Read Kennon's thoughts on the current market and your financial security.
In the coming election, two major candidates share a nasty secret. Twenty-five years ago the candidates voted for legislation that now hits middle-class retirees hard. Because of this legislation, many retirees now face effective income tax rates of 46 percent--- even though their household income may be less than $100,000.
Yet these same candidates are claiming that, if elected, they will help the middle class. Each candidate claims he will provide tax breaks for the 95 percent of all households with incomes under $250,000.
For retirees, that simply isn’t true.
Here’s the story.
Here's your quiz question for the day: Who is the biggest liar of them all?
The answer will surprise you and, yes, you're allowed to consult your daily newspaper or favorite Web sites. Gird yourself. You may be overwhelmed by the number of candidates.
Here are just a few:
The 0.5 percent decrease in the CPI-W for August counterbalanced the increase for July. This is the index used to calculate Social Security benefit increases. According to the most recent figures from the Department of Labor, the year-over-year inflation figure for August is 5.9 percent.
The benefit increase, however, is not calculated based on the year-over-year change in the index over a single month. It is based on the change in the index over three months of CPI-W figures. For 2007 the figures for July, August and September were 203.7, 203.199 and 203.899, respectively. That averages to 203.60
It takes a lot of smoke and rubble to make things clear, but this week brought crystal clarity to a new level.
Wall Street bet the ranch.
Wall Street lost the ranch.
As we see the household names crumble and fall, the landscape of American finance is permanently changed. Add a global market decline and everyone, everywhere, is very scared.
So let me point out a few silver linings.
