Happy Tuesday. According to the Tax Policy Center (TPC), can you guess what percent of US households did NOT pay federal income tax in 2020? a. 21%, b. 41%, c. 61%. Check the answer in the "Trending" section below. Here are the personal finance topics for today:
TAXESThe game of tax: Using the tax code to your advantage
The ‘Boston Tea Party’ occurred almost 250 years ago in December 1773 when the loosely organized Sons of Liberty organization took to Griffin’s Wharf to dump 342 chests of British East India Company tea into the Boston harbor. In the eyes of American historians, this event remains a paramount example of the lengths we will go to pay less in taxes, especially those we disagree with. This maxim remains the same today as it was during the Revolutionary War, and in fact, the tax code even encourages it. The evolution of taxes Taxes in the United States haven’t always been as complex as they are today. In fact, the federal income tax we’re all too familiar with today (and also the most expensive form of taxation) wasn’t formally established until 1913 by way of the 16th amendment. Other forms of tax followed suit, such as the gift tax, sales tax, and capital gains. From there, taxes grew to become increasingly convoluted over time. In 1952, the highest marginal tax rate for an individual topped out at 92% and was still 70% through 1980. Since then, that number has continued to decline, and we now sit around pre-Great Depression levels.
Modern times—reducing your tax bill All of this history leads us to today, where we have more complexities and nuances than ever. Taxes have become a weirdly necessary Rube Goldberg machine. Despite their complications though, the tax code is trying its best to give us some breaks, and the more you know the more you save.
🤔 But what about taxes on other investments? Take this quiz to review capital gains and losses:
ECONOMY & MARKETSThere are still kinks in the supply lines
Even though the global pandemic began over 19 months ago now, we’re still experiencing its ripple effects today. The world has fought back and rebounded to an extent, but the aftermath of Covid-19 and its variants has inevitably left us with lingering issues that impact the global economy. Supply lines are one of these things. Although it’s probably one of the most boring and monotonous headlines you read last spring, their understated value is becoming realized during pandemic-related bottleneck after bottleneck. The current situation A recent survey by Deloitte showed that 44% of CFOs reported seeing shipping delays cause at least a 5% increase in product pricing, while another 32% reported sales having fallen due to either shortages or delays. A large portion of the supply lines many companies rely on runs through China, and as a result, many of these same CFOs are hoping to transition those supply lines elsewhere. In fact, 32% of those CFOs claimed they’d be working to reduce their reliance on Chinese sourcing, and 39% want to see their sourcing from North America increase as well. Because of sporadic delays, extra lockdowns, shortages, and increasing prices, we’re seeing a confluence of events create a sort of damning butterfly effect on supply lines. Shipping costs have increased over 13x from pre-pandemic levels, and container costs are nearing $10,000 in the US.
Zooming out Productivity has rebounded and our attempts to return to normalcy have in turn revealed some true kinks in the supply lines. The pandemic might have been the starting gun, but the shipping race has gotten creative, and the problems it faces are now multifaceted. Resurrecting and restructuring a global supply chain from pandemic lockdowns is not as simple as it seems. This massive piece of infrastructure is no sports car, and now labor concerns—talent recruiting and retention, burnout, morale, rising wages—are top-of-mind internal risks for this quarter. SPONSORED BY VINOVESTTime to diversify
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Learn more about Vinovest today. INVESTINGThe next tech moonshots
Hypothetically, you won’t need to pick multiple stocks if you just pick the right one once. The right investment of enough cash in the perfect company could set a lot of people up for life, it’s just that this rarely happens. They say luck is the residue of design though, so even if our odds of picking the next Amazon or becoming the next Cathie Woods aren’t great, educating ourselves on the future can certainly increase those odds. Now, large institutional banks might be the last organization you’d suspect to help investors go to the moon, but Bank of America thinks otherwise, apparently. BofA put together a list of the next potential tech moonshots, and some of these sectors may surprise you. So, here are a few genres for your watchlist:
ASHU'S CORPORATE CORNERToday's Movers & Shakers
This commentary is as of 9:07 am EDT. 📈 TRENDING ON FINNY & BEYOND
That’s it for today. Have a good rest of the week! The Finny Team
If you liked this post from The Gist by Finny¹, why not share it? 1 Finny is a personal finance education start-up offering game-based personalized financial education, a supportive discussion forum, and simple stock and fund tools. Our mission is to make learning about all things money fun and easy! The Gist is Finny's newsletter to our community members who are looking to make and save more money, protect their finances and be their own bosses! Finny does not offer investment or stock advice. The Gist is sent twice a week (Tues & Thurs). The editorial team: Austin Payne and Chihee Kim. Thanks to Ashu Singh for Today's Movers & Shakers. *Sponsors or advertisers offer unique consumer services. We're thankful for their sponsorship to enable Finny to offer free financial education. Here's our advertiser disclosure. If you have any feedback for us or are interested in sponsoring The Gist, please send us an email to feedback@askfinny.com. © 2021 Finny Unsubscribe
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2021年9月28日星期二
🧻 Overzealous demand for stuff
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