Tag: "investments"

Income Inequality from a Plain-Spoken Perspective

Earlier this week, I participated in a televised panel discussion on income inequality.  The topic has generated much discussion lately, as President Obama’s central theme has been how to fix the gap between the rich and the poor.  My general thought is it simply cannot be fixed by dragging out the usual redistribution solutions – […]

Investment Panic Doesn’t Pay

I recall during the market and housing crash of fall 2008 that many savers were running from the stock market.  As panic ensued, the strategy of “buy high, sell low” became commonplace, and those who stayed the path of regularly saving and investing in equities were viewed as risky and idealistic.  This prompted me to […]

The High Marginal Cost of the Social Security Benefits Tax

In yesterday’s Dallas Morning News, financial columnist Scott Burns discussed the hard-hitting Social Security benefits tax.  Using Turbo-Tax, he demonstrates how middle-income seniors (those earning $41,343 to $77,343) are hit by the tax.  Since the income thresholds are not adjusted for inflation, but Social Security benefits are, more seniors will have pay the tax as […]

Paying People to Buy; Punishing Them for Saving

Today the NCPA featured a report summary in its Daily Policy Digest on how taxing capital penalizes saving.   The report, by Alan Viard of the American Enterprise Institute, provides a clear example of how even if the tax rates on labor income and saving are the same, the saver still pays a greater effective tax rate […]

Rich or Simply Frugal?

There is always a target for bad tax policy, and these days it seems to be the rich.  Every scheme designed to raise tax revenue is usually based on taxing the rich more, taxing the poor less, and generally redistributing wealth so that society is fair.  Sadly, however, the non-wealthy but frugal and hard-working citizen often […]

Are Millennials Ready for Social Security Reform?

Government is very good at crowding out private sector activities.  When government borrows, it can cause interest rates to rise and crowd out more productive private sector borrowing.  When government expands welfare programs to help the hungry and homeless, the effect is the crowding out of individual giving to more efficient private-sector programs.  And decades […]

Nervously Holding Bonds

cialis online     The stock market is getting a bad reputation these days. It waxes and wanes hour by hour depending on everything from who is elected president to the future of twinkies and cupcakes. Never mind that in the grand scheme of things, individual stock returns are really based on corporate earnings, and […]

Why the Punishment of Saving and Investment Hurts the Middle Class

viagra price 225.jpg” alt=”” width=”300″ height=”225″ /> As the end of the 2012 tax year approaches, it dawned on me that with little goodies like the home mortgage interest deduction and property tax deductions, other forms of saving and investment essentially punish the middle class. Suppose a household earning $100,000 a year purchases a home for […]

Falling Incomes In the Midst of Economic "Recovery"

Baby boomers just can’t get a break. Catherine Rampell of the New York Times” Economix blog reports that since mid-2009, the median household income across the working age population has fallen, with the worst decline (10 percent) seen among 55 to 64 year olds. Rampell notes that re-employment opportunities for this age group are slimmer […]

Is the Path to Retirement Just Pure Luck? (Part II)