Americans Racing to Stay in Place Thanks to Taxes & Healthcare

Americans Racing to Stay in Place Thanks to Taxes & Healthcare

Expenditures for taxes and healthcare are growing materially faster than incomes. For an economy to survive let alone thrive, no one area of expenditure can continue to rise faster than incomes. We saw this during the last business cycle as home prices continued to rise much faster than incomes – at some point, households can no longer keep up with the expense, typically with profound consequences for the economy as a whole. Many American families are feeling an awful lot like that hamster racing around on his wheel only to find he’s gained no ground.

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Tematica’s Take on Mnuchin’s Reforms and Growth Prospects

Tematica’s Take on Mnuchin’s Reforms and Growth Prospects

There are several drivers of a company’s business as well as the price of its shares, assuming it is publicly traded. We described many of these in Cocktail Investing: Distilling Everyday Noise into Clear Investment Signals for Better Returns, but a short list includes new technology, regulatory mandates, the overall speed of the global economy […]

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Tax-Free Back to School Spending Isn’t a Smart Financial Decision

Tax-Free Back to School Spending Isn’t a Smart Financial Decision

While Cash-strapped Consumers flock to tax free holidays, the data shows it only results in a pull forward of spending that reduces taxable receipts that would have been collected later. Another politically motivated decision that once again was not a smart financial one. Odds are we haven’t seen the last of these in the current election […]

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Americans Spend more on Taxes than Food, Clothing and Shelter

Americans Spend more on Taxes than Food, Clothing and Shelter

Wondering why Americans are so angry with D.C. despite the headlines insisting that the employment situation is fantastic? Just look at incomes and taxes. According to a recent Pew Research Center Report shows, while median household income has shrunk by 13% from 2004, expenditures have risen by nearly 14%, driven almost entirely by the cost […]

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Trump's Tax Plan

On February 18th I spoke with Donald Trump’s son, Eric Trump, about his father’s tax plan while I was on Mornings with Maria. One of the problems with Trump’s plan is that more than 50% of all households won’t pay any federal income taxes. That means that essentially over 50% of all voters won’t be […]

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Dating Rules for Growing the Economy

Dating Rules for Growing the Economy

After listening to the Presidential debate last night, I thought about how much of the discussion becomes unnecessarily complicated, so let’s apply some dating rules for growing the economy. This morning I saw this article in the Financial Times and felt like slapping those who defend the spying habits of the U.S. government upside the head.   Shocker… with […]

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Economic Recovery with a Booming Job Market?

The headlines keep telling us that we are in an economic recovery with a booming job market.  It is just that Joe Consumer is too dumb to know how good he has it.  Or maybe not.  Maybe there is more to the headlines.  I spoke with Rick Amato about just how weak this recovery has […]

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Walgreens and the morality of taxes

Walgreens and the morality of taxes

  There’s been quite a bit of chatter on Facebook and in the investment community concerning Walgreens’ (WAG) announcement that it does not intend to take advantage of the tax breaks its potential acquisition of Alliance Boots in the UK would allow under the tax code, a strategy which could save it and thus its […]

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Foreign Account Compliance Tax Act

Foreign Account Compliance Tax Act

I spoke at FreedomFest in Las Vegas… in July… yes, know my pain.  On my way out from my talk my dear friend Richard Rahn, (the infamous one-eyed economist) grabbed me and introduced me to the lovely Emerald Robinson so that we could talk about the recently enacted Foreign Account Compliance Tax Act aka FATCA and […]

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