Thursday, November 22, 2012
Thursday, November 15, 2012
Friday, November 2, 2012
Tuesday, October 2, 2012
Business income is different from employees' income in another way. The profit that a business makes is first taxed as profit and the remainder is then taxed again as the incomes of people who receive dividends.
The biggest losers from politicians who jack up tax rates are likely to be people who are looking for jobs that will not be there, because investments will not be there to create the jobs.
Read More At IBD: http://news.investors.com/ibd-editorials-viewpoint/100112-627745-why-capital-gains-taxes-are-lower.htm#ixzz28AUPwvdC
Monday, September 10, 2012
A crude rule of thumb is that every $100 billion of deficit reduction will cost close to a million jobs in the near term. If that isn't a reason to move gradually, what is? But if you need another, just look at Europe.
Sent from my iPhone
'The ESM is not only patently in breach of the German constitution, it also violates every relevant provision of the EU treaties. Article 123 of the Treaty on the Functioning of the European Union (TFEU) – which replaced the EC treaty – forbids the use of the printing press to bankroll governments and public authorities, makes it unlawful for them to borrow from the ECB or the national central banks, and expressly prohibits the sale of government bonds to the ECB.
The ESM would create a parallel "bad bank", which would be allowed to do everything the ECB is ostensibly prevented from doing under the treaties: to buy government bonds directly, to lend to national government, to grant such loans without any prescribed limit, and to rescue insolvent banks. Once the ESM runs out of money, it can borrow directly from the ECB – which will print the funds needed.
Moreover, the ECB president, Mario Draghi, has already indicated that he would take bond buys by the ESM as a green light that the ECB is no longer bound by the restrictions of article 123. At present the ECB has about €220bn in sub-standard Greek and other southern European government bonds on its balance sheet, in addition to much a higher sum of "shaky" government debt instruments deposited by banks as "securities" for ECB loans. Draghi refuses to disclose the breakdown of government debt on the ECB's books or their credit rating. The ESM treaty effectively provides for the mutualisation of national debt within the EU with no upper limit. Save for eurobonds, there could be no more flagrant violation of the "no bail" clause of article 125…
Yet, despite the ESM breaching German law and EU treaties, few observers expect Germany's constitutional court to say so, although many think it may ask for minor changes.
If implemented, the ESM will reverse the greatest 19th-century political achievement in Europe: the transfer of the power to determine taxation and expenditure from unaccountable monarchical governments to formally accountable parliaments. The eurocratic transformation will have taken place through systematic disregard by the EU institutions and its member states of practically all legal and constitutional safeguards put in place to prevent precisely the disaster that has befallen the eurozone now.'
Wednesday, September 5, 2012
'After working six years as a senior executive for a multinational payroll-processing company in Barcelona, Spain, Mr. Vildosola is cutting his professional and financial ties with his troubled homeland. He has moved his family to a village near Cambridge, England, where he will take the reins at a small software company, and he has transferred his savings from Spanish banks to British banks.
"The macro situation in Spain is getting worse and worse," Mr. Vildosola, 38, said last week just hours before boarding a plane to London with his wife and two small children. "There is just too much risk. Spain is going to be next after Greece, and I just don't want to end up holding devalued pesetas."
Mr. Vildosola is among many who worry that Spain's economic tailspin could eventually force the country's withdrawal from the euro and a return to its former currency, the peseta. That dire outcome is still considered a long shot, even if Spain might eventually require a Greek-style bailout. But there is no doubt that many of those in a position to do so are taking their money — and in some cases themselves — out of Spain.
In July, Spaniards withdrew a record 75 billion euros, or $94 billion, from their banks — an amount equal to 7 percent of the country's overall economic output — as doubts grew about the durability of Spain's financial system.
The deposit outflow in Spain reflects a broader capital flight problem that is by far the most serious in the euro zone. According to a recent research note from Nomura, capital departing the country equaled a startling 50 percent of gross domestic product over the past three months — driven largely by foreigners unloading stocks and bonds but also by Spaniards transferring their savings to foreign banks.'
Thursday, August 23, 2012
Saturday, August 18, 2012
Monday, August 13, 2012
The argument is essentially correct but flawed. Earning income and
paying taxes on it is a separate transaction from paying taxes on
capital gains. If a person makes money on dividends then that is
additional income that he pays taxes on.
The only real issue is that we have the highest corporate tax rate in
the world and dividends are taxed twice, not three times. The net tax
rate on dividends is around 50% and possibly much higher if Obama gets
his way. .
I say treat capital gains and dividends as ordinary income but abolish
or reduce corporate taxes. Corporations don't pay taxes. People do.
Corporate taxes end up being paid by the shareholders or the customers
with higher prices.
You could argue that you want to tax foreign corporations operating in
the U.S., in which case you would want to keep some corporate taxes
and keep the current tax on dividends.
Sunday, July 22, 2012
From: al grotz
This is exactly what's wrong with our system.
This quote is an excert from an article in the Deseret News online today:
(The Deseret News is one of the two major newspapers in Salt Lake City.)
Finally, the issues of inequality seem to be exacerbated by excessively high returns to the financial sector. "From 1973 to 1985," writes Simon Johnson, "the financial sector never earned more than 16 percent of domestic corporate profits." During the first decade of the 21st century, however, Johnson notes how the financial sector's portion of profits reached 41 percent.
Thomas Jefferson warned us what would happen if the banking system was allowed to become what it is today.
They have reached the point where they control everything including our politicians... to their own end.
They break the rules, they take risks, and when the risks go bad, they get bail outs (i.e. we the common taxpayers
pay for the loss so that they can still make their profit.)
More and more the banks are controlling us to their own end.
Saturday, June 30, 2012
Friday, June 29, 2012
'The new tax, which Congress passed in 2010, affects the net investment income of most joint filers with adjusted gross income of more than $250,000 ($200,000 for single filers). Starting on Jan. 1, 2013, the tax rates on long-term capital gains and dividends for these earners will jump from their current historic low of 15% to 18.8%, assuming Congress extends the current tax rates.
If, on the other hand, Congress allows the tax rates set in 2001 and 2003 to expire on Dec. 31—an unlikely scenario, according to many experts—the top rate on capital gains will rise to 23.8% and the top rate on dividends will nearly triple, to 43.4%.'
Wednesday, June 20, 2012
Tuesday, May 29, 2012
Thursday, May 17, 2012
Wednesday, May 9, 2012
Tuesday, April 3, 2012
… sooner or later this bubble is going to burst.
Friday, January 13, 2012
Tuesday, January 3, 2012
On Jan 3, 2012, at 12:47 PM, larry.r.trout wrote:
'Federal Reserve Banks generate their own income, primarily from interest earned on government securities that are acquired in the course of Federal Reserve monetary policy actions. A secondary source of income is derived from the provision of priced services to depository institutions, as required by the Monetary Control Act of 1980. Federal Reserve Banks are not, however, operated for a profit, and each year they return to the U.S. Treasury all earnings in excess of Federal Reserve operating and other expenses.'