Posts Tagged ‘billionaires’

Closing Tax Loopholes for Billionaires: A Billionaire Responds

Closing Tax Loopholes for Billionaires: A Billionaire Responds

paul allenCourtesy of Robert Reich 

The following from David Postman, who says he’s writing for Paul Allen:

“I work for Paul Allen. I’m writing to point out errors in your recent piece, ‘Closing Tax Loopholes for Billionaires.’ It is absolutely incorrect to say that Mr. Allen is ‘opposed to closing a tax loophole that allows hedge-fund and private equity managers to treat their earnings as capital gains.’”

“We have asked lawmakers to clarify their intent of the proposed language to make clear that it does not include individual investors like Mr. Allen, who are purely investing, not offering advice or management services. Democrats have been clear that they did not intend to include individual investors. We believe that individual investors – not hedge funds or private equity — should be able to continue to receive capital gains investment treatment.”

My apologies to Mr. Allen if I misstated his purpose in seeking to influence pending legislation. Evidently his only goal is to continue to pay 15 percent of his earnings in federal taxes on the grounds that he is an investor rather than an advisor.

Forgive me, though, if I still have doubts about the wisdom of treating his earnings this way. One of the most basic principles of taxation is known as “tax equity,” whereby two people drawing the same income should be treated the same for tax purposes.

Assume that Mr. Allen earns $200 million this year from his investments. (This is a conservative estimate since Mr. Allen’s personal wealth is estimated to be $13.5 billion, with earnings also from Vulcan Inc., his private asset management company, and a multi-billion dollar investment portfolio including stakes in DigeoKiha Software, real estate holdings, and more than 40 other technology, media, and content companies. Allen also owns three professional sports teams: the Seattle Seahawks of the National Football League, the Portland Trail Blazers of theNational Basketball Association, and the Seattle Sounders FCfranchise in Major League Soccer.)

Mr. Allen evidently believes most or all of this income should be taxed at 15 percent.

But suppose a high-tech entrepreneur (as Mr. Allen used to be) earns $200 million in income this year from a $10 million salary and $190 million bonus. The salary and bonus would be…
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The Challenge of Closing Tax Loopholes For Billionaires

"Call me old fashioned but I just think it’s wrong that a single hedge fund manager earns a billion dollars, when a billion dollars would pay the salaries of about 20,000 teachers." Guess I’m old fashioned too. I find the bonuses and tax evading practices of the ultra-weathy financiers even more outrageous than Mish’s Union examples. If free markets are a contradiction of terms – while we’re headed in the opposite direction at lightening speed – maybe we could at least strive for fairer markets? And good luck with that given we need the participation of our corrupted, banker and lobbyist-owned politicians. – Ilene 

The Challenge of Closing Tax Loopholes For Billionaires

Income Tax: John Bull

Courtesy of Robert Reich

Who could be opposed to closing a tax loophole that allows hedge-fund and private equity managers to treat their earnings as capital gains – and pay a rate of only 15 percent rather than the 35 percent applied to ordinary income?

Answer: Some of the nation’s most prominent and wealthiest private asset managers, such as Paul Allen and Henry Kravis, who, along with hordes of lobbyists, are determined to keep the loophole wide open. 
 
The House has already tried three times to close it only to have the Senate cave in because of campaign donations from these and other financiers who benefit from it.
 
But the measure will be brought up again in the next few weeks, and this time the result could be different. Few senators want to be overtly seen as favoring Wall Street. And tax revenues are needed to help pay for extensions of popular tax cuts, such as the college tax credit that reduces college costs for tens of thousands of poor and middle class families. Closing this particular loophole would net some $20 billion. 
 
It’s not as if these investment fund managers are worth a $20 billion subsidy. Nonetheless they argue that if they have to pay at the normal rate they’ll be discouraged from investing in innovative companies and startups. But if such investments are worthwhile they shouldn’t need to be subsidized. Besides, in the years leading up to the crash of 2008, hedge-fund and private equity fund managers weren’t exactly models of public service. Many speculated in ways that destabilized the whole financial system.

Nor…
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Chart School

RTT Plus Chart Book (Sneak Peak)

Courtesy of Read the Ticker.

The magic of support and resistance channel lines and how they direct price. Here are some chart disclosed to members via the RTT Plus service. All charts are a few weeks old. 


XAU bound by parallel channel lines.


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Newmont Mining support from Gann Angles.



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US Dollar index (DXY) dominate cycle ...

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Zero Hedge

To The Stars

Courtesy of ZeroHedge. View original post here.

Authored by Sven Henrich via NorthmanTrader.com,

Every once in a while, especially at market extremes, it’s good to take a stake of the bigger picture. Now that the market, highly encouraged by the Fed, has baked in a rate cut for July (25bp or 50bp we shall see) a quick look at some yearly charts may provide some eye opening context as to where and when this rate cut is supposed to take place.

...



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Phil's Favorites

The PhilStockWorld com LIVE Weekly Webinar - 07-17-19

 

For LIVE access on Wednesday afternoons, join us at Phil's Stock World – click here.

 

Major Topics:

00:02:11 Indexes Charts
00:02:59 Energy Charts
00:04:28 S&P500
00:18:48 Money Talk Portfolio
00:31:25 7 Steps to Consistently Making 30-40% Annual Returns
00:35:41 Top Trades
00:45:33 Long Term Portfolio
00:49:34 WPM
00:50:34 NFLX
01:06:31 Petroleum Status Report
01:09:16 Money Talk Portfolio Review
01:23:40 AAPL
01:33:06 Natural Gas
01:38:43 Charts and Portfolio Reviewa
01:44:20 Trade Ideas

Phil's Weekly Trading Webinars provide a great opportunity to learn ...



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Digital Currencies

Cryptos Suddenly Panic-Bid, Bitcoin Back Above $10k

Courtesy of ZeroHedge. View original post here.

Following further selling pressure overnight, someone (or more than one) has decided to buy-the-dip in cryptos this morning, sending Bitcoin (and most of the altcoins) soaring...

A sea of green...

Source: Coin360

Bitcoin surged back above $10,000...

Ethereum bounced off suppo...



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Kimble Charting Solutions

Silver ETF (SLV) Testing Dual Breakout Resistance

Courtesy of Chris Kimble.

Silver (NYSEARCA: SLV) has been in a bit of a slumber when compared to the price action for Gold (NYSEARCA: GLD).

Precious metals bulls hope that this about to change, as bullish action from Silver is necessary to confirm any bull market / move in metals.

Today’s chart takes a closer look at the Silver ETF (SLV) on a weekly basis. As you can see, Silver is up 5 percent this week alone.

This is good news for metals bulls. But this rally isn’t confirming a breakout just yet.

As you can see in the chart below, SLV has been trading between support (1) ...



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Insider Scoop

Analysts Weigh In On Netflix's Rocky Quarter

Courtesy of Benzinga.

Netflix, Inc. (NASDAQ: NFLX) reported second-quarter results highlighted by an uncharacteristic decline in U.S. subscribers while international subscriber adds missed expectations. Here is a summary of how some of the Street's top analysts reacted to the print.

The Analysts

Mor...



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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

Reminder: We're is available to chat with Members, comments are found below each post.

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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ValueWalk

Professor Shubha Ghosh On The Current State Of Gene Editing

 

Professor Shubha Ghosh On The Current State Of Gene Editing

Courtesy of Jacob Wolinsky, ValueWalk

ValueWalk’s Q&A session with Professor Shubha Ghosh, a professor of law and the director of the Syracuse Intellectual Property Law Institute. In this interview, Professor Ghosh discusses his background, the Human Genome Project, the current state of gene editing, 3D printing for organ operations, and gene editing regulation.

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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