Friday, July 03, 2015 04:17pm
North Adams, MA now: 75 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
LOG IN | REGISTER NOW   

Home About Archives RSS Feed
The Independent Investor: Let the Lobbying Begin
By Bill Schmick On: 02:04PM / Thursday November 29, 2012

The Fiscal Cliff commands center stage. The nation's news media is dutifully reporting every syllable uttered by anyone even remotely connected to the negotiations. But what really matters is what is said behind closed doors between Washington's lobbyists and our elected officials.

Now that the elections are over, the debate (and agreement) among voters and parties that taxes should be raised and spending cuts must necessarily come down to the details. Those details and the devils that represent them (called special interest groups) are assaulting congressional offices with convincing arguments on why their constituencies should be excluded from either tax increases or spending cuts.

It is an old story. Theoretically, in America, I may agree that we should all suffer for the greater good of the country and the economy, as long as in reality "all" doesn't include me. In Washington, that concept prevails everywhere. A corporate coalition, for example, is lobbying to kill any tax increases in the dividend rate. That rate, currently at 15 percent, could go as high as 35 percent or more. They argue that raising the dividend tax will hurt seniors who depend on dividends as part of their retirement savings.

Of course, they neglect to add that the vast majority of Americans (low-and middle class investors) who own dividend stocks, own them in their retirement accounts, which are excluded from dividend taxes. I suspect that raising taxes on dividends will predominantly impact the 1 percent of America's most wealthy, but that's not part of their argument.

Readers, by now, are fully aware that the sticking point between Republicans and Democrats, as far as extending the Bush tax cuts, centers upon those earning $250,000 or more annually. The Democrats do not want to extend the Bush-era tax cuts to that group, while Republicans do. Instead, the GOP would like to focus on eliminating certain individual tax loopholes, arguing that they would be less harmful to businesses, jobs and the economy.

One loophole being discussed is the tax deductibility of home mortgages for either first or second home owners or both. There is some talk about capping that deduction, although to do so would impact many middle-class Americans as well as the wealthy, argues the homebuilding industry. Their lobby won't tolerate even a minor change in the mortgage interest deduction.

They contend that home ownership has taken the brunt of the decline in the nation's economy and is now only beginning to recover. Monkeying with mortgage deductions would throw housing back into a tailspin and with it the majority of homeowners in this country, according to housing advocates.

AARP, the top lobbyist for retirees, is also dead set against any spending cuts to Medicare and Social Security. Even minor changes such as slowing the cost-of-living formula for Social Security recipients or extending the age of Medicare eligibility is anathema to their constituency, retirees.

Wherever you look, from charitable contributions to energy depletion allowances, some group or another has a reason, sometimes rational, sometimes not, for why the axe should be spared in their case. It appears that where individual interests are concerned, posterity is taking a backseat among America's lobbyists and the populations and professions they represent. I suspect that if we expect our elected officials to compromise and avoid the Fiscal Cliff; Americans should first look at their own attitude toward compromise where our individual interests are concerned.

Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.



0 Comments
     
News Headlines
Economic Development Commission Will 'Roll Out Slowly'
North Adams Youngster To Throw Out Friday's First Pitch at Fenway
Bianchi Accepts Road Race Challenge; Teams Announced
Bird, Blue Devils Earn Win in Giorgi League
North Adams 13s Battle on Difficult Night in Babe Ruth Play
North Adams 15s Win Babe Ruth District Opener
Clark Unveils 'Whistler's Mother' on Saturday
Cranwell Sold For $18 Million
Koczela To Return As Code Enforcement Officer in Adams
Frank Field, Yard Work by Dan Earn Giorgi League Wins

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.

 

 

 



Categories:
@theMarket (172)
Independent Investor (234)
Archives:
June 2015 (7)
May 2015 (6)
April 2015 (8)
March 2015 (6)
February 2015 (7)
January 2015 (9)
December 2014 (7)
November 2014 (4)
October 2014 (9)
September 2014 (5)
August 2014 (7)
July 2014 (2)
Tags:
Recession Federal Reserve Europe Energy Commodities Pullback Bailout Fed Europe Retirement Deficit Debt Congress Oil Interest Rates Metals Stimulus Housing Debt Ceiling Jobs Crisis Selloff Banks Fiscal Cliff Japan Election Euro Economy Stock Market Markets Stocks Rally Currency Taxes Greece
Popular Entries:
The Independent Investor: Don't Fight the Fed
The Independent Investor: Understanding the Foreclosure Scandal
@theMarket: QE II Supports the Markets
The Independent Investor: Does Cash Mean Currencies?
@theMarket: Markets Are Going Higher
The Independent Investor: General Motors — Back to the Future
The Independent Investor: Will the Municipal Bond Massacre Continue?
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: Why Are Interest Rates Rising?
The Independent Investor: How Will Wall Street II Play on Main Street?
Recent Entries:
The Independent Investor: Tiny Houses Gain Appeal
@theMarket: From Russia With love
The Independent Investor: Robo-Advisers Have Landed
@theMarket: Don't Try to Trade This Market
The Independent Investor: Why Interest Rates Are Moving Higher
@theMarket: Too Hot or Too Cold
The Independent Investor: How to Run for President and Make a Fortune
The Independent Investor: Man's Most Expensive Friend
@theMarket: June Is Off the Table
The Independent Investor: Will Memorial Day Kick Off a Strong Summer?


Solid Sound Day Three
Solid Sound concluded Sunday with performances from the...
Solid Sound Day Two
Saturday's performances at Solid Sound included NRBQ,...
Solid Sound Day One
Solid Sound gates opened at 4:30 and concert goers enjoyed...
Colegrove Park School Tour
School and city officials toured the far-from-completion...
Down Street Art 2015 Kickoff
Down Street Art kicked off Thursday night with music, food,...
High School Softball All-Star...
High school softball players from throughout the county...
Bashevkin Farewell Party
Nearly 100 staff, friends, family and partners of the...
Little League Championship...
Hunter Sarkis and Logan Briggs Tuesday evening singled...
Candlelight Vigil for S.C....
More than 300 residents gathered at United Methodist Church...
Central/South Relay for Life...
Hundreds spent Friday night and Saturday morning walking...
'Amazing' Book Launch Party
Hundreds turned out for the release of Ty Allan Jackson's...
Third Thursday June 2015
Third Thursday in Pittsfield brought thousands to North...
Bruins Rally At Cheshire...
The Boston Bruins held a rally for Cheshire Elementary...
Pittsfield High Graduation...
Pittsfield High School held its graduation on Sunday at...
Taconic High Graduation 2015
Taconic High School held its graduation exercises on...
Lenox High Graduation 2015
Lenox Memorial High School presented diplomas to 64...
Solid Sound Day Three
Solid Sound concluded Sunday with performances from the...
Solid Sound Day Two
Saturday's performances at Solid Sound included NRBQ,...
Solid Sound Day One
Solid Sound gates opened at 4:30 and concert goers enjoyed...
Colegrove Park School Tour
School and city officials toured the far-from-completion...
Down Street Art 2015 Kickoff
Down Street Art kicked off Thursday night with music, food,...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings |
Advertise | Recommend This Page | Help Contact Us
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2012 Boxcar Media LLC - All rights reserved

Privacy Policy| User Agreement