Preview

TODAY

Costly Health Insurance Tax Breaks: It cost the federal government $111.2 billion last year to give employers and their workers tax breaks to buy health insurance, according to a study published today that highlights the contradictions in federal tax policy. Most of the money was spent on families earning more than $50,000 annually, the journal Health Affairs reports. Companies don’t have to pay taxes on money spent on workers’ health insurance, and many employees don’t have to pay taxes on their share of premiums. But Americans who pay for insurance out of their own pockets get no such break.

The study’s authors questioned the spending. “With more than 43 million uninsured persons in the United States, it is important to ask ourselves whether it is appropriate that 68.7% of the federal health benefits tax expenditures are going to 36% of the population with the highest incomes,” said co-author John Sheils, vice president of the Lewin Group.

Senate Probes Sweepstakes Offers: The Senate permanent subcommittee on investigations begins hearings today into the marketing practices of sweepstakes firms. The hearings are expected to be the first step toward a new law designed to curb deceptive and misleading sweepstakes offers. Under proposed legislation by Sen. Susan M. Collins (R-Maine), sweepstakes firms would have to disclose more prominently the “no purchase necessary” statement. Executives from the major sweepstakes companies will testify Tuesday.

Other Issues to Watch: The European Union, incensed by a U.S. move to penalize its exports in a banana trade dispute, will try to win support from the 134 countries of the World Trade Organization at a meeting in Geneva today.

* Brazil faces another crucial week in its battle against a deep currency crisis. Jumpy markets await details of a new agreement, possibly as soon as today, for rescue loans from the International Monetary Fund. The lower house of Congress is expected to vote on Tuesday or Wednesday on a bill nearly doubling a financial transaction tax, the bulk of a $14-billion austerity plan drawn up last year to satisfy the IMF.

* The Small Business Administration leads 29 U.S. companies on a trade mission to Mexico today through Friday to explore business opportunities and build international partnerships. The firms, which paid $1,600 to participate, will meet Mexican business leaders and officials of Mexico City and Guadalajara.

* Magna International Inc., Canada’s largest auto-parts maker, plans to consider selling or spinning off its real-estate development and entertainment unit at a board meeting today. Senior management will present recommendations for its non-auto assets, including the Santa Anita racetrack in Arcadia.

TUESDAY

Revising Productivity: The Labor Department will release its revised report on fourth-quarter nonfarm productivity and labor costs, which is expected to underscore that a gain in business efficiency is key to the economy’s persistent growth without inflation. Worker productivity is likely to have increased at a 4.3% annual rate in the fourth quarter of last year, analysts said, following a 2.5% gain during the third quarter. The expectation is that fourth-quarter productivity was even stronger than the preliminary report of a 3.7% pace--which already was the strongest showing in nearly three years.

Gates in China: Microsoft Corp. Chairman Bill Gates arrives in China today to launch Internet products aimed at the Chinese market. The visit comes on the heels of a Microsoft court victory in China against illegal copiers of its products. In Hong Kong, Gates is expected to announce a deal with Hong Kong Telecommunications to allow computer users to rent software and download films.

WEDNESDAY

Milken Institute Hosts Conference: The turbulence of world economic markets--from the continuing crisis in East Asia to the latest financial problems in Brazil--will again be the focus of the Milken Institute’s annual Global Conference, through Friday, at the Beverly Hills Hotel. Gov. Gray Davis, Mayor Richard Riordan and four Nobel economics laureates will speak.

THURSDAY

Strong Retail Sales: The Commerce Department is expected to report that retail sales accelerated in February, advancing an estimated 0.8% after climbing 0.2% during January, according to analysts. Excluding autos, sales probably rose 0.6% during February. Retailers’ sales at stores open more than a year already registered a larger-than-expected gain of 7.6% in February.

FRIDAY

No-Inflation Report: The Labor Department is expected to report that prices paid to factories, farmers and other producers show scant evidence of inflation. The producer price index probably fell 0.1% in February after rising 0.5% in January, analysts predict. Outside of food and energy costs, the PPI probably rose 0.1% last month after falling 0.1%, analysts said.

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