Become a Patron! In the frenzy to pass the Smash-and-Grab Tax Act of 2017, a faction of Republican senators who, totally coincidentally, are the owners of passthrough businesses, insisted on including a special treat: in addition to tax cuts on the profits of C corporations, and cuts to the personal income tax rates they pay on their passthrough income, they demanded that … [Read more...] about What you need to know about the idiotic “QBI deduction reduction” rule
Archives for January 2020
Smart people overestimate the difficulty of maximizing the interest earned on savings
Become a Patron! I've been using high-interest rewards checking accounts and other "gimmick" accounts for so long, I had somehow convinced myself that everybody else was using them, too. So imagine my shock listening to a recent episode of the Milenomics Squared podcast, hosted by two of the savviest guys I know, when they both essentially said, "it seems like too much … [Read more...] about Smart people overestimate the difficulty of maximizing the interest earned on savings
Why even the perfect income tax can’t substitute for a wealth tax
Become a Patron! After they finish hemming and hawing about "constitutional" arguments, opponents of proposals for an American tax on very large fortunes typically make one of two arguments: a more-progressive, better-enforced income and estate tax code could achieve the same revenue goals as a wealth tax, or; a value-added tax, like those used to fund European … [Read more...] about Why even the perfect income tax can’t substitute for a wealth tax
Biden is wrong about Social Security, but so is everybody else
Become a Patron! In a bit of a surprising turn in the lead-up to the Iowa caucuses, former Vice President and Delaware Senator Joe Biden has finally come under sustained criticism for his career-long advocacy for cuts to Social Security. I'm not sure why his rivals didn't elevate this criticism earlier, but it's obviously correct: he has advocated and voted for cuts to … [Read more...] about Biden is wrong about Social Security, but so is everybody else
Direct indexing and shareholder democracy
Become a Patron! The late Paul Volcker is famously said to have quipped that he hadn’t seen a worthwhile financial innovation since the ATM, which makes him slightly more cynical than even I am. In fact, I think we're on the brink of a real revolution in shareholder democracy. Mutual funds and direct ownership are competitors Vanguard has offered low-cost, commission-free, … [Read more...] about Direct indexing and shareholder democracy