Category Archives: Death and Taxes

MSFT to move jobs overseas if Obama’s tax plan passes

My Comments: Interesting quick read.  MSFT isn’t the only company analyzing their tax status.  I know it sounds good to “close tax loops” and many should, but sometimes it just doesn’t make sense.  Honestly, at times I don’t no where the line is either.

Bloomberg Article Excerpt:

Microsoft Corp. Chief Executive Officer Steven Ballmer said the world’s largest software company would move some employees offshore if Congress enacts President Barack Obama’s plans to impose higher taxes on U.S. companies’ foreign profits.

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Will municipal bond buyers rotate into stocks?

2009 muni vs sp

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

  • Demographic reasons

Chart Source: www.bloomberg.com

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Filed under Asset Allocation, Death and Taxes, Personal Finance, Stock Market

Cocktail anyone? Almost 80% of what you play for a bottle goes to Uncle Sam

martini

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.

 

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Obama is playing politics as usual

 estate-tax

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…”

Reality:

  • 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.”

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Republicans are smarter than Democrats on financial matters? So what, we are all under educated on these matters

dollar-and-sense

Source: Pew Research

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Filed under Death and Taxes, Economy, Humor, Personal Finance, Politix, Stock Market

The Republicans are dimwitted – but the Democrats are just plain wrong on taxes

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.’

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Filed under Death and Taxes, Economy, Personal Finance, Politix, President Obama

More government sponsored speculation by the banks with taxpayer money!

My Comment:  Did the taxpayer really take on more than a $1 trillion of additional debt so the same entities that started this mess can speculate about the crappy assets on their peer’s balance sheets?  I suspect when this becomes more known to the public, Congress will get involved so their head’s don’t role next time the voters are in the booth.  This is another example of “privatized gains, socialized losses.” 

Question:  why are the banks getting better treatment than the auto makers from President Obama and Congress?  Does it have anything to do with the fact that many high level government officials once worked at Goldman, Lehman etc…Which industry contributes more to political campaigns autos or banks?  Bank and financial services by a mile!

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Filed under Death and Taxes, Economy, President Obama, Proof that Humanity is F.U.B.A.R., Stock Market