coastal communities.
“We believe that the removal of Nypa fructicans and replanting of native mangroves will help revive our aquatic life and sustain the livelihoods of our people.”
The group passed a vote of confidence on the Minister of Environment, Balarabe Abbas, and HYPREP Coordinator, Prof. Nenibarini Zabbey, for what it described as their unwavering efforts in ensuring the success of the Ogoni cleanup exercise.
They  called on the Federal Government to release their counterpart funding to HYPREP without delay to sustain the pace of progress recorded in the clean up process.
“The cleanup exercise is commendable, and any delay in funding could stall the progress and undermine the efforts of all stakeholders. We urge the government to prioritize the Ogoni cleanup exercise and provide the necessary support to ensure its success”, they stated.
They also used the opportunity to caution against the antics of self-inflicted activists or bodies that might attempt to hijack the cleanup agenda and create unnecessary agitation, and assured the total support of the affected  communities to HYPREP’s activities to enhance the holistic success of the Ogoni clean up exercise.
Bemene Taneh
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NCDMB Promises Oil Industry Synergy With Safety Boots Firm

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The Nigerian Content Development and Monitoring Board (NCDMB) has promised full support to ensuring that ‘world-class’ safety boots manufactured by a firm, Yikodeen Company Limited, were utilised in-country.
The Tide learnt that the firm recently inaugurated its expanded safety footwear manufacturing plant in the Ejigbo area of Lagos State, a 120,000-square-foot state-of-the-art facility capable of producing 5,000 pairs of safety boots per day.
In his remarks, Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, represented by the Director of Capacity Building, Engr. Abayomi Bamidele, described the inauguration as a landmark event that aligned with the Board’s core mandate to promote local content across Nigeria’s oil and gas value chain and beyond.
“Enterprises like Yikodeen are at the heart of what we stand for at the NCDMB. The ‘D’ in our name stands for Development, and the ‘M’ means Monitoring, which describes our dedicated effort to ensure Nigerian-made products are not just produced, but utilised”, he said.
Ogbe said the NCDMB will continue to support the company, especially as its products meet global standards, and are already being adopted in the oil and gas industry.
“I’ve the mandate to inform you of our full support to ensure that these world-class safety boots are utilised in-country”, he said.
The Board’s Chief Scribe cited the Federal Government’s ‘Nigeria First’ policy, stressing its implications across all sectors.
“The President, through the Bureau of Public Procurement, has directed that all safety footwear procured with public funds must be made in Nigeria. Yikodeen stands to benefit immensely from this directive if strategically positioned”, Ogbe noted.
He commended the founder’s determination, saying from all indications the firm’s boss started from a relatively young age.
“A shoemaker is now a billionaire shoemaker. I urge Nigerian youths to channel their energy into entrepreneurship. The Yikodeen journey is one that inspires national pride”, the NCDMB’S helmsman added.
In his remarks, the Lagos State Governor, Babajide Sanwo-Olu represented by the Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs. Folashade Ambrose-Medebem, lauded the company’s achievement, describing it as symbolic of Lagos’ industrial vision.
“From a modest workshop in 2016, Yikodeen has emerged as the largest footwear manufacturing company in West Africa. This is not just a factory, it is a movement, a demonstration that Lagos can produce, compete, and export globally”, he said.
Sanwo-Olu affirmed that the factory directly aligned with the State’s industrial policy (2025–2030), which seeks to double the manufacturing sector contribution to the state’s Gross Domestic Product from 7.5 per cent to at least 15 per cent by 2030, reduce dependence on imports for basic consumer goods, and foster an ecosystem where local industries can thrive through forward and backward value chain integration.
“Yikodeen is not only producing shoes, it is producing livelihoods, opportunities, and dignity”, the Lagos Governor added.
Recounting his entrepreneurial journey, founder and CEO of Yikodeen, Mr. Atunde Shamsideen, described the venture as a stubborn dream born in 2015.
“This vision started in a room, with just 20 pairs of shoes. Today, we produce over 2,000 pairs daily to ISO, ASTM, and Nigerian industrial standards”, he said.
He commended the NCDMB for its pivotal role in his company’s growth, noting how the Board helped facilitate years of product testing and eventual adoption by oil and gas companies like Saipem and Daewoo.
“Their enforcement ensured our products got through. Today, those same companies are our biggest customers”, the firm’s CEO added.
He stressed on the potential for job creation if local procurement policies were enforced, claiming that only about two percent of safety boots used in Nigeria were locally manufactured.
“If we enforce local purchase in the oil and gas and public sectors, we can create over 35,000 jobs.Yikodeen’s production ecosystem already engages women in raw material recycling and trains over 1,000 people yearly.
“Buying Made-in-Nigeria goes far beyond commerce. it is about creating value chains, livelihoods, and national dignity”, Shamsideen noted.
Also speaking, Director-General of the Standards Organizationnof Nigeria (SON), Dr. Ifeanyi Okeke, represented by the Director for Lagos Operations, Mrs. Teresa Ojomo, praised Yikodeen’s adherence to national and international safety standards.
“This is not just a facility, it’s a declaration that Nigerian manufacturing can lead globally. The Standards Organization of Nigeria will continue to support companies like Yikodeen who take quality seriously”, he said.
Okeke underscored SON’s partnership with the firm since 2006, culminating in the Mandatory Conformity Assessment Programme certification, which assures consumers of quality and safety, citing the company’s certification under critical standards such as NIS ISO 20346:2004 and ISO 20345:2022.
“Standards are not obstacles, they are enablers. They are the bridge between ambition and market access”, he added.
In his remarks, the Olu of Warri, HRM Ogiame Atuwatse(111), represented by the Ogwa-Olusan, Chief Brown Mene, described Yikodeen as a beacon of hope for Nigeria.
The monarch likened the company to a stubborn vision that refused to be beaten by headwinds, proving that Nigeria was on an upward trend, urging the team to remain visionary and expand globally, while also assuring that the name of Yikodeen will blaze bright and proud.
Ariwera Ibibo-Howells, Yenagoa
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