Tax man is heahhhh [2015/10/23]

Wow...it's been a while since an update.

Man, life has been busy and I had many excuses not to blog but now I am back.

Hopefully, I can have better content this time.

Just came across a Bloomberg article on local government trying to tax everything possible.

Amusement tax on Netflix? I guess Netflix does provide amusement...With this logic, I won't be surprised if the majority of digital content is taxed. I guess vine will be taxed too soon.

I get that there is a big funding gap in government but taxing is not the only tool. They
 could cut some of the unnecessary expenses and start charging for services.

Or cut tax breaks.

For instance, tax breaks for movie productions cost more to tax payers and yet they are still around and increasing in California.

Oh, the irony.

What I have learned today [2015/5/11]

1. Diabetes drug prices are increasing. There are only three companies and price matching seems to be going on.

2. Choose the fixed annuity features carefully.

3. To save on car insurance take defensive driving class and always shop around once a year.

4. Non-financial American firms hold 1.73 trillion in cash. More acquisitions and buybacks are likely. Hopefully, the cash will be used efficiently.

5. There is a robot that delivers stuff in hotels. Wow...less people needed in hotels.

6. Tabacco tax revenues are down. Less people smoking, healthier lives :D

7. Companies  subsidize trips to expand employee's perspective. This is a great policy. I strongly believe traveling opens your eyes and expands one's thoughts.




*From Snapshot Serengeti

What I have learned today [2015/5/10]

1. There are 15,700 garment workers in NYC. In 1960, 95% of US clothing was made in NYC.

2. Pandanus candelabrum plant grows in columns of kimberlite, which may carry diamonds. So find Pandanus candelabrum plant and you increase the chance of finding diamonds :D

3. Alabama started taxing digital goods.

4. Dubai has been proposed  an underwater Tennis court. This sounds very cool but also an alarming waste of resources? Dubai could use that money to invest in education and treat its migrant workers better/

5. Rural farmers are becoming more productive by providing locally; thus, growing the local economy. I think this is a good start, I expect more efficiency gains through the development of the local economy, which attract further talent and resources.




*From Snapshot Serengeti

What I have learned today [2015/4/15]

1. IRS help desk is low on people. This is quite shocking because I would expect the Uncle Sam to do everything to collect taxes but I guess not.


2. Dang....74 million dollar worth of restricted stocks granted but valued at zero.
If that was the case, then the CEO should be indifferent about receiving the restricted stock or not...This is just really bad corporate governance practice....

3. Paulson defends that banking is a noble profession. I completely agree that banking is a noble profession but it has been tainted by mercenaries and skewed incentives.

4. Wow...the US spends combined 54% of taxes on military and health?! This is disturbing. The US has already the mightiest army in the history of humanity. Is the US trying to conquer Mars? I have high respect for the military but I think we can cut down a bit on the military. Wow! Health insurance, really? Better start a new health movement. Or start taxing high caloric foods more.



5. Greatest trading mistakes of great investors. I am always humbled by the humbleness of great investors. The ability to admit that one made a mistake is critical in investing :D If not the market will humble you....



*From Snapshot Serengeti

What to do with pot money

Colorado has collected so much money from marijuana sales tax that it may have to give some money back! See link below http://mic.com/articles/109764/marijuana-is-making-colorado-so-much-money-the-state-has-to-give-some-back

Wow! This does not happen often and here is the one million dollar question.

What should we do with the excess tax revenue?

1. Give back to the tax payers. This makes sense given that the individuals know what is best for them and therefore would use the money most wisely. Classical economics.

2. Use for public goods such as schooling. This proposition makes sense but given that governments are not so good at using  money effectively, well, we will hope for the best.

3. Pay down debt. Colorado has an estimated $57 debt and an interest rate of about 4%. Although the interest payment is low, it may be a good idea to pay down debt. States can run on debt for a long time (e.g. California) but as good financial advisors suggests pay down debt first because interest  compounds quickly.

Overall, it is great that Colorado has extra revenues and I hope that they use that money wisely :D