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The Finance 202: Joe Biden’s tax plan would barely dent growth, conservative group finds

The Finance 202: Joe Biden’s tax plan would barely dent growth, conservative group finds

The analysis concludes Biden’s plan would raise $2.8 trillion over the next decade from higher taxes on businesses, corporations and the wealthiest households. Over that time, AEI projects the higher taxes would reduce economic growth by a relatively modest 0.16 percent.

The plan would “make the tax code more progressive,” AEI’s Kyle Pomerlau and Grant Seiter write. And after slightly crimping growth in its first decade, it would “reduce debt-to-GDP in the second decade, leading to slightly higher GDP. However, in the long term, his plan would not raise enough to stabilize debt-to-GDP and would lead to a 0.18 percent smaller economy.”

The macroeconomic drag the AEI model anticipates roughly aligns with other analyses from the Tax Foundation and the Penn Wharton Budget Model, Pomerlau notes. In other words, rolling back most of the Trump tax cuts wouldn’t bring about the economic Armageddon the Trump campaign has depicted.

Neither would it jack up taxes on every American. 

Vice President Pence made that claim during his debate with Sen. Kamala Harris (D-Calif.),  Biden’s running mate, last week. The AEI analysis finds the top 1 percent of taxpayers would see a 14.2 percent hit to their after-tax income next year. The rest of the top 5 percent would face a small uptick in their burden. But everyone else would receive an after-tax income bump. The largest such increase, of 11.3 percent, would go to the bottom 10 percent, thanks to a temporary expansion of the child tax credit, according to AEI.

The analysis finds that starting in 2030, the Biden plan would impose “modest” tax hikes on the bottom 95 percent of earners, which it attributes to higher taxes on businesses. That would appear to violate Biden’s pledge not to raise taxes on anyone earning less than $400,000

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4 signs you’re being too conservative with your investments

4 signs you’re being too conservative with your investments

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

  • While investing conservatively might sound good, it can actually be a risky move — your money may not get the returns you need to meet retirement or other long-term goals. 
  • If you have a large sum of cash bigger than what you need for an emergency fund, you may not be investing enough.
  • Being invested too conservatively might mean that your portfolio isn’t gaining value over several months, or moving much at all. 
  • And, if a portfolio is full of investments like bonds and money market funds, it might be too conservative and need more aggressive investments, like stocks, for a chance at higher returns in the future.
  • Start investing today with SoFi »

In investing, being too conservative isn’t as good an idea as it sounds. For investments that rely on returns to grow, like retirement savings, being invested with the right amount of risk is essential. 

“Being too conservative may actually be the riskiest thing you can do,” says CFP and Facet Wealth co-founder Brent Weiss. In his experience, the right amount of risk varies from person to person — it depends on how much risk someone can emotionally handle, how much risk your long-term plan allows for, your age, and how much risk someone really needs to take to make investments grow to their target goal.  

“The consistent way to build wealth long-term, especially for retirees to maintain their purchasing power [in retirement], is by having the risk of stocks and equities in your portfolio,” Weiss says. 

Weiss says there are three sure signs to look for

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Why a more conservative Supreme Court may be bad for small business

Why a more conservative Supreme Court may be bad for small business

An interior view of the Supreme Court shows the bench draped with black bunting in honor of the late Justice Ruth Bader Ginsburg in Washington, U.S., in this handout photo released to Reuters on September 20, 2020.

Collection of the Supreme Court | Reuters

Less than 45 days before the election, Justice Ruth Bader Ginsburg passed on, leaving her seat open to a contentious fight that could remake the Supreme Court for generations to come — as well as Main Street.

A case this week exemplifies the wonky, under-the-radar policy changes that could have major implications for small businesses, who are pinned against corporations that the conservative majority has all too frequently favored. Yet this case has an atypical showing of more than 40 state attorneys general lined up in support of small business, a unique yet critical alliance that is appropriately warning the court of the significant consequences an adverse ruling may have to the small business community, and what a consolidated pro-corporate majority could mean for the future.

In 2015, Markkaya Jean Gullet’s Ford Explorer rolled off the road as a result of a tire failure, landing on its roof and killing her in front of her husband and two young children. Earlier that same year, Adam Bandemer was in the passenger seat of a Ford Crown Victoria when its airbag failed to deploy, resulting in a traumatic brain injury from which he will never recover. 

It is clear that Ford Motor Co. should be held accountable for the irresponsible design, safety testing, and manufacturing which inflicted devastating harm. And yet, on Oct. 7, the company will tell the United States Supreme Court that victims of its defective vehicles should not be allowed to file lawsuits in their home states against the company, but instead be forced to

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