NEW YORK (Project Syndicate) —The global financial and economic outlook for the year ahead has soured rapidly in recent months, with policy makers, investors, and households now asking how much they should revise their expectations, and for how long. That depends on the answers to six questions. Six questions First, will the rise in inflation…
If you want to know why Americans are so grumpy about the economy, let’s start with the fact that despite strong job growth and sizable increases in wages, their incomes are simply not keeping up with inflation. Americans just don’t feel poorer — they are poorer. In fact, they have never lost so much purchasing…
Now, in a sign of the economy’s changing headwinds, direct checks are being billed as a way to soften inflation’s bite. But instead of the federal government issuing payments, a growing number of states are cutting checks made possible by budget surpluses. California is the latest state to join the ranks of more than 10…
A new set of reforms to America’s retirement tax and savings plans passed a key hurdle in Congress last week. Variously known as the SECURE Act 2.0, the EARN Act and the RISE & SHINE Act, the measures will make changes to rules around IRAs, 401 (k) s and other tax-privileged retirement plans. The bills…
Read More “3 big problems with Congress’ new retirement reforms” »
All the free money from the government has been spent, and inflation is raging. Now you’re facing a vicious cash shortfall. What to do? One possible solution is taking an early withdrawal from your IRA. By early withdrawal, I mean one that occurs before age 59½. Needless to say, there are federal income tax implications,…
Read More “I need cash. How bad is it to take money out of my IRA?” »
President Joe Biden wants a three-month pause on the federal taxes layered into gasoline and diesel purchases to help drivers pay for gas. After hinting earlier this week he was eyeing a gas tax holiday, Biden called on lawmakers Wednesday to suspend the tax. The federal tax for gasoline is 18.4 cents per gallon and…
While President Joe Biden called on Congress on Wednesday to suspend federal gasoline and diesel taxes for three months, analysts criticized his proposal and predicted that it would not draw sufficient support from US lawmakers. The suspension “would require congressional action, which is exceedingly unlikely,” said Tobin Marcus, a policy and politics strategist at Evercore…
Texas is once again witnessing the largest population growth in the nation as people increasingly migrate to what they see as the fiscal promised land. While greater job opportunities and certainly “warmer” (often ultra-hot) weather await, the impact on their pocketbooks in terms of taxes and fees may leave them wondering if they should search…
Read More “Opinion: This might shock newcomers to Texas: soaring property taxes” »
The Federal Open Market Committee’s perceptions are moving closer to reality, but members still believe they can achieve a miracle: stamping out high inflation without pushing the economy into a recession. Before its latest policy announcement on June 15, the policy-setting FOMC projected the federal funds rate would rise to 2% by yearend; Now it…
Read More “Opinion: The Fed’s new outlook shows that it’s still in a fantasy land” »
Say you own a highly-appreciated vacation home that you’re ready to unload for whatever reason. If you simply sell it, you could face a whopping big income tax bill. See my earlier column on that unfortunate outcome. Ugh. But if you’re still bullish on real estate and not a fan of paying taxes unnecessarily, you…
