Daily Digest 4/19 - Tax Angeles, Don't Count On That Gov't Pension
Combining the contemplated taxes with the 2016 and 2017 tax increases, the hit is $4.3 billion, or $1,100 for every Angeleno, $4,400 for a family of four and would result in a 16% sales tax (up over 80%), and an 80% bump in our property taxes.
Of the 237 cities studied, 29 received an "F" grade, reflecting a funding ratio of less than 35 percent. Those plans cover many thousands of workers who cannot possibly be paid their full promised pensions, absent a huge tax increase (which would also come out of their pockets as workers).
Say you’re a freelancer making a net income of $40,000. You would pay roughly $5,000 in self-employment taxes, $3,500 in income taxes and $4,500 in health insurance. That’s 30% of your income.
The UBS researchers also found evidence that defaults on auto loans are likely to spread to more nonprime defaults on credit cards and personal loans. About 16% of all auto loans outstanding are subprime, amounting to $179 billion out of total auto loans of around $1.07 trillion. Overall subprime debt totals $1.25 trillion in mortgages, student loans and auto loans.
China's debt-to-GDP ratio rose to 277 percent at the end of 2016 from 254 percent the previous year, with an increasing share of new credit being used to pay debt servicing costs, according to an estimate from UBS.
The Treasury Department, in a 2016 report, said that the projected expenditures for scheduled benefits for social insurance programs would exceed projected revenue by $46.7 trillion. Adding to it the gross debt of $19 trillion yields a figure of $66 trillion. Over an infinite horizon, Treasury said, total resources for Social Security and Medicare amounted to $90.5 trillion in present value terms.
That means governor Haruhiko Kuroda is likely to have strong backing if he proposes further monetary stimulus and reduces the odds of an early exit from its programme of negative interest rates and massive asset purchases.
A total of 950.12 million euros worth of nine-month treasury bills carried an average interest rate of -0.33 percent, while the remaining 600 million euros worth of three-month treasury bills fetched an average interest rate of -0.487 percent.
THE LUCKY COUNTRY?
One in 10 households can’t pay bills on time
One quarter can’t afford an annual one-week holiday away from home
A fifth can’t pay for entertainment away from home once a fortnight
One in 10 can’t afford a special meal with family or to buy new clothes
Up to one in 20 households experience struggle to meet basic needs such as meals and heating
The chart below by Stéfane Marion, chief economist at economics and strategy at National Bank of Canada, compares U.S. home prices per the Case-Shiller 20-City index to Canadian home prices per the Teranet-National Bank 26-market index. Both indices are based on similar methodologies of comparing pairs of sales of the same home over time. The shaded areas denote recessions in Canada. Note that during the housing crisis in the U.S., there was only a blip in Canada's housing market:
Gold & Silver
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