The Internal Revenue Service (IRS) and the U.S. Department of Treasury issued a Notice (Notice 2014-52) last Monday that would further their efforts to prevent U.S. companies from using an increasingly prevalent tactic known as inversion to lower their tax bill. Conventionally, an inversion is a negotiation in which a U.S. multinational company restructures with a foreign … Continue reading
Hillary Clinton is not the only feature of Washington that is “dead broke”: the Highway Trust Fund is set to run out of money by late August, and members of Congress are scrambling to find ways to raise revenue. One solution, proposed by Senators Chris Murphy (D-Conn.) and Bob Corker (R-Tenn.), is to raise the … Continue reading
One fundamental principle of financial markets is the relationship between risk and return. This tenet is reflected in the Capital Asset Pricing Model (CAPM), the workhorse of security pricing, where the return required by investors is measured by adding the risk free rate (such as a treasury bond) to a market risk premium, adjusted for … Continue reading
Social Security is both the largest program in the federal budget and one of the most fiscally unsustainable. The program has already begun paying out more in benefits than it is taking in through payroll taxes. By 2033, the Social Security Trust Fund will be drained and the benefits paid out will decline by 25 … Continue reading
The graying of America is not a new fear for economists and politicians. Before even the earliest Baby Boomers began retiring, economists were making predictions about the hardships America would undoubtedly face as it aged. Many say those problems have already begun, while others argue they have been over exaggerated and prematurely predicted. The American … Continue reading
For the past decade holiday spending has begun before Halloween for about 40% of Americans, meaning the 2013 season is already underway. Halloween spending has served as an indicator of things to come, and this year spending decreased slightly (first decrease since 2009). The National Retail Federation (NRF) has projected a modest 2% spending decrease … Continue reading
Since the financial crisis on Wall Street, consumers have been finding their way to the local doorsteps of credit unions instead of corporate banks – and they are realizing that the doors are always open. While banks continue to feed from the pockets of their customers with mounting checking fees, debit fees, hidden fees, and … Continue reading
Supplemental Nutrition Assistance Program The 2009 Recovery Act was scheduled to have its boost to Supplemental Nutrition Assistance Program (SNAP) reduced when it expired on November 1. For households of three, this will be reduced by $29/month reducing monthly assistance from $63 to $37, Single person households’ SNAP benefits will be cut $11/month, and two-person … Continue reading
For those in the D.C. metro area, this month has been pretty normal. Employees were furloughed. The government shut down. Partisan bickering continued. The city was placed on high alert after a failed attempt to break through White House security, which led to a car chase down Constitution Avenue. Congressmen realized their approval ratings would … Continue reading
Banking is based on a relationship of implicit trust in which consumers trust the bank to safeguard their money and provide instant access to funds while banks trust that consumers will retain a certain portion of their funds within the institution for use as lending capital. In order for a bank to retain solvency, it … Continue reading
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