Category Archives: Death and Taxes
The recent run-up in stocks have some investors wondering if municipal bond buyers rotate into stocks. On balance, I don’t think so. Granted, some investors used muni bonds as a “safe haven” while the stock markets declined, however, most muni bond buyers are long term buyers. Munis remain attractive for the following reasons:
Personal income tax rate outlook (Taxes are going up)
Perceived level of safety (Lower volatility than stocks)
Competitive tax equivalent yields
Not as interest rate sensitive as some other types of bonds
Historically low default rates
Chart Source: www.bloomberg.com
Taxes on distilled spirits are among the highest taxes imposed on any product. Nearly 80 percent of what you pay for a bottle goes to the government in taxes rather than for the liquor. At an average price of $13.10 for a 750mL bottle of 80 proof spirits, this amounts to the government stirring in $10.43 to your total at the register.
The federal excise tax pours $2.14 into the average cost of a 750 ml bottle, or about 16 percent of the $13.10. Then the median state excise taxes add another $3.75 to the same bottle. And because distilled spirits producers must pay federal and state income taxes, federal payroll taxes, property taxes and other taxes, these costs are passed on to consumers. These taxes tack on another $4.53 to the total price of a bottle of distilled spirits.
A Tax Cut for 95 Percent of Working Families? I don’t think so.
Obama: “My plan will provide a tax cut to 95 percent of all working families…”
You can’t cut taxes on 95 percent of working families because according to the IRS about one-third of all income tax filers don’t have an income tax liability.
About 15 percent of all working families don’t even have a FICA tax liability, and these numbers are before taking into effect all the new refundable tax credits of the Obama budget.
Call a spade a spade, Obama is redistributing income to “working families.”
Republicans are smarter than Democrats on financial matters? So what, we are all under educated on these matters
Source: Pew Research
My Comment: I highly recommend reading the WSJ article on taxing millionaires below. Donald Trump and Rush Limbaugh have come out aggressively against NY’s proposed “millionaire tax.” My problem is what this tax may do to small business owners. The uber wealthy like Trump, Limbaugh and Mayor Bloomberg could choose to live anywhere they want. Trump and Limbaugh have mentioned moving out of the NY state.
For many small business owners, their personal earnings are used for business cash flow and loans to the company in hard times. Taxes like these that are “marketed” as sticking it someone who can afford it are dangerous. The unintended consequences and collateral damage often outweigh any benefit gained from taxes like these.
As state, local and federal budgets get killed by the melting down economy our political leaders will find creative ways to tax us. The crippled economy makes wide spread tax increases politically impractical for the Dems – but right now the fictitious fat cat millionaire is an easy target. In reality many of those “fat cat millionaires” are the owners of a couple Subway franchises, or the specialty stereo shop owner, or the residential general contractor that is already hurting because of the weak housing market. I have problems with trickle down economics, but I have bigger problems with trick up poverty.
How Democrats Make Millionaires According to tax proposals, lots of us are ‘rich.’