Beneath The Surface

Apr 20

So much for trying to motivate myself this morning to workout; set the alarm for PM instead of AM.

Nov 25

[video]

Nov 24

Health care rules limit amount of premium used towards overhead -

In other news… the Obama administration is now mandating specific amounts that health care insurers can charge consumers to cover overhead and profit. The govt’s reach into private industries is expanding even further and this is a dangerous precedent.

Nov 07

Great analysis from the Kaiser Family Foundation on where your federal tax dollars go.

If I forgot to mention, this is what 239 House seats looks like.

Follow the link to presumptive-Speaker John Boehner’s simple message on what we should except from Congressional leaders. [WSJ]

Oct 29

WSJ: The Tax Me More State -

It’s less than one-week til Election Day, so I felt it would be important to start posting pertinent thoughts / articles. Below are some quick facts about Proposition 25 in California, which would reduce approval of budgets and taxes to a mere simple majority. If you live in California & want to preserve any of the money you earn, it would be advised to vote against Proposition 25.

• The Tax Foundation announced this week that California has the second worst business tax climate of the 50 states, with only New York more hostile to employers.
• Proposition 24 would raise $1.3 billion of new taxes on businesses
• Proposition 25 would allow the state legislature to pass budgets and tax increases with a simple majority vote, instead of the current mandated two-thirds supermajority.
• Although annual budget squabbles may be messy, but they draw much-needed public attention to what the spending interests would prefer to keep secret in Sacramento.
• Proposition 24 is opposed by just about every iconic employer left in the state—from Disney to Hewlett-Packard to Intel—because it would take away any remaining tax incentives for investing in the state. Now although the WSJ - and myself included, would prefer no tax loopholes contingent on lower and flatter rates, I think we’ll have to wait for pigs to fly in CA until that happens
• Guess who’s the main sponsor of Prop 24 and 25?? California teachers union.

Oct 10

Inflation and Devaluing the Dollar Does NOT Lead to American Prosperity

A couple days ago, my idol - Larry Kudlow - highlighted the effects of inflation and how it is destroying the dollar.

A stable reliable dollar is a cornerstone of prosperity in out nation. As a matter of fact, continued inflation of the world’s reserve currency is an inflationary tax hike and will affect food, retail gasoline, imports and will ultimately impoverish our nation.

• The dollar has fallen 2% against the Euro this month.
• The dollar index has fallen 4.8% since Sep. 21 Fed meeting
• The following commodities/indexes are up: Industrial prices, imports agriculture, CRB foodstuff, raw material, and oil
• The Fed has made it very clear that they want higher inflation and is determined to print more money
• Weak dollar is not good for manufacturing because domestic companies are paying higher prices for imports
• As the world’s reserve currency, we have an even higher obligation to maintain the value of the US dollar
• A weak dollar will lead to high inflation, high interest rates, and a tax hike on all US consumer

(Source: cnbc.com)

Oct 04

Learning the Lessons of the Great Depression Could Have Mitigated the Impact of the so called Great Recession

• During the average recovery since World War II, gross domestic product (GDP) surpassed the pre-recession high five quarters after the recession began. It has never taken longer than seven quarters. Yet today, after 11 quarters, GDP is still below what it was in the fourth quarter of 2007. The economy is growing at only about a third of the rate of previous postwar recoveries from major recessions.
• In addition to our stagnant growth (which lags behind the EU, UK, G-7, and OECD) the United States has also led in biggest drop in unemployment figures since 2007.
• 
• In 1938 (decade after the crash), US industrial production had declined by 20% in comparison to its 1929 peak, whereas there was growth in UK and Italy by 10% and12%, respectively. 
• During this period individual taxes rose from 24% to 79% and corp taxes rose to 15% from 11%, however tax revenue declined during this period. (1 billion to 527 million)
• “The relations between the leaders of business and the Administration were uneasy, and this uneasiness accentuated the unwillingness of private enterprise to embark on further projects of capital expenditure which might have helped to sustain the economy.” - League of Nations’ assessment of FDR’s policies towards business.
• “Now, gentleman, we have tried spending money. We are spending more than we have ever spent before and it does not work … I say after eight years of this administration we have just as much unemployment as when we started … and an enormous debt, to boot.” - Henry Morgenthau, FDR’s Treasury Secretary 

(Source: The Wall Street Journal)

Oct 03

“If You Like Your Insurance You Can Keep It. Period!” Oh really??

• McDonald’s Corp. just reported that it may be forced to cancel its current coverage for 29,500 employees as a result of ObamaCare.
• Why? Because the new mandates will make its plans “economically prohibitive” and cause “a huge disruption” unless it gets a waiver.
• Given it high turnover (75%) and young workforce (nearly half are <25), McDonald’s uses a low-cost, low-benefit insurance known as “mini-med”.
• Mini med covers most medical services but generally have an annual deductible or benefit cap between $1,000 and $10,000. Unlike more comprehensive plans, there’s no catastrophic coverage.
• However, Dems hate mini-med; they classify it as “underinsurance”
• So what we will continually see is the choice is between relatively affordable coverage that isn’t as generous as Democrats think it should be and dumping coverage entirely

(Source: The Wall Street Journal)

Oct 02

Potential Tax Hikes in 2011 are Affecting Business Decisions

• Worries over whether Congress will extend some of the expiring Bush-era tax breaks are emerging as important factor in many investors’ and businesses’ decisions.
• President Barack Obama has been proposing to allow taxes on dividends and capital gains to rise to 20% from the current 15% for households with incomes of more than $250,000. But many Dems are favoring to let it rise to as high as 39.6%
• Stock prices of utilities recently have appeared to be factoring in the possibility of significantly higher dividend taxes next year.
• Some companies are pumping up dividend payments this year to beat the possible 2011 tax increase, and their shares have rallied.
• Small-business owners say unease about tax policy, along with the economy, has led them to hold off on hiring and investment.
• A July analysis by Barclays Capital suggested that increasing taxes on investment income, as many Democrats advocate, could trim about 9% off the S&P 500 index.
• While dividends are getting most of the attention, wealthy investors also are facing big incentives to realize capital gains by selling assets.

(Source: The Wall Street Journal)