Displaying items by tag: biden

Tuesday, 09 August 2022 02:43

Biden Tax Destroys Buy-Backs

Dems are including a 1% tax on share buybacks in Biden’s climate and tax bill which is being pitched as an inflation bill. The tax was included to get Arizona Senator Krysten Sinema on board with the legislation. Most analysts say this will raise tensions with Wallstreet as investors will be apprehensive about the impact immediately and what it opens the door to moving forward. Many companies have recently engaged in massive buybacks using the excess profits to reinvest in their own companies. Experts say this could generate a lot of revenue, more than the carried interest which is expected to bring in $14 billion.


Finsum: Buy back boogeyman at it again. This legislation stops companies from doing the most responsible thing they can with excess cash.

Published in Eq: Total Market

President Biden’s 2023 federal budget levy’s a new ultra-wealthy tax that would apply 20% total income tax on those with a net worth of more than $100 million. Notably in the deal, it opens the window to tax unrealized capital gains or any asset growth. The bill is expected to meet a brick wall in congress however as even moderate Dems will have a difficult time supporting it. Biden’s selling point is the expected $360 billion in payments toward the deficit in the next decade. However, the senate proposed a very similar bill last year that was shut down by congress.


Finsum: Taxing unrealized gains is a slippery slope, and hopefully would never trickle down to different wealth classes.

Published in Wealth Management
Monday, 18 April 2022 20:00

Biden’s New Regulatory Pick

President Biden announced he is going to nominate Michael Barr, former Assistant Secretary of the Treasury and current dean of the University of Michigan's Public Policy School, for the Feds Vice Chairman of Supervision. Previously nominated Sarah Bloom Raskin pulled her nomination with harsh criticism from Republicans because she argued the Fed should discourage lending to traditional energy companies. Barr will be stepping into a difficult role but has experience in Government. He helped create the Consumer Financial Protection Bureau. Critics have said that Barr had been easy on bank regulations during the Obama admin and others were suspicious as to his role with Lending Club and Ripple Labs.


Finsum: This is a relatively new position but it has critical regulatory power for the financial system.

Published in Wealth Management

President Biden’s 2023 federal budget levy’s a new ultra-wealthy tax that would apply 20% total income tax on those with a net worth of more than $100 million. Notably in the deal, it opens the window to tax unrealized capital gains or any asset growth. The bill is expected to meet a brick wall in congress however as even moderate Dems will have a difficult time supporting it. Biden’s selling point is the expected $360 billion in payments toward the deficit in the next decade. However, the senate proposed a very similar bill last year that was shut down by congress.


Finsum: Taxing unrealized gains is a slippery slope, and hopefully would never trickle down to different wealth classes.

Published in Wealth Management
Friday, 18 March 2022 19:22

Biden’s SEC Battling ESG Greenwashing

Biden has hit a brick wall with his climate legislation, and now is going out of his way pleading that oil companies double down on drilling efforts to curb gas prices in response to Russia-Ukraine invasion. However, the SEC is expected to propose new regulation that will force companies to disclose data around their climate risks. This legislation will only come into effect as early as 2023, but it will put a major spotlight on the biggest polluters and carbon contributors. Many believe these changes will force companies to pay higher costs for their carbon use and maybe make it harder for companies to invest in green bonds and funds around these companies.


Finsum: This isn’t enough to end greenwashing; foriegn governments are well ahead of the US in terms of ESG regulation.

Published in Eq: Tech
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