Super Bowl tickets are most expensive ever

NEW YORK (CNNMoney)

The average ticket price so far is $3,554 -- about $1,000 more than last year, according to SeatGeek, which tracks online sales.

SeatGeek analyst Connor Gregoire said he does not expect the price for the few remaining tickets to come down before the Seahawks and Patriots face off on Sunday in front of 72,000 fans in Phoenix.

On Friday, the cheapest ticket was going for nearly $8,000 and the most expensive topped $24,000, according to SeatGeek.

And there are very few left -- only about 300 tickets on Friday. On the same day last year, there were about 4,000.

Related: Snickers cast Danny Trejo in Brady Bunch reboot

Getting a ticket to the Super Bowl is a tricky business. Only 1,000 are sold to fans at face value. The rest are divvied up among the league, which gives a lot to corporate sponsors, and the teams. Those tickets are either auctioned off to season tickets holders, or sold by brokers on the secondary market.

In the past few years, many buyers have held out until the last minute and, in fact, got a good deal as prices fell in the days leading to the game.

Game day is actually the busiest in the resale market, Gregoire said.

But this year prices have gone up. It's not entirely clear why. But there are fewer tickets than expected on the secondary market. That will leave some fans out of luck.

Related: Is a $45 million Super Bowl ad worth it?

First Published: January 30, 2015: 4:50 PM ET

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January was a terrible month for stocks

Stocks have been having a pretty bad 2015 so far.

NEW YORK (CNNMoney)

The Dow shed 3.7%, the S&P 500 has lost 3.1%, and the Nasdaq is over 2.1% lower.

Talk about a bad start to the year. A quick glance at the chart below shows what a whiplash ride 2015 has been so far with 7 days where the market swung up or down more than 200 points.

Related: Bears warn: A crisis could be near

There's an adage on Wall Street that the early days of the year are a good predictor of the full-year. Historically speaking, there's only about a 50-50 probability that the stock market will end the year on a positive note if January saw market declines, according to the Stock Trader's Almanac.

Dan Greenhaus, chief strategist at BTIG, points out that five of the last six down January's (2003, 2005, 2009, 2010, 2014) have not prevented the S&P 500 from finishing higher for the full year.

The one exception was 2008, but that was the year of the financial crisis.

But investors might take comfort that January of 2014 was even worse and stocks rebounded significantly to hit record highs in December.

"In an effort to note something positive we can say that while the [S&P 500] index is down [3]% or so this year, the index finished January 2014 down by 3.6%!" Greenhaus wrote in a recent research note.

This time last year the market was worried about an emerging markets meltdown and the impact of the Federal Reserve pullback on so-called quantitative easing (aka bond buying). Those fears are mostly gone. This January investors are worried about cheap oil and the global economic slowdown.

The energy and financial sectors were the biggest losers for the month. Energy is easy to understand. Oil fell below $50 for first time in early January and acted as a psychological trigger that spooked investors. This was followed up by earnings reports and announcements from Big Oil showing major cutbacks in spending and operations. There's little doubt that it will be a leaner year ahead in the energy sector.

Related: America's No. 2 oil company cuts spending

Financials were a bigger surprise. The big bank CEOs blamed Washington regulations for sluggish performance, but the reality is many bank's core investment banking and trading have been suffering.

There was one bright spot in January: Bonds.

As the stock market gyrates, investors have been fleeing to bonds. Several European nations even have negative yields on their bonds, a sign of just how much demand there is for a so-called safe asset.

In the U.S., the 10-year government bond yield is now down to 1.66%, the lowest point since the spring of 2013.

First Published: January 30, 2015: 3:54 PM ET

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Seahawks' Paul Allen is the NFL's richest team owner

NEW YORK (CNNMoney)

The Seattle Seahawks owner Paul Allen is by far the richest in the league. The Microsoft (MSFT, Tech30) co-founder is worth about $17 billion, according to various estimates.

The Seahawks head to the Super Bowl for the second year in a row. This year they face off against the New England Patriots which are owned by Robert Kraft, who has a net worth of $4 billion, making him the sixth richest owner in the NFL.

The two men made their money in very different ways.

Related: NFL gets billions in subsidies from taxpayers

Allen helped Bill Gates start Microsoft when both were students at Harvard, and left the company with a chunk of its then privately-held stock in 1983 which translated in to the bulk of his wealth. Allen also made about $2 billion from the appreciation in value of the Seahawks and the NBA's Portland Trail Blazers, both of which he bought decades ago.

Bob Kraft, left, and Paul Allen, right, owners of the two Super Bowl teams, made their fortunes in very different ways.

By contrast, Patriots owner Robert Kraft made most of his $4 billion fortune in football. He bought his team for a reported $172 million in 1994, and today it's worth an estimated $2.6 billion.

Related: Seahawks vs. Patriots - How do the fans measure up?

There's only one NFL team with owners that aren't worth billions. The Green Bay Packers is actually publicly owned by its fans, who hold a special issue of stock in the team that can not be sold or traded.

Related: NFL earns record profits despite ugly image

First Published: January 30, 2015: 4:05 PM ET

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Greece: Putin's new ally in Europe?

LONDON (CNNMoney)

The countries have a long history of economic, cultural and religious ties. Both are now proving to be a big headache for the European Union.

Greece's government, led by left-wing party Syriza, has started to unpick reforms that were crucial to securing €240 billion ($272 billion) in European and IMF funds keeping the country afloat. Relations between Russia and the EU are the worst they've been since the Cold War due to the Ukraine crisis.

Congratulating Greek Prime Minister Alexis Tsipras on his victory, Russian President Vladimir Putin said he was confident the two countries would "work together effectively to resolve current European and global problems."

Greece seems receptive to closer links. Tsipras reportedly met with the Russian ambassador hours after taking office, and with Russian officials last May.

Related: Europe to Russia: We won't blink over Ukraine

Syriza and its right-wing coalition partner have been supportive of Putin and deeper cooperation is likely, said Dimitris Papadimitriou, professor of politics at the University of Manchester.

The two countries have established trade ties. Almost 13% of Greek imports came from Russia in 2013, according to the IMF. Greece's share of Russian imports is much less significant. Still, the countries have agreed to make 2016 the "Year of Greece" in Russia, and the "Year of Russia" in Greece.

Against this backdrop, Greece could break ranks with its European partners over how to respond to a recent escalation of violence in Ukraine.

Officials are due to discuss the possibility of further sanctions at a meeting Thursday, after EU leaders said they had evidence of growing support by Russia for separatists in eastern Ukraine. The Greek government was angry that it had not been consulted over the EU leaders' statement.

"Greece's disagreement was that Greece had not been asked, and that its consensus was taken for granted," a government spokesperson told CNN.

"Greece has to have an equal say in all EU decisions," the spokesperson said.

The tussle raised concern that Greek foreign minister Nikos Kotzias could veto any attempt to apply more pressure on Moscow when EU officials meet Thursday.

Kotzias is said to have had close links to the Greek communist party during the Cold War. He also has a record of supporting Russia -- including under Putin -- Manchester University's Papadimitriou said.

Related: Syriza won. What's next for Greece

Some experts say Greece's new guard is simply trying to assert its authority. Expressing concern about sanctions is a far cry from jumping into Moscow's arms in the hope of finding a more sympathetic creditor.

"Greece needs fresh money and a reliable backstop," wrote Berenberg's Holger Schmieding in a note. "Flirting with Russia won't help Greece secure better terms from the only realistic lenders it has."

At the same time, Greece has good reasons to want to develop the relationship, and could do so in some areas without causing big problems for Europe.

One area of potential cooperation is energy. Russia scrapped plans to build a gas pipeline through the Black Sea to Europe last year, and is currently pursuing an alternative partnership with Turkey.

"Greece should be a partner in energy planning for Russia," Papadimitriou said.

Thanos Dokos, from the Hellenic Foundation for European and Foreign Policy, said Greece could also develop trade and tourism ties with Russia.

"But if the current climate between EU and Russia continues, their options are limited," Dokos.

--CNN's Elinda Labropoulou contributed to this report.

First Published: January 29, 2015: 9:01 AM ET

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The growing poverty problem in America's schools

NEW YORK (CNNMoney)

The share of schoolkids who qualify for free or reduced lunches crossed the 50% threshold in 2013, according to a recent Southern Education Foundation report. That compares to fewer than 32% back in 1989.

Students eligible for subsidized school lunches come from families who are in poverty or just above it. A child living with a single parent would qualify if the family's income was less than $28,000. A family of four would receive free or reduced lunches if their income was less than $42,600.

There are three main reasons behind the increase, said Steve Suitts, the report's author.

• Though the economy is recovering, it's not producing enough good-paying jobs to lift families into better financial situations.
• The growth in immigration is bringing more low-income children into the school system.
• Higher-income families are having fewer kids.

About 90% of America's children go to public school. Test scores clearly show that low-income students are far less proficient in math and reading than their better-off peers.

The gap hasn't really budged in a decade, Suitts said.

The divide is also clear in international educational measures.

American children who go to schools with fewer than 10% of students eligible for subsidized lunch score close to the top in math tests given to 15-year-olds, just behind China, Singapore and Taiwan. But kids in schools with 25% to 50% of peers in subsidized lunch fall about 16 rungs to the lower third of developed countries.

Related: States where taxes hit the poor hardest

That doesn't bode well for America's future, especially when these kids enter the job market.

"The nation's performance as a whole will decline until we assist low-income students to perform at higher levels," Suitts said. "These poorly educated adults are going into the workforce and the economy."

While employers increasingly look for more educated workers, students are increasingly leaving school with fewer qualifications. That skills gap will deepen the shortage of qualified job candidates, and keep the next generation from finding good positions, said Anthony Carnevale, director, Georgetown University Center on Education and the Workforce.

"It's a downward spiral of economic opportunity," he said.

First Published: January 29, 2015: 9:45 AM ET

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Nickelodeon to launch direct-to-consumer service

SpongeBob SquarePants is one of Nickelodeon's most popular shows.

NEW YORK (CNNMoney)

Details on the new service were scarce, but Nickelodeon-parent Viacom said more information including the service's name would come at the network's meetings with advertisers in February.

Viacom (VIA) Chief Executive Philippe Dauman announced the new service on a conference call about Viacom's latest financial results.

The new Nickelodeon service will be aimed at the "fast-growing" mobile market and would be attractive for parents and children, he said.

Nickelodeon may be a network for kids, but the shift to a stand-alone service is anything but child's play.

"Kids are nearly as big a reason many people keep cable as sports," tweeted Mike Shields, a senior editor at the Wall Street Journal. "A Nickelodeon [over the top] service feels big."

Kid's programming is also pivotal to the future of streaming services like Netflix. This is why the company is following a strategy of having content for every age, especially the young.

However, it's hard to say what exactly the new Nickelodeon service will offer in terms of content.

Amazon already provides some of the network's shows like Team Umizoomi and Blue's Clues while Netflix is pumping out original content for kids at no extra cost to the consumer.

Yet, with the new service, Nickelodeon is part of a growing trend of networks -- cable and broadcast -- hedging their bets on the future of television by offering digital services along with traditional TV.

For example, HBO announced in October that it would begin selling subscriptions via the Internet sometime in 2015.

"The media business is evolving faster than ever, but our mission remains unchanged: to continually develop more and better entertainment programming," Dauman said in a letter to investors. "Viacom is financially strong and extremely well positioned for the future."

First Published: January 29, 2015: 10:16 AM ET

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African-Americans propel prime time TV hits like 'Empire'

According to Nielsen, 61% of the show's audience is African-American -- a figure that no other prime time show, new or old, even comes close to matching.

NEW YORK (CNNMoney)

What many of this season's biggest hits have in common is a huge following in black households. This is most pronounced with Fox's new musical drama "Empire," which has quickly become the No. 1 new series of the season in all the key demographics.

According to Nielsen, 61% of the show's audience is African-American -- a figure that no other prime time show, new or old, even comes close to matching.

"Empire," starring Terrence Howard as a hip hop mogul, is just three weeks old; its fourth episode debuts on Wednesday night. But already, like many of the gold records on its walls, it is a certified hit.

The series actually climbed the ratings charts in its second and third weeks -- an exceptionally rare feat for network TV shows.

After "Empire," the prime time network show with the second biggest following among African-Americans is ABC's "Scandal," co-created by Shonda Rhimes, 37% of its viewers are black.

Related: Fox's new show 'Empire' is a hit 3 weeks in a row

"Scandal" has been around for a few years. But the next two shows with the greatest proportion of African-American viewers are almost as new as "Empire:" "How To Get Away With Murder," debuted last fall and follows "Scandal" on Thursday nights, is third on the list, with 32% black viewers.

And a new comedy on ABC, "Black-ish," is fourth on the list, with 24%.

"Empire," "Murder" and "Black-ish" are widely regarded as 3 of the biggest successes of the 2014-2015 TV season.

In a blog post on Wednesday, New York Magazine television reporter Joe Adalian pointed out another one of their common traits: "This season's two biggest drama hits ('Empire' and 'Murder') and the only new comedy success ('Black-ish') all feature nonwhite actors in leading roles."

Adalian added, "It's hard to see how this fact doesn't further push execs and producers to diversify their casts."

All three "have African-American creators, co-creators or executive producers," Mo Ryan of The Huffington Post added in a tweet.

"I have longed for day we'd see more non-white TV creators," she wrote. "Success leads to imitation in the TV game. I hope that's the case here as well."

Two other freshmen series, "Flash" and "Jane the Virgin" on the CW, also stand out for their relatively high proportions of African-American viewership -- 19% for each.

According to the U.S. Census Bureau, blacks make up 13.2% of the total population.

To some observers, this season's results demonstrate -- as if it still needed to be demonstrated -- that TV shows with diverse casts and story-lines will appeal to diverse audiences.

Related: Fall TV: the good, the bad, and the incomplete

"Murder," for instance, brought in big audiences this fall, breaking video-on-demand records.

And "Black-ish" has become a pillar of ABC's successful Wednesday night comedy lineup.

In an interview with Vanity Fair, director Lee Daniels, who has been behind acclaimed films like "Precious" before creating "Empire" for Fox, said that he couldn't believe that one television show could reach more people than all of his films combined.

Yet "Empire" has proved this to be true.

"I've always been that 'film guy' who looked down on television," Daniels told Vanity Fair. "Not anymore."

First Published: January 28, 2015: 6:35 PM ET

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Zuckerberg has his Tim Cook moment

NEW YORK (CNNMoney)

On a conference call with Wall Street analysts on Wednesday, Zuckerberg shot back against a question related to Facebook's efforts in poor, unconnected countries. The analyst asked why Internet.org and other Facebook initiatives to connect African countries should matter to investors.

"It matters to the kind of investors we want to have," Zuckerberg said.

The Facebook (FB, Tech30) CEO's comments are similar to remarks made by Apple (AAPL, Tech30) CEO Tim Cook at Apple's shareholder meeting in May 2014. After the National Center for Public Policy Research urged Apple to stop wasting money on green technology, Cook told them to find another company to invest in.

"If you want me to do things only for ROI reasons, you should get out of this stock, Cook said.

Related: Facebook is growing -- so are its costs

Zuckerberg echoed that sentiment Wednesday.

"If we were only focused on making money, we might put all of our energy in the U.S.," he said. "But that's not all we care about here."

Zuckerberg said connecting the unconnected could ultimately be a good investment opportunity for Facebook, though he conceded that he doesn't know when -- or if -- that would happen.

"This is why we're here," Zuckerberg said about Facebook's mission to connect everyone around the world.

In a decade, Zuckerberg said he hopes that Facebook's Internet.org division will succeed at getting millions more people online. The organization has already connected 6 million people who previously didn't have Internet access.

Facebook has also invested in drones to carry Wi-Fi signals to underserved areas, and it invested nearly $20 billion in WhatsApp to power connections to people who only have a phone connection.

First Published: January 28, 2015: 6:35 PM ET

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Samsung needs to reinvent itself (again)

HONG KONG (CNNMoney)

The fourth quarter results are troubling, but not unexpected. Samsung's profits have now declined for three consecutive quarters, a trend that has prompted some real soul searching at the South Korean electronics giant.

There were some bright spots: The company's smartphone business showed signs of stabilization, and chip sales were strong.

Yet there is no doubt: Samsung needs to reinvent itself.

For years, the company relied on its smartphone division to deliver major profits. Samsung had a iron grip on major markets including China, and huge margins helped turn the firm into one of the world's largest and most recognizable tech brands.

Related: Samsung's latest WTF phone

But intense competition at both the high and low ends of the smartphone market have reversed Samsung's fortunes. The company is now ranked third in China, behind Apple (AAPL, Tech30) and Xiaomi (a company that is only five years old). Analysts hold little hope for a return to dominance.

In response, Samsung is working to pare down its crowded smartphone lineup. It's also making a major move into India to capture more of the low-cost phone market.

Related: Apple just posted the best quarter in corporate history

But for a real turnaround, Samsung needs to identify its next silver bullet.

"With slowing growth and a huge revenue base, Samsung is in need of a new growth engine," Bernstein Research analyst Mark Newman wrote late last year.

Chances are, this new growth engine won't be a phone. It will be come from another sector of Samsung's sprawling business empire. Newman identified medical equipment -- where Samsung is already investing heavily -- as a promising area.

The good news for Samsung fans is that the company has transformation in its genes. Newman points to the "New Management Initiative" proposed by company leadership in 1993.

Responding to the threats of globalization and digitization, the new strategy allowed Samsung to become the company it is today. Newman argues the company needs to find "another 1993 moment."

But that, he notes, is no easy task -- especially with the health of Chairman Lee Kun-hee in question.

Related: Facebook is growing -- so are its costs

First Published: January 28, 2015: 9:59 PM ET

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Yahoo soars on Alibaba spinoff

NEW YORK (CNNMoney)

She announced a deal Tuesday to spinoff Yahoo's stake in Alibaba that will bring in big bucks for shareholders -- something she's been working on since taking the helm of Yahoo in 2012.

Investors cheered the announcement, sending the stock soaring as much as 8% in after-hours trading.

What's key about the deal is that it is tax free. The move could save shareholders $16 billion in tax costs, Mayer said on a call with investors.

Yahoo already earned $6.3 billion from selling part of its stake in Alibaba (BABA, Tech30) when the company went public last year.

Related: Hedge fund still pushing Yahoo-AOL deal

Alibaba made a killing that week, raising more money than Facebook (FB, Tech30) or Visa (V)did after their IPOs. It was like Christmas in September for Yahoo shareholders.

Yahoo (YHOO, Tech30) still has 384 million shares of Alibaba (BABA, Tech30), about a 15% stake. Those shares will be transferred to a new, publicly traded company called SpinCo, and be distributed among Yahoo investors.

The tax-free transaction maximizes "the value of our Alibaba investment for our shareholders," Mayer said.

After the spinoff, which is expected to complete by the end of 2015, Yahoo will have returned nearly $50 billion dollars of value to its shareholders from its Alibaba investment, based on Tuesday's closing share price.

Related: Jack Ma made $18.5 billion this year

Meanwhile, Yahoo Tuesday reported quarterly results that were so-so. Revenue and profit were both lower than the same quarter in the previous year. But revenue from mobile rose 23% -- it was the first time the company reported that as a separate item. The performance shows "stability in the core business," Mayer said.

First Published: January 27, 2015: 4:26 PM ET

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5 questions to ask a financial adviser before hiring one

NEW YORK (CNNMoney)

It's no secret that the financial industry has a trust problem. Money pros essentially admitted as much in a recent survey, attributing investors' distrust to a "lack of ethical culture within financial firms."

So I don't blame your husband for being wary.

But based on my 30 years of experience writing about financial issues, I also know that there are plenty of competent and honest advisers who genuinely want to help their clients.

To identify someone who's skilled and trustworthy and avoid salespeople posing as advisers or, worse yet, an outright charlatan who just wants to separate you from your money, here are five questions you and your husband can ask an adviser before you hire one.

1. What credentials do you have?

There are dozens of titles and designations floating around these days, many of them dubious. But assuming you're looking for in-depth comprehensive advice -- say, to develop an overall saving and investing strategy to put you on track for a secure retirement -- you probably want a financial planner who holds the highly regarded Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFc) designation.

Related: Can I afford to retire early?

If, on the other hand you're just looking for a few fund recommendations or want to get a ballpark estimate of how much you should be saving for retirement, then a broker with an established, reputable investment firm or a representative with a mutual fund firm or discount brokerage that has a good roster of online tools and calculators for selecting investments and building a portfolio may be able to satisfy your needs.

2. Are there restrictions on the menu of products and services you can offer?

Ideally, you want an adviser who can build a diversified portfolio by picking the best options available, even if that means mixing and matching mutual funds, ETFs and other investments from a variety of firms.

In reality, though, many advisers are limited to a menu of investments and services that are sold by the company they work for or by affiliated firms.

Even if they can choose broadly in theory, some advisers may have a financial incentive to focus on the offerings of particular firms, or on specific investments (say, variable or index annuities). If, for whatever reason, an adviser is likely to steer you to a narrow roster of investments, you need to know about that beforehand so you can decide whether such strictures will interfere with you getting a portfolio that truly meets your needs.

3. How and how much will you charge?

Typically, advisers earn a living by collecting commissions on the investment products and services they sell, charging a fee for their advice or by doing both.

You can argue the pros and cons of each. But whichever method the adviser uses, he should provide a written estimate of the total fees and charges you'll pay initially and on an ongoing basis, as well as a breakdown of those costs.

Related: Sane investing in a scary market

That breakdown should include all payments going to the adviser from any source (fees, commissions, "trail" commissions paid on a yearly basis), as well as the underlying costs of the investments themselves (investment management fees, etc.). If you'll incur an exit fee or surrender charge for getting out of an investment, that should be disclosed as well.

4. How will you manage conflicts of interest?

There are any number of ways an adviser's interests may not align completely with yours.

Advisers who earn commissions may be tempted to sell you investments that give them the highest payout. Those who charge an annual fee for advice based on assets may have an incentive to let that fee automatically rise as assets do, even if the adviser's workload doesn't increase. A fee-only adviser might also be prone to avoid investments that can reduce the level of assets under management, such as immediate annuities.

For more than four years now, the Securities and Exchange Commission and Department of Labor have been working on ways to better protect investors dealing with such conflicts. It's still unclear, though, if and when they'll take action.

Related: The only funds you need in your portfolio now

In the meantime, discussing potential conflicts in advance will allow you to see possible pitfalls in your relationship with the adviser, and give the adviser the opportunity to explain what he'll do to assure you are treated fairly.

5. How will I know if your advice is working?

A good adviser should propose some way of periodically gauging whether his guidance is paying off. That might mean comparing returns of recommended mutual funds or ETFs, as well as the investment portfolio overall, to the performance of an appropriate index or benchmark. In the case of broader advice, the adviser might need to show that your financial net worth is growing or that you're making quantifiable progress toward a secure retirement or some other long-term goal.

But you and the adviser should agree on some metric beforehand, as well as on a timetable (say, quarterly or semi-annually) for assessing performance and fine-tuning if needed.

Clearly, asking these five questions can't guarantee you'll end up with a terrific adviser. But if you combine them with a thorough background check with the regulators listed in the Check Out A Broker or Adviser section of the Securities and Exchange Commission site, you'll tilt the odds in your favor.

More from RealDealRetirement.com

5 ways to tell if you're really ready to retire

The 4 biggest retirement blunders

3 simple steps to crash-proof your retirement plan

First Published: January 27, 2015: 5:43 PM ET

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Did Fox and NBC get Bowe Bergdahl story wrong?

WASHINGTON (CNNMoney)

Because of an inflammatory Fox News segment and an anonymously-sourced NBC News story that sent reporters scrambling for information.

The Fox and NBC stories prompted strong denials from Pentagon officials.

"The reporting from Fox News and NBC on Sgt. Bowe Bergdahl is patently false," Army Major General Ron Lewis said in a statement Tuesday.

"Let me just put a fork in this right now if I can," Rear Adm. John Kirby said at a news conference Tuesday. "No decision has been made with respect to the case of Sgt. Bergdahl. None. And there is no timeline to make that decision."

Another official called the Fox News report "speculative in nature."

But the Fox guest who originally made it a story said Tuesday night that he stands by what he said.

Bergdahl, a prisoner of the Taliban for five years, was released last summer in exchange for five Guantanamo Bay detainees. He indeed may be charged with desertion, and CNN's Barbara Starr reported on Tuesday that a decision may come very soon.

But the Fox and NBC reports explicitly said that the decision had already been reached.

And the Fox segment strongly suggested that the White House was resisting the desertion charges.

On Monday's edition of "The O'Reilly Factor," guest Tony Shaffer, a retired Army Lieutenant Colonel, said he'd been told that "the Army has decided that they want to pursue Bergdahl for this violation."

Shaffer also claimed that Bergdahl's attorney has been given a "charge sheet." Starr's reporting has directly contradicted that: "Several military sources tell CNN that as of Tuesday morning," Gen. Mark Milley, "who is reviewing the case, has not signed or forwarded a charge sheet."

Host Bill O'Reilly said Monday "we hear that the White House has been stonewalling this information," spurring Shaffer to say "Bill, this is shaping up to be Titanic struggle behind the scenes."

Shaffer has been mired in controversy before. In 2012, he claimed on Fox that President Obama was "in the White House Situation Room in real-time watching" the attack on the U.S. consulate in Benghazi, Libya. That conspiracy theory has been thoroughly refuted.

Fox's morning show repeated Shaffer's assertions about Bergdahl on Tuesday morning. "Is the White House covering up?" co-host Steve Doocy asked guest Laura Ingraham, who answered, "Well, it certainly seems like it."

The race was on for other news organizations to confirm Shaffer's assertion.

NBC seemed to do that at 10:30 a.m.: "Bergdahl will, in fact, face charges of desertion after walking off his base," the network's veteran Pentagon correspondent Jim Miklaszewski said on MSNBC. He cited "senior defense officials."

The assertion was repeated on MSNBC right before a 2 p.m. Pentagon press conference. The channel didn't carry the press conference live, though. At the press conference, Kirby said "I think it is extraordinarily premature for anybody to say that they know" what Milley "is going to decide and when he's going to decide it."

By 6:30 p.m., the "NBC Nightly News" was sticking with "senior defense official" sources, but with a modifying word: the sources, Brian Williams said, are telling NBC that Bergdahl "likely will soon be charged with desertion."

Fox's 6 p.m. newscast "Special Report" included a story about the possibility of charges against Bergdahl and the Army's "swipe at the media," without explaining that it was "The O'Reilly Factor" that triggered that swipe.

O'Reilly returned to the story on Tuesday night. "They're calling you a liar," he said to Shaffer, who seemed to double down.

"I stand by all of those facts," Shaffer said, observing that military officials are "being very careful how they parse their words."

O'Reilly repeatedly said that he wanted to interview Kirby, the Pentagon press secretary, on air.

"From a personal viewpoint," he said to Shaffer, "I hope you're right."

O'Reilly concluded, "We're in this for the truth."

First Published: January 27, 2015: 9:43 PM ET

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Sports Illustrated lays off its staff photographers

Sports Illustrated, which boasts a long history of indelible photos, laid off all six of its staff photographers this week.

NEW YORK (CNNMoney)

Brad Smith, director of photography for Sports Illustrated, spoke about the move Friday in a report from the National Press Photographers Association.

"There was a decision made through the company to restructure various departments, including at Sports Illustrated," Smith said. "Unfortunately economic circumstances are such that it has cut the six staff photographers."

The layoffs occurred on Thursday.

The weekly magazine, which is owned by Time Inc. (TIME), will fill the void by leaning on what spokesman Scott Novak told CNNMoney will be "a broader worldwide contributor network."

Novak stressed that Sports Illustrated has a long history of turning to freelancers -- including in the magazine's last issue. He said the magazine has long had a small photography staff, averaging fewer than six over its six decades of publication.

"This approach is neither radical nor unprecedented for Sports Illustrated," Novak.

Novak acknowledged that the decision was driven in part by financial considerations.

"As a media enterprise, it's incumbent upon us to manage our business in a way that delivers the best products to our consumers and drives the most value to the bottom line," Novak said.

Photography has long been the lifeblood for Sports Illustrated, which boasts a number of iconic covers in its archives.

The magazine will maintain a photography department with editors and personnel like Smith still in place. Novak declined to comment about the magazine's freelance budget.

Time Inc. was spun off by Time Warner (TWX), the owner of CNN and CNNMoney, last year.

First Published: January 23, 2015: 4:08 PM ET

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Friday Links

NEW YORK (CNNMoney)

A weekly collection of design, data and interactive links.

Photo/Video
Fibonacci Zoetrope Sculptures | 3-D printed sculptures animate when spun under a strobe light
Woodworking | A look at Japanese joinery
Gotham 7.5K | A rare high altitude night flight above NYC
California Inspires Me | Narrated by Mike Mills
365 | One year, one film, one second a day
Lapka | Google's modular concept phone

Design/Data viz
Manuals 2 | Design and Identity Guidelines
Lilium | Kenichi Yoneda (Kynd) in collaboration with BRDG
Airbnb Map | Stylized WebGL 3d map
Ross Sonnenberg | How to make images with fireworks and photo paper
Homunculus | Innvotative portfolio site
Genetic Algorithm Walkers | Watch walking creatures evolve through genetic algorithms
See last week's links
Have a nice weekend

@dubly and @talyellin

First Published: January 23, 2015: 5:26 PM ET

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Obamacare website reins in personal data sharing

NEW YORK (CNNMoney)

Earlier this week, the government came under fire after the Associated Press showed that Healthcare.gov was relaying users' personal information, such as zip code, income level, pregnancy status and whether or not you are a smoker.

That information was being shared with Google (GOOG), Twitter (TWTR, Tech30), Yahoo (YHOO, Tech30) and other companies that track people online, like the advertisement display service DoubleClick.

The evidence was on the website code itself.

But on Friday, CNNMoney read the code and found that Healthcare.gov was no longer relaying personal information to DoubleClick and others.

Obama administration officials did not immediately respond to requests for comment.

After last week's report, Republican Senators Orrin Hatch and Chuck Grassley wrote a letter to the head of the Centers for Medicare and Medicaid Services demanding answers.

Citing Healthcare.gov's many technology glitches, they wrote: "This new information is extremely concerning, not only because it violates the privacy of millions of Americans, but because it may potentially compromise their security."

To be fair, the software tools used by Healthcare.gov were popular services that help improve a website's design (CNNMoney uses them).

But health officials would not explain why DoubleClick, a company in the advertising industry that already tracks people's browsing habits, should be allowed to know whether users smoke or are pregnant.

For its part, Google told CNNMoney it doesn't desire your personal health information anyway.

"We don't want and don't use that kind of data," said Andrea Faville, a Google spokeswoman. "And we don't allow DoubleClick systems to be used to target ads based on health or medical history information."

When CNNMoney learned that the Health and Human Services Department was sending information to third parties in 2013, HHS would only assure that the data being shared with DoubleClick and others is transmitted to them securely.

That approach was criticized by privacy advocates such as the Electronic Frontier Foundation.

Noah Lang, CEO of a health insurance startup Stride Health, said use of those tracking tools was sloppy and uncalled for.

"I don't think it's necessary to build a great user experience," he said. "Should they be sending identifying information to a third-party advertiser? The pretty clear answer there is no. It's a massive breach of personal privacy."

When CNNMoney read through the computer code on the Healthcare.gov website on Friday, certain lines of code that indicated the website was sending such personal information during the sign-up process were gone.

Cooper Quintin, a staff technologist at EFF, confirmed that the code was gone.

"That's a great first step for them to take," he said.

While Healthcare.gov is no longer relaying your personal information on the front end, there's no telling what information might get shared once it is stored in the government's computers, however.

Related: Obamacare website sends your data to private companies

Related: AT&T texts can be faked to hack you

Related: How safe are you? CNN's cybersecurity magazine

First Published: January 23, 2015: 4:48 PM ET

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NYPD bolsters security over Charlie Hebdo

Stores in New York City that sold the Charlie Hebdo issue depicting the Prophet Mohammed on it's cover following the deadly massacre at its publisher's office in Paris are getting increased police protection.

NEW YORK (CNNMoney)

The official said there is no specific threat to the media outlets and the bolstered security has been done out of an abundance of caution.

One of those companies, the NYC-based Gawker, revealed in a post on its website today that the NYPD had assigned officers to guard its Manhattan office "in direct response to the deadly shooting" at the French satirical magazine.

Gawker COO Scott Kidder informed staff of the security detail in a memo circulated today. Kidder said there is "no specific (or general) threat against Gawker."

BuzzFeed also received increased attention from the NYPD after republishing the Charlie Hebdo cartoons.

"Security is not something we tend to comment on, but like many media companies, the NYPD stopped by our office last week for a routine check-in," New York-based BuzzFeed employees were told in a memo. "We continually work to keep all of you safe, and if there is anything to actually be worried about, we will communicate that to you. Feel free to reach out if you have any questions."

Depictions of Mohammed are highly offensive to some Muslims.

As such, media outlets wrestled with the dilemma over whether to show the magazine's previous caricatures of the prophet after this month's massacre at Charlie Hebdo's Paris office. After the magazine put Mohammed on the cover of its first post-attack issue last week, violent protests broke out in Africa and the Middle East.

But while many major news organizations such as CNN and the New York Times refrained from showing the Mohammed cartoons, websites such as Gawker and BuzzFeed did not hesitate.

Other popular news websites, such as the Huffington Post and the Daily Beast, also published the cartoons. Representatives for either website did not respond to CNN's inquiries about security.

The latest issue, which sold out rapidly in Paris, trickled its way into the United States late last week after some initial difficulty.

One store that sold the issue, Book Culture on Manhattan's Upper West Side, confirmed to CNN that two NYPD have intermittently patrolled the premises all week. The store sold all 100 copies of the issue within three hours on Sunday and has had no more to sell since. But no NYPD officers were assigned to McNally Jackson, according to the store's owner Sarah McNally. Like Book Culture, McNally Jackson also sold all 100 copies of the issue.

Gawker's editor-in-chief Max Read told CNN earlier this month that his website hadn't received any negative reaction for republishing the Mohammed cartoons. Read said Gawker drew more negative feedback when it published a list of gun owners in New York. The website said today that the NYPD "briefly increased security" for its office after that list was published.

--CNN's Shimon Prokupecz contributed reporting.

First Published: January 22, 2015: 5:35 PM ET

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Wal-Mart China: Hitting headwinds

Walmart in China

NEW YORK (CNNMoney)

But throughout the rest of the two-story rabbit warren, stacked high with goods for sale, shoppers were sparse. Wang Chun Hang, a 32-year-old office worker, paced the floors with her husband, looking cold despite a thick winter jacket. She was there on a once-a-month shopping expedition to pick up a few things.

"Few" is the key word here.

The store is a "little bit more expensive" than other local food stores, she says. The bulk of her spending goes to a Chinese rival retail chain called Beijing Chao Shi Fa. Fruits, veggies, meat and rice — she purchases them all at a Chao Shi Fa near home.

Related: Banned! 8 things you won't find in China

Business is getting tougher for foreign companies in fast-growing China, in sectors from retail to technology to consumer goods. Why? Chinese companies are increasingly competitive, the Chinese economy is slowing, rising nationalism is turning the Chinese suspicious of foreign rivals and an anti-corruption campaign is spilling over to affect foreigners. On top of it all is the erratic manner in which the Chinese government is enforcing laws.

It's not just that "China's getting more difficult for business," says Daniel Wright, CEO of GreenPoint Group, which advises companies on doing business in China. Rather, Wright points out, the country is evening out once-foreign-friendly preferential treatments.

In the 1980s, China started opening up and rolled out the welcome mat: tax breaks and other incentives to attract technology and capital. Now China's just a more "normal" place to do business, Wright says. James McGregor, chairman of the business advisory firm APCO Worldwide for China, agrees. "For years, companies have been saying we wanted to be treated like Chinese companies," he says. Apparently, the treatment isn't so pleasant.

Related: The world's most popular beer is from China

Just one example is the story of Wal-Mart, the $466 billion company that operates more than 6,100 stores in 26 countries outside of the U.S. but is hitting headwinds in China. When Wal-Mart arrived in China almost 20 years ago, it was blazing a retail trail. No longer: Chinese sales fell in the third quarter last year by 0.8%, after rising by 1.1% in the previous quarter. (Sales totals are not disclosed.)

It's not just Wal-Mart — everyone's worried, especially about competition with Chinese rivals. Not to mention a general sense of alienation in the air. Sixty% of companies told the American Chamber of Commerce that they felt less welcome in China than in the past.

On many people's minds is Microsoft. Last year, the government banned the use of Windows 8 on government computers, ostensibly over security concerns. Then over the summer, China's antitrust regulator raided Microsoft offices over suspected violations of the 6-year-old anti-monopoly law. Finally, in November, authorities levied a $140 million fine on the giant software company over taxes it said Microsoft owed. (A Microsoft spokesperson declined to comment on the Chinese government's actions.) Of course, Microsoft is no stranger to regulatory battles, but many foreign companies fear that China's singling out the software giant because it's foreign owned. Government officials deny the suggestion.

Related: 8 of the world's craziest fast food items

Let's be clear: Business is still pretty good. A survey by the US-China Business Council found that 83% of member companies are operating profitably last year, though that's down from 91% in 2013. Profit margins are the same or higher in China than elsewhere for 69% of companies. Sure, only half of all foreign companies currently posting up in China are planning to increase resources to China. But hardly anyone's pulling back.

A stricter law enforcement environment spread to foreign companies following the rise to power of Chinese President Xi Jinping in late 2012, when he launched an anti-corruption campaign that's caught tens of thousands of officials in government- and state-owned industries on the receiving end of bribes, including the arrest in November of the once-powerful security chief Zhou Yongkang. Chinese citizens like the campaign; high officials and their relatives have grown fat as the economy has sped ahead. ("It's probably saving a lot of people's livers," jokes a business consultant, referring to the decline of heavy drinking at corporate banquets with government officials.) On the other hand, McGregor says, while reforms are forcing foreign companies to toe the line, they're also opening up new sectors for business — for example, health care and clean energy.

Maybe, as Wright argues, China's private sector is just becoming more, well, Chinese. For a country with the second-largest economy in the world, a completely expat-led model makes little sense; outsiders, at least, need to integrate better, with leaders comfortable in the language and culture, he says. One example of a foreign success story? Wright cites GE, which in 2013 appointed 43-year-old Shanghai native Rachel Duan as China CEO of GE's $7 billion business. (Wright does not work with GE.) In the meantime, businesses from multinational corporations to tech companies to retailers alike are sure to become more frenetic in their searches for the right sort of leaders. But as ever, when the winds change, a few people benefit. Like who? Wright knows at least one example: "Headhunter firms in China are very busy."

First Published: January 22, 2015: 5:25 PM ET

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What now for oil after Saudi king's death?

Saudi Arabia's late King Abdullah bin Abdulaziz al Saud.

NEW YORK (CNNMoney)

Crude oil is now trading just above $47 a barrel.

King Abdullah bin Abdulaziz al Saud's health had been deteriorating in recent weeks, according to the state-run Saudi Press Agency. He was king of Saudi Arabia since 2005 and celebrated his 90th birthday in August.

The transfer of power should be smooth. His half-brother Prince Salman bin Abdulaziz al Saud will assume the throne, Saudi state television reported.

"I don't anticipate the Kingdom to make any dramatic changes in its oil policy in the short term," said Fahad Nazer, a former political analyst at the Embassy of Saudi Arabia in Washington, DC.

Related: King Abdullah's legacy

Saudi Arabia has 16% of the world's known oil reserves, according to the U.S. Energy Information Administration. The country is widely seen as the leader of OPEC and has a large influence on energy prices and political stability in the Middle East.

But oil has fallen over 50% since the summer. Crude traded over $100 as recently as July and now trades below $50.

OPEC's decision, led by Saudi Arabia, on Thanksgiving Day to not scale back production accelerated oil's plunge.

Related: Saudi Arabia: 'We'll never cut oil production'

Saudi officials have repeatedly said the nation will not cut oil production because they don't want to lose market share. It's unlikely that the new king will alter that stance.

"Everything from the Royal Family and the Saudi Oil Minister in the last 75 days has pointed toward a policy of sustained high exports, and a high stakes game of international 'chicken' with other higher cost oil producers," said Tom Kloza, the global head of energy analysis for the Oil Price Information Service.

Some experts believe the Saudis, at least to some extent, have welcomed falling oil prices as a way to slow the rise of America's shale oil production boom.

Last week Saudi Prince Alwaleed said oil will never return to $100 and that the price crash will allow Saudi Arabia to see "how many shale oil production companies run out of business."

U.S. shale oil companies and related industries have already announced layoffs and cutbacks in spending.

Related: Cheap oil is killing my job

At the same time, Saudi Arabia depends heavily on oil revenues to fund its government. Oxford Economies estimates the country will have negative economic output this year if oil continues to stay at or below $50 a barrel.

The United States imports about a million barrels of oil a day from Saudi Arabia. Only Canada provides more oil to the U.S.

Related: The story behind Saudi Arabia's oil games

First Published: January 22, 2015: 7:08 PM ET

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Macau: China's gambling mecca desperately needs to diversify

HONG KONG (CNNMoney)

The decline accelerated through the end of 2014, culminating with a 30.4% revenue drop in December compared to the previous year. Shares in the major casinos fell by 30% to 40% in just six months.

Macau, like Hong Kong, is a Special Administrative Region of China. It is also the only place in China where gambling is legal. Since 2002 its casino industry has grown into a $45 billion heavyweight, roughly seven times bigger than Las Vegas.

But now gamblers are staying away for several reasons. An intense anti-corruption campaign underway in Mainland China has made them wary about visiting casinos.

Also, visas are in short supply, and some gamblers are upset by a new ban on smoking on playing floors.

Related: Macau's gambling industry dwarfs Vegas

The unexpected decline has set off alarm bells in Macau: Despite continued warnings, the territory has failed to diversify its economy beyond gambling, putting it at risk of an industry downturn.

More than 80% of government revenue comes directly from the casinos. When the industry booms and tax revenue jumps, residents -- most of whom are employed in the business -- receive payouts from the government.

The gambling dependence has drawn attention from the highest levels of Chinese government.

During a December visit, President Xi Jinping encouraged Macanese leaders to expand beyond gambling and promote "appropriate diversification."

"This is of great importance for the interests of the people of Macau," Xi said.

As is, baccarat is the prime attraction in Macau, totaling more than 90% of casino game offerings. The average minimum bet at non-VIP tables is around $250 -- far beyond the reach of casual gamblers.

Related: Macau trumps Vegas with huge minimum bets

The obvious starting point is for Macau to boost its entertainment and leisure options, which lag far behind the glitz, glam and family fun offered in Vegas. The idea is to offer guests a more complete resort experience.

Some developers have taken note, and are planning new malls and theaters.

Wynn Macau is building a 15,000 seat arena. The neighboring island of Hengqin, which is much larger in size than Macau, has caught Beijing's attention as a prime development and diversification opportunity.

But more could be done, especially as other regional gambling destinations take aim at Macau. Casinos in Cambodia, Vietnam and the Philippines are all working hard to attract Chinese gamblers.

Looking ahead, analysts at CLSA expect Macau's casino revenue to stabilize in the first half of 2015, and rebound in the second half of the year. "Headwinds will persist ... but longer term investors should not abandon ship," the analysts said.

Should the good times resume, Macau would do well to invest the profits wisely.

First Published: January 21, 2015: 9:06 PM ET

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State of the Union was President Obama's lowest-rated yet

NEW YORK (CNNMoney)

Does that sound like a surprisingly high number to you, or a woefully low number? The answer may depend on your opinion of President Obama and your optimism about Americans' civic engagement.

According to Nielsen, 31.7 million makes Tuesday the lowest-rated State of the Union of the Obama presidency -- but not by much. Last year about 33.3 million people watched.

Obama's highest-rated State of the Union was his first, in 2009, when 52.4 million people tuned in. The total audience has declined each year since.

This time around, the president was battling both second-term fatigue and the same thing television executives are battling: seismic changes in how people are watching TV.

Some explanation is in order: Nielsen's estimates only include viewers who watched on TVs at home in the United States. Viewership via the Internet is measured separately, and no comprehensive data is available for Tuesday's speech.

The White House said it recorded more than 1.2 million views of its speech video stream over the course of the night -- but it didn't release the average minute-by-minute audience, which would be more comparable to the Nielsen numbers.

White House officials sought to make the speech "go viral" by promoting policy proposal "spoilers" days ahead of time; by having Obama encourage tune-in through YouTube, Facebook and Twitter; and by publishing the text of the speech on Medium in the minutes before it was read aloud.

On Wednesday the White House said clips from the speech received "almost 1.5 million views on Facebook" while the speech was still happening.

Nielsen provided another new media metric for the speech: 9.7 million people on Twitter "saw one or more of the 2.6 million tweets sent in the U.S." about the speech, the company said.

Television is still the dominant medium for a political spectacle like the State of the Union, though. CBS, bolstered by the popular drama "NCIS" at 8 p.m., had the biggest single audience for the speech at 9 p.m. -- about 7.3 million. NBC had 5.3 million, ABC had 4.6 million, and Fox had 2.8 million.

First Published: January 21, 2015: 6:57 PM ET

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Toy story: What toy sales tell us about China's future

HONG KONG (CNNMoney)

That hasn't changed -- the country still makes around 75% of the world's toys.

But over the past five years, toy manufacturers in Mainland China have started to sell to an entirely new target demographic, much closer to home: lower-income Chinese consumers.

That's right. China itself is becoming a major consumer of toys.

Market research firm Euromonitor International says retail sales of toys and games in China have been growing about 13% each year since 2008. In 2013, total sales were just shy of $20 billion.

Euromonitor also predicts that in the next five years, China will be the fastest growing market globally for traditional toys and games. They say the market will grow 57% by 2018.

Related: Why Paul Krugman is scared of China

John Liu, the Marketing Director of Zenit, a Chinese company that sells high-quality wooden toys, said that he first realized two years ago that there was a strong opportunity to sell in China.

Zenit launched their product on the Mainland in 2013, and made $500,000 in their first year of operation. Now, China accounts for 20% of the company's export volume. Liu says it's simple: Chinese parents want higher quality, safer toys.

Shaun Rein, the author of The End of Cheap China, said that businesses should work to harness the spending power of Chinese consumers.

Many observers, he said, are "underestimating the purchasing power of low-income Chinese. And more importantly, they're underestimating how wealthy they're going to be three to five years from now."

Rein estimates there are 850 million Chinese workers earning less than $500 a month. Salaries are going up 15% a year, leaving them with more disposable income than ever before.

Rein said toy purchases allow consumers to show off some of their newly-acquired status.

"You have toys, such as Lego, that are doing very well. They're cheap enough that they're accessible for low-income Chinese. But they're expensive enough to get prestige."

"So instead of buying a Louboutin bag, people buy Lego for their family members," Rein said.

Related: China's president makes ... $22,000 a year?!

Lego is beginning to push its brand to second and third-tier Chinese cities, according to Euromonitor. The company has opened stores in 14 new cities -- including Xi'an, Dalian and Foshan. Lego has also increased investments in its education arm.

Alice Tsang, an economist with the Hong Kong Trade Development Council, said the market is only going to grow as China loosens its one-child policy -- which means an extra 1-2 million babies born each year.

Utku Tansell, Head of Toys and Games Research at Euromonitor International, said that toy sales in China are ripe for more growth.

"In 2013, the average spend per child in China was just $41. Compare that to $345 in Japan" he said. "Same region, massive difference."

First Published: January 21, 2015: 9:36 PM ET

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Obama shows 6 companies the love in State of the Union

President Obama delivers the 2015 State of the Union address to Congress.

NEW YORK (CNNMoney)

CVS, UPS, Instagram, Google, Tesla and eBay were all mentioned by name during the speech.

The president praised drugstore chain CVS (CVS) and delivery service UPS (UPS) for their programs to train and educate workers, especially those without college degrees. Obama is currently pushing a proposal to make two years of community college education free.

Tech companies Google (GOOG), Tesla (TSLA) and eBay (EBAY, Tech30) were heralded as businesses that "didn't even exist 10 or 20 years ago" but are now providing good American jobs. The president used the first half of the address to highlight the economic turnaround the nation has gone through since he took office, including job growth.

But the biggest corporate buzz of the night went to Instagram. While highlighting America's innovation, the president pointed to Captain Scott Kelly, who was in the audience and is about to embark on a year-long mission in space.

"Good luck, Captain -- and make sure to Instagram it," Obama instructed Kelly.

Related: Why Obama is concerned about the middle class

Brands are willing to pay a whopping $4.5 million for a 30-second ad in this year's Super Bowl.

While the State of the Union only draws about 33 million viewers (compared to over 111 million for the Super Bowl), it's still free publicity in front of a prime-time audience.

None of the six companies the president mentioned are among the top 10 businesses lobbying Congress, although Google does rank among the top 20, according to the Center for Responsive Politics.

First Published: January 21, 2015: 12:06 AM ET

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Obama proposes scaling back benefits of 529 college savings plans

NEW YORK (CNNMoney)

You can put away $14,000 each year for a child, pay no tax on the money while it's growing, and no tax when you withdraw it to pay for education costs.

President Obama is proposing to roll back the second part of that equation.

Savings would still grow tax-deferred, but withdrawals would be taxed as income to the beneficiary, typically the child in school. That means the money would be taxed at a lesser rate than if it were taxed as the parent's income.

Still, why remove a tax break meant to help pay for school?

The White House said the goal was to better target federal assistance to those who need it. The thinking is that those who save in 529s are families who can better afford college than everyone else.

Under the proposal, Obama would consolidate education tax breaks into one vehicle, the American Opportunity Tax Credit, and redirect federal assistance through that.

Obama is proposing to make the expanded version of the American Opportunity Tax Credit permanent. The credit, a dollar-for-dollar reduction of your tax bill, is worth up to $2,500 a year for qualified education expenses.

The president also wants to increase the $1,000 refundable portion of the AOTC to $1,500. The refundable portion is the credit you would get even if you don't owe any tax. He also wants to make the credit available for five years of college instead of four.

The AOTC is available to joint filers with modified adjusted gross income up to $180,000 and up to $90,000 for single filers.

Presumably some of the same filers saving in a 529 plan would benefit from an expanded and permanent version of the AOTC.

Related: Obama wants to close the "Trust Fund Loophole"

An analysis by the Government Accountability Office found that in 2010 less than 3% of families saved in a 529 plan. The GAO estimated that families who saved in 529s had a "median financial asset value" that was 25 times that of families without a 529.

But the College Savings Foundation, citing an investment industry analysis, noted that in 2014, over 70% of 529 plans were owned by households with income below $150,000.

Like almost all of the tax proposals the president will include in his next budget, the call to curb 529 benefits may not get very far in a Republican-controlled Congress.

- CNN Senior White House Correspondent Jim Acosta and CNNMoney's Melanie Hicken contributed to this story.

Related: Obama's proposal for the Middle Class

First Published: January 20, 2015: 11:47 PM ET

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China's president makes ... $22,000 a year?!

Turns out China's President Xi Jinping only makes about $22,000 a year.

HONG KONG (CNNMoney)

Chinese civil servants -- including Xi -- are getting their first salary increases since 2006, even though the economy is now growing at its slowest pace in 24 years. Part of the reason is to entice officials to keep their jobs, as some have quit over low pay, according to state media.

As part of the initiative, China's Ministry of Human Resources and Social Security says government workers can expect at least one raise every two years going forward.

Xi's salary lags far behind the $400,000 that President Obama takes home -- even with various allowances Xi is given based on his duties and rank. (President Obama is also given a similar expense budget and funds to cover travel costs, and he and first lady Michelle Obama reported $481,098 adjusted gross income on their most recent tax return.)

Related: It pays to work for the White House

But could Xi possibly earn only 136,620 yuan ($22,000) a year? At that rate, Xi's salary is actually under the U.S. poverty line for a household of 4 -- $23,850 a year.

After all, Xi is often spotted in sharp suits, and his wife, Peng Liyuan, has become something of a fashion icon, much like her American counterpart.

Even at his new salary level, Xi would have a tough time affording rent in Beijing. A quick look at current listings for the city show that 1,400 square foot homes rent for around 15,000 yuan ($2,400) a month.

Read next: Why Paul Krugman is scared of China

First Published: January 20, 2015: 11:58 PM ET

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Uber makes nice with Europe: We can add 50,000 jobs

NEW YORK (CNNMoney)

Uber has run into problems with regulators in Europe, the U.S. and elsewhere who have shown a willingness to shut down its popular taxi-service app. The company has sparked or found itself at the center of controversy after controversy.

While traditional transportation providers cry foul at Uber's tactics, the company said the competition and technology it brings is good for governments and local economies.

"Uber can share smart data with partner cities to help them manage growth, reduce congestion and greenhouse gas emissions and expand public transportation," the company said in a blog post as CEO Travis Kalanick unveiled its pitch at a major tech industry conference in Germany.

Related: Where Uber prices surged the most

Specifically, it said an expansion of Uber across Europe would "take 400,000 cars off the road" this year. It did not provide details about how it arrived at the vehicle and job numbers.

The company also confronted one of the key criticisms of its service: passenger safety. The company said it would look for ways to improve and expand its system of background checks for potential drivers, "and improve communication with local officials and law enforcement."

Related: Taxi drivers strike in China over steep fees ... and Uber

First Published: January 18, 2015: 6:55 PM ET

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State of the Union spoilers: What you need to know about Obama's proposal for the middle class

NEW YORK (CNNMoney)

Obama is expected to unveil proposals that would expand tax credits for parents, workers and students. And he'll call for paying for them by closing tax breaks on the the wealthy and hitting mega banks with new fees.

If the point is to start a debate, that has begun. If the point is to get his package passed as a whole, well, that's not going to happen.

Republicans with whom he's frequently been at loggerheads now control both houses of Congress. They are making it clear they disagree with Obama's approach. Representative Jason Chaffetz said Sunday on CNN they're a "non starter."

Below is a crib sheet on what the White House says Obama will outline. Let the debate begin!

Introduce tax credit for working couples: The White House says the aim of this proposal is to help families in which both spouses work, while defraying the costs of things like commuting and care for children or aging parents.

The White House says it would affect 24 million couples. The full value would be available to couples earning less than $120,000, while couples with income up to $210,000 would receive partial credits.

Require paid sick leave: Obama backs a proposed law that would allow workers who don't already receive paid sick time to accumulate up to seven days each year. (A study found more than 40% of workers in the private sector don't receive the benefit now.)

He is also instituting a new policy for federal employees: six weeks of paid leave for new mothers and fathers, and the same amount of time to care for an ill relative.

Expand child care tax credit: Childcare is expensive, and the federal incentives -- like flexible spending accounts and the Child and Dependent Care Tax Credit -- offer a patchwork of support.

The White House says Obama's plan would "streamline" the options into a single credit. It would cover half of childcare costs with a maximum credit of $3,000 per pre-school child.

Encourage higher education: Obama's proposal would also expand the federal incentives for a college education.

The White House said the president would increase the maximum refund under the American Opportunity Tax Credit from $1,000 to $1,500. He would also make it permanent; it is currently set to expire in 2017.

Another part of his plan would answer a major tax concern of students who qualify for income-based loan repayment plans. After 20 years of income-based student loan payments under the Pay As You Earn plan, the remainder of the loan is forgiven, but students still owe tax on it. The proposal would also simplify the rules for federal Pell Grants and taxes on student loan interest.

Expand the Earned Income Tax Credit: There's something in Obama's proposal for working families without kids, too.

The Earned Income Tax Credit is available to low-income workers. But the credit is significantly smaller for a childless earner than someone with children.

Obama's proposal would give childless workers who are already eligible twice the amount they can currently claim. He would also expand it to include more low-income workers by raising the cap on claiming the credit -- currently at $14,590 for a childless single person -- and lowering the eligibility age from 25 to 21.

Encourage retirement saving: The president's retirement savings push is mostly targeted at companies.

His plan would expand access to retirement savings by requiring nearly all employers who don't currently offer an IRA to automatically enroll their employees in one. It would also require companies to accept more part-time employees into retirement savings plans.

Obama's plan also calls for tax cuts for companies that currently offer IRAs, begin offering IRS or automatically enroll employees.

That's on top of the myRA, a starter IRA for people who don't have a workplace retirement plan. It was unveiled in last year's State of the Union address and became available this year.

Tax inheritances like other capital gains: Obama also called for changing the way inheritances are taxed.

When individuals sell an investment, like a stock, they calculate the taxable value by subtracting what it was worth when bought from what it was worth when sold. (That's called "capital gains.")

But when stocks are passed from one generation to another, the calculation changes: The person who inherits doesn't pay tax on capital gains during the previous owner's lifetime. That lets "the wealthy pass appreciated assets onto their heirs tax-free," the White House said.

Obama wants to change that, unless the investment is donated to charity. The White House outlined several exemptions it says mean the change would mostly hit the wealthy, like allowing people to inherit a home and small businesses without another hefty dose of taxes.

He also wants to increase the tax on capital gains from 20% to 28%.

His other proposals: The president has been offering up State of the Union "spoilers" for two weeks now, like his proposals to make community college free for some students, increase internet speeds, and lower fees on government-backed mortgages. Some require Congress to act; others, like the mortgage plan, don't.

First Published: January 18, 2015: 7:12 PM ET

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Plunging oil prices won't solve China's economic problems

HONG KONG (CNNMoney)

China is the world's largest net importer of oil, and plunging crude prices should cut costs for consumers. It is also expected to help keep inflation under control and give China's central bank room to lower interest rates.

"The sharp reduction in world oil prices will help to provide a stimulus to Chinese GDP growth in 2015 and reduce China's oil import bill, boosting Chinese net exports," wrote IHS Asia-Pacific chief economist Rajiv Biswas in a research note.

Lower crude prices may also give the central government greater flexibility to pursue fiscal, financial, land and household registration reforms, according to a report by Bank of America Merrill Lynch.

Related: China growth expected to miss government target

But China is facing a bevy of longstanding economic risks, such as escalating debt levels and a waning property market, that are likely to overshadow gains from lower oil prices. Recent corporate defaults in the real estate sector have only added to concerns.

Analysts say relief will be temporary and a major boost to China's GDP is unlikely. Economists surveyed by CNNMoney are expecting a ho-hum fourth quarter to round out the year, and growth in 2015 is expected to slow further to around 7%.

"Given no evidence of a sharp and sustained improvement in demand growth on the horizon, the boost from lower oil prices will be washed out by the many persistent and growing challenges China faces," said IHS China economist Brian Jackson.

Overall, Asia remains the biggest global winner as oil prices continue to tumble. The slump in prices represents an estimated transfer of around $1.5 trillion from global oil producers to oil importing countries, according to IHS.

South Korea is getting the largest boost to its economy, followed by Thailand and the Philippines, according to Bank of America Merrill Lynch.

Read next: China bulls refuse to back down as market skyrockets

First Published: January 18, 2015: 10:08 PM ET

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Software can't replace mass spying

NEW YORK (CNNMoney)

But that doesn't mean the mass spying should keep happening, it added.

The long-awaited report was released Thursday by the National Academy of Sciences. It came from the committee that President Obama put together after ex-NSA contractor Edward Snowden revealed the extent of U.S. government spying on the American public's phone records, email logs and more.

In response to the report, a lawyer with the American Civil Liberties Union noted that the committee doesn't condone current mass surveillance practices. Quite the opposite, Neema Singh Guliani said.

"The report does not even attempt to provide one concrete example of a case where bulk collection was essential to a national security investigation," she said in a blog post.

This committee was made up of academics and technology professionals from Google (GOOG), Microsoft (MSFT, Tech30), Oracle (ORCL, Tech30) and elsewhere.

Its job was to figure out whether the government could ditch the current strategy of collecting lots of information on nearly everyone and manually sort through it and instead, use computer software to narrow down the spying.

However, the committee concluded, for the government to know everything, it has to collect everything.

The committee suggested putting automatic controls that limit who can access the data collected by government spies. That addresses one of the main criticisms voiced by Snowden: that lots of intelligence agents and private contractors get creepy access into our personal lives, from webcams to private chats with friends and family.

Such computer software would also make it easier for the government to catch when spies behave badly -- and make that information public.

Related: U.S. planes spy on American phones

Related: How the NSA can 'turn on' your phone remotely

First Published: January 16, 2015: 6:20 PM ET

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Where is Charlie Hebdo? My pursuit of the first copies in America

Charlie Hebdo sold out almost immediately in Paris, and millions of copies are being printed, but the once-obscure magazine was hard to find in New York despite demand for it.

NEW YORK (CNNMoney)

The message anticipated a question that employees of the French book shop had heard hundreds of times.

Stores and newsstands throughout New York that had never sold Charlie Hebdo had been inundated with inquiries from people who have probably never read the satirical magazine.

In New York City, at least, "I am Charlie" had become "Where is Charlie?"

The answer emerged on Friday morning with the arrival of what were likely some of the first copies of the magazine's latest issue in the United States.

The magazine, the first since the attack on Charlie Hebdo's offices that left 12 dead, sold out in Paris almost immediately and as many as 5 million copies are being printed. But getting the once-obscure publication to America wasn't easy.

Some newsstand distributors tried to work directly with Charlie Hebdo's distributors -- a task that turned out to be difficult, at least initially.

But places like Albertine and Book Culture, another Manhattan shop, went a different route.

The stores made arrangements with Emmanuel Saint-Martin, the owner of a website catering to French ex-pats who has fielded "thousands" of requests for the new issue.

Saint-Martin reached out to Uni-Presse, a French government-backed organization dedicated to promoting French culture and press throughout the world.

He arranged for Air France and La Compagnie, another French airline that flies to Newark Liberty Airport in New Jersey, to get the issues across the Atlantic.

And on Friday morning, about 20 copies then arrived via FedEx to the upstate New York home of Catherine Lamy, the East Coast representative for Uni-Presse.

She and Saint-Martin hope to get as many as 1,500 copies next week to send to other American cities. The first round went to a select few in New York.

So a little before 11:30 a.m. on Friday, an employee removed the sign from Albertine's door and Lamy entered ten minutes later. She had a white envelope. Nobody needed to ask what was inside.

She gave bookstore employees two copies. They examined the cover image -- a cartoon depiction of the Prophet Mohammed -- that has spawned renewed debates over free speech.

It was decided that one copy would be laminated for posterity, and the employees placed one copy on a windowsill sandwiched between two bookshelves.

One customer wanting to buy one was invited instead to read the issue near the window. He sat in one of the store's leather chairs and scanned the cartoons and articles. When he was finished, a young woman had her turn to read the magazine.

Albertine won't have copies to sell until next week.

Albertine bookshop in Manhattan wasn't selling Charlie Hebdo at first, but it was letting customers sit and read the issue.

After an hour at Albertine, Lamy was off to her next destination: Book Culture, located on the other side of Central Park.

During the cab ride west, Lamy stressed that Uni-Presse will only provide copies to stores that pledge to make "no margin" on the transaction.

"We don't want to see this craziness you see on eBay," she said, referring to the markup on issues that have been sold on the online marketplace. "We're very clear to the stores on that."

She said Uni-Press hasn't collected any commission on Charlie Hebdo subscriptions since the attack.

We arrived at Book Culture, part of a three-store chain on Manhattan's Upper West Side. CBS News had a camera there. And a reporter for the Japanese television network TV Asahi stood outside the store.

"Are you here with the delivery?" the reporter asked Lamy.

With film crews capturing the footage, Lamy pulled a copy out of the white envelope and handed it Chris Doeblin, the store's owner.

"Beautiful," Doeblin said, holding up the Mohammed cartoon for everyone in the store to see. He plans to frame one of the copies for display. The other will be available for viewing. Doeblin hopes to get more to sell, but obtaining a mere two copies was still important to him.

For the last several days, the store's front window has displayed an enormous sign with the now-ubiqitous rallying cry, "Je suis Charlie."

Doeblin said the sign has "garnered some ill will."

He's thought about the security risk of associating with the magazine, but said he's "not that concerned about it."

Book Culture plans to frame one of the Charlie Hebdo covers for display in the store.

Book Culture employees paged through one of the copies behind the store's counter. A customer asked if any issues were for sale. John R. MacArthur, the president and publisher of Harper's Magazine, eventually strolled in and made small talk with Lamy. Harper's has a partnership with the store.

"We're not Charlie Hebdo in style, but we are in spirit," MacArthur said of his magazine.

As the news crews filed out of the store, Lamy was joined by Saint-Martin, whose website had received thousands of requests for the magazine

The two made plans to deliver the remaining issues Lamy had with her that day. One was going to a man in Brooklyn who called last week to start a subscription.

Lamy wouldn't disclose where the other dozen-plus copies were going. She said those recipients did not want to be identified.

First Published: January 17, 2015: 9:05 AM ET

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Charlie Hebdo now printing 7 million copies

NEW YORK (CNNMoney)

The new total reflects extraordinary demand for what has become known as the magazine's "survivors issue." It was produced in the days immediately following a terrorist attack at the magazine's office in Paris. The attackers were apparently motivated by the magazine's criticisms of Islam and depictions of the Prophet Mohammed.

The cover of the new issue has a cartoon of the prophet holding up a sign that reads "I Am Charlie" in French.

Customers at newsstands continue to seek copies of the issue -- not just in France, where there were long lines observed earlier this week, but also in Germany, where the magazine went on sale on Saturday.

There were local reports that the copies quickly sold out in cities like Berlin and Hamburg.

"We could have ordered 500 copies -- they would have sold out," a vendor at the main train station in Stuttgart told DPA, Germany's main news agency.

Customers in Germany lined up on Saturday to buy the new edition of Charlie Hebdo.

For some, buying a copy is a way to show solidarity with the magazine and support freedom of expression.

The magazine's French distributor, MLP, has been trying -- mostly unsuccessfully -- to keep pace with demand.

Roughly one million copies each were distributed on Wednesday, Thursday and Friday. Technical problems limited the number of copies available in France over the weekend, so it'll take several days to reach the 5 million mark.

On Saturday, MLP boosted the planned total to 7 million.

The French newspaper Le Figaro called it "a record in the history of the French press."

Michel Salion, a spokesman for MLP, told CNN it is "too early" to say how much money has been made through the sales.

A small number of copies began to reach the United States on Friday, and more are expected to go on sale in the coming days.

To put the 7 million figure in perspective, only a small number of U.S. magazines print that many copies -- AARP The Magazine, Better Homes and Gardens, and Game Informer Magazine.

"Nothing in the United States compares to the Charlie Hebdo print run," said Sid Holt, chief executive of the American Society of Magazine Editors.

He said Charlie Hebdo's past 60,000 circulation "is small even by French standards. Paris Match, by comparison, has a circulation of 600,000."

"But the equivalent of going from 60,000 to 6 million would be as if a magazine in the United States sold 30 million copies -- 30 times what People sells on the newsstand every week," Hold said.

Related: Where is Charlie Hebdo? My pursuit of the first copies in America

While support for the new issue has been widespread, opposition to the Mohammed drawing on the cover has been expressed by Islamic leaders and government officials in a number of countries in the Middle East and Africa.

The cover has been described as insulting to Muslims and needlessly provocative.

Protests against the new cover were reported in Pakistan, Jordan, Algeria, Niger, Mali, Somalia, Senegal, and Mauritania.

In Karachi, Pakistan on Friday, one protest turned violent, and a photographer working for the Paris-based news agency was injured by gunfire.

In Niger, a number of churches were set on fire and several people were killed. The French embassy in Niamey advised its citizens to be vigilant and avoid going outdoors.

Related: Charlie Hebdo co-founder: Prophet cartoons went too far

Publishers in some parts of the world have declined to reprint the cover. A new issue of The Economist magazine includes a small picture of the cover, but it's just a blank spot in the edition printed in Singapore. The Economist included a note explaining the missing content to readers, and referred them to a web page where they could see the cover.

A wide array of other news outlets, including CNN, have opted not to show the cover.

Meanwhile, the surviving editors of the magazine have said little about their plans for future issues, but they have vowed to keep publishing.

Laurent Joffrin, the editor of the French paper Liberation, said the staffers could continue to borrow its office space -- "As long as they want to stay, they can stay, there's no problem."

Joffrin told CNN, "They have many new friends and new subscribers, and they have money, investment, so they can go on."

--Claire Calzonetti contributed reporting.

First Published: January 17, 2015: 1:05 PM ET

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Charlie Hebdo co-founder: Prophet cartoons went too far

NEW YORK (CNNMoney)

Henri Roussel, now 80, wrote a letter with his views in the wake of the terrorist attack at the magazine's office in Paris. Twelve people were killed, including Charbonnier, known as "Charb."

Roussel called Charbonnier "brilliant" but "stubborn." He said he thought the magazine went too far with its provocative images, particularly after the 2011 firebombing of the office. That incident came at the same time the magazine published a cover image depicting the prophet.

"What made him feel the need to drag the team into overdoing it?" Roussel asked, according to an English translation of his letter in the French-language magazine Nouvel Obs.

"I'm upset at you, Charb," he added.

Roussel's remarks mimic the public debate about the appropriateness of Charlie Hebdo's depictions of the prophet.

According to British media reports, Charlie Hebdo lawyer Richard Malka condemned Roussel's comments, calling them "polemical and venomous."

The magazine's so-called "survivors' issue," published Wednesday, expressed appreciation for the outpouring of public support after the January 7 attack. The support continues, with sellouts at newsstands across Paris on Friday for a third day in a row.

"It's still sold out almost everywhere we look," CNN's John Berman said.

About 1 million copies of the magazine are being printed each day. Michel Salion, a spokesman for the magazine's distributor, said technical problems will result in fewer copies than expected on Saturday; normal distribution will resume on Monday.

"Merci de votre patience," he wrote on Twitter -- "thank you for your patience."

Meanwhile, opposition to the new issue's cover image, which portrays the Prophet Mohammed, turned violent during a protest in Karachi, Pakistan on Friday. Demonstrators tried to march to the French consulate but were turned back by police water cannons and tear gas.

A photographer working for AFP, a wire service based in Paris, was shot during the chaos.

"Investigations are underway to determine who shot him," Ahmed Chinoy, chief of Karachi's Citizen Police Liaison Committee, told CNN.

--CNN's Sophia Saifi contributed reporting from Islamabad, Pakistan.

First Published: January 16, 2015: 5:32 PM ET

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In year of 'Selma,' critics blast Oscars for all-white Best Actor field

NEW YORK (CNNMoney)

The lack of diversity in that category was punctuated by the absence of David Oyelowo, who gave an acclaimed performance in "Selma" as Martin Luther King Jr.

Actors Eddie Redmayne, Benedict Cumberbatch, Michael Keaton, Bradley Cooper and Steve Carell were all nominated over Oyelowo.

The exclusion of Oyelowo from Best Actor wasn't the only "Selma" exclusion many took issue with.

The film's director, Ava DuVernay, wasn't nominated for Best Director. She would have been the first African-American woman ever in the category.

In all, the well-reviewed "Selma" picked up two awards: Best Picture and Best Song.

Other major categories, including Best Actress, Best Supporting Actor and Best Supporting Actress, also had all-white slates of nominees.

Many felt that David Oyelowo's performance in "Selma" was grossly overlooked.

Backlash from fans and critics was fervent.

"It's a movie about blacks being shut out of society. ... And now we're shut out of Hollywood," Al Sharpton told the New York Daily News.

On social media, many conveyed their outrage with the hashtag #OscarsSoWhite.

Others pointed out what they called the Academy's inconsistencies.

"Selma? One of the best pics of the year. But the directing, script, all the acting, & cinematography? Meh," comedian Patton Oswalt tweeted. "Nice song, though."

The widespread criticism comes a year after the Oscars celebrated nominees from diverse backgrounds.

At last year's Oscars, "12 Years A Slave" won the biggest prize of all: Best Picture. Other awards like Best Supporting Actress and Best Adapted Screenplay also went to people of color.

Yet, while "Selma" was neglected by the Academy, it will have the honor of being shown at the White House as President Obama hosts a screening of the film on Friday night.

The Oscars will be broadcast on ABC on February 22.

Related: Is this why 'Selma' was snubbed?

First Published: January 16, 2015: 2:26 PM ET

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U.S. airlines eager to fly to Cuba

NEW YORK (CNNMoney)

JetBlue (JBLU), Delta (DAL) and United (UAL) airlines are already expressing interest in adding the route.

On Thursday, the White House announced details about new regulations that will make it easier for Americans to travel to Cuba. They come after President Obama said he would begin thawing relations with the Communist country last month.

"We plan to serve Cuba, subject to government approvals, and look forward to doing so from our global gateways of Newark and Houston," a United spokesperson said Thursday.

Related: Obama's Cuba details revealed, to make travel easier to island

Under the relaxed rules, travel agents and airlines can book tickets for U.S. citizens to Cuba without a special license from the Treasury Department's Office of Foreign Assets Control.

And Americans will be able to visit, so long as the trip meets certain criteria. Those traveling to the island will also be allowed to use credit cards, a restriction that complicated trips to Cuba in the past.

Related: The promise for American businesses if Cuba sanctions are lifted

The policy change is shy of a complete lifting of the embargo, which requires Congressional action. It came as part of a larger deal that secured the release of Alan Gross, an American government subcontractor who was imprisoned on the island for five years.

Details about the travel rules were just released on Thursday and the Department of Transportation said that it expects many U.S. airlines will be interested providing service on this route.

First Published: January 15, 2015: 8:02 PM ET

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States where taxes hit the poor hardest

In these five states, the poor are paying a far larger share of their income toward state and local taxes than the top 1%.

NEW YORK (CNNMoney)

Residents who make the least amount of money pay about 17% of their income in state and local taxes, according to a new report from the Institute on Taxation and Economic Policy. Meanwhile, Washington's highest earners cough up just 2.4% of their income for such taxes.

The high tax rate on the poor, coupled with that huge gap in the tax burden between the poor and the top 1%, is why Washington ranks as the most regressive-tax state in the nation, according to the liberal think tank's study.

Other states where the poor are bearing some of the heaviest tax burdens in the country, include Florida, Texas, South Dakota and Illinois. There, the poor pay between 11% and 13% of their income in state and local taxes, compared to the 2% to 5% paid by the highest earners.

These top regressive states earn their ranking primarily because they do not -- with the exception of Illinois -- have an income tax, and instead rely heavily on sales taxes for much of their state and local revenue.

The net effect: the poor pay a significantly higher percentage of their income on sales taxes than the top 1%. That's because the poor typically spend about three-quarters of their income on items that are subject to sales tax, whereas top earners only end up spending about a sixth of their income on taxable items.

Related: Kansas tax cuts on trial amid big budget deficit

"No-income-tax states like Washington, Texas and Florida do, in fact, have average-to-low taxes overall. However, they are far from 'low-tax' for poor families," the report notes.

In Illinois, there is an income tax but it's a flat rate for everyone, and the state's sales tax accounts for 7% of poor taxpayers' income relative to just 0.8% for the top 1%.

By contrast, the 5 states with the narrowest gap in tax burdens between poor and rich are Delaware, the District of Columbia, California, Oregon, and Montana. In Delaware, for instance, the lowest earners pay 5.5% of their income in state and local taxes, versus 4.8% paid by top earners.

The purpose of the ITEP study was to see how state and local taxes affect income inequality. The broad result: They worsen the divide in all 50 states, albeit to varying degrees.

That contrasts with federal taxes, which actually narrow the income inequality gap. It narrows on an after-tax basis because the federal tax code is very progressive and low-income households are often eligible for many valuable tax breaks, such as the Earned Income Tax Credit.

First Published: January 15, 2015: 6:33 PM ET

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