There would no tax
charged on household income less than $24,000 (
Poverty
Level = $24,600); a 12% rate would be charged on income from
$24,000 to $90,000; 25% on $90,000 to $260,000; and 35% on $260,000 to $1
million.
High
property tax states pay the price. Deductions
lost raise actual income taxed. Student loan interest deduction lost.
Family
of 4 standard deduction drops from $28,900 to $24,000. Repealing the estate
tax is estimated to cost US $279 billion. Repeal of the Nixon Alt Minimum
Tax for wealthy costs $ billions. Trump's
repeal of the Alternative Minimum Tax — which once
cost
the president $31 million. It
accounted
for most of the $38.5 million in taxes Trump
paid that year. With the estate tax repealed, Trump's
estate saves $564 million based on an estimated net worth of $3 billion,
as Bloomberg reported last year. Top bracket of 39.6%
for households earning more than $1 million but billionaires like Buffett and
Romney take their business income (
capital
gains@15%) to avoid EARNED income. Billionaires like
Buffett pay 17% or less.
Buffett pays himself stock—not taxed.
Tax bill does NOT eliminate
Congress people ‘insider trading’ loophole
If GOP was serious
about tax code ‘reform’ it would eliminate the loophole that allows our ‘reps’
to abuse the
Stock
Act. Congress lets its members and staffs get away with buying/selling
stocks based on information they receive in closed hearing/decisions. This
means that they can do what we can’t. Martha Stewart went to jail for ‘insider
trading’ but our ‘reps’ do it and don’t even get censured. Some Congress reps
have made a ton of money. A
study
of their trading history found outperformance of 22% to 24% under a
one-week
holding period on an annual basis. Only an insider to information would be
able to produce those results in
1
week. One example is
Mr
Price, former rep from GA, who sat on the health committee and used insider
info to
make
money on various stocks.
Business does not need
tax cut: already pay nothing
All
big company presidents like Chase Dimon are praising the tax ‘reform’ to
give him a break so he can raise our wages. We don’t even any details. Yet many
of these firms pay NO taxes. Do you think Dimon will raise wages?
The
economy is already growing at 3%. You and I already gave Chase
$22
Billion in subsidies. They have the money to make more jobs. These are the
loopholes created by our ‘reps’ with lobbyists over the years. Chase operates
around the world and yet pays no taxes on the profits from outside US even
though they use our courts and infrastructure. You and I can’t do that.
Chase
has stashed $21.8 billion in offshore tax haven countries to avoid paying
income taxes. If this practice was outlawed, it would have paid $4.9 billion in
federal income taxes. The Trump ‘reform’ does NOTHING about this loophole. During
the financial crisis, JP Morgan Chase received a total of more than $391
billion in virtually zero interest loans from our Federal Reserve and a $25
billion bailout from our Treasury Department.
Did you receive a
bailout loan zero interest when
you got laid off and had a hard time?
Why wages (adjusted
for inflation) have NOT gone up since the 1980s
Market Power: the last few decades have seen the
unprecedented rise
in prices—average markup is now 67%. In 1980, average markups start to rise
from 18% above marginal cost to 67% now. There is no strong pattern across
industries, though markups tend to be higher, across all sectors of the
economy, in smaller firms and most of the increase is due to an increase within
industry. We do see a notable change in the distribution of markups with the
increase exclusively due to a sharp increase in high markup firms. We then evaluate
the macroeconomic implications of an increase in average market power, which
can account for a number of secular trends in the last 3 decades: 1.
decrease in labor
share; 2. decrease in capital share; 3. decrease in low skill wages; 4.
decrease in labor force participation; 5. decrease in labor flows; 6. decrease
in migration rates; 7. slowdown in aggregate output. Firms that can raise
prices with less cost from technology and labor can make less with fewer
workers/factories and increase profits.
2017 has been great
for stocks—market index passes 17%
If you are using the
Buffett strategy, you are keeping almost all of the 17+% because your TOTAL
costs are just 0.04%.
Your
total return since inception is 11% a year. That means you
double
your money about every 7 years. If you have a ‘professional’ advisor, you
are lucky to see your return hit 8%. That is the poor showing at Harvard
Endowment with over 230 smart money managers. It seems the more people
handling/trading on your ‘endowment,’ the poorer the results.
Harvard
fired HALF its investment ‘professionals’ and going back to fundamentals.
Buffett bet a $1 million with a hedge fund ‘professional’ 10 years ago that
this index fund could beat the hedge fund picks. Buffett was right—7% vs 2%
over 10 years. Now the hedge must give up $1 million in fees
taken but not earned. Maybe it is
time you made the switch—give ‘professionals’ a rest. They can’t see the future
either. Harvard cut its staff. Maybe it is time to cut your advisor too.
Retirees may be key
to GOP budget/tax cuts
The GOP budget
passed in both houses reflects their plan to privatize Medicare and Social
Security and slash Medicaid.
This
budget hurts tens of millions of retirees. Republicans have become the
Spending Party:
the GOP plan will balloon the federal deficit by $1.5
trillion. It calls for cutting $1 trillion from Medicaid and nearly a half
trillion dollars from Medicare. People in nursing homes and addiction treatment
will be hurt. Medicare will be cut which could lead to higher premiums for
retirees and the disabled. Medicaid provides home and community-based
services that allow seniors to stay in their homes. Half of Medicare folks have
incomes of less than $26,200 a year and spend 25% of their SS benefits on Parts
B and D out-of-pocket costs for premiums and cost-sharing amounts. Cuts hurt people
with disabilities, including children with functional limitations. GOP voucher
plan is a joke—insurers don’t want old/sick people. Seniors won’t like the cuts just to give the rich another mansion.
According to tax expert
David Cay Johnston of DCReport, "annual tax savings
alone for the 1% will be greater than the incomes earned by about 70% of
Americans. Trump himself stands to save about $14.6 million from his tax
credits.
Who will pay the new
gas tax for the higher GOP DEFICITS?
We will, of course.
The
“tax and spend” GOP considers several ways to make up for the deficits created
by their
tax
cuts for the wealthy. We will pay more tax: deductions for mortgage, state
and local tax are ended. Corporations will pay less tax so we will need to pay
to offset the corporate tax cut. We will have to
pay
for Trump’s folly—The Wall. Pieces of it are now a tourist attraction in
San Diego. We will pay more due to limit on 401k tax-deferral
Trump
vows is or is not up for cutting.
Trump
is not told what is in tax cut bill so he doesn’t say the wrong thing. ‘Tax
cut’ is happy talk he could do all day.
GOP
to cut our military service retirement too. GOP does not mention
elimination
of corporate subsidies and allowing
un-taxed profits sent overseas.
We must pay tax on ALL our income including world mutual funds.
2017 has been great
for stocks—market index passes 17%
If you are using the
Buffett strategy, you are keeping almost all of the 17+% because your TOTAL
costs are just 0.04%.
Your
total return since inception is 11% a year. If you have a ‘professional’
advisor, you are lucky to see your return hit 8%. That is the poor showing at
Harvard Endowment with over 230 smart money managers. It seems the more people
working on your ‘endowment,’ the poorer the results.
Harvard
is firing HALF its investment ‘professionals’ and going back to fundamentals.
Buffett bet a $1 million with a hedge fund ‘professional’ 10 years ago that
this index fund could beat hedge fund picks. Buffett was right—7% vs 2% over 10
years. Now the hedge must give up $1 million in fees taken but not earned.
Maybe it is time you made the switch—give ‘professionals’ a rest. Harvard cut
its staff. Maybe it is time to cut your advisor too.
Buy the best and KEEP more of your
money:
https://www.amazon.com/
Vanguards-Top-Ten-mutual-funds/dp/150073909X
Is buying new ‘virtual currencies’ right for you?
Famous
people are now falling for the old scheme. Buy something of no value so you
can cash in when others drive the price up. ‘Get in on the ground floor.’ This
is like buying penny stocks because all the celebs are doing it. Or buying
Vietnamese or
Iraq
currencies because they may appreciate later. Or buying the latest health cure
because after 2,000 years, jellyfish are really good for you. We all want the
quick way to be rich but it is the
promoters
who get rich before they get caught or end up leaving the country. It is a
lot easier to take the advice of a
proven expert like Warren Buffett who
has nothing to gain from helping you. His advice is so simple that rich smart
people don’t take it.
Buffett strategy is simple and it works:
https://www.amazon.com/Buffett-Strategy-854-000-not/dp/1978481020
What are your chances of having $1 million in retirement?
Your chances of being struck by lightning are 1 in 700,000. Your chance of
winning $1 million in the lottery is 1 in 230 million. Your chance of having to
pay the estate tax is about 1 in 25,000,000. Your chance of accumulating $1
million by retirement is
1
in 1. Your pay 0.04% fees and use a tax-FREE account. If you or your family
invested
just $167 a month $2,000
for 8 years before your 26 birthday ($16,000), you would have $1 million at
age 66. Or, following Buffett’s advice to just invest in the market index, your
$250
a month working for 34-36 years would produce over $1 million. It is time
and
compounding at the high rates
of stocks that Buffett claims is what provided his
$73
Billions. He knows more than a Wall Street salesman or ‘professional’
analyst. He does the opposite of them.
It just takes time and leaving your
money at work 24/7.
Is an annuity ever
right for you?
Annuities are a
favorite of advisors and agents. Why? Insurers pay well for your money. But are
they right for you. There are many types and each insurance contract would take
an army of lawyers to decipher. In their simplest form, an annuity would pay
you $1,512 a month, 18,144 a year, for the rest of your life in exchange for $250,000 deposit today if you are a
man 69. If you die next year, the insurer keeps the $240,000. If you live to be
90, that $1,512 a month will only buy $800 a month in goods. To have your $1,512
keep up with inflation or add 3% a year will cost you more. Most people don’t
like the chance of losing $240,000 so they pay more to receive at least 10
years of payments—heirs receive the payments. Each time you add another ‘extra’
you will pay more or receive less per month. Since interest rates are low, your
payments will be lower for the rest of your life. If banks start paying you 5%
on your money, you will want to cancel and buy higher-payment annuity. Insurers
will charge more for a ‘cash back’ benefit but only if you order at the
beginning. Insurers will sell an annuity that only lasts for 10 years. You will
receive $2,286 a month but that defeats the purpose of longevity insurance.
Details!
Trump allows advisor/brokers to sell you the
best for them not for YOU
Beware of advisor talk about retirement money—you can lose big. Trump has
delay the implementation of this Obama rule that says, when your advisor talks
about your retirement money, they must do what is best for YOU. In the past,
retirees
lost $17 billion a year on unnecessary costs. Product sellers got very rich
offering products that were
best
for them, not you—earning 7% or more. Regulations are important because
financial people can make big profits on products too complicated for most us
to understand. We are misled and later, in 30 years, we find out the truth.
Sales are usually final. Trump has even made it illegal to sue those who misled
us. And Trump supporters were just the people Obama was trying to protect from
the fraud. Avoid being misled and paying fees.
It is your retirement:
https://www.amazon.com/Fiduciary-Rule-BEST-dont-give-fees-anymore/dp/1530980275
GOP religionists condemn everyone who is not them
VP United States used his office to pledge The Don’s
commitment to protecting and promoting religious freedom as a foreign-policy
priority of the Trump administration. This means their view of Christianity.
There were no Muslims allowed at the dinner for the “Defense of Christianity.”
He and Trump pledged to “help persecuted peoples reclaim their lands, return to
their homes, rebuild their lives, and replant the roots in their ancient place
of birth.” (Except all the non-Christians.) This sounds like our leaders in
defending
our invasion of Vietnam: To
stop
the spread of god-less communism. He blames the UN for not funding projects
in “Christian areas.” He did not mention that
The
Don has cut funding for the UN.
Red states deleting voters from election boards
IN GOP officials are deciding on their own to remove voters
from their rolls
if it is
believed that they have moved to another state. The law says the GOP must
confirm in writing that a voter has moved. The Indiana NAACP and the League of
Women Voters filed a similar lawsuit over the summer. OH has also eliminated
voters that the GOP does not think are eligible voters. However, the
Supremes
will hear a suit to stop voter suppression in this way. OH has different
methods of getting rid of Democratic voters. If you move and don’t respond to a
letter from OH, you are cut. Many other states are participating in Trump’s
national ID commission in which
he
claims millions voted for Hillary illegally. Voter fraud, it must be said,
has not been found
at
significant levels in any jurisdiction, but that has not stopped the
GOP from using new ideas to eliminate Dems from voting.
ObamaCare enrollment—maybe your last chance for quality care
GOP promise to end quality health care for us has begun.
Trump has cut subsidies for the poor just when the addiction crisis demands
more treatment not less. GOP budget for next year calls for adding $1.5 trillion to the deficit, cuts $4
trillion in spending including nearly $500 billion in
cuts
to Medicare and $1 trillion to Medicaid. Medicaid expansion was the means
by which millions of middle class people got health care plans for the first
time. GOP will leave it up the states to decide who will be covered in the
future.
ObamaCare
plans with full coverage for the whole family may be the only way many will
keep their coverage. Congress will keep their ObamaCare full coverage for
themselves and have us pay for it while they favor insurers going back to
“junk” insurance for the rest of us. Congress could negotiate lower drug and
hospital costs but lobbyists won’t let them. Instead they are buying more war
items. But terrorist do not fear more missiles.
Top picks include 2 new ones: Kia Niro, a hybrid SUV that I have never seen. It's not a perfect
car, says
Consumer Reports. "The handling lacks agility and the ride
is a bit choppy," it says. But it is the closest thing to a Duracell
battery with four wheels that you can find. Another new one and this one can
have a manual 6 speed: Subaru BRZ
sports car. Subaru and
Toyota
built this fast one together. You may think sports and reliable don’t go
together but maybe this one is worth a shot. This fun ride and elevated noise
can be taxing. But hey, we are not commuting anymore.
Beware
long-term loan: 42% of auto loans now run six years or more, compared to
just 26% in 2009.
Buy
used luxury.
****************
TrumpWorld
Mueller’s statement does
indicate that the Trump campaign was attempting to create a secret connection
with Putin’s office just as Russia was waging information
warfare against the United States. Imagine how the Kremlin
might have interpreted such warm and welcoming signals from the Trump campaign.
This was not a knock-it-off message. It was a let’s-work-together
message being sent to an adversary while it was assaulting US democracy.
Trump is a successful businessman but bankrupt 6 times and
has no
leadership qualities: humility, curiosity, love challenges, do job well, listening
and leadership; accountability and generosity; humility and audacity. trustworthiness
at the top. Failures say ‘I don’t need to work hard, I’m smart.’ Really?
Humility is important.” Listen and learn.
My Theory:
TrumpWorld –
using presidency to make money the old fashioned way:
theft
Dictator talk time:
“When the president does it, that means it is not
illegal,” Richard Nixon
The Don is moving
us to a dictatorship where the only people who go to jail are his enemies and
non whites he does not like.
Racists
and nationalists get pardons. If Flynn
Page
and
Manafort
get indicted by Mueller, The Don will just give them a “get out of jail
free” card so they don’t rat him out. He is also paying their lawyers to keep
quiet.
Quid pro quo:
"something for something."
We have given The Don time to act like president:
Time
to Impeach for obstructing FBI investigation of our enemy disrupting our
election process.
How Govt wastes our
money:
Repeals Nixon’s minimum tax for wealthy and Wilson’s
estate tax for dynasties.
Repealing the estate
tax is estimated to cost $279 billion
SCAMS:
Jobs:
IAN
41 Watchung Plaza, B242
Montclair, NJ 07042
973.746.2014
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