Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts

6/14/2023

CEO of the Tax Foundation Daniel Bunn urges lawmakers to reign in federal spending

 

June 14, 2023

From the latest Ripon Forum, CEO of the Tax Foundation Daniel Bunn urges lawmakers to reign in federal spending now to save our economy for the future:
Is the U.S. tax system rigged in favor of the rich? That’s the belief of many Americans today, but the data suggests otherwise. The U.S. tax and transfer system is highly progressive and redistributive. But if policymakers continue to double down on this progressivity while ignoring our nation’s debt, it could come at a cost to the American economy.
There are many ways to measure this, but the most thorough is the “effective fiscal incidence rate” — the amount of tax a person bears (directly and indirectly) relative to their comprehensive income (including government transfers). Government transfers — which include things like Social Security and Medicaid — make up 59 percent of the bottom quintile’s income; excluding transfers when looking at our tax code vastly understates the progressivity of our fiscal system.
But even before accounting for government transfers, the combined federal, state, and local tax system is progressive. In 2019, the top quintile of households paid 34.5 percent, while the middle and bottom quintiles paid 24.7 percent and 24.6 percent, respectively.
When transfers are included, the system becomes substantially more progressive: the top quintile’s rate jumps to 41.4 percent, while the middle and bottom quintiles drop to 22.4 percent and 10.1 percent, respectively. All told, the transfer system redistributed $1.7 trillion from the top two quintiles to the bottom three in 2019. This is not a system that benefits the rich at the expense of the poor.
While this sounds “fair” on paper, keep in mind that progressivity comes at a cost. Research finds a negative relationship between taxes and growth, with a more pronounced effect for progressive taxes.
Why? Because people respond to incentives. On the margin, higher taxes on corporations and shareholders reduce the incentives to invest, which means fewer workers, lower wages, and less innovation. And progressive taxes lower the returns to education, investment, entrepreneurialism, and risk-taking. Lower levels of these activities harm not just individuals, but the broader economy.
Unfortunately, this hasn’t tempered proposals to make the U.S. tax system even more progressive. At the state level, seven states have introduced legislation to enact wealth taxes targeting net worth, capital gains, and estates. These, as Tax Foundation’s Jared Walczak puts it, “are economically destructive, their base is almost impossible to measure accurately, and they create perverse incentives and promote costly avoidance strategies. Very few taxpayers would remit wealth taxes — but many more would pay the price.”
And at the federal level, President Biden’s recently released budget would add almost $4.8 trillion in new taxes over the next decade, targeted at high-income individuals and businesses. Though these policies are aimed at the rich, they’ll impact everybody. These changes would reduce long-run GDP, shrink wages, and eliminate 335,000 jobs, according to Tax Foundation research.

6/12/2023

Please understand what NOT using cash is doing.

 

June 12, 2023

I have really never thought of this, has anyone else?
💲Please understand what NOT
using cash is doing.
Cash is important. 💸
Why should we pay cash everywhere we can
with banknotes instead of a credit card? 💳
- I have a $50 banknote in my pocket.
Going to a restaurant and paying for dinner with it. The restaurant owner then uses the bill to pay for the laundry. The laundry owner then uses the bill to pay the barber. The barber will then use the bill for shopping.
After an unlimited number of payments, it will still remain $50, which has fulfilled its purpose to everyone who used it for payment and the bank has jumped dry from every cash payment transaction made...
- But if I come to a restaurant and pay digitally - Card, and bank fees for my payment transaction charged to the seller are 3%, so around $1.50 and so will the fee $1.50 for each further payment transaction or owner re laundry or payments of the owner of the laundry shop, or payments of the barber etc.....
Therefore, after 30 transactions, the initial $50 will remain only $5 😫 and the remaining $45 became the property of the bank 🏦 thanks to all digital transactions and fees.
Small businesses need your help and this is one way to help ourselves too. Pull small draws of cash out at a time and use that instead of tap, credit, etc.
When this is put into perspective, imagine what each retailer is paying on a monthly basis in fees at 3% per transaction through their POS machine.
If they have, for example, $50,000 in sales & 90% are by Card, they are paying $1500 in fees in ONE Month. $18,000 in a year! That comes out of their income every month.
That would go a long way to helping that small business provide for its family!

At a time when most Americans are living paycheck to paycheck, the ‘quiet luxury’ trend takes over

 

June 12, 2023

  • The “quiet luxury” trend has quickly caught on, even though, these days, most Americans are more likely to live paycheck to paycheck.
  • Marked by expensive materials in muted tones, quiet luxury is also known as stealth wealth.
  • As Americans’ economic circumstances get increasingly divided, consumers could benefit from the shift to low-key basics over loud logos, one financial expert says.
  • Full Article

6/07/2023

White House rolls out ‘Invest in America’ website to highlight Biden’s domestic projects


 June 7, 2023

The White House launched a new website Tuesday for Americans to track all federal projects funded by the Biden administration. The website, Invest.gov, maps out tens of thousands of infrastructure projects across the country, including the Inflation Reduction Act and the American Rescue Plan.

Article

Central Bank Digital Currency Concern

 

June 7, 2023

According to a column written by the guest, “You won’t be able to buy anything without permission from the government.  Every dollar you earn, spend, or save will be monitored by autocrats, who, with the click of a button, can turn off your earning, spending, or saving potential at any time.  You’ll be forced to buy food, clothing, shelter–and everything else you need or want–according to tyrannical dictate.  Or you will be prevented from purchasing by the same oligarchs, who control not only what you buy, but when and from whom you but it.” 

Full Article

5/25/2023

What Republicans want in exchange for raising the debt limit

 

May 25, 2023

 Debt ceiling negotiations between the White House and congressional Republicans took on a new, harder tone this week after House Speaker Kevin McCarthy signaled that he was not willing to compromise with Democrats over a list of GOP demands.

Instead, McCarthy’s deputies say they view a vote to raise the debt ceiling — and to avoid a potentially catastrophic U.S. debt default — as a concession to Democrats, and potentially the only one they plan to make. Given the havoc a default could wreak on the global economy, increasing the borrowing limit is typically a formality, often structured as a companion bill that gets tacked on to unrelated legislation.

Rep. Patrick McHenry, of North Carolina, a chief GOP negotiator, was asked Tuesday night what concessions Democrats were getting as part of a potential compromise with the White House to win both Republican and Democratic votes.

“The debt ceiling,” he replied.

“That’s what they’re getting,” added Rep. Garret Graves, of Louisiana, another GOP negotiator.

Full Article

5/12/2023

Fed Governor Waller casts doubt on need to conduct climate change tests for banks

 

May 12, 2023

Federal Reserve Governor Christopher Waller on Thursday cast doubt on the need for special focus on how banks are preparing for climate change risks.

While acknowledging the risks that climate change poses, he said catastrophic events like hurricanes and floods don’t generally reverberate across the U.S. economy. Thus, he said that conducting special tests for how banks are preparing for such events probably shouldn’t fall under the Fed’s purview.

“I don’t see a need for special treatment for climate-related risks in our financial stability monitoring and policies,” Waller said in the prepared remarks for a speech in Madrid. “Based on what I’ve seen so far, I believe that placing an outsized focus on climate-related risks is not needed, and the Federal Reserve should focus on more near-term and material risks in keeping with our mandate.”

Full Article

King dollar will continue to reign supreme for 3 key reasons despite rising talk of de-dollarization

 

May 12, 2023

  • The US dollar is king and its reign won't end any time soon, according to LPL's chief global strategist Quincy Krosby.
  • Recent currency moves by China and Russia have led to increased reports of a "de-dollarization" movement.
  • But there are 3 key reasons why the US dollar won't be dethroned, according to Krosby.
  • Efforts by China to turn its yuan into a top global reserve currency have sparked fears about the potential downfall of the US dollar, but that's not happening any time soon according to one Wall Street strategist.

    As the world's second largest economy, China has been working towards better incorporating its yuan currency into various facets of global trade for years.

  • Full Article

How Will BRICS Currency Affect the US Dollar?

 

May 12, 2023

Ther are many sections to this article.  Please read them all to fully understand the attack on the U.S. Currency.

The BRICS Alliance has had serious talks over a new currency, which can be dangerous for the future of the USD. One of BRICS’ goals with a new currency is the de-dollarization of the greenback bill, and successfully implementing the BRICS currency can start a domino effect of the US dollar slipping.

The upcoming BRICS summit in August will have plenty of debates and conversations, specifically about this new currency and new nations joining the alliance. It’s clear that BRICS Currency would have an effect on the USD, but exactly how much of an effect can it have?

Full Article

A Banking Crisis Shouldn’t Be the Taxpayer’s Problem.

 

May 12, 2023

Chairman and CEO of JPMorgan Chase, Jamie Dimon wrote shareholders about banking turmoil, “As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come.”

IGI Global defines a banking crisis:

1. Banking crisis reflects the crisis of liquidity and insolvency of one or more banks in the financial system. Due to bank’s sizable losses, bank encounters critical liquidity shortage…disrupting its ability in repaying the debt contracts and the withdrawals demanded by depositors.

2. A subset of financial crises that are felt acutely within the banking sector…having national and international implications wherein either the given capital of the banking system is practically exhausted,…or where the cost of resolving the problems of a financial system amounts to at least 3-5% of the national Gross Domestic Product.

Banks lose billions on high-risk investments, creating a tsunami of economic problems. Private businesses fail all the time. Why is the banking system treated differently?

Full Article

5/10/2023

White House says Biden has a ‘different vision’ for avoiding default

 

May 10, 2023

During a press briefing Tuesday, White House Press Secretary Karine Jean-Pierre said President Joe Biden has a “different vision” than House Republicans when it comes to preventing a government default. Jean-Pierre said Biden will elaborate more on his idea for tacking the debt ceiling on Wednesday while he visits New York.

Article

A failed attempt to understand 'Bidenomics'

 

May 10, 2023

 Richard Blakley figures ol' Joe didn't take Economics 101 at Syracuse University

In a 1987 briefing, then-Sen. Joe Biden verbally attacked a reporter, stating that he went to Syracuse University on a full academic scholarship, graduated in the top half of his class, was the outstanding political student, earned three degrees and had a much higher IQ than the reporter to whom he was speaking. This interaction is at 2 minutes and 50 seconds into Jesse Watters' Fox program or at one of several other locations.

While Biden's comments were meant to intimidate and belittle the reporter, this did not prevent honest mainstream investigative reporters of 1987 from seeking confirmation of the senator's statements. They determined that Joe did not go to college on a full academic scholarship, did not graduate in the top half of his class, but instead graduated 76 out of 85, which means he was in the bottom half of his class, was not the outstanding political student and did not earn three degrees, but graduated with one. The only thing left to consider is Biden's comment about his IQ, which I think speaks for itself. How could you miss on this many things? Note that this was before he was senile.

Full Article

Everything you've heard about the debt limit is wrong

 

May 10, 2023

James D. Agresti: 'If there is a default, it will only be because the Biden administration breaks the law'

Contrary to widespread claims that the U.S. government will default on its debt if Congress doesn’t raise the debt limit, federal law and the Constitution require the Treasury to pay the debt, and it has ample tax revenues to do this.

Nor would Social Security benefits be affected by a debt limit stalemate unless President Biden illegally diverts Social Security revenues to other programs.

The debt limit is a valuable tool for transparency, accountability, and giving voters an ongoing say in how their money is spent.

Full Article

5/09/2023

Senators feast on taxpayer-funded earmarks for pricey projects

 

May 9, 2023

Through largely hidden budget earmarks, S.C. senators have proposed a total of more than $314 million for projects next fiscal year mainly in their respective legislative districts – including dozens of $1 million-plus requests, a review by The Nerve found.

The 46-member Senate two years ago changed its rules purportedly to require more disclosure of historically secret taxpayer-funded earmarks, but the chamber hasn’t posted online its latest earmark list, though it passed a $38-billion, fiscal year 2023-24 state budget version on April 19.

The Nerve recently obtained the Senate earmark list under the S.C. Freedom of Information Act. A separate request under the open-records law was made for any House earmarks; House Clerk Charles Reid in a written response said the 124-member chamber has “no document(s) responsive to your request.”

Full Article

McCarthy says no progress in debt ceiling talks with Biden: ‘I didn't see any new movement’

 

May 9, 2023

House Speaker Kevin McCarthy said Tuesday he saw no new movement from President Biden during a White House meeting on debt limit negotiations, just weeks before the federal government is set to run out of cash to pay its bills by June 1.

"Everybody in this meeting reiterated the positions they were at. I didn't see any new movement," the speaker said. He said nothing has changed for Biden since they met on the same issue on Feb. 1.

McCarthy said the next steps on the issue is for staff-level meetings to take place over the rest of the week, and then hold another meeting between Biden, McCarthy and other congressional leaders.

Full Article

US Economic Optimism Takes a Nosedive in IBD/TIPP’s May Poll, With the Six-Month Outlook Plummeting 16.8%


May 9, 2023

The Presidential Leadership and National Outlook indexes also show significant declines as financial stress remains high.

The IBD/TIPP Economic Optimism Index, a leading national poll on consumer confidence, today revealed that economic optimism has fallen. After three consecutive months of improvement, the May index dropped 12.2% overall, with specific components exhibiting even greater percentage changes. This month’s reading of 41.6 was down from April’s 47.4. The index has now been in negative territory for 21 consecutive months. A reading above 50.0 signals optimism and below 50.0 indicates pessimism on IBD/TIPP indexes.

Full Article

Americans Lack Confidence in Major Economic Leaders

 

May 9, 2023

WASHINGTON, D.C. -- With the U.S. facing a deadline to increase the nation’s debt limit and the threat of an economic recession looming, Americans lack confidence in a variety of key U.S. leaders on economic matters. Gallup finds between 34% and 38% of U.S. adults expressing a "great deal" or "fair amount" of confidence in President Joe Biden, Federal Reserve Chair Jerome Powell, Treasury Secretary Janet Yellen and congressional leaders in both major parties to do or recommend the right thing for the economy.

Full Article

Dems Pull Out All the Stops Ahead of Debt Limit Talk

 

May 9, 2023

Pass a clean debt limit increase, no strings attached. We will not negotiate! That was the line parroted by the president and Democrat lawmakers alike as time ticked away toward the disastrous default they say is coming sometime in early June. But then House Republicans passed a debt limit bill of their own – one with considerable budget cuts and a limit to spending hikes in the future – and the Democrats started singing a slightly different tune.

Nonnegotiating Negotiating?

After months of refusing to discuss the borrowing cap at all short of simply repeating his “clean bill” demand, President Joe Biden on Monday, May 1, called Speaker of the House Kevin McCarthy (R-CA) with an invitation to meet up and talk on Tuesday, May 9. White House Press Secretary Karine Jean-Pierre clarified the next day that the talk was not a sign that Biden would negotiate on the debt limit, and that it was the duty of Congress to raise the cap in order to pay the nation’s debts.

But if there’s nothing to discuss, why ask McCarthy for a meeting?

Full Article

Worries linger about financial stability following bank rescue, Fed report shows

 

May 9, 2023

  • The Federal Reserve issued its periodic report on the nation’s financial and economic health, a survey showing the biggest fears about current conditions.
  • Respondents cited “persistent inflation and tighter monetary policy, banking-sector stress, commercial and residential real estate and geopolitical tensions.”
  • Several sectors were identified as having elevated potential for trouble. They include money market funds, stablecoins and hedge funds, particularly larger firms.
  • Full Article