Taxing the Rich Federal income tax was first implemented in 1862 as a temporary measure to pay for the costs of the Civil War . It was a marginal tax rate that peaked at 5 percent of income. The tax was repealed in 1872. In 1894, another federal income tax was levied, but it was … Continue reading Taxing the Rich
I found something recently that I thought was pretty neat. Let "true" be represented by a 1 and "false" be represented by a 0. Consider two logical claims A and B. The truth tables for "A and B" and "A or B" are as follows: But what if we represent "true" by 0 and "false" … Continue reading A Neat Logical Symmetry
People like money, they like getting more money, and they like keeping the money they get. This fundamental fact explains much of the behavior in our economy, and drives the Law of Supply and Demand . In this post, we will discuss the ramifications of several new tax proposals with these fundamentals in mind. Elizabeth … Continue reading Unintended Consequences of Tax Proposals
Our government is currently indebted $22 trillion (not counting unfunded liabilities, which increases the debt to $122 trillion) . But how does this debt manifest itself in terms of modern day purchasing power? Let us suppose that 98% of the workforce were currently employed and that the nation did not have any debt; then 98% … Continue reading The Trickle Up Economics of Government Debt
Whenever I suggest that our government is too large, I receive the statement, "But, the roads!" This happened when I asked Barbara Boxer why it was appropriate for the federal government to have the public bail out banks, it happens when I discuss political topics on reddit, and it happens regularly in conversation. The federal … Continue reading But … the Roads!
Prologue: I've been giving more up to date thoughts on twitter. If you're interested, you can follow me here: https://twitter.com/ndwork. It's been a tough three months in the stock market. Whereas many observers thought this drop was unwarranted, I gave many reasons for it in my last blog post. After the recent correction, where do … Continue reading The Market: What’s Coming?
On 4/2/2018, I predicted that the economy was starting another recession and that stock prices would drop dramatically. With my own savings, I took almost all of my money out of the stock market and put it (largely) in two places: short term CDs (3-6 months) and gold (the GLD ETF). (Note that this wasn't … Continue reading An Economic Projection