The tax bill Republicans are planning to pass in the next day or two is not a good bill, and hopefully it will not pass. The fact that people have correctly identified it as a bad bill, however, has given rise to quite a bit of sloppy thinking about why, exactly the bill is so bad. The effect of replacing the personal exemption with a larger child tax credit is genuinely … [Read more...] about Congress wants you to sell stocks to pay your taxes
It’s not too late to enroll in health insurance
As an independent businessperson, I've been enrolled in health insurance through the Affordable Care Act practically since it went into effect. Due to an unprecedented buildup of bile, the current administration radically shortened the open enrollment period for plans offered on the ACA marketplaces, which will lead to somewhat fewer people enrolling in time for their coverage … [Read more...] about It’s not too late to enroll in health insurance
Survivorship bias everywhere
Survivorship bias is one of those rare ideas that is at once instantly accessible and incredibly powerful. The classic explanation of survivorship bias is when a mutual fund company advertises the 5-year or 10-year returns of the funds it offers, without reporting the 5-year or 10-year returns of all the funds that didn't survive 5 or 10 years, since they were closed for … [Read more...] about Survivorship bias everywhere
The effect of estate tax repeal on the 529 scam
One of the first posts I wrote here was about the 529 scam. I explained that 529 plans are a way for wealthy individuals to permanently shield an almost unlimited amount of assets from taxation, and that the scam was made sustainable by the very large number of middle class people saving a very small amount of money who are absolutely convinced that 529 plans are a way to save … [Read more...] about The effect of estate tax repeal on the 529 scam
The real reason arbitrage opportunities last so long
Every once in a while you come across a seemingly insignificant coincidence that gives a different perspective on a question you thought you understood the answer to. I had one of those moments the other day when, for the second time in the course of a few weeks, a popular economics Twitter account dismissed my suggestion that he open a high-interest checking by saying "That … [Read more...] about The real reason arbitrage opportunities last so long