Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.
100% Tax On The 1%
The single biggest reason we are in this Fiscal Cliff mess is the tug of war between the President and the House. The House wants to keep tax rates low for everyone. The President wants to keep taxes low for everyone except those in the top tax bracket.
Why the difference of opinion? The excuse is that if the top tax bracket folks “pay their fair share” all will be right with the world, the government can finally balance the budget and pay off trillions in debt.
There’s just one little problem, the math doesn’t add up. Even if we take it to an extreme with a 100% income tax on millionaires, there would be a shortfall. This class warfare smokescreen is a waste of time and just draws everyone’s attention away from real problems.
Best Investment Ever
Peyton Manning is now the proud owner of 21 Papa John’s restaurants in Colorado. Should it really be a surprise that just two weeks later Colorado voters legalized marijuana? A coincidence. Or did Bronco fans find a way to thank their star QB through this nicely timed derivative play. I can already see new advertising in the works: Nothing cures the munchies like Papa John’s does!
- Yield is the Last Refuge of Scoundrels – I covered the err of yield chasing early this week. This post offers a similar warning, expanding the concern to other yield driven assets too.
- Financial Repression – Solutions for the Individual Investor – Ken echoes these yield chasing concerns with a common sense investment approach.
- The One Thing That Can Kill Your Portfolio – A great summation of behavioral finance in its purest form.
- Dicey Retirement: The Long Ride Down – Shows the real effects the Great Recession has had on Boomers. The current economic condition isn’t helping.
- The Fiscal Cliff: A Primer – If you can’t get enough fiscal cliff, the Tax Foundation digs deep into the numbers breaking everything down for you.